SEVI 3013H UPDATED Exam Questions and
CORRECT Answers
What is strategy and what are its characteristics? - CORRECT ANSWER - - the ideas,
decisions, and actions that enable a firm to succeed
- creating a competitive advantage (firm's resources and capabilities that enable it to overcome
the competitive forces in its industry)
- operational effectiveness (performing similar activities better than rivals)
3 Steps of Strategic Management - CORRECT ANSWER - Analysis
- Strategic goals (vision, mission, strategic objectives)
- Internal and external environment
Decisions - Formulation
- What industries should we compete in?
- How should we compete in those industries?
Actions
- Allocate necessary resources
- Design the organization to bring intended strategies to reality
Attributes of Strategic Management - CORRECT ANSWER - - Directs the organization
toward overall goals and objectives
- Includes multiple stakeholders in decision making
- Needs to incorporate short-term and long-term perspectives
,- Recognizes trade-offs between efficiency and effectiveness
Ambidexterity - CORRECT ANSWER - - Focus on long-term effectiveness
-- Expand product-market scope by proactively exploring new opportunities
- At the same time
-- Focus on short-term efficiency
-- Align resources to take advantage of existing product markets
External Control Perspective - CORRECT ANSWER - - External forces determine the
organization's success
ex. economic downturns
Romantic View - CORRECT ANSWER - - A leader is the key force in the organization's
success
ex. Steve Jobs (Apple)
How leaders make a difference? - CORRECT ANSWER - - Be proactive - anticipate change
- Refine strategies continually
- Be aware of external opportunities and threats
- Understand thoroughly the firm's resources and capabilities
- Make strategic management both a process and a way of thinking throughout the organization
Competitive Advantage - CORRECT ANSWER - Organizational effectiveness along with
innovations such as; total quality, just-in-time, benchmarking, business process reengineering,
and outsourcing
, Intended Strategy - CORRECT ANSWER - - Organizational decisions are determined only by
analysis
- Intended strategies rarely survive in the original form
Realized Strategy - CORRECT ANSWER - - Decisions are determined by both analysis
(deliberate) and unforeseen environmental developments, unanticipated resource constraints,
and/or changes in managerial preferences (emergent).
Hierarchy of Goals - CORRECT ANSWER - Top:
Vision - organizational goal that evokes powerful and compelling mental images
Middle:
Mission Statement - a set of organizational goals that identifies the purpose of the organization,
its basis of competition, and competitive advantage
Bottom:
Strategic Objectives - a set of organizational goals that are used to put into practice the mission
statement and that are specific and cover a well-defined time frame
Factors to analyze external environment - CORRECT ANSWER - 1. The general environment
consists of several elements, such as demographic and economic segments
2. the industry environment consists of competitors and other organizations that may threaten the
success of a firm's products and services
Corporate - Level Strategy - CORRECT ANSWER - What businesses to compete in; how
businesses can be managed to achieve synergy
Business - Level Strategy - CORRECT ANSWER - How to compete in a given business to
attain competitive advantage
CORRECT Answers
What is strategy and what are its characteristics? - CORRECT ANSWER - - the ideas,
decisions, and actions that enable a firm to succeed
- creating a competitive advantage (firm's resources and capabilities that enable it to overcome
the competitive forces in its industry)
- operational effectiveness (performing similar activities better than rivals)
3 Steps of Strategic Management - CORRECT ANSWER - Analysis
- Strategic goals (vision, mission, strategic objectives)
- Internal and external environment
Decisions - Formulation
- What industries should we compete in?
- How should we compete in those industries?
Actions
- Allocate necessary resources
- Design the organization to bring intended strategies to reality
Attributes of Strategic Management - CORRECT ANSWER - - Directs the organization
toward overall goals and objectives
- Includes multiple stakeholders in decision making
- Needs to incorporate short-term and long-term perspectives
,- Recognizes trade-offs between efficiency and effectiveness
Ambidexterity - CORRECT ANSWER - - Focus on long-term effectiveness
-- Expand product-market scope by proactively exploring new opportunities
- At the same time
-- Focus on short-term efficiency
-- Align resources to take advantage of existing product markets
External Control Perspective - CORRECT ANSWER - - External forces determine the
organization's success
ex. economic downturns
Romantic View - CORRECT ANSWER - - A leader is the key force in the organization's
success
ex. Steve Jobs (Apple)
How leaders make a difference? - CORRECT ANSWER - - Be proactive - anticipate change
- Refine strategies continually
- Be aware of external opportunities and threats
- Understand thoroughly the firm's resources and capabilities
- Make strategic management both a process and a way of thinking throughout the organization
Competitive Advantage - CORRECT ANSWER - Organizational effectiveness along with
innovations such as; total quality, just-in-time, benchmarking, business process reengineering,
and outsourcing
, Intended Strategy - CORRECT ANSWER - - Organizational decisions are determined only by
analysis
- Intended strategies rarely survive in the original form
Realized Strategy - CORRECT ANSWER - - Decisions are determined by both analysis
(deliberate) and unforeseen environmental developments, unanticipated resource constraints,
and/or changes in managerial preferences (emergent).
Hierarchy of Goals - CORRECT ANSWER - Top:
Vision - organizational goal that evokes powerful and compelling mental images
Middle:
Mission Statement - a set of organizational goals that identifies the purpose of the organization,
its basis of competition, and competitive advantage
Bottom:
Strategic Objectives - a set of organizational goals that are used to put into practice the mission
statement and that are specific and cover a well-defined time frame
Factors to analyze external environment - CORRECT ANSWER - 1. The general environment
consists of several elements, such as demographic and economic segments
2. the industry environment consists of competitors and other organizations that may threaten the
success of a firm's products and services
Corporate - Level Strategy - CORRECT ANSWER - What businesses to compete in; how
businesses can be managed to achieve synergy
Business - Level Strategy - CORRECT ANSWER - How to compete in a given business to
attain competitive advantage
