LSUS MBA 701 EXAM 1 COMPREHENSIVE
COURSE REVIEW
◉ Strategy.
Answer: refers to top management's plans to develop and sustain
competitive advantage so that the organization's mission is fulfilled.
◉ Competitive advantage.
Answer: is a state whereby a firm's successful strategies cannot be
easily duplicated by its competitors. Maintaining a sustained
competitive advantage over time can be challenging.
◉ sustained competitive advantage.
Answer: A company's strategies enable it to maintain above-average
profitability for a number of years
◉ Strategic Management.
Answer: is of the environment in which the organization operates
prior to formulating a strategy, as well as the plan for
implementation and control of the strategy.
◉ The Strategic Management Process.
Answer: 1. External Analysis
,2. Internal Analysis
3. Strategy Formulation
4. Strategy Implementation
5. Strategic Control
◉ External Analysis.
Answer: Analyze the opportunities and threats, or constraints, that
exist in the organization's external environment, including industry
and forces in the external environment
◉ Internal Anaylsis.
Answer: Analyze the organization's strengths and weaknesses in its
internal environment. Consider the context of managerial ethics and
corporate social responsibility
◉ strategy formulation.
Answer: Formulate strategies that build and sustain competitive
advantage by matching the organization's strengths and weaknesses
with the environment's opportunities and threats.
◉ Strategic Implementation (Execution).
Answer: Implement the strategies that have been developed.
,◉ Strategic Control.
Answer: Measure success and make corrections when the strategies
are not producing the desired outcomes.
◉ Business model.
Answer: explains how the organization seeks to earn a profit by
selling its goods.
Progressive firms often devise innovative business models that
extract revenue - and ultimately profits - from sources not identified
by competitors.
◉ Five Characteristics of a Successful Strategy.
Answer: 1. Understand the competitive environment.
2. Understand how resources translate into strengths and
weaknesses.
3. The strategy is consistent with the mission and goals of the
organization.
4. Plans for putting the strategy into action are designed before it is
implemented.
5. Possible future changes (i.e., strategic control) are evaluated
before the strategy is adopted.
◉ Intended Strategy.
, Answer: what management originally plans.
may be realized just as it was planned, in a modified form, or even in
an entirely different form.
◉ Realized Strategy.
Answer: what management actually implements.
Hence, the original strategy may be realized with desirable or
undesirable results, or it may be modified as changes in the firm or
the environment become known.
◉ Gap between Intended and Realized.
Answer: The gap between the intended and realized strategies
usually results from unforeseen environmental or organizational
events, better information that was not available when the strategy
was formulated, or an improvement in top management's ability to
assess its environment. Although it is important for managers to
formulate responsible strategies based on a realistic and thorough
assessment of the firm and its environment, things invariably change
along the way. Hence, it is common for such a gap to exist, creating
the need for constant strategic action if a firm is to stay on course.
Instead of resisting modest strategic changes when new information
is discovered, managers should search for new information and be
willing to make such changes when necessary. This activity is part of
COURSE REVIEW
◉ Strategy.
Answer: refers to top management's plans to develop and sustain
competitive advantage so that the organization's mission is fulfilled.
◉ Competitive advantage.
Answer: is a state whereby a firm's successful strategies cannot be
easily duplicated by its competitors. Maintaining a sustained
competitive advantage over time can be challenging.
◉ sustained competitive advantage.
Answer: A company's strategies enable it to maintain above-average
profitability for a number of years
◉ Strategic Management.
Answer: is of the environment in which the organization operates
prior to formulating a strategy, as well as the plan for
implementation and control of the strategy.
◉ The Strategic Management Process.
Answer: 1. External Analysis
,2. Internal Analysis
3. Strategy Formulation
4. Strategy Implementation
5. Strategic Control
◉ External Analysis.
Answer: Analyze the opportunities and threats, or constraints, that
exist in the organization's external environment, including industry
and forces in the external environment
◉ Internal Anaylsis.
Answer: Analyze the organization's strengths and weaknesses in its
internal environment. Consider the context of managerial ethics and
corporate social responsibility
◉ strategy formulation.
Answer: Formulate strategies that build and sustain competitive
advantage by matching the organization's strengths and weaknesses
with the environment's opportunities and threats.
◉ Strategic Implementation (Execution).
Answer: Implement the strategies that have been developed.
,◉ Strategic Control.
Answer: Measure success and make corrections when the strategies
are not producing the desired outcomes.
◉ Business model.
Answer: explains how the organization seeks to earn a profit by
selling its goods.
Progressive firms often devise innovative business models that
extract revenue - and ultimately profits - from sources not identified
by competitors.
◉ Five Characteristics of a Successful Strategy.
Answer: 1. Understand the competitive environment.
2. Understand how resources translate into strengths and
weaknesses.
3. The strategy is consistent with the mission and goals of the
organization.
4. Plans for putting the strategy into action are designed before it is
implemented.
5. Possible future changes (i.e., strategic control) are evaluated
before the strategy is adopted.
◉ Intended Strategy.
, Answer: what management originally plans.
may be realized just as it was planned, in a modified form, or even in
an entirely different form.
◉ Realized Strategy.
Answer: what management actually implements.
Hence, the original strategy may be realized with desirable or
undesirable results, or it may be modified as changes in the firm or
the environment become known.
◉ Gap between Intended and Realized.
Answer: The gap between the intended and realized strategies
usually results from unforeseen environmental or organizational
events, better information that was not available when the strategy
was formulated, or an improvement in top management's ability to
assess its environment. Although it is important for managers to
formulate responsible strategies based on a realistic and thorough
assessment of the firm and its environment, things invariably change
along the way. Hence, it is common for such a gap to exist, creating
the need for constant strategic action if a firm is to stay on course.
Instead of resisting modest strategic changes when new information
is discovered, managers should search for new information and be
willing to make such changes when necessary. This activity is part of
