strategic mgmt Exam Rated A+
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1. A ________ is a course of action that managers take in the effort to attain
SUPERIOR PERFORMANCE.: strategy
For business, superior performance is demonstrated through above average PROFITABILITY, as compared to others in
the same industry.
2. ________ is typically measured using after tax return on invested capital: Prof-
itability
3. Strategy is about choosing how to compete:
How to create products or services that attract and please customers.
How to position the company in the industry.
How to develop and deploy resources to build valuable competitive capabili-
ties.
How each functional piece of the business (R&D, supply chain activities, pro-
duction, sales and marketing, distribution, finance, and human resources) will
be operated.
How to achieve the firm's performance targets:
4. The _________ that an organization's managers pursue have a major impact on
its performance relative to its peers.: strategies
5. When a firm's profitability is greater than the average profitability for all firms
in its industry, it has a _______ _______ over its rivals: competitive advantage
6. _______ ________ Capabilities
cannot be easily bested, matched, or imitated by rivals.
represent superior know-how and specialized abilities that require time to fully
develop and perfect.
result in a sustainable competitive advantage over rivals.
*The Importance of Capabilities in Building and Sustaining Competitive Advan-
tage: Competitively Valuable
7. A ____-____ ______ strategy—achieving a cost-based advantage over rivals.: -
low-cost provider
8. A _____ ______ strategy—seeking to differentiate products or services from
rivals' in ways that will appeal to a broad spectrum of buyers.: broad differentiation
, strategic mgmt Exam Rated A+
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9. A _______ ____-____ strategy—concentrating on a narrow buyer segment (or
market niche) and outcompeting rivals by having lower costs than rivals and
thus being able to serve niche members at a lower price.: focused low-cost
10. A _____ _____ strategy—concentrating on a narrow buyer segment (or market
niche) and outcompeting rivals by offering niche members customized attrib-
utes that meet their tastes and requirements better than rivals' products.: focused
differentiation
11. A ____-____ provider strategy— a low cost-differentiation hybrid giving cus-
tomers more value for the money by satisfying buyers' expectations on key
quality/features/ performance/service attributes, while beating their price ex-
pectations.: best-cost
12. A company's _____ _____ sets forth how its strategy and operating approaches
will create value for customers, while at the same time generate ample rev-
enues to cover costs and realize a profit.: business model
13. The two elements of a company's business model are its (1) ______ _____
_______ and (2) its ______ ______: customer value proposition
profit formula
14. Management's blueprint for delivering a valuable product or service to cus-
tomers in a manner that will yield an attractive profit. It's the road map to
money...: Business Model
15. _______ _______ _______defines how the firm will satisfy buyer wants and needs
at a price customers consider a good value.: Customer value proposition
16. ______ ______ describes the firm's approach to determining a cost structure
that will allow for acceptable profits given the pricing tied to its customer value
proposition.: Profit formula
17. A strategy changes over time due to:
Unexpected moves of competitors
Shifts in the needs and preferences of buyers
Emerging market opportunities New ideas by managers to improve the strat-
egy
Mounting evidence the strategy is not working well
• A strategy evolves:
, strategic mgmt Exam Rated A+
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Incrementally or dramatically
Proactively and adaptively:
18. Strategic Fit -How well does the strategy fit the company's situation?
Performance- Is the strategy producing good company performance?
Competitive Advantage -Is the strategy helping achieve a sustainable compet-
itive advantage?: The Three Tests of a Winning Strategy
19. Is top management's view of "where we are going"— the firm's direction and
its future product-marketcustomer-technology focus to stakeholders.
Is distinctive and specific to a particular organization.
Avoids use of generic, innocuous, and uninspiring language that could apply
to most any firm.
Definitively states how the company's leaders intend to position the firm
beyond where it is today.: Strategic Vision
20. • Ideally, a company ______ ______ is sufficiently descriptive to:
Identify the company's products or services.
Specify the buyer needs it seeks to satisfy.
Specify the customer groups or markets it is endeavoring to serve. Specify its
approach to pleasing customers.
Give the company its own identity.: mission statement
Profit is not "who we are and what we do.", but more like an objective.
21. • ___ ______ ______ concerns a firm's future business path—"where we are
going or where do I want to take the company?"
Markets to be pursued
Future product/ market/customer/ technology focus: A strategic vision
22. The _____ ______ of a firm focuses on its present business purpose—"who we
are and what we do"
Current product and service offerings
Customer needs being served: mission statement
23. • Managerial Purpose in Setting Objectives
To convert the strategic vision into specific performance targets
To create yardsticks to track progress and measure performance
Study online at https://quizlet.com/_i5c23a
1. A ________ is a course of action that managers take in the effort to attain
SUPERIOR PERFORMANCE.: strategy
For business, superior performance is demonstrated through above average PROFITABILITY, as compared to others in
the same industry.
