WPC 480 Exam 1 Questions with complete solutions | Latest 2023/2024

WPC 480 Exam 1 Questions with complete solutions | Latest 2023/2024 Strategic Management -- - integrative management - combines: Analysis, Formulation, and Implementation - designed to look for a companies competitive advantage - helps you think like a GM What is Strategy? -- - to Gain and Sustain Competitive Advantage - its a set of Goal-directed actions to gain and sustain Superior Performance What makes a Good Strategy? -- 1.Analyze firms External and Internal Environments 2. Strategy Formulation 3. Accomplished through Strategy Implementation How to Calculate Receivable Days? -- = Accounts Receivable / Revenue Per Day How to Calculate Inventory Days? -- = Inventory / Revenue Per Day How to Calculate Return on Revenue, ROR? -- = Net Income / Total Revenue Core Values -- - are ethical standards - designed to Govern the behavior of individuals - used to provide Vision and Competitive Advantage for its Mission - "Guard Rails" put in place Mission -- - used to describe what an organization actually does - product and services plan the markets in which it will compete - what the company plans to provide consistently What are Strategic Commitments ? -- - are expensive actions - long-term oriented - difficult to reverse - steps are taken to achieve mission - rivalry will occur - used to be effective and back up a companies Vision and Missions Product-Oriented Vision Statement -- - defines a business in terms of a good or service - tend to force Managers to take a myopic (nearsighted) view of the competitive landscape - Less flexible "We are in the typewriter business" Customer-Oriented Vision Statement -- - designed to provide solutions to customer needs - adapt to changing environments - Needs-based vision** Visionary Companies -- - have aspirational ideas that are NOT exclusive financially* - outperform companies in the long run* - this vision makes employees feel they are apart of something bigger, highly motivating* Strategic Positioning -- - to create Superior Value and Costs - offering similar value at lower costs (controlling costs) - resources are LIMITED - used to value customers and control costs - requires trade-offs Vision -- - captures an organizations aspiration - outlines its main goals to accomplish - What do we want to ultimately accomplish? - tied to Strategic Intent What is the AFI Framework Designed for? -- 1 Explains and predicts differences in firm Performance (Competitive Forces) 2. Help Managers formulate and implement strategy (Strategic Groups) Strategy -- - goal- directed actions - used to gain and sustain superior performance - strategy is about creating SUPERIOR value* - adopting a set of goals collectively Competitive Advantage -- - is always relative, NOT absolute