Strategic Mgmt EXAM QUESTIONS AND
VERIFIED ANSWERS
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Terms in this set (90)
What is Business Strategy A vision, an ambition, a business Idea
starting point ?
what does the company want to become ultimately ?
Vision
Future state, a dream
Business Idea
Lead innovation with the Big Idea
Change paradigm
Strategy starting point
Create value
Desire for a future state
It is a destination
A vision is very often articulated into a Mission, a
statement intended for internal and external publics
Mission Statement answers 2 types of questions
Company's vision « Why we exist and what we want to be »
« What we believe in and how we will behave »
• States a position and principles / values = company's
culture
, Choice of the firm's future, its « future state »in the
medium to long term and the roadmap to get from
current state to desired future state
• A unifying theme that gives direction to decisions
and actions to get there
• Future state : coherent picture of markets and
segments, technology, industry, organisation, people
antd their capabilities
Strategy Definition
The strategy is a looking-forward process, It aims at
designing the road to reach the desired future of the
firm
This is done in 3 steps
1- Define objectives based on today's situation and
vision of the desired future,
2 - Identify key drivers to achieve objectives
3 - Develop capabilities required to support the
process
1. Define Scope - industry, region, years
2. Identify Key Drivers - PESTEL, forecasts, cube
classical 5 steps approach 3. Develop distinct scenario stories - name scenarios
4. Identify Impacts - check & adapt strategies
5. Monitor Progress - early warning indicators
On existing
On surviving
On long term success of the organization
Global Firm perspective • Involves all areas that can have a lasting effect on
the organization
Structure, competition, personnel, technology,
production, regulation, etc.
the art and science of developing and employing
instruments of national power in a synchronized and
What is Strategy
integrated fashion to achieve theater, national, and/or
multinational objectives
, Attention, Interest, Desire, Action
The winning strategy
the AIDA Model
• Be different from competitors
• Create interest
• Create value for customers
Be different from competitors
The 3 ingredients for a
• Create value for customers
winning strategy
• In a durable fashion
, Ultimate goal :
« generate profit in a durable way»
• Corporate level: which industries do we want to be
operating in
• New product or service
• Acquisition
• Divestement
• Business level: in a given industry, how can we beat
competition è competitive advantage
The Corporate Strategy aims at identifying in which
sectors the firm wants to operate and how to combine
all activities to generate the best profitability
The 2 Strategy Levels
emergence of Strategic Business Units (SBUs)
The Business Strategy aims at creating and maintaining
a competitive advantage for the firm in a specific SBU
A Strategic Business Unit (SBU) is an activity or a
subset of activities that has the following
characteristics :
• specific clients,
• specific markets,
• specific distribution networks,
• specific competitors,
• specific technologies,
• specific skills,
• a specific cost structure
Objective is to get to unsurpassed postion
• Rivals must be outperformed
The Concept of Rivalry • Only if the company can establish a difference that it
can preserve either by delivering greater value, or by
creating comparable value at lower cost
VERIFIED ANSWERS
Save
Terms in this set (90)
What is Business Strategy A vision, an ambition, a business Idea
starting point ?
what does the company want to become ultimately ?
Vision
Future state, a dream
Business Idea
Lead innovation with the Big Idea
Change paradigm
Strategy starting point
Create value
Desire for a future state
It is a destination
A vision is very often articulated into a Mission, a
statement intended for internal and external publics
Mission Statement answers 2 types of questions
Company's vision « Why we exist and what we want to be »
« What we believe in and how we will behave »
• States a position and principles / values = company's
culture
, Choice of the firm's future, its « future state »in the
medium to long term and the roadmap to get from
current state to desired future state
• A unifying theme that gives direction to decisions
and actions to get there
• Future state : coherent picture of markets and
segments, technology, industry, organisation, people
antd their capabilities
Strategy Definition
The strategy is a looking-forward process, It aims at
designing the road to reach the desired future of the
firm
This is done in 3 steps
1- Define objectives based on today's situation and
vision of the desired future,
2 - Identify key drivers to achieve objectives
3 - Develop capabilities required to support the
process
1. Define Scope - industry, region, years
2. Identify Key Drivers - PESTEL, forecasts, cube
classical 5 steps approach 3. Develop distinct scenario stories - name scenarios
4. Identify Impacts - check & adapt strategies
5. Monitor Progress - early warning indicators
On existing
On surviving
On long term success of the organization
Global Firm perspective • Involves all areas that can have a lasting effect on
the organization
Structure, competition, personnel, technology,
production, regulation, etc.
the art and science of developing and employing
instruments of national power in a synchronized and
What is Strategy
integrated fashion to achieve theater, national, and/or
multinational objectives
, Attention, Interest, Desire, Action
The winning strategy
the AIDA Model
• Be different from competitors
• Create interest
• Create value for customers
Be different from competitors
The 3 ingredients for a
• Create value for customers
winning strategy
• In a durable fashion
, Ultimate goal :
« generate profit in a durable way»
• Corporate level: which industries do we want to be
operating in
• New product or service
• Acquisition
• Divestement
• Business level: in a given industry, how can we beat
competition è competitive advantage
The Corporate Strategy aims at identifying in which
sectors the firm wants to operate and how to combine
all activities to generate the best profitability
The 2 Strategy Levels
emergence of Strategic Business Units (SBUs)
The Business Strategy aims at creating and maintaining
a competitive advantage for the firm in a specific SBU
A Strategic Business Unit (SBU) is an activity or a
subset of activities that has the following
characteristics :
• specific clients,
• specific markets,
• specific distribution networks,
• specific competitors,
• specific technologies,
• specific skills,
• a specific cost structure
Objective is to get to unsurpassed postion
• Rivals must be outperformed
The Concept of Rivalry • Only if the company can establish a difference that it
can preserve either by delivering greater value, or by
creating comparable value at lower cost
