Test Bank Solution Manual for Crafting and Executing Strategy (Graded A+)

Test Bank Solution Manual for Crafting and Executing Strategy (Graded A+) Strategy - Answers Action plan for outperforming its competitors and achieving superior profitability Competitive Advantage - Answers Provides buyers with superior value compared to rival sellers or same value at lower cost Sustainable - Answers The strategy is sustainable if it persists despite the best efforts of competitors to match or surpass this advantage Deliberate strategy - Answers Proactive strategy elements that are both planned and realized as planned Emergent strategy - Answers Reactive strategy elements that emerge as changing conditions warrant Business model - Answers Logic for how it's strategy will create value for customers, while at the same time generate revenues sufficient to cover costs and realize a profit Winning Strategy - Answers The Fit Test: how well does the strategy fit the company's situation (external, internal, dynamic)? The Competitive Advantage Test: can the strategy help the company achieve a sustainable competitive advantage? The Performance Test: is the strategy producing good company performance? (Competitive strength and market standing and profitability or financial strength) Formula - Answers Good Strategy + Good Strategy Execution = Good Management Chapter 2 - Answers Strategic Vision - Answers Managements aspirations for the future and delineates the company's strategic course and long-term direction Mission Statement - Answers Decries present business and purpose Core Values - Answers The beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission Setting Objectives - Answers They are quantifiable or measurable and contain a deadline for achievement Stretch Objectives: stretch an organization to perform at its full potential and deliver the best possible results Strategic intent - Answers When a company relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving the objective Objectives - Answers Financial Objectives: relate to the financial performance targets management has established for the organization to achieve Strategic Objectives: Relate to target outcomes that indicate a company is strengthening it's market standing, competitive position, and future business prospects. Balanced scorecard - Answers A widely used method for combining the use of a strategic and financial objectives, talking there treatment, and giving management and more complete and balanced view of how well an organization is performing. Corporate strategy - Answers Strategy at the multi-business level, concerning how to improve company performance or gain competitive advantage by managing a set of businesses simultaneously Business strategy - Answers Strategy at the single business level, concerning how to improve the performance or gain a competitive advantage in a particular line of business. Functional area strategies - Answers Concerned the actions in the purchase of ploy to managing particular functions within the business - like R&D, production, sales and marketing, customer service, and finance. Operating strategies - Answers Concern the relatively narrow strategic initiatives in a purchase for managing key operating units and specific operating activities within strategic significance. Strategic plan - Answers Lays out its future direction of business purpose, performance targets, and strategy. A strategic vision + Objectives + strategy = a strategic plan. Effective corporate governance - Answers Requires the Board of Directors to oversee the company strategic vision, evaluated senior executives, handle executive compensation, and oversee financial reporting purposes. Macro environment (PESTEL) - Answers - political - economic - sociocultural - technological - environmental/ecological - legal/regulatory factors Five forces analysis - Answers - rival firms - suppliers - substitute products - buyers - new entrants Driving forces - Answers Industry growth rate, increasing globalization, Internet related development, changing buyer behavior, technological change in manufacturing process innovation, product and marketing innovation, the entry or exit of major firms, the diffusion of know how, efficiency improvements in adjacent markets, reductions and uncertainty in business risk, regulatory and government policy changes, and changing societal factors Key Success Factors (KSF) - Answers - on what basis do buyers of the industry's products choose between competing brands of sellers - what resources and competitive capabilities must accompany have to be completely