Mgt 415 Exam 1 Study Guide
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
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