Mgt 415 Exam 1 Study Guide

Only available on StudyMode
  • Download(s) : 53
  • Published : April 4, 2012
Open Document
Text Preview
MGT 415 spring 2012 Exam 1 Review
Format: 55 multiple choice questions and 2 essay questions. Please be able to define the following concepts as well as apply to various situations and scenarios. Also, there were several course concepts we spent more time discussing and engaged in exercises. Please make sure you really understand and can discuss and apply those concepts. Chapter 1 Strategy definition: A company’s strategy consists of the competitive moves and business approaches that managers are employing to compete successfully, improve performance, and grow the business. Strategy is about competing differently from rivals-doing what competitors don’t or, even better, doing what they can’t do. Every strategy needs a distinctive element that attracts customers and produces a competitive edge. Determining winning strategy- the three main questions: Fit Test: How well does the strategy fit the company’s situation? A winning strategy has to be well matched to the industry and competitive conditions, a company’s best market opportunities, and other pertinent aspects of the business environment in which the company operates. Competitive Advantage Test: Can the strategy help the company achieve a sustainable competitive advantage? Strategies that fail to achieve a durable competitive advantage over rivals are unlikely to produce superior performance for more than a brief period of time. Performance Test: Is the strategy producing good company performance? The mark of a winning strategy is strong company performance. Two kinds of performance indicators tell the most about the caliber of a company’s strategy: (1) profitability and financial strength and (2) competitive strength and market standing. Business Model: Sets forth the economic logic for making money in a business, given the company’s strategy. It describes two critical elements: (1) the customer value proposition and (2) the profit formula. The customer value proposition lays out how a company will satisfy the buyer’s wants and needs. The profit formula describes the company’s approach to determining a cost structure that will allow for acceptable profits, given the pricing tied to its customer value proposition. Competitive Advantage: Comes from an ability to meet customer needs more effectively, with products or services that customers value more highly, or more efficiently, at lower cost. (pg. 6) Sustainable Competitive Advantage- what the difference between competitive and sustainable competitive advantage: When a company can meet customer needs more effectively or efficiently than rivals and when the basis for this is durable, despite the best efforts of the competitors to match or surpass this advantage. (pg. 5)

-

-

-

Chapter 2 Vision Statement: A strategic Vision describes management’s aspirations for the future and delineates the company’s strategic course and long-term direction. An effectively

-

-

-

-

-

communicated vision is a tool for enlisting the commitment of the company personnel to actions that move the company forward in the intended direction. The future strategic course. Mission Statement- be able to compare/contrast with the vision statement: Describes the enterprise’s current business and purpose “who we are, what we do, why we’re here”. Should convey a company’s purpose. Strategic Objectives: Relate to target outcomes that indicate a company is strengthening its market standing, competitive vitality, and future business prospects. (PG 30) Financial Objectives: Relate to the financial performance targets management has established for the organization to achieve. (PG 30) Balanced Scorecard: Tool widely used to help a company achieve its financial objectives by linking them to specific strategic objectives derived from the company’s business model. Balancing financial objectives with strategic objectives. Strategic Intent: A company exhibits strategic intent when it relentlessly pursues an exceptionally ambitious...
tracking img