HK 100 EXAM 2 PRACTICE SOLUTION
TESTED QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED RESOURCE
●● elements of strategy
Answer: objective, scope, advantage
●● parts of setting a business strategy
Answer: most vague:
--mission (we have to have this, its our guiding Northstar, why we exist)
-- values (develop interview questions to see if they have these, what we
believe in and how we will behave)
--vision (what we want to be)
--strategy (how company accomplishes the above, what we want our
competitive game plan to be)
--balanced scorecard (how we will monitor and implement our strategy)
most specific
●● difference between mission and values
Answer: mission: "to bring transportation everywhere"
values: "we persevere, we build globally, we do the right thing"
,●● mission statements
Answer: Northstar of company, believe every employee should be able
to recite this and have a connection with it in their work or the company
or they don't preform as well
---"to bring inspiration and innovation to every athlete in the
world"=nike
--"to provide the best customer service possible."=zappos (amazon
owned)
--"at microsoft, our mission is to enable people and businesses
throughout the world to realize their full potential"=microsoft
---microsoft bought LinkedIn bc it fit with their mission statement
●● values
Answer: there is no universally right set of core values, but there is a
recommended number of 3-5
--disney: imagination and wholesomeness
--P&G: product excellence
--nordstrom: service to the customer and never being satisfied
--shell: honest, integrity, and respect for people
●● first component of strategy statement
Answer: objective..... ends
---ex. be the largest player in the industry
, ●● second component of strategy statement
Answer: scope....three dimensions: customer or offering, geographic
location (nationwide, global, etc), and integration (vertical or horizontal
●● third component of strategy statement
Answer: advantage....means (statement of customer value proposition
and unique activities that allow that firm alone to deliver on that value
proposition)
●● Vertical Integration
Answer: Practice where a single entity controls the entire process of a
product, from the raw materials to distribution
----in charge of supply chain
●● Horizontal Integration
Answer: Absorption into a single firm of several firms involved in the
same level of production and sharing resources at that level
----only focus on manufacturing and rely on others for other parts
----can specialize if they do it better and for less than outsourcing
----can have multiple suppliers and negotiate/leverage for best price
----disadvantage: little control over others but still take the blame for it
(BP)
----there is diversification and share some liability but parent company
takes the main fall
TESTED QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED RESOURCE
●● elements of strategy
Answer: objective, scope, advantage
●● parts of setting a business strategy
Answer: most vague:
--mission (we have to have this, its our guiding Northstar, why we exist)
-- values (develop interview questions to see if they have these, what we
believe in and how we will behave)
--vision (what we want to be)
--strategy (how company accomplishes the above, what we want our
competitive game plan to be)
--balanced scorecard (how we will monitor and implement our strategy)
most specific
●● difference between mission and values
Answer: mission: "to bring transportation everywhere"
values: "we persevere, we build globally, we do the right thing"
,●● mission statements
Answer: Northstar of company, believe every employee should be able
to recite this and have a connection with it in their work or the company
or they don't preform as well
---"to bring inspiration and innovation to every athlete in the
world"=nike
--"to provide the best customer service possible."=zappos (amazon
owned)
--"at microsoft, our mission is to enable people and businesses
throughout the world to realize their full potential"=microsoft
---microsoft bought LinkedIn bc it fit with their mission statement
●● values
Answer: there is no universally right set of core values, but there is a
recommended number of 3-5
--disney: imagination and wholesomeness
--P&G: product excellence
--nordstrom: service to the customer and never being satisfied
--shell: honest, integrity, and respect for people
●● first component of strategy statement
Answer: objective..... ends
---ex. be the largest player in the industry
, ●● second component of strategy statement
Answer: scope....three dimensions: customer or offering, geographic
location (nationwide, global, etc), and integration (vertical or horizontal
●● third component of strategy statement
Answer: advantage....means (statement of customer value proposition
and unique activities that allow that firm alone to deliver on that value
proposition)
●● Vertical Integration
Answer: Practice where a single entity controls the entire process of a
product, from the raw materials to distribution
----in charge of supply chain
●● Horizontal Integration
Answer: Absorption into a single firm of several firms involved in the
same level of production and sharing resources at that level
----only focus on manufacturing and rely on others for other parts
----can specialize if they do it better and for less than outsourcing
----can have multiple suppliers and negotiate/leverage for best price
----disadvantage: little control over others but still take the blame for it
(BP)
----there is diversification and share some liability but parent company
takes the main fall
