WPC 480 definitions ch 1-6 Exam With Complete Solutions

WPC 480 definitions ch 1-6 Exam With Complete Solutions an integrative management field that combines analysis, formulation and implementation in the quest for competitive advantage - answerstrategic management a set of goal directed actions a firm takes to gain and sustain superior performance relative to competitors - answerstrategy a strategy that enables a firm to achieve superior performance and contains three elements - answergood strategy what are the three elements of a good strategy - answerdiagnosis of the competitive challenge a guiding policy to address the competitive challenge a set of coherent actions to implement a firm's guiding policy superior performance relative to other competitors in the same industry or the industry average - answercompetitive advantage outperforming competitors or the industry average over a prolonged period of time (Apple for example) - answersustainable competitive advantage underperformance relative to other competitors in the same industry or the industry average - answercompetitive disadvantage performance of two or more firms at the same level - answercompetitive parity managers achieve combinations of value and cost through - answerstrategic positioning the greater the difference between value creation and cost, the greater the firm's - answereconomic contribution and more likely to gain competitive advantage what three things are not strategy - answergrandiose statements failure to face a competitive challenge operation effectiveness, competitive benchmarking, other tactical tools the first step to gain and sustain a competitive advantage is to define an organization's - answervision mission values what do we want to accomplish ultimately? captures the company's aspiration - answervision how do we accomplish our goals? - answermission what commitment do we make and what guardrails do we put in place to act both legally and ethically as we pursue our vision and mission? - answervalues a stretch goal that pervades the organization with a sense of winning, it aims to achieve by building the necessary resources and capabilities through continuous learing - answerstrategic intent vision statement that allows companies to adapt to changing environments - answercustomer oriented vision statement that focuses employees on improving existing products and service without consideration of underlying customer problems to be solved - answerproduct oriented vision statement that tends to force managers to take a more myopic view of the competitive landscape ; defines a business in terms of a good or service provided - answerproduct oriented a positive relationship between vision statements and firm performance is more likely to exist under certain circumstances: - answervisions are customer-oriented internal stakeholders are invested in defining the vision organizational structures such as compensation systems align with the firm's vision statement statement of principles to guide an organization as it works to achieve its vision and fulfill its mission for both internal conduct and external interactions; it often includes explicit ethical considerations - answercore values statment ethical standards and norms that govern the behavior of individuals within a firm or organization - answerorganizational core values a model that links three interdependent strategic management tasks - analyze, formulate, implement - together to help managers plan and implement a strategy that can improve performance and result in competitive advantage - answerAFI strategy framework a good strategy is more likely when strategic leaders apply the three step AFI strategy framework: - answeranalyze the external and internal environments formulate an appropriate business and corporate strategy