MAN 3025 Exam 2
Strategic management - Answer-A process that involves managers from all parts of the organization in
the formulation and the implementation of strategies and strategic goals
strategic positioning - Answer-Strategy that attempts to achieve sustainable competitive advantage by
preserving what is distinctive about a company
Sustainable competitive advantage - Answer-Exists when other companies cannot duplicate the value
delivered to customers
Strategic positioning and Sustainable competitive advantage - 4 areas to focus on - Answer-1. Being
responsive to customers
2. Innovating
3. Quality
4. Effectiveness
Corporate-Level Strategy - Answer-Focuses on the organization as a whole.
-What business or businesses should we be in?
Business-Level Strategy - Answer-Focuses on individual business units (SBUs) or product/service lines.
,-How should we compete in this industry?
Functional-Level Strategy - Answer-Applies to the key functional departments or units within the
business units.
-How can business functions support the business-level strategies?
STRATEGIC-MANAGEMENT PROCESS - 1 - Answer-Establish the Mission, Vision, and Values Statements
STRATEGIC-MANAGEMENT PROCESS - 2 - Answer-Assess the Current Reality
STRATEGIC-MANAGEMENT PROCESS - 3 - Answer-Formulate Corporate, Business, and Functional
Strategies
STRATEGIC-MANAGEMENT PROCESS - 4 - Answer-Execute the Strategy
STRATEGIC-MANAGEMENT PROCESS - 5 - Answer-Maintain Strategic Control: The Feedback Loop
Mission Statement - Answer-Expresses the organization's purpose or reason for being
Vision Statement - Answer-Expresses what the organization wants to become, where it wants to go
strategically
Assess the current reality - Answer--Look at where the organization stands internally and externally, to
determine what's working and what's not.
-See what can be changed so as to increase efficiency and effectiveness in achieving the organization's
vision.
, SWOT Analysis - Answer-Internal Strengths, Internal Weaknesses, External Opportunities, and External
Threats.
Competitive Intelligence - Answer-Gaining information about competitors' activities so that you can
anticipate their moves and react appropriately
Forecasting - Answer-A vision or projection of the future
Trend analysis - Answer-Hypothetical extension of a past series of events into the future
Contingency planning - Answer-Creation of alternative hypothetical but equally likely future conditions.
(Also called scenario planning and scenario analysis)
Benchmarking - Answer-A process by which a company compares its performance with that of high-
performing organizations
PORTER'S FIVE COMPETITIVE FORCES - Answer-1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products or services
5. Rivalry among competitors
Grand strategy - Answer-Refers to broad, corporate-level strategy
-Comes after assessing the current reality.
Strategy formulation - Answer-Is the process of choosing among different strategies and altering them
to best fit the organization's needs
Strategic management - Answer-A process that involves managers from all parts of the organization in
the formulation and the implementation of strategies and strategic goals
strategic positioning - Answer-Strategy that attempts to achieve sustainable competitive advantage by
preserving what is distinctive about a company
Sustainable competitive advantage - Answer-Exists when other companies cannot duplicate the value
delivered to customers
Strategic positioning and Sustainable competitive advantage - 4 areas to focus on - Answer-1. Being
responsive to customers
2. Innovating
3. Quality
4. Effectiveness
Corporate-Level Strategy - Answer-Focuses on the organization as a whole.
-What business or businesses should we be in?
Business-Level Strategy - Answer-Focuses on individual business units (SBUs) or product/service lines.
,-How should we compete in this industry?
Functional-Level Strategy - Answer-Applies to the key functional departments or units within the
business units.
-How can business functions support the business-level strategies?
STRATEGIC-MANAGEMENT PROCESS - 1 - Answer-Establish the Mission, Vision, and Values Statements
STRATEGIC-MANAGEMENT PROCESS - 2 - Answer-Assess the Current Reality
STRATEGIC-MANAGEMENT PROCESS - 3 - Answer-Formulate Corporate, Business, and Functional
Strategies
STRATEGIC-MANAGEMENT PROCESS - 4 - Answer-Execute the Strategy
STRATEGIC-MANAGEMENT PROCESS - 5 - Answer-Maintain Strategic Control: The Feedback Loop
Mission Statement - Answer-Expresses the organization's purpose or reason for being
Vision Statement - Answer-Expresses what the organization wants to become, where it wants to go
strategically
Assess the current reality - Answer--Look at where the organization stands internally and externally, to
determine what's working and what's not.
-See what can be changed so as to increase efficiency and effectiveness in achieving the organization's
vision.
, SWOT Analysis - Answer-Internal Strengths, Internal Weaknesses, External Opportunities, and External
Threats.
Competitive Intelligence - Answer-Gaining information about competitors' activities so that you can
anticipate their moves and react appropriately
Forecasting - Answer-A vision or projection of the future
Trend analysis - Answer-Hypothetical extension of a past series of events into the future
Contingency planning - Answer-Creation of alternative hypothetical but equally likely future conditions.
(Also called scenario planning and scenario analysis)
Benchmarking - Answer-A process by which a company compares its performance with that of high-
performing organizations
PORTER'S FIVE COMPETITIVE FORCES - Answer-1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products or services
5. Rivalry among competitors
Grand strategy - Answer-Refers to broad, corporate-level strategy
-Comes after assessing the current reality.
Strategy formulation - Answer-Is the process of choosing among different strategies and altering them
to best fit the organization's needs
