MBA 706 Exam 2 answers
Mission✔✔A proclamation of the organization's primary objective that encapsulates
its core values
Influences on an organization's mission✔✔Corporate Governance
Stakeholders
Business Ethics
Cultural Context
broad mission statement✔✔Common and not restraining
Narrow mission statement✔✔Is restraining and focuses too much on one thing
Characteristics of successful mission statements✔✔Credibility
Uniqueness
Specific Capabilities
Aspirational
SMART goals✔✔Specific, Measurable, Attainable, Realistic, Time scaled
Characteristics of successful objectives✔✔1. Acceptability
2. Flexibility
3. Comprehensibility
hierarchy of objectives✔✔- Corporate
- Functional
-operations
Long term goals are for✔✔5 years from now
Short term goals are set for✔✔Up to 12 months from now
What is the focus of cost leadership strategy?✔✔To keep cost low
How is Cost Leadership achieved?✔✔Through policies such as controlling overhead
costs and cost minimization
Basic drivers of cost leadership strategy✔✔Economy of scale, linkages and
relationships, infrastructure
Sources of differentiation strategy✔✔Product performance, perception, and
augmentation (adds value)
With differential strategy the customer:✔✔Views the product or service as unique
Focus strategy sources include✔✔Geographic area, end-user focus, product line
specialist
, The organization concentrates on a narrower range of business activities with this
strategy✔✔Focus strategy
Characteristics of sustainable competitive advantage✔✔Relevant and defensible
Eight sources of competitive advantage✔✔Product performance, perception of
product, low cost operations, legal advantages, alliances/ relationships, superior
skills, flexibility, attitude
product performance characteristics:✔✔Robust, economic and easy to use
Perception of product✔✔Brand image and product positioning
Low cost operations✔✔Location and buying power
Legal advice✔✔Patents, contracts, and copyright
Alliances/ relationships✔✔Networking and procurement
Superior skills✔✔Database management and design skills
Flexibility✔✔Developing customized solutions
Attitude✔✔Aggressive selling and rough negotiations
There are 4 types of market positions:✔✔Leader, challenger, follower, niche
Leader market position✔✔Expands the market, offensive strategy, defensive
strategy
Challenger market position✔✔Selective targeting and attacks leader
Follower market position✔✔Duplication and adaptation
Niche market position✔✔Focus on specific market segments and strategies adopted
by niche players
Reasons for strategic wear out✔✔Changes in customer requirements
Changes in distribution systems
Innovation by competitors
Poor control of company costs
Lack of consistent investment
Mission✔✔A proclamation of the organization's primary objective that encapsulates
its core values
Influences on an organization's mission✔✔Corporate Governance
Stakeholders
Business Ethics
Cultural Context
broad mission statement✔✔Common and not restraining
Narrow mission statement✔✔Is restraining and focuses too much on one thing
Characteristics of successful mission statements✔✔Credibility
Uniqueness
Specific Capabilities
Aspirational
SMART goals✔✔Specific, Measurable, Attainable, Realistic, Time scaled
Characteristics of successful objectives✔✔1. Acceptability
2. Flexibility
3. Comprehensibility
hierarchy of objectives✔✔- Corporate
- Functional
-operations
Long term goals are for✔✔5 years from now
Short term goals are set for✔✔Up to 12 months from now
What is the focus of cost leadership strategy?✔✔To keep cost low
How is Cost Leadership achieved?✔✔Through policies such as controlling overhead
costs and cost minimization
Basic drivers of cost leadership strategy✔✔Economy of scale, linkages and
relationships, infrastructure
Sources of differentiation strategy✔✔Product performance, perception, and
augmentation (adds value)
With differential strategy the customer:✔✔Views the product or service as unique
Focus strategy sources include✔✔Geographic area, end-user focus, product line
specialist
, The organization concentrates on a narrower range of business activities with this
strategy✔✔Focus strategy
Characteristics of sustainable competitive advantage✔✔Relevant and defensible
Eight sources of competitive advantage✔✔Product performance, perception of
product, low cost operations, legal advantages, alliances/ relationships, superior
skills, flexibility, attitude
product performance characteristics:✔✔Robust, economic and easy to use
Perception of product✔✔Brand image and product positioning
Low cost operations✔✔Location and buying power
Legal advice✔✔Patents, contracts, and copyright
Alliances/ relationships✔✔Networking and procurement
Superior skills✔✔Database management and design skills
Flexibility✔✔Developing customized solutions
Attitude✔✔Aggressive selling and rough negotiations
There are 4 types of market positions:✔✔Leader, challenger, follower, niche
Leader market position✔✔Expands the market, offensive strategy, defensive
strategy
Challenger market position✔✔Selective targeting and attacks leader
Follower market position✔✔Duplication and adaptation
Niche market position✔✔Focus on specific market segments and strategies adopted
by niche players
Reasons for strategic wear out✔✔Changes in customer requirements
Changes in distribution systems
Innovation by competitors
Poor control of company costs
Lack of consistent investment
