Business Policy and Strategy Exam 1 (CH 1-5) QUESTIONS WITH DETAILED ANSWERS.pdf

Business Policy and Strategy Exam 1
(CH 1-5) QUESTIONS WITH DETAILED
ANSWERS
goalWofWstrategicWmanagementW-
WCORRECTWANSWERStoWcreateWandWsustainWcompetitiveWadvantage



operationalWeffectivenessW-
WCORRECTWANSWERSperformingWsimilarWactivitiesWbetterWthanWrivalsW

(doesWnotWleadWtoWsustainableWcompetitiveWadvantage)



competitiveWadvantageW-WCORRECTWANSWERS-Wgoal:WoutperformWtheWcompetition

-
WbeWdifferentW(performWdifferentWactivitiesWfromWrivals;WperformWsimilarWactivitiesWi
nWdifferentWways)

-WofferWproductWorWserviceWvaluedWbyWcustomers

-WmanagersWmustWcreateWadvantagesWthatWareWsustainableWforWlongWperiods

-
WhowWcanWweWcreateWcompetitiveWadvantagesWthatWareWnotWonlyWuniqueWandWva
luableWbutWalsoWdifficultWforWcompetitorsWtoWcopyWorWsubstitute?



StrategicWManagementWProcessW-WCORRECTWANSWERS1.W(gather)Wdata

2.Wanalyzing

3.Wdeciding

4.Wacting



strategicWanalysisW-WCORRECTWANSWERSmanagers'WunderstandingWof:W

-WtheWorganization'sWoverarchingWgoalsW

,-WtheWorganization'sWinternalWandWexternalWenvironment

providesWsupportWforWtheWnextWtwoWphases



decidingWstrategyW-
WCORRECTWANSWERSoverallWplansWthatWfirmsWdevelopWtoWcompeteWandWoutperfor
mWrivalsW

analysisWisWusedWtoWmakeWdecisionsWthat:W

-WuseWstrengthsW

-WlimitWweaknessesW

-WexploitWopportunitiesW

-WdefendWagainstWthreats



strategicWcontextsW-WCORRECTWANSWERS-Wbusiness-levelWstrategy

-Wcorporate-levelWstrategy

-WinternationalWstrategy



business-levelWstrategyW-
WCORRECTWANSWERShowWdoWfirmsWcompeteWinWaWgivenWindustryWtoWgainWcompe
titiveWadvantage?



corporate-levelWstrategyW-WCORRECTWANSWERS-
WwhatWbusinessesWshouldWtheWcorporationWcompeteWin?

-WhowWcanWbusinessesWbeWmanagedWtoWachieveWsynergy?



internationalWstrategyW-
WCORRECTWANSWERShowWshouldWfirmsWexpandWbeyondWnationalWboundaries?

,actingWonWstrategyW-
WCORRECTWANSWERSstrategicWplansWareWofWnoWuseWunlessWtheyWareWactedWupon

typicalWareasWofWaction:

-WeffectiveWorganizationalWdesign

-WstrategicWleadershipW

-WappropriateWresourcesWandWinvestments

-WeffectiveWcorporateWgovernanceWandWcontrols



hierarchyWofWgoalsW-WCORRECTWANSWERS-WstrategicWvision

-WmissionWstatement

-WstrategicWobjectives



strategicWvisionW-WCORRECTWANSWERS-
WaspirationalWandWfutureWoriented:WwhereWareWweWgoing?

-WstatesWaWdestination:WwhatWdoWweWwantWtoWachieve?

-WstatedWveryWbroadly



missionWstatementW-WCORRECTWANSWERS-
WspecifiesWtheWpresentWbusinessWandWpurposeW

-WwhoWweWare,WwhatWweWdoW(whoWweWserve),WwhyWweWareWhere



strategicWobjectivesW-WCORRECTWANSWERS-
WusedWtoWoperationalizeWtheWmissionWstatement

-
WprovideWguidanceWonWhowWtheWorganizationWcanWfulfillWorWmoveWtowardWtheW"
higherWgoals"WinWtheWgoalWhierarchyW-WtheWmissionWandWvision

, visionWandWmissionWstatementsW-WCORRECTWANSWERS-
WgoodWvisionsWandWmissionWstatementsWcommunicateWwhyWanWorganizationWisWspe
cialWandWdifferentW

-
WfewWmissionWstatementsWidentifyWprofitWorWanyWfinancialWindicatorWasWtheWsoleW
purposeWofWtheWfirm



coherenceWofWstrategicWdecisionW-WCORRECTWANSWERS-
WthereWshouldWbeWconsistencyWamongWtheWhierarchyWofWgoalsW

-WconsistencyWamongWtheseWgoalsWcanWmaximizeW

--WemployeeWmotivationW

--WsenseWofWequityWandWfairnessWwhenWrewardsWareWallocatedW

-
WinconsistencyWamongWtheWgoalsWcanWresultWinWconfusionWamongWemployeesWasWt
oWwhatWtheWfirmWvaluesW

--WlossWofWidentificationWwithWtheWfirmW

--WlossWofWmotivation

--Wturnover



whyWanalyzeWexternalWenvironmentW-WCORRECTWANSWERS-
WidentifyWbusinessWopportunitiesW

-WidentifyWthreatsW

-WmakeWforecastsW

-WprovideWinputWintoWstrategy



industrialWorganizationalWmodelW-WCORRECTWANSWERS-WI/OWmodel

-
WkeyWidea:WtheWexternalWenvironmentWisWtheWmainWdeterminantWofWhowWtoWdev
elopWandWexecuteWstrategy