WPC 470 Midterm MHE Ch 1-5 Exam
Questions with Latest Update
strategy - Answer-a set of goal directed action a firm takes to gain and sustain superior
performance relative to competitors
a good strategy has three elements - Answer-1. a diagnosis of the competitive
challenge
2. a guiding policy to address the competitive challenge
3. a set of coherent actions to implement the firms guiding policy
successful strategy requires three integrative management tasks: - Answer-analysis,
formulation, implementation
competitive advantage - Answer-always judged relative to other competitors or the
industry average
obtaining competitive advantage - Answer-firm must either create more value for
customers while keeping its cost comparable to competitors, or it must provide the value
equivalent to competitors but at a lower cost
sustained competitive advantage - Answer-firm is able to outperform competitors for
prolonged periods of time
competitive disadvantage - Answer-a firm that continuously under-performs its rivals or
the industry average
competitive parity - Answer-two or more firms that perform at the same level
effective strategy - Answer-requires strategic tradeoffs be recognized and addressed
ex. between value creation and the costs to create the value
vision - Answer-captures organizations aspirations, effective vision inspires and
motivates members of the organization
mission statement - Answer-describes what an organization actually does, what its
business is, and why and how does it work
core values - Answer-define the ethical standards and norms hat should govern the
behavior of individuals within the firm
product-oriented vision statement - Answer-defines a business in terms of a good or
service provided
, customer-oriented vision statement - Answer-define business in terms of providing
solutions to customer needs, provide managers with more strategic flexibility than
product-oriented missions
visions and missions can be effective; - Answer-need to be backed up by hard-to-
reverse strategic commitments and tied to economic fundamentals
ethical core values - Answer-underlay the vision statement to ensure the stability of the
strategy and thus lay the groundwork for long-term success, the guardrails that help
keep the company on track when pursuing its mission and its quest for competitive
advantage
AFI strategy framework - Answer-1. explains and predicts differences in firm
performance
2. helps managers formulate and implement a strategy that can result in superior
performance
Effectively managing the strategy process- three tasks - Answer-Analyze (A), Formulate
(F), Implement (I)
strategic leaderhsip - Answer-executives whose vision and decisions enable their
organizations to achieve competitive advantage
power strategic leaders use - Answer-formal and informal power to influence the
behavior of other organizational members to do things, including things they would not
do otherwise
strategic leaders - Answer-can have a strong (pos or neg) performance impact on the
organizations they lead
to become an effective strategic leader - Answer-need to develop skills to move
sequentially through five different leadership levels: highly capable individual,
contributing team member, competent manager, effective leader, and executive
The Level-5 strategic leadership pyramid applies to - Answer-both distinct corporate
positions and personal growth
corporate executives - Answer-must provide answers to the question of where to
compete, whether industries, markets or geographies and how to create synergies
among different business units
general managers in strategic business units - Answer-must answer the strategic
question of how to compete in order to achieve superior performance. they must
manage and align the firms different functional areas for competitive advantage
Questions with Latest Update
strategy - Answer-a set of goal directed action a firm takes to gain and sustain superior
performance relative to competitors
a good strategy has three elements - Answer-1. a diagnosis of the competitive
challenge
2. a guiding policy to address the competitive challenge
3. a set of coherent actions to implement the firms guiding policy
successful strategy requires three integrative management tasks: - Answer-analysis,
formulation, implementation
competitive advantage - Answer-always judged relative to other competitors or the
industry average
obtaining competitive advantage - Answer-firm must either create more value for
customers while keeping its cost comparable to competitors, or it must provide the value
equivalent to competitors but at a lower cost
sustained competitive advantage - Answer-firm is able to outperform competitors for
prolonged periods of time
competitive disadvantage - Answer-a firm that continuously under-performs its rivals or
the industry average
competitive parity - Answer-two or more firms that perform at the same level
effective strategy - Answer-requires strategic tradeoffs be recognized and addressed
ex. between value creation and the costs to create the value
vision - Answer-captures organizations aspirations, effective vision inspires and
motivates members of the organization
mission statement - Answer-describes what an organization actually does, what its
business is, and why and how does it work
core values - Answer-define the ethical standards and norms hat should govern the
behavior of individuals within the firm
product-oriented vision statement - Answer-defines a business in terms of a good or
service provided
, customer-oriented vision statement - Answer-define business in terms of providing
solutions to customer needs, provide managers with more strategic flexibility than
product-oriented missions
visions and missions can be effective; - Answer-need to be backed up by hard-to-
reverse strategic commitments and tied to economic fundamentals
ethical core values - Answer-underlay the vision statement to ensure the stability of the
strategy and thus lay the groundwork for long-term success, the guardrails that help
keep the company on track when pursuing its mission and its quest for competitive
advantage
AFI strategy framework - Answer-1. explains and predicts differences in firm
performance
2. helps managers formulate and implement a strategy that can result in superior
performance
Effectively managing the strategy process- three tasks - Answer-Analyze (A), Formulate
(F), Implement (I)
strategic leaderhsip - Answer-executives whose vision and decisions enable their
organizations to achieve competitive advantage
power strategic leaders use - Answer-formal and informal power to influence the
behavior of other organizational members to do things, including things they would not
do otherwise
strategic leaders - Answer-can have a strong (pos or neg) performance impact on the
organizations they lead
to become an effective strategic leader - Answer-need to develop skills to move
sequentially through five different leadership levels: highly capable individual,
contributing team member, competent manager, effective leader, and executive
The Level-5 strategic leadership pyramid applies to - Answer-both distinct corporate
positions and personal growth
corporate executives - Answer-must provide answers to the question of where to
compete, whether industries, markets or geographies and how to create synergies
among different business units
general managers in strategic business units - Answer-must answer the strategic
question of how to compete in order to achieve superior performance. they must
manage and align the firms different functional areas for competitive advantage
