SEVI 3013 Exam One - Carolyn Rodeffer
Questions & Answers 100% Correct!
Strategy - ANSWERSIs a set of goal-directed actions a firm takes to gain a sustain
superior performance relative to competitors.
Why is Strategy Important? - ANSWERSEffective Strategy enables a firm to exploit core
competencies in a way that differentiates itself from competitors - enabling the firm to
outperform its rivals and achieve above average returns.
Strategic Management - ANSWERS- An integrative management field.
- Combine analysis, formulation, and implementation in the quest for competitive
advantage.
Key Attributes of Strategic Management - ANSWERS- Directs the organization toward
overall goals and objectives
- Includes multiple stakeholders in decision-making
- Incorporates short-term and long-term perspectives
- Recognizes trade-offs between efficiency and effectiveness
Mastery of Strategic Management enables you to: - ANSWERSo View a firm in its
entirety.
o Think like a general manager.
o Position your organization for superior performance.
A good strategy is based on three elements: - ANSWERS1) A Diagnosis of the
Competitive Challenge
2) A Guiding Policy to Address the Competitive Challenge
3) A Set of Coherent Actions to Implement the Firm's Guiding Policy
1) A Diagnosis of the Competitive Challenge - ANSWERSAnalysis of the Internal and
External Environments
2) A Guiding Policy to Address the Competitive Challenge - ANSWERSFormulation of
Corporate, Business, and Functional Strategies.
3) A Set of Coherent Actions to Implement the Firm's Guiding Policy -
ANSWERSStrategy Implementation
Elements of Tesla's Strategy: Competitive Challenge - ANSWERSManufacture
attractive and affordable vehicles using new technology and build the required
infrastructure
, Elements of Tesla's Strategy: Guiding Policy - ANSWERS- Build cost-competitive mass-
market vehicles
- Make significant investments in lithium-ion battery production.
Elements of Tesla's Strategy: Coherent Actions - ANSWERS- Ramp up productive to
achieve economies of scale
- New factory in Shanghai
- Make some proprietary technology available to the public
Competitive Advantage: - ANSWERSIs achieved when a firms performance exceeds
that of its competitors or the industry's average.
- Competitive advantage is relative, not absolute.
To Assess Competitive Advantage: - ANSWERSo Compare the firm to competitors in
the same industry.
o Compare the firm to the industry average.
How to gain Competitive Advantage: - ANSWERS1) Provide goods or services that:
o Consumers value more highly than those of competitors.
o Are like the competitors at a lower price.
2) The reward of superior value creation:
o Profitability
o Market Share
Competitive Advantage Requires a Unique Strategic Position: - ANSWERS- Unique
strategic position requires a successful combination of activities.
- Competitive advantage comes from:
o Performing different activities than rivals.
o Perform the same activities differently than rivals.
Strategic Positioning (Unique) - ANSWERS- A unique position within an industry to
provide value to customers while effectively managing costs.
o Value Creation - Costs = Economic Contribution
--> The greater, the better.
--> Enhances the likelihood of competitive advantage.
Unique Strategic Planning Requires Trade-offs: - ANSWERS- Managers must make
conscious trade-offs:
o How to allocate resources?
o Which activities to pursue.
Example: the retail industry:
· Walmart: cost leader - big box outlet, low prices.
Questions & Answers 100% Correct!
Strategy - ANSWERSIs a set of goal-directed actions a firm takes to gain a sustain
superior performance relative to competitors.
Why is Strategy Important? - ANSWERSEffective Strategy enables a firm to exploit core
competencies in a way that differentiates itself from competitors - enabling the firm to
outperform its rivals and achieve above average returns.
Strategic Management - ANSWERS- An integrative management field.
- Combine analysis, formulation, and implementation in the quest for competitive
advantage.
Key Attributes of Strategic Management - ANSWERS- Directs the organization toward
overall goals and objectives
- Includes multiple stakeholders in decision-making
- Incorporates short-term and long-term perspectives
- Recognizes trade-offs between efficiency and effectiveness
Mastery of Strategic Management enables you to: - ANSWERSo View a firm in its
entirety.
o Think like a general manager.
o Position your organization for superior performance.
A good strategy is based on three elements: - ANSWERS1) A Diagnosis of the
Competitive Challenge
2) A Guiding Policy to Address the Competitive Challenge
3) A Set of Coherent Actions to Implement the Firm's Guiding Policy
1) A Diagnosis of the Competitive Challenge - ANSWERSAnalysis of the Internal and
External Environments
2) A Guiding Policy to Address the Competitive Challenge - ANSWERSFormulation of
Corporate, Business, and Functional Strategies.
3) A Set of Coherent Actions to Implement the Firm's Guiding Policy -
ANSWERSStrategy Implementation
Elements of Tesla's Strategy: Competitive Challenge - ANSWERSManufacture
attractive and affordable vehicles using new technology and build the required
infrastructure
, Elements of Tesla's Strategy: Guiding Policy - ANSWERS- Build cost-competitive mass-
market vehicles
- Make significant investments in lithium-ion battery production.
Elements of Tesla's Strategy: Coherent Actions - ANSWERS- Ramp up productive to
achieve economies of scale
- New factory in Shanghai
- Make some proprietary technology available to the public
Competitive Advantage: - ANSWERSIs achieved when a firms performance exceeds
that of its competitors or the industry's average.
- Competitive advantage is relative, not absolute.
To Assess Competitive Advantage: - ANSWERSo Compare the firm to competitors in
the same industry.
o Compare the firm to the industry average.
How to gain Competitive Advantage: - ANSWERS1) Provide goods or services that:
o Consumers value more highly than those of competitors.
o Are like the competitors at a lower price.
2) The reward of superior value creation:
o Profitability
o Market Share
Competitive Advantage Requires a Unique Strategic Position: - ANSWERS- Unique
strategic position requires a successful combination of activities.
- Competitive advantage comes from:
o Performing different activities than rivals.
o Perform the same activities differently than rivals.
Strategic Positioning (Unique) - ANSWERS- A unique position within an industry to
provide value to customers while effectively managing costs.
o Value Creation - Costs = Economic Contribution
--> The greater, the better.
--> Enhances the likelihood of competitive advantage.
Unique Strategic Planning Requires Trade-offs: - ANSWERS- Managers must make
conscious trade-offs:
o How to allocate resources?
o Which activities to pursue.
Example: the retail industry:
· Walmart: cost leader - big box outlet, low prices.
