43 Questions
- What is the difference between strategy formulation and
strategy implementation?
•Strategy formulation is coming up with the plan, and strategy implementation is making the plan happen
- What are the different levels of strategy?
•There are different forms of strategy. Business strategy, corporate strategy and international strategy.
- On what two dimensions are all business strategies
based?
All business strategies are based on two dimensions: differentiation and cost leadership.
6.What are the three ways in which geographic diversification can positively affect financial performance?
Diversification decisions impact financial outcomes through economies of scale or scope, and geographic expansion into new countries can impact profitability through economies of scale, scope, or cost reduction.
- To what level of strategy do outsourcing, offshoring,
and international strategy belong?
•International strategy is a key feature of many corporate strategies. In some cases, international strategy takes the form of outsourcing or offshoring
5.What are the three dimensions of corporate strategy and how are they different?
•All three of these business-level strategies involve choices related to differentiation and cost leadership. Corporate strategy can unfold in terms of vertical integration (or disintegration), horizontal integration (or disintegration), or geographic diversification.
- When should a firm choose the global strategy rather
than a multidomestic strategy?
A global strategy, centralized and controlled by the home office, maximizes global efficiency, focusing on economies of scale and utilizing innovations developed at the corporate level or in other markets.
- How do the international strategies affect the trade-offs
managers must make between local responsiveness and
global efficiency?
Three strategies balance local responsiveness and global efficiency, requiring firms to leverage core competencies and create strategies that are challenging for competitors to replicate.
- How might a given country’s regulatory environment
impact a firm’s international strategy?
Sometimes, firms expanding into new geographic markets find that they must adapt certain components of their strategies to accommodate local environments.
- What are the five facets of the strategy diamond?
•arenas, differentiators, vehicles, staging and pacing, and economic logic
- How does the strategy diamond capture a firm’s
business strategy?
•All five facets are interrelated. When the five elements of strategy are aligned and mutually reinforcing, the firm is generally in a position to perform well.
- What are some of the strategy-diamond issues a good
international strategy must address?
•The strategy diamond helps you develop international strategy, using three related questions: Do we need to expand outside our home country? If so, where should we expand? How should we expand?
- What are the management functions in the P-O-L-C
framework?
•These functions are planning, organizing, leading, and controlling.
- How does the strategy diamond capture a firm’s
corporate strategy?
The strategy diamond outlines a firm's business and corporate strategy in five facets: arenas, differentiators, vehicles, staging and pacing, and economic logic.
- Are there any criticisms of this framework?
Critics argue that P-O-L-C functions, while ideal, do not accurately depict the daily actions of actual managers.
- What function does planning serve?
Planning is the function of management that involves setting objectives and determining a course of action for achieving these objectives.
- What function does organizing serve?
Organizing is a management function that develops an organizational structure and coordinates human resources within that structure to achieve organizational objectives.
- What function does leading serve?
leading involves influencing and inspiring others to take action, with managers who lead well motivating their employees to work towards achieving organizational goals and objectives.
- What function does controlling serve?
•The controlling function requires monitoring performance so that it meets the performance standards established by the organization.
_______________ is coming up with the plan, and ______________ is making the plan happen
_______________ refers to how a firm ___________, while ____________ answers questions concerning the businesses with which the organization should compete.
_______________ is a ___________ of many corporate strategies.
In some cases, international strategy takes the form of ______________ or ___________.
An overview of the strategizing process involves a SWOT (___________, __________, ____________, ________) analysis and the development of the organization’s mission and vision.
There are three different business-level strategies: (1) ___________, (2) ___________, and (3) _____________________________ .
All three of these ______________________ involve choices related to differentiation and cost leadership.
Corporate strategy can unfold in terms of ______________ (or disintegration), _________________ (or disintegration), or _____________________.
Choices made with respect to these three aspects of ___________ have financial implications in the form of _____________ or scope
Geographic expansion into new countries can affect profitability through ___________________, _____________, or ______________ resulting from less costly inputs.
________________ maximizes local responsiveness by giving decentralizing decision making authority to local business units in each country so that they can create products and services optimized to their local markets. country so that they can create products and services optimized to their local markets
This strategy allows firms to compete more effectively in the local _______ and increase their share in that market.
The ___________ of a multidomestic strategy, however, is that the firm faces more uncertainty because of the _________ strategies in different countries.
In addition, because the _______ is pursuing different strategies in different _________ , it cannot take advantage of economies of scale that could help ________ costs for the firm overall.
A ___________ is centralized and controlled by the home office and seeks to _________ global efficiency
• A transnational strategy offers the advantages of both the ______________ (efficiency) and ____________ (responsiveness to local conditions) but has the disadvantage that it is difficult to simultaneously execute the dual goals of flexibility and coordination.
Although pursuing a global strategy decreases risk for the firm, the firm may not be able to ______ as high a market share in local markets because the global strategy isn’t as responsive to local markets
Under this strategy, products are much more likely to be _____________ rather than tailored to local markets.
The strategy diamond lets you summarize the characteristics of a firm’s business and corporate strategy in terms of five facets—_______, ____________, _________, __________, and _________
All five facets are ___________. When the five elements of strategy are aligned and mutually __________, the firm is generally in a position to perform well.
The strategy diamond helps you develop ____________, using three related questions: -Do we need to expand outside our home country? -If so, where should we expand? -How should we expand?
The principles of management can be distilled down to four critical functions. These functions are _________, _________, __________, and __________.
Strategy is a starting point in the _______ framework, but it also incorporates many additional activities that allow the strategy to be executed well.
This framework provides useful guidance into what the ideal job of a manager should look like in both __________ and _______________.
Test your knowledge of business strategy concepts with this quiz. Questions cover topics such as strategy formulation, implementation, levels of strategy, geographic diversification, corporate strategy dimensions, and more.
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