MAN 3025 CHAPTER 6-10 EXAM
QUESTIONS WITH CORRECT ANSWERS
Strategic Positioning - Answer-Attempts to achieve sustainable competitive advantage
by preserving what is distinctive about a company.
3 resources
Few needs, many costumers
Broad needs, few costumers
broad needs, many costumers
5 Steps of Strategic management - Answer-1. Establish the mission and the vision
2.Asses the current reality
3.Formulate the grand strategy
4.Implement the strategy
5. Maintain strategic control
Mission Statement - Answer-organizations purpose or reason for being
Vision Statement - Answer-long term goal describing what it wants to become which
describes its long term direction and strategic intent.
Strategic control or feedback loop - Answer-consists of monitoring the execution of
strategy and making adjustments, if necessary.
Ex. Engage people, Keep it simple. stay focus, keep moving
Competitive intelligence - Answer-Means gaining information about one's competitor's
activities so that you can anticipate their moves and react appropriately.
SWOT analysis - Answer-Also known as situational analysis affecting the org
S strength: inside matters
W weakness: inside matters
O Opportunities : Outside matters
T Threats : outside matters
Forecasting - Answer-is a vision or projection of the future
trend analysis - Answer-is a hypothetical extension of a past series of events into the
future
Benchmarking - Answer-is a process by which a company compares its performance
with that of high-performing org
Porter's model for industry analysis (5 competitive Forces) - Answer-1. Threats of new
entrants
,2.Bargaining power of suppliers
3. Bargaining porter of buyers
4. Threats of substitute products or service
5. rivalry among competitors
3 common grand strategies - Answer-1. growth strategy
2.stability strategy
3.defensive strategy
Growth strategy - Answer-Grand strategy that involves expansion- as in sales revenues,
market share, number of employees, or number of customers or (for nonprofits) clients
served.
stability strategy - Answer-grand strategy that involved little or no significant change.
defensive strategy - Answer-retrenchment strategy, is a grand strategy that involves
reduction on the organization's efforts.
Porter's four competitive strategies (four generic) - Answer-1. cost leadership
2. differentiation
3. cost focus
4. focused differentiation
cost leadership strategy - Answer-is to keep the costs, and hence prices, of a product or
service below those of competitors and to target the wide market
Differentiation strategy - Answer-offer products or service that are of unique and
supervisor value compared with those of competitors but to target a wide market
cost focus strategy - Answer-is to keep the costs, and hence prices, or a product or
service below those of competitors and to target a narrow market
focused- differentiation strategy - Answer-offer products or services that are of unique
and superior valuer compared to those of competitors and to target a narrow market
Single product strategy - Answer-company makes and sells only one product within its
market
+ the benefit - focus in one product means that your company can become savvy about
making the product to perfection.
+ the risk - vulnerability-- if something happens all aspects of the business fail and may
go under.
Diversification strategy - Answer-operating several businesses in order to spread the
risk.
, unrelated diversification - Answer-- operating several business under one ownership
that are not related to one another
Related diversification - Answer-which an organization under one ownership operates
separate businesses that are related to one another
synergy - Answer-the economic value of separate, related businesses under one
ownership and management is greater together that the businesses are worth
separately
BCG Matrix - Answer-means of evaluating strategic business units on the basis
1. their business growth rates
2. their share of the market
Strategy implementation - Answer-strategic plans into effect which means dealing with
roadblocks within the organization's structure and culture and seeking if the right people
and control systems are available to execute the plans.
Larry Bossidy - Answer-the CEO of alliedSignal (later Honeywell).
Author of Execution
Ram Charan - Answer-business adviser to senior executives
Author of Execution
Execution - Answer-they say, is not simply tactics, it is a central part of any company's
strategy. It consists of using questioning, analysis, and follow-through to mesh strategy
with reality, align people with goals, and achieve results promised.
3 core processes of business - Answer--people: "You need to consider who will benefit
you in the future"
-Strategy: " You need to consider how success will be accomplished"
-Operations: " You need to consider what path will be followed"
How to execution helps implement and control strategy - Answer-Effective execution will
not occur unless the culture supports an emphasis on getting quality work done in a
timely manner.
example of Few needs, many costumers strategic position - Answer-Jiffy Lube provides
only lubricants, but it provides them to all kinds of people with all kinds of motor vehicles
Ex. Broad needs, few customers Strategic Position - Answer-Wealth management and
investment advisory firm Bessemer Trust focuses exclusively on high net worth clients
Ex. Broad needs, many customers Strategic position - Answer-National movie theater
operator Carmike Cinemas operates only in cities with populations of fewer than
200,000 people
QUESTIONS WITH CORRECT ANSWERS
Strategic Positioning - Answer-Attempts to achieve sustainable competitive advantage
by preserving what is distinctive about a company.
