MGMT 5560- Int'l Strat Mgmt Exam 1
Questions with 100% Correct Answers
2 Biggest Course Questions?
"Why do some firms
Consistently outperform others?"
"How can MY firm
consistently outperform others?"
Strategic Management
Analyses, decisions, and actions an organization undertakes in order to create and sustain
competitive advantages
Strategy Answers these Questions:
Where do we compete?
What unique value do we bring?
What resources & capabilities do we utilize?
How do we sustain unique value?
Strategy
the ideas, decisions, and actions that enable the firm to succeed.
How should we compete in order to create competitive advantages in the marketplace?
Managers need to determine if the firm should position itself as the low-cost producer
develop products and services that are unique and will enable the firm to charge premium
prices. Or a combination of both?
,How can we create competitive advantages in the marketplace that are unique,
valuable, and difficult for rivals to copy and substitute?
That is, managers need to make such advantages sustainable, instead of temporary.
Operational Effectiveness
performing similar activities better than rivals
Competitive Advantage
When a firm is able to outperform other firms in its industry.
Sustainable Competitive Advantage
When the advantage over other firms is able to persist over time.
Defining Strategic Management (3):
Analysis
Strategic Decisions
Actions
Defining Strategic Management (3):
Analysis
Strategic goals
Internal and external environment of the firm
Defining Strategic Management (3):
Strategic Decisions
What industries should we compete in?
How should we compete in those industries?
,Defining Strategic Management (3):
Actions
Allocate necessary resources
Design the organization to bring intended strategies to reality
Key Attributes of Strategic Management (4):
1. Directs the organization toward overall goals and objectives
2. Includes multiple stakeholders in decision making
3. Needs to incorporate short-term and long-term perspectives
4. Recognizes trade-offs between efficiency and effectiveness
Key Attributes of Strategic Management:
Ambidexterity
The challenge managers face of both aligning resources to take advantage of existing product
markets as well as proactively exploring new opportunities
Strategic Management Process (2):
Intended Strategy
Decisions are determined only by analysis
Strategic Management Process (2):
Realized Strategy
Decisions are determined by both analysis and unforeseen environmental developments,
unanticipated resource constraints, and/or changes in managerial preferences
Strategic Analysis
, -Consists of "advance work" that must be done in order to effectively formulate and
implement strategies
-Starting point
-study of firms external and internal environments and their fit with organizational vision and
goals
Strategic Analysis Includes:
-Analyzing external environments
-Analyzing a firm's internal environment
-Assessing Intellectual capital
Strategic Analysis Includes:
Analyzing external environments
managers must monitor and scan the environment as well as analyze competitors. two
frameworks are provided:
1) the general environment consists of several elements, such as demographic and economic
segments
2) the industry environment consists of competitors and other organizations that may threaten
the success of the firm's products or services
Strategic Analysis Includes:
Analyzing a firm's internal environment
Analyzing the strengths and and relationships among the activities that constitute a firm's
value chain
Strategic Analysis Includes:
Assessing Intellectual capital
Questions with 100% Correct Answers
2 Biggest Course Questions?
"Why do some firms
Consistently outperform others?"
"How can MY firm
consistently outperform others?"
Strategic Management
Analyses, decisions, and actions an organization undertakes in order to create and sustain
competitive advantages
Strategy Answers these Questions:
Where do we compete?
What unique value do we bring?
What resources & capabilities do we utilize?
How do we sustain unique value?
Strategy
the ideas, decisions, and actions that enable the firm to succeed.
How should we compete in order to create competitive advantages in the marketplace?
Managers need to determine if the firm should position itself as the low-cost producer
develop products and services that are unique and will enable the firm to charge premium
prices. Or a combination of both?
,How can we create competitive advantages in the marketplace that are unique,
valuable, and difficult for rivals to copy and substitute?
That is, managers need to make such advantages sustainable, instead of temporary.
Operational Effectiveness
performing similar activities better than rivals
Competitive Advantage
When a firm is able to outperform other firms in its industry.
Sustainable Competitive Advantage
When the advantage over other firms is able to persist over time.
Defining Strategic Management (3):
Analysis
Strategic Decisions
Actions
Defining Strategic Management (3):
Analysis
Strategic goals
Internal and external environment of the firm
Defining Strategic Management (3):
Strategic Decisions
What industries should we compete in?
How should we compete in those industries?
,Defining Strategic Management (3):
Actions
Allocate necessary resources
Design the organization to bring intended strategies to reality
Key Attributes of Strategic Management (4):
1. Directs the organization toward overall goals and objectives
2. Includes multiple stakeholders in decision making
3. Needs to incorporate short-term and long-term perspectives
4. Recognizes trade-offs between efficiency and effectiveness
Key Attributes of Strategic Management:
Ambidexterity
The challenge managers face of both aligning resources to take advantage of existing product
markets as well as proactively exploring new opportunities
Strategic Management Process (2):
Intended Strategy
Decisions are determined only by analysis
Strategic Management Process (2):
Realized Strategy
Decisions are determined by both analysis and unforeseen environmental developments,
unanticipated resource constraints, and/or changes in managerial preferences
Strategic Analysis
, -Consists of "advance work" that must be done in order to effectively formulate and
implement strategies
-Starting point
-study of firms external and internal environments and their fit with organizational vision and
goals
Strategic Analysis Includes:
-Analyzing external environments
-Analyzing a firm's internal environment
-Assessing Intellectual capital
Strategic Analysis Includes:
Analyzing external environments
managers must monitor and scan the environment as well as analyze competitors. two
frameworks are provided:
1) the general environment consists of several elements, such as demographic and economic
segments
2) the industry environment consists of competitors and other organizations that may threaten
the success of the firm's products or services
Strategic Analysis Includes:
Analyzing a firm's internal environment
Analyzing the strengths and and relationships among the activities that constitute a firm's
value chain
Strategic Analysis Includes:
Assessing Intellectual capital
