Business Strategy Game Practice Questions and Detailed Answers

Strategy consists of the competitive moves and business approaches that managers employ to attract and please customers, compete successfully, capitalize on opportunities to grow the business, respond to changing market conditions, conduct operations, and achieve the targeted financial and market performance 3 Strategic Questions firms must answer 1. What is the firm's present situation? 2. What direction to head and what performance targets to set 3. How to run the firm in ways that produce good results Two crucial elements of a firms business model 1. customer value propositions 2. profit proposition What makes a strategy a winner? 1.How well does the strategy fit the company's situation (goodness of fit)? 2.Is the strategy helping the company achieve a sustainable competitive advantage? (Competitive advantage test) 3.Is the strategy producing good company performance?(performance test) What must managers do, and do well, to give a firm its best chance to be attractively profitable and successful in the marketplace? doing a good job of managing requires good strategic thinking, good strategy-making, and good strategy execution. 5 managerial Tasks 1. Developing a strategic vision 2. Setting objectives 3. Crafting a strategy 4.Implementing and executing the strategy 5. monitoring developments evaluating performance and initiating corrective adjustments Every firm needs two types of objectives Financial Objectives Strategic Objectives A strategic Plan = Strategic Vision + Mission Statement + Objectives +Strategy 5 Forces Model 1. Market Maneuvering 2. The threat of new entrants 3. Threat of substitutes 4. Supplier Bargaining Power 5. buyer bargaining power