3 resources
Few needs, many costumers
Broad needs, few costumers
broad needs, many costumers
5 Steps of Strategic management - Answer-1. Establish the mission and the vision
2.Asses the current reality
3.Formulate the grand strategy
4.Implement the strategy
5. Maintain strategic control
Mission Statement - Answer-organizations purpose or reason for being
Vision Statement - Answer-long term goal describing what it wants to become which
describes its long term direction and strategic intent.
Strategic control or feedback loop - Answer-consists of monitoring the execution of
strategy and making adjustments, if necessary.
Ex. Engage people, Keep it simple. stay focus, keep moving
Competitive intelligence - Answer-Means gaining information about one's competitor's
activities so that you can anticipate their moves and react appropriately.
SWOT analysis - Answer-Also known as situational analysis affecting the org
S strength: inside matters
W weakness: inside matters
O Opportunities : Outside matters
T Threats : outside matters
Forecasting - Answer-is a vision or projection of the future
trend analysis - Answer-is a hypothetical extension of a past series of events into the
future
Benchmarking - Answer-is a process by which a company compares its performance
with that of high-performing org
Porter's model for industry analysis (5 competitive Forces) - Answer-1. Threats of new
entrants
,2.Bargaining power of suppliers
3. Bargaining porter of buyers
4. Threats of substitute products or service
5. rivalry among competitors
3 common grand strategies - Answer-1. growth strategy
2.stability strategy
3.defensive strategy
Growth strategy - Answer-Grand strategy that involves expansion- as in sales revenues,
market share, number of employees, or number of customers or (for nonprofits) clients
served.
stability strategy - Answer-grand strategy that involved little or no significant change.
defensive strategy - Answer-retrenchment strategy, is a grand strategy that involves
reduction on the organization's efforts.
Porter's four competitive strategies (four generic) - Answer-1. cost leadership
2. differentiation
3. cost focus
4. focused differentiation
cost leadership strategy - Answer-is to keep the costs, and hence prices, of a product or
service below those of competitors and to target the wide market
Differentiation strategy - Answer-offer products or service that are of unique and
supervisor value compared with those of competitors but to target a wide market
cost focus strategy - Answer-is to keep the costs, and hence prices, or a product or
service below those of competitors and to target a narrow market
focused- differentiation strategy - Answer-offer products or services that are of unique
and superior valuer compared to those of competitors and to target a narrow market
Single product strategy - Answer-company makes and sells only one product within its
market
+ the benefit - focus in one product means that your company can become savvy about
making the product to perfection.
+ the risk - vulnerability-- if something happens all aspects of the business fail and may
go under.
Diversification strategy - Answer-operating several businesses in order to spread the
risk.
, unrelated diversification - Answer-- operating several business under one ownership
that are not related to one another
Related diversification - Answer-which an organization under one ownership operates
separate businesses that are related to one another
synergy - Answer-the economic value of separate, related businesses under one
ownership and management is greater together that the businesses are worth
separately
BCG Matrix - Answer-means of evaluating strategic business units on the basis
1. their business growth rates
2. their share of the market
Strategy implementation - Answer-strategic plans into effect which means dealing with
roadblocks within the organization's structure and culture and seeking if the right people
and control systems are available to execute the plans.
Larry Bossidy - Answer-the CEO of alliedSignal (later Honeywell).
Author of Execution
Ram Charan - Answer-business adviser to senior executives
Author of Execution
Execution - Answer-they say, is not simply tactics, it is a central part of any company's
strategy. It consists of using questioning, analysis, and follow-through to mesh strategy
with reality, align people with goals, and achieve results promised.
3 core processes of business - Answer--people: "You need to consider who will benefit
you in the future"
-Strategy: " You need to consider how success will be accomplished"
-Operations: " You need to consider what path will be followed"
How to execution helps implement and control strategy - Answer-Effective execution will
not occur unless the culture supports an emphasis on getting quality work done in a
timely manner.
example of Few needs, many costumers strategic position - Answer-Jiffy Lube provides
only lubricants, but it provides them to all kinds of people with all kinds of motor vehicles
Ex. Broad needs, few customers Strategic Position - Answer-Wealth management and
investment advisory firm Bessemer Trust focuses exclusively on high net worth clients
Ex. Broad needs, many customers Strategic position - Answer-National movie theater
operator Carmike Cinemas operates only in cities with populations of fewer than
200,000 people
