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Questions and Answers
What is the primary purpose of studying strategic management?
What is the primary purpose of studying strategic management?
Which component of strategy addresses the future aspirations of a firm?
Which component of strategy addresses the future aspirations of a firm?
Which of the following is NOT one of the '6 Hows' of Strategy?
Which of the following is NOT one of the '6 Hows' of Strategy?
What does the sustainable competitive advantage refer to?
What does the sustainable competitive advantage refer to?
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What are the key elements of a business model?
What are the key elements of a business model?
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Which test must a winning strategy pass to be considered effective?
Which test must a winning strategy pass to be considered effective?
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In the context of strategic approaches, which of the following describes a differentiation strategy?
In the context of strategic approaches, which of the following describes a differentiation strategy?
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Which of the following is a key benefit of strategy?
Which of the following is a key benefit of strategy?
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What is the primary focus of a long-term strategy in business?
What is the primary focus of a long-term strategy in business?
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Which component of the Value-Price-Cost Model represents expenses incurred to deliver value?
Which component of the Value-Price-Cost Model represents expenses incurred to deliver value?
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In the Competitive Advantage Pyramid, what is situated at the top layer?
In the Competitive Advantage Pyramid, what is situated at the top layer?
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What does SWOT analysis primarily help businesses with?
What does SWOT analysis primarily help businesses with?
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What are the three tests for a winning strategy as indicated in strategic discussions?
What are the three tests for a winning strategy as indicated in strategic discussions?
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Which of these is a key aspect of the Strategy Diamond framework?
Which of these is a key aspect of the Strategy Diamond framework?
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What is a core competency in the context of the Competitive Advantage Pyramid?
What is a core competency in the context of the Competitive Advantage Pyramid?
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How does a firm maximize its business model effectively according to the Value-Price-Cost Model?
How does a firm maximize its business model effectively according to the Value-Price-Cost Model?
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Which task is NOT part of effective strategy execution?
Which task is NOT part of effective strategy execution?
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What is a key characteristic of a high-performance corporate culture?
What is a key characteristic of a high-performance corporate culture?
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What is the primary role of leaders, such as CEOs, in strategy execution?
What is the primary role of leaders, such as CEOs, in strategy execution?
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Which strategy is NOT a part of building organizational capability?
Which strategy is NOT a part of building organizational capability?
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What is a common feature of unhealthy corporate cultures?
What is a common feature of unhealthy corporate cultures?
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What aspect does the Threat of New Entrants primarily address?
What aspect does the Threat of New Entrants primarily address?
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What is a primary focus of the Value Net Model?
What is a primary focus of the Value Net Model?
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What are the two types of benchmarking mentioned for assessing competitive performance?
What are the two types of benchmarking mentioned for assessing competitive performance?
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Which step is NOT part of the Driving Forces Analysis?
Which step is NOT part of the Driving Forces Analysis?
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Which key question is NOT listed for determining Key Success Factors?
Which key question is NOT listed for determining Key Success Factors?
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What do Key Success Factors (KSFs) refer to?
What do Key Success Factors (KSFs) refer to?
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Which component is considered a weakness in a SWOT analysis?
Which component is considered a weakness in a SWOT analysis?
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Which of the following best describes Competitive Rivalry?
Which of the following best describes Competitive Rivalry?
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Which of the following best describes Core Competencies?
Which of the following best describes Core Competencies?
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Which of the following factors is a limitation in Strategic Group Mapping?
Which of the following factors is a limitation in Strategic Group Mapping?
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What does the VRIN test assess regarding resources and capabilities?
What does the VRIN test assess regarding resources and capabilities?
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What does the Bargaining Power of Buyers reflect?
What does the Bargaining Power of Buyers reflect?
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In a SWOT analysis, which element refers to external challenges faced by a business?
In a SWOT analysis, which element refers to external challenges faced by a business?
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What can be a characteristic of an attractive industry according to the industry outlook for profitability?
What can be a characteristic of an attractive industry according to the industry outlook for profitability?
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What is one implication of conducting benchmarking?
What is one implication of conducting benchmarking?
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How can strategic group mapping help businesses?
How can strategic group mapping help businesses?
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What is the main advantage of a focused differentiation strategy?
What is the main advantage of a focused differentiation strategy?
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Which of the following is NOT a method to achieve cost advantage in a competitive strategy?
Which of the following is NOT a method to achieve cost advantage in a competitive strategy?
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Under which conditions does a best-cost provider strategy work most effectively?
Under which conditions does a best-cost provider strategy work most effectively?
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What does the VRIN test evaluate regarding a company's resources?
What does the VRIN test evaluate regarding a company's resources?
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What is the first step in the process after rating a firm and its rivals on each Key Success Factor (KSF)?
What is the first step in the process after rating a firm and its rivals on each Key Success Factor (KSF)?
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Which of the following best describes a broad low-cost strategy?
Which of the following best describes a broad low-cost strategy?
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In value chain analysis, which type of activities are categorized as support activities?
In value chain analysis, which type of activities are categorized as support activities?
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Which of the following actions aligns with utilizing strengths offensively in strategic implications?
Which of the following actions aligns with utilizing strengths offensively in strategic implications?
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Study Notes
Strategic Management - Chapter 1
- Why Study Strategic Management? Improves financial performance, strengthens competitive position, and enables sustainable competitive advantage.
- Key Benefits of Strategy? Creates above-average profits, increases competitive pressure on rivals, and acts as a long-term success roadmap.
