MAN 6635 EXAM QUESTIONS AND
ANSWERS 100% CORRECT
what makes a successful strategy? - ANSWER-effective implementation of: clear and
consistent long term goals, understating of competitive environment, objective appraisal
of resources
basic framework of strategy - ANSWER-strategy as a link between the firm and its
environment
the firm attributes - ANSWER--goals and values
-resources and capabilities
-structure and systems
profitability of US industries (2000-2010): HIGH - ANSWER-1) tobacco (33.5%)
2) household and personal products (27.8%)
3) pharmaceuticals (20.5%)
4) food consumer products (20.0%)
profitability of US products (2000-2010): LOW - ANSWER-1) airlines (-11.3%)
2) motor and vehicle parts (4.4%)
3) food production (5.2%)
4) telecommunications (5.8%)
three key influences determining industry profitability - ANSWER-1) the value of the
product to costumers
2) the intensity of competition
3) relative bargaining power at different stages of the value chain
factors of spectrum of industry structure - ANSWER--(C)concentration
-(EE)entry and exit barriers
-(PD)product differentiation
-(I)information
the industry environment attributes - ANSWER--competitors
-customers
-supplier
evolution of strategic management - ANSWER--1950: financial budgeting
-1960-70: corporate planning
-1970-80: emergence of strategic management
-1980-2000: quest for competitive advantage
-2000-12: adapting to turbulence
, what is strategy? - ANSWER-strategy is the overall plan for deploying resources to
establish a favorable position
is strategy the same as tactic? - ANSWER-no. tactic is a scheme for a specific
maneuver
Characteristics of strategic decisions - ANSWER--important
-involve a significant commitment of resources
-not easily reversible
rate of profit above the cost of capital - ANSWER-=how do we make money?
Sources of Superior Profitability - ANSWER--industry attractiveness (which business
should we be in?)=corporate strategy
-competitive advantage (how should we compete?)=business strategy
Strategy as Positioning - ANSWER--Where are we competing?
How are we competing?
=competing for the present
factors of where to compete - ANSWER--product market scope
-geographical scope
-vertical scope
factor of how to compete - ANSWER--what is the basis of our competitive advantage?
strategy as direction - ANSWER--what do we want to become?
-what do we want to achieve?
-how will we get there?
factor of what do we want to become - ANSWER-vision statement
factors of what do we want to achieve - ANSWER--mission statement
-perfomance goals
factors of how will we get there - ANSWER--guidelines for development
-priorities for capital expenditure, R & D
-growth modes: organic growth, M & A, alliances
intended(design) strategy + emergent(process) strategy - ANSWER-?=realized strategy
Mintzberg's Critique of Formal Strategic Planning - ANSWER--fallacy of prediction (the
future is unknown)
-fallacy of detachment (impossible to divorce formulation from implementation)
-fallacy of formalization (inhibits flexibility, spontaneity, intuition and learning)
ANSWERS 100% CORRECT
what makes a successful strategy? - ANSWER-effective implementation of: clear and
consistent long term goals, understating of competitive environment, objective appraisal
of resources
basic framework of strategy - ANSWER-strategy as a link between the firm and its
environment
the firm attributes - ANSWER--goals and values
-resources and capabilities
-structure and systems
profitability of US industries (2000-2010): HIGH - ANSWER-1) tobacco (33.5%)
2) household and personal products (27.8%)
3) pharmaceuticals (20.5%)
4) food consumer products (20.0%)
profitability of US products (2000-2010): LOW - ANSWER-1) airlines (-11.3%)
2) motor and vehicle parts (4.4%)
3) food production (5.2%)
4) telecommunications (5.8%)
three key influences determining industry profitability - ANSWER-1) the value of the
product to costumers
2) the intensity of competition
3) relative bargaining power at different stages of the value chain
factors of spectrum of industry structure - ANSWER--(C)concentration
-(EE)entry and exit barriers
-(PD)product differentiation
-(I)information
the industry environment attributes - ANSWER--competitors
-customers
-supplier
evolution of strategic management - ANSWER--1950: financial budgeting
-1960-70: corporate planning
-1970-80: emergence of strategic management
-1980-2000: quest for competitive advantage
-2000-12: adapting to turbulence
, what is strategy? - ANSWER-strategy is the overall plan for deploying resources to
establish a favorable position
is strategy the same as tactic? - ANSWER-no. tactic is a scheme for a specific
maneuver
Characteristics of strategic decisions - ANSWER--important
-involve a significant commitment of resources
-not easily reversible
rate of profit above the cost of capital - ANSWER-=how do we make money?
Sources of Superior Profitability - ANSWER--industry attractiveness (which business
should we be in?)=corporate strategy
-competitive advantage (how should we compete?)=business strategy
Strategy as Positioning - ANSWER--Where are we competing?
How are we competing?
=competing for the present
factors of where to compete - ANSWER--product market scope
-geographical scope
-vertical scope
factor of how to compete - ANSWER--what is the basis of our competitive advantage?
strategy as direction - ANSWER--what do we want to become?
-what do we want to achieve?
-how will we get there?
factor of what do we want to become - ANSWER-vision statement
factors of what do we want to achieve - ANSWER--mission statement
-perfomance goals
factors of how will we get there - ANSWER--guidelines for development
-priorities for capital expenditure, R & D
-growth modes: organic growth, M & A, alliances
intended(design) strategy + emergent(process) strategy - ANSWER-?=realized strategy
Mintzberg's Critique of Formal Strategic Planning - ANSWER--fallacy of prediction (the
future is unknown)
-fallacy of detachment (impossible to divorce formulation from implementation)
-fallacy of formalization (inhibits flexibility, spontaneity, intuition and learning)
