MIS 375 EXAM 1 QUESTIONS & ANSWERS
Why are vision statements important? - Answer -- Reflects reputational aspirations and
operational focus - Comprised of Business Model which is broken down into Financial
values, Human values, and Environmental values
- vision is not the strategy but it makes it possible for companies to do their strategy
4 financial values - Answer -money motives
stability, profitability, investment, and community
4 human values - Answer -human sensitivity
development, enablement, equity, transparency
4 environmental values - Answer -planet sustainability
safe, sustainable, efficient, proactive
What can vision statements influence? - Answer -- Influences recruiting, customer
association, partnering acceptance, and outside investment
Who cares about vision statements? - Answer -- Companies should align vision
statements with potential target stakeholders like
Could considering and implementing a selection of the twelve values be important for a
business? - Answer -- don't need all twelve values, but good to at a minimum, clearly
express the mission or high level business model of the organization should be
expressed
- can refine the vision through the 12 values
What 4 strategy considerations are important for the internal environment? - Answer -
internal environment: key interactions which directly impact the success or failure of the
organization and influence the organizational behavior and efficiency of the organization
competitors, partners, consumers, suppliers
What 6 strategy considerations are important for the external environment? - Answer -
External: special forces which directly influence and/or constrain the org currently or
which have the potential to impact the org in the future
socioeconomic, technological, demographic, political, regulatory, economic
What is the breakdown of the 6 types of strategies to consider when identifying the
details? - Answer -- Regulatory (actions from external environmental forces)
, - Positioning (actions for desired market positioning and/or tradeoff adjustments)
- Innovation (actions to create competitive advantage)
- Efficiency (actions to create operational efficiency)
- Partnering (actions to build better supply chains, increase bargaining power, or expand
partnerships)
- HR (actions to recruit, retain, and develop human talent)
- Capital (actions to build facilities, expand geographically, or obtain new tech)
What are (Porter's) four generic strategies? What factors do we think about when
classifying them? - Answer -- Cost leadership = gaining market share and profit through
low prices
- Differentiation = gaining market share through unique or specialized offerings
- Broad = focusing on the total available market
- Narrow = focusing on a smaller, niche part of the market
cost leadership (broad focus) - Answer -- optimize operational efficiency until you
become the low price leader in a very large market
- Ex Walmart, Google
cost leadership (narrow focus) - Answer -- reduce the customer price for products or
services while still ensuring profitability in a specialized, niche market
- Ex Lime, frontier airlines
differentiation (broad focus) - Answer -- be the top product or service choice within their
industry
- Ex Chick fil a, Apple
differentiation (narrow focus) - Answer -- offering of products or services that are
unique and more attractive than competitors value in a specialized, niche market
- Ex Ferrari
Is it important for an organization to identify a competitive strategy? - Answer -yes
In this class, what are the key components that need to be defined to articulate market
positioning? - Answer -- Products (materials-based), services (labor-based), and
geography
- Offer Different products or services from rivals or performingsimilar activities in
different ways (difficult to duplicate)
What is adjacency? - Answer -- identification of new products, services, and
geographies which would be a natural and logical addition based on the current needs
of the existing customers
- can contribute to the growth of an org through acquisition of new customers who
consume the adjacent offering
Why are vision statements important? - Answer -- Reflects reputational aspirations and
operational focus - Comprised of Business Model which is broken down into Financial
values, Human values, and Environmental values
- vision is not the strategy but it makes it possible for companies to do their strategy
4 financial values - Answer -money motives
stability, profitability, investment, and community
4 human values - Answer -human sensitivity
development, enablement, equity, transparency
4 environmental values - Answer -planet sustainability
safe, sustainable, efficient, proactive
What can vision statements influence? - Answer -- Influences recruiting, customer
association, partnering acceptance, and outside investment
Who cares about vision statements? - Answer -- Companies should align vision
statements with potential target stakeholders like
Could considering and implementing a selection of the twelve values be important for a
business? - Answer -- don't need all twelve values, but good to at a minimum, clearly
express the mission or high level business model of the organization should be
expressed
- can refine the vision through the 12 values
What 4 strategy considerations are important for the internal environment? - Answer -
internal environment: key interactions which directly impact the success or failure of the
organization and influence the organizational behavior and efficiency of the organization
competitors, partners, consumers, suppliers
What 6 strategy considerations are important for the external environment? - Answer -
External: special forces which directly influence and/or constrain the org currently or
which have the potential to impact the org in the future
socioeconomic, technological, demographic, political, regulatory, economic
What is the breakdown of the 6 types of strategies to consider when identifying the
details? - Answer -- Regulatory (actions from external environmental forces)
, - Positioning (actions for desired market positioning and/or tradeoff adjustments)
- Innovation (actions to create competitive advantage)
- Efficiency (actions to create operational efficiency)
- Partnering (actions to build better supply chains, increase bargaining power, or expand
partnerships)
- HR (actions to recruit, retain, and develop human talent)
- Capital (actions to build facilities, expand geographically, or obtain new tech)
What are (Porter's) four generic strategies? What factors do we think about when
classifying them? - Answer -- Cost leadership = gaining market share and profit through
low prices
- Differentiation = gaining market share through unique or specialized offerings
- Broad = focusing on the total available market
- Narrow = focusing on a smaller, niche part of the market
cost leadership (broad focus) - Answer -- optimize operational efficiency until you
become the low price leader in a very large market
- Ex Walmart, Google
cost leadership (narrow focus) - Answer -- reduce the customer price for products or
services while still ensuring profitability in a specialized, niche market
- Ex Lime, frontier airlines
differentiation (broad focus) - Answer -- be the top product or service choice within their
industry
- Ex Chick fil a, Apple
differentiation (narrow focus) - Answer -- offering of products or services that are
unique and more attractive than competitors value in a specialized, niche market
- Ex Ferrari
Is it important for an organization to identify a competitive strategy? - Answer -yes
In this class, what are the key components that need to be defined to articulate market
positioning? - Answer -- Products (materials-based), services (labor-based), and
geography
- Offer Different products or services from rivals or performingsimilar activities in
different ways (difficult to duplicate)
What is adjacency? - Answer -- identification of new products, services, and
geographies which would be a natural and logical addition based on the current needs
of the existing customers
- can contribute to the growth of an org through acquisition of new customers who
consume the adjacent offering