2. ________ is typically measured using after tax return on invested capital: Prof-
itability
3. Strategy is about choosing how to compete:
How to create products or services that attract and please customers.
How to position the company in the industry.
How to develop and deploy resources to build valuable competitive capabili-
ties.
How each functional piece of the business (R&D, supply chain activities, pro-
duction, sales and marketing, distribution, finance, and human resources) will
be operated.
How to achieve the firm's performance targets:
4. The _________ that an organization's managers pursue have a major impact on
its performance relative to its peers.: strategies
5. When a firm's profitability is greater than the average profitability for all firms
in its industry, it has a _______ _______ over its rivals: competitive advantage
6. _______ ________ Capabilities
cannot be easily bested, matched, or imitated by rivals.
represent superior know-how and specialized abilities that require time to fully
develop and perfect.
result in a sustainable competitive advantage over rivals.
*The Importance of Capabilities in Building and Sustaining Competitive Advan-
tage: Competitively Valuable
7. A ____-____ ______ strategy—achieving a cost-based advantage over rivals.: -
low-cost provider
8. A _____ ______ strategy—seeking to differentiate products or services from
rivals' in ways that will appeal to a broad spectrum of buyers.: broad differentiation
, strategic mgmt Exam Rated A+
Study online at https://quizlet.com/_i5c23a
9. A _______ ____-____ strategy—concentrating on a narrow buyer segment (or
market niche) and outcompeting rivals by having lower costs than rivals and
thus being able to serve niche members at a lower price.: focused low-cost
10. A _____ _____ strategy—concentrating on a narrow buyer segment (or market
niche) and outcompeting rivals by offering niche members customized attrib-
utes that meet their tastes and requirements better than rivals' products.: focused
differentiation
11. A ____-____ provider strategy— a low cost-differentiation hybrid giving cus-
tomers more value for the money by satisfying buyers' expectations on key
quality/features/ performance/service attributes, while beating their price ex-
pectations.: best-cost
12. A company's _____ _____ sets forth how its strategy and operating approaches
will create value for customers, while at the same time generate ample rev-
enues to cover costs and realize a profit.: business model
13. The two elements of a company's business model are its (1) ______ _____
_______ and (2) its ______ ______: customer value proposition
profit formula
14. Management's blueprint for delivering a valuable product or service to cus-
tomers in a manner that will yield an attractive profit. It's the road map to
money...: Business Model
15. _______ _______ _______defines how the firm will satisfy buyer wants and needs
at a price customers consider a good value.: Customer value proposition
16. ______ ______ describes the firm's approach to determining a cost structure
that will allow for acceptable profits given the pricing tied to its customer value
proposition.: Profit formula
17. A strategy changes over time due to:
Unexpected moves of competitors
Shifts in the needs and preferences of buyers
Emerging market opportunities New ideas by managers to improve the strat-
egy
Mounting evidence the strategy is not working well
• A strategy evolves:
, strategic mgmt Exam Rated A+
Study online at https://quizlet.com/_i5c23a
Incrementally or dramatically
Proactively and adaptively:
18. Strategic Fit -How well does the strategy fit the company's situation?
Performance- Is the strategy producing good company performance?
Competitive Advantage -Is the strategy helping achieve a sustainable compet-
itive advantage?: The Three Tests of a Winning Strategy
19. Is top management's view of "where we are going"— the firm's direction and
its future product-marketcustomer-technology focus to stakeholders.
Is distinctive and specific to a particular organization.
Avoids use of generic, innocuous, and uninspiring language that could apply
to most any firm.
Definitively states how the company's leaders intend to position the firm
beyond where it is today.: Strategic Vision
20. • Ideally, a company ______ ______ is sufficiently descriptive to:
Identify the company's products or services.
Specify the buyer needs it seeks to satisfy.
Specify the customer groups or markets it is endeavoring to serve. Specify its
approach to pleasing customers.
Give the company its own identity.: mission statement
Profit is not "who we are and what we do.", but more like an objective.
21. • ___ ______ ______ concerns a firm's future business path—"where we are
going or where do I want to take the company?"
Markets to be pursued
Future product/ market/customer/ technology focus: A strategic vision
22. The _____ ______ of a firm focuses on its present business purpose—"who we
are and what we do"
Current product and service offerings
Customer needs being served: mission statement
23. • Managerial Purpose in Setting Objectives
To convert the strategic vision into specific performance targets
To create yardsticks to track progress and measure performance
