Strategic Management Concepts Quiz

Arises from performing activities more efficiently than competitors.

Results from choosing different activities or performing similar activities in unique ways.

Basic units of competitive advantage, including all actions to create and deliver products.

Performing similar activities better than rivals, improving efficiency and reducing defects.

Involves performing different activities from rivals or similar activities in distinct ways.

The comparison of a company's cost structure to its competitors based on efficiencies.

Variations in profit levels among competitors due to differences in operational effectiveness.

The way a company employs its resources to maximize productivity and reduce waste.

The maximum value a company can create at a given cost using best practices.

Improvement in operational effectiveness moves a company closer to the productivity frontier.

Japanese companies excelled in operational effectiveness, offering lower cost and superior quality.

The productivity frontier moves outward with new technologies and management approaches.

To improve operational effectiveness, companies may need to invest in new capital or resources.

Adapting management methods is essential for enhancing operational effectiveness.

Connecting different activities (like sales and order processing) enhances overall efficiency.

Advancements in technology redefine how businesses approach productivity and effectiveness.

Leaders must make strategic choices, not just manage operations.

Strategy defines the company's unique position and guides decisions.

Making strategic choices involves deciding what not to pursue.

Leaders maintain focus on strategy and avoid distractions.

Leaders must educate others on making strategic decisions.

A communicated strategy helps guide employee choices daily.

Leaders decide which customer needs to serve and which to ignore.

Maintaining a unique company position is a leader's key task.

Unique offerings that achieve high returns on equity for targeted clients.

Serves clients with a minimum of $250,000 for convenience in loans.

Bessemer has a higher ratio compared to Citibank's 1:125.

Offered only to Bessemer's largest clients, indicating exclusivity.

Both banks customize their services for different private banking clientele.

Targeting customers based on how easily they can be reached.

Grouping clients by their accessibility and specific service needs.

Operates theaters in smaller towns, targeting specific demographics.

Emerging roles in companies resulting from industry changes.

Activities that enhance the strengths of a company's primary operations.

Long-term benefits gained from unique strategic positions and activities.

Decisions made to prioritize certain actions over others for a business strategy.

Companies entering a market without historical constraints affecting their strategy.

Competition that enhances operational effectiveness across industries but benefits no single competitor more than others.

The phenomenon where competitors become similar in their strategies and offerings, reducing differentiation.

The reduction in a company's profit margin over time, particularly in competitive industries.

Improving operations makes companies better but does not create unique competitive advantage.

The quick and widespread adoption of management or operational methods by competitors.

Expert advice that accelerates the implementation of operational effectiveness techniques.

When improvements in productivity primarily benefit customers rather than the companies making the improvements.