Unit 1 Study Guide

Topics: Strategic management, Marketing, Strategic planning Pages: 15 (3099 words) Published: February 25, 2013
Crafting and Executing Strategy: MBA 690 -01
Test 1 Study Guide: Chapters 1 – 8

1.Strategy consists of competitive moves and business approaches used by managers to run the company. Management’s action plan:
a.Grow the business
b.Attract and please customers
c.Compete successfully
d.Conduct operations

2.Choosing the “how’s” of strategy

a.Trial and error
b.Organizational earning

3.The 6 how’s of strategy:
a.How to grow your business
b.How to please customers
c.How to outcompete rivals
d.How to manage each functional piece of the business
e.How to respond to changing market conditions
f.How to achieve targeted levels of performance

4.Sustainable competitive advantage – when attractive to a number of buyers

5.Key elements of a successful strategy - developing a successful strategy hinges on making competitive moves aimed at: a.Appealing to buyers in ways that set the enterprise apart b.Involves developing a distinctive aha moment

6.A company’s strategy is:
a.Partly proactive – ahead & new
b.Partly reactive – adaptive & review

7.Strategy & Ethics - Allows managers to fulfill its ethical duties to all stakeholders

8.Strategy & Ethics – duty and right vs. wrong

9.Role of senior executives – linking strategy with ethics – make it clear that all employees are to act with integrity

10.Business Model
a.Addresses – how do we make money in this business
b.Do the revenue-cost-profit economics make good business sense i.Revenue streams
ii.Associated cost structure
iii.Potential profit margins
iv.Will earning streams and ROI indicate business model viability 11.Business Model vs. Strategy
a.Strategy – deals with a company’s competitive initiatives and business approaches b.Business Model – concerns whether revenues and costs flowing from the strategy demonstrate a business can be amply profitable and viable

12.Tests of a Winning Strategy
a.Goodness of fit – firms situation
b.Competitive Advantage – sustainable competitive advantage c.Performance – boosts firms performance

13.What is the strategy-making strategy-executing process?
a.Develop a strategic vision
b.Set an objective
c.Craft a strategy to achieve the vision and objective
d.Implement and execute strategy
e.Monitor developments, evaluate performance, make corrective adjustments

14.Strategic vision – describes the route a company intends to take in developing and strengthening its business, it lays out the company’s strategic course for preparing for the future

15.7 characteristics of an effectively worded strategic vision:
g.Easy to communicate

16.6 characteristics of an ineffectively worded strategic vision:
a.Vague or incomplete
b.Not forward looking
c.To broad
e.Not distinctive
f.To reliant on superlatives

17.Strategic Vision vs. Mission
a.Strategic Vision – concerns a firm’s future business path b.Mission – concerns a firm’s present business path

18. Characteristics of Strategic Intent
a.Quantum gains
b.Grandiose performance project
c.Relentless commitment to achieving a particular market position and competitive standing

19. Strategic intent – the relentless pursuit of an ambitious (bold and grandiose) strategic objective

20. Balanced score card – measures company performance
a.Sets financial and strategic objectives
b.Places balance on achieving both types of objectives

21. Tasks of Business Strategy
a.Produce successful performance
b.Build sustainable competitive advantage
c.Competitively valuable competencies and capabilities
d.Strategic activities of functional areas
e.Approval of business strategies

22.Overcoming resistance to a new strategic vision entails: a.Calming fears
b.Lifting spirits*
c.Addressing employee’s concerns head-on
d.Reiterating basis for new...
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