WPC 470 MIDTERM MHE CHP 1-5 TAKE AWAYS MOORE
strategy - Answer -a set of goal directed action a firm takes to gain and sustain superior
performance relative to competitors
a good strategy has three elements - Answer -1. a diagnosis of the competitive
challenge
2. a guiding policy to address the competitive challenge
3. a set of coherent actions to implement the firms guiding policy
successful strategy requires three integrative management tasks: - Answer -analysis,
formulation, implementation
competitive advantage - Answer -always judged relative to other competitors or the
industry average
obtaining competitive advantage - Answer -firm must either create more value for
customers while keeping its cost comparable to competitors, or it must provide the value
equivalent to competitors but at a lower cost
sustained competitive advantage - Answer -firm is able to outperform competitors for
prolonged periods of time
competitive disadvantage - Answer -a firm that continuously under-performs its rivals or
the industry average
competitive parity - Answer -two or more firms that perform at the same level
effective strategy - Answer -requires strategic tradeoffs be recognized and addressed
ex. between value creation and the costs to create the value
vision - Answer -captures organizations aspirations, effective vision inspires and
motivates members of the organization
mission statement - Answer -describes what an organization actually does, what its
business is, and why and how does it work
core values - Answer -define the ethical standards and norms hat should govern the
behavior of individuals within the firm
product-oriented vision statement - Answer -defines a business in terms of a good or
service provided
, customer-oriented vision statement - Answer -define business in terms of providing
solutions to customer needs, provide managers with more strategic flexibility than
product-oriented missions
visions and missions can be effective; - Answer -need to be backed up by hard-to-
reverse strategic commitments and tied to economic fundamentals
ethical core values - Answer -underlay the vision statement to ensure the stability of the
strategy and thus lay the groundwork for long-term success, the guardrails that help
keep the company on track when pursuing its mission and its quest for competitive
advantage
Top-down strategic planning - Answer -a sequential, linear process that works
reasonably well when the environment does not change much
scenario planning - Answer -managers envision what-if scenarios and prepare
contingency plans that can be called upon when necessary
strategic initiative - Answer -Can be the result of top-down planning or emerge from
bottom-up process from deep within the organization. Have the potential to shape the
firm's strategy
Realized Strategy - Answer -a combination of its top-down intended strategy and
bottom-up emergent strategy, resulting in planned emergence
stakeholders - Answer -the individuals or groups that have a claim or interest in the
performance and continued survival of the firm, they make specific contributions for
which they expect rewards in return
internal stakeholders - Answer -include stockholders, employees (including executives,
managers, and workers), and board members.
external stakeholders - Answer -include customers, suppliers, alliance partners,
creditors, unions, communities, governments at various levels, and the media
stakeholder strategy - Answer -the effective management of stakeholders is necessary
to ensure the continued survival of the firm and to sustain any competitive advantage
stakeholder impact analysis - Answer -considers the needs of different stakeholders,
which enables the firm to perform optimally and to live up to the expectations of good
citizenship
in stakeholder impact analysis - Answer -managers pay particular attention to three
important stakeholder attributes: power, legitimacy, and urgency.
strategy - Answer -a set of goal directed action a firm takes to gain and sustain superior
performance relative to competitors
a good strategy has three elements - Answer -1. a diagnosis of the competitive
challenge
2. a guiding policy to address the competitive challenge
3. a set of coherent actions to implement the firms guiding policy
successful strategy requires three integrative management tasks: - Answer -analysis,
formulation, implementation
competitive advantage - Answer -always judged relative to other competitors or the
industry average
obtaining competitive advantage - Answer -firm must either create more value for
customers while keeping its cost comparable to competitors, or it must provide the value
equivalent to competitors but at a lower cost
sustained competitive advantage - Answer -firm is able to outperform competitors for
prolonged periods of time
competitive disadvantage - Answer -a firm that continuously under-performs its rivals or
the industry average
competitive parity - Answer -two or more firms that perform at the same level
effective strategy - Answer -requires strategic tradeoffs be recognized and addressed
ex. between value creation and the costs to create the value
vision - Answer -captures organizations aspirations, effective vision inspires and
motivates members of the organization
mission statement - Answer -describes what an organization actually does, what its
business is, and why and how does it work
core values - Answer -define the ethical standards and norms hat should govern the
behavior of individuals within the firm
product-oriented vision statement - Answer -defines a business in terms of a good or
service provided
, customer-oriented vision statement - Answer -define business in terms of providing
solutions to customer needs, provide managers with more strategic flexibility than
product-oriented missions
visions and missions can be effective; - Answer -need to be backed up by hard-to-
reverse strategic commitments and tied to economic fundamentals
ethical core values - Answer -underlay the vision statement to ensure the stability of the
strategy and thus lay the groundwork for long-term success, the guardrails that help
keep the company on track when pursuing its mission and its quest for competitive
advantage
Top-down strategic planning - Answer -a sequential, linear process that works
reasonably well when the environment does not change much
scenario planning - Answer -managers envision what-if scenarios and prepare
contingency plans that can be called upon when necessary
strategic initiative - Answer -Can be the result of top-down planning or emerge from
bottom-up process from deep within the organization. Have the potential to shape the
firm's strategy
Realized Strategy - Answer -a combination of its top-down intended strategy and
bottom-up emergent strategy, resulting in planned emergence
stakeholders - Answer -the individuals or groups that have a claim or interest in the
performance and continued survival of the firm, they make specific contributions for
which they expect rewards in return
internal stakeholders - Answer -include stockholders, employees (including executives,
managers, and workers), and board members.
external stakeholders - Answer -include customers, suppliers, alliance partners,
creditors, unions, communities, governments at various levels, and the media
stakeholder strategy - Answer -the effective management of stakeholders is necessary
to ensure the continued survival of the firm and to sustain any competitive advantage
stakeholder impact analysis - Answer -considers the needs of different stakeholders,
which enables the firm to perform optimally and to live up to the expectations of good
citizenship
in stakeholder impact analysis - Answer -managers pay particular attention to three
important stakeholder attributes: power, legitimacy, and urgency.