- What is Strategy? A coherent action plan for achieving objectives and high performance.
- Key Components of Strategy: Current situation and competitive position, vision for the future, and crafting an action plan.
- The "6 Hows" of Strategy: Attracting and satisfying customers, firm positioning in the market, competing against rivals, achieving performance targets, capitalizing on growth opportunities, and responding to changing conditions.
- Mnemonic for the 6 Hows: AC-PART (Attract customers, Compete against rivals, Position in the market, Achieve performance targets, Respond to market changes, Target growth opportunities).
Strategic Management - Chapter 2
- Developing a Strategic Vision, Mission, and Core Values: Vision (long-term direction), Mission (business purpose), Core Values (guiding principles).
- Setting Objectives: Converts vision/mission into specific, measurable, time-bound goals, using a Balanced Scorecard.
- Crafting a Strategy: Involves collaboration from all levels managing overall direction, positioning, and department-level focus.
- Executing Strategy: Requires adequate resources, a supportive work culture, and incentives aligned with performance.
- Monitoring, Evaluating, and Adjusting: Continuously revises strategy using performance, new opportunities and environmental shifts.
Strategic Management - Chapter 3
- Thinking Strategically About the External Environment: Understanding macro and industry-specific pressures and assessing a firm's position.
- PESTEL Framework: Analyzing political, economic, sociocultural, technological, environmental, and legal factors.
- The Five Forces Framework (Porter): Assessing the intensity of competition among existing players, threat of new entrants, threat of substitutes, bargaining power of buyers, and bargaining power of suppliers.
Strategic Management - Chapter 4
- Evaluating the Internal Environment: Assessing the current success of the strategy, identifying resources, capabilities, competitive strengths, and weaknesses. Examining cost structures and value propositions.
- Key Indicators of a Successful Strategy: Achieving financial and strategic objectives, market share growth, and surpassing rivals.
- SWOT Analysis: Analyzing internal Strengths & Weaknesses and external Opportunities & Threats.
- TOWS Matrix: Using SWOT analysis to develop strategies (SO, ST, WO, WT) to leverage strengths and mitigate weaknesses, exploit opportunities, and avoid threats.
Strategic Management - Chapter 5 & 6
- Differentiation Strategies: Market focus (broad or narrow), advantage (low cost or differentiation.)
- Types of Strategies: Broad low-cost (e.g., Walmart), broad differentiation (e.g., Apple), focused low-cost, focused differentiation, and best-cost provider.
- Cost-Cutting Methods: Capturing economies of scale, leveraging learning curves, utilizing full capacity, using lower cost inputs, and improving supply chain efficiency.
- Differentiation Strategies (details): a strong differentiating effect, based on physical as well as functional attributes, affects multiple value chain activities, result of superior performance capabilities, creates brand loyalty.
Strategic Management - Chapter 7
- Why Companies Enter Foreign Markets: Access new customers, leverage core competencies, mitigate risk, reduce costs through economies of scale, and acquire unique resources and capabilities.
- Challenges in International Strategy: Cross-country differences, variability in consumer preferences, exchange rate fluctuations, location-based value chain efficiencies, and government regulations.
- The Diamond Framework: Evaluates national competitiveness by considering the interplay of four factors: Factor conditions; Demand conditions; Related and supporting industries; and Firm strategy, structure, and rivalry
- Strategies for Entering International Markets: Exporting, licensing, franchising, subsidiaries, alliances/joint ventures.
- International Strategy Approaches: Global (standardized products), Multidomestic (customized to local markets), and Transnational (balance global efficiency with local adaptation).
- Advantages/Disadvantages of different strategies: Exporting: low capital requirements, economies of scale, and no distribution risk. Exporting Disadvantages: Transportation and shipping costs, Exchange rate risk.
Strategic Management - Chapter 8
- Strategic Plan: developing a strategic vision, mission, and core values; setting objectives; crafting a strategy to achieve the vision; executing the strategy; monitoring developments, evaluation performance, and initiating corrective adjustments; revising the plan as needed.
- 10 Basic Tasks of Strategy Execution: Allocate resources, structure for execution, develop necessary capabilities, hire talent, install systems, adopt efficient processes (continuous improvement), foster a supportive culture, set policies to encourage execution, reward and incentivize, and provide strong leadership.
Strategic Management - Other Chapters
- Building Organizational Capability: Staffing (recruit top talent and nurture managers), Structuring (align org design with strategy, including centralized vs. decentralized decision-making), and Developing Capabilities (internal development, acquisitions of capabilities, and collaborative partnerships).
- Corporate Culture and Strategy Execution: Healthy vs. unhealthy cultures, leadership's role in strategy execution.
- Prioritizing Strategic Issues: How to, and when to adapt to foreign competitors, and when to expand into new markets or maintain current approaches, adjusting to new market conditions.
- Corporate Social Responsibility (CSR) and Triple Bottom Line: Ethical operations, employee well-being, workforce diversity, environmental protection, and social impact. This ties to sustainability strategy with a focus on meeting present needs without compromising future resources. Also, considers long term resource conservation, ecological protection initiatives, and meeting societal responsibilities—Planet, People, Profit.
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Description
This quiz covers the fundamental concepts of strategic management, emphasizing the importance of strategy in enhancing financial performance and achieving long-term goals. It discusses key components, benefits, and the actionable framework known as the '6 Hows' of strategy. Test your understanding of these essential principles.
