Strategic Management Course Overview
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Questions and Answers

What factor can threaten a competitive advantage within a market?

  • Higher levels of consumer satisfaction
  • Entry of new firms into the market (correct)
  • Expansion into new geographic areas
  • Increased innovation from existing competitors

What shift does the resource-based view emphasize in strategy formulation?

  • From external market analysis to industry competition
  • From industry analysis to internal resources and capabilities (correct)
  • From strategic management to corporate governance
  • From product diversification to service specialization

Which of the following is NOT a characteristic of dynamic capabilities?

  • Reconfiguration of resources to meet changes
  • Creation of temporary advantages
  • Ability to innovate continuously
  • Focus on sustainable competitive advantage (correct)

What does strategic management focus on in the context of competition?

<p>Industry analysis and environmental positioning (C)</p> Signup and view all the answers

Why might a company need to replace its top management?

<p>To align with shareholders' demand for a different strategy (B)</p> Signup and view all the answers

What is one of the purposes of applying theory to real-world examples in the exam?

<p>To assess understanding of theoretical concepts (C)</p> Signup and view all the answers

Which reading is associated with defining the concept of strategy?

<p>Ghemawat, P. (2001) (B)</p> Signup and view all the answers

What grading format is used to evaluate the written exam?

<p>Out of 20 (B)</p> Signup and view all the answers

Which concept is primarily discussed during the class focusing on corporate strategy in November?

<p>Value creation (A)</p> Signup and view all the answers

Which of the following statements accurately describes the exam format concerning financial ratios?

<p>Calculation and interpretation are required. (D)</p> Signup and view all the answers

What role does strategy play in a company's long-term success?

<p>It helps in making coherent and consistent decisions. (A)</p> Signup and view all the answers

Which of the following describes corporate strategy?

<p>It sets the scope in terms of industries and markets. (D)</p> Signup and view all the answers

How does strategy act as a coordination and communication device?

<p>By establishing a framework for identity and vision. (C)</p> Signup and view all the answers

What is a significant characteristic of strategic decisions?

<p>They are typically hard to reverse due to commitment. (A)</p> Signup and view all the answers

What does bounded rationality in decision-making refer to?

<p>The limitations individuals face in processing information. (A)</p> Signup and view all the answers

What is the purpose of a strategic intent?

<p>To create a vision that all employees can align with. (D)</p> Signup and view all the answers

What distinguishes competitive strategy from corporate strategy?

<p>Competitive strategy defines how to compete within a specific market. (D)</p> Signup and view all the answers

What is the main focus of decisions regarding corporate strategy?

<p>To manage diversification and integration across various markets. (D)</p> Signup and view all the answers

What is considered a key pillar of organization in effective strategy implementation?

<p>Culture (D)</p> Signup and view all the answers

Which term describes the strategy that evolves based on actual practices and feedback?

<p>Emergent strategy (C)</p> Signup and view all the answers

What does strategic fit refer to in the context of a company’s strategy?

<p>Consistency with internal and external environments (B)</p> Signup and view all the answers

In the strategy as positioning model, what question addresses the firm's competitive advantage?

<p>How are we competing? (B)</p> Signup and view all the answers

Which of the following is NOT considered a component of the organization's key pillars?

<p>Innovation (D)</p> Signup and view all the answers

Mike Tyson's quote about strategy implies that:

<p>Strategies require adjustments based on real-world events. (D)</p> Signup and view all the answers

Which of the following factors influences the external environment of a firm?

<p>Competitors (A)</p> Signup and view all the answers

What is the focus of the 'strategy as direction' model?

<p>Vision and performance goals (B)</p> Signup and view all the answers

What is a key component necessary for successful strategy according to the framework?

<p>Clear and consistent long-term goals (B)</p> Signup and view all the answers

Which aspect is involved in the internal analysis of strategy?

<p>Assessing resources and capabilities (C)</p> Signup and view all the answers

What relationship should exist for effective strategy implementation?

<p>Alignment of goals, environment, resources, and capabilities (D)</p> Signup and view all the answers

What is one of the determinants of a company's value creation?

<p>Sales growth (B)</p> Signup and view all the answers

How is a competitive advantage typically developed?

<p>Through a good understanding of the competitive environment (B)</p> Signup and view all the answers

What does effective implementation of a strategy involve?

<p>Adjusting courses of action as needed (B)</p> Signup and view all the answers

What is NOT considered a determinant of value creation in a company?

<p>Employee satisfaction levels (D)</p> Signup and view all the answers

What is the primary responsibility of a Strategic Business Unit (SBU)?

<p>Develop strategies for specific markets (B)</p> Signup and view all the answers

At which level does competition primarily take place according to the content?

<p>Industry level (B)</p> Signup and view all the answers

Which of the following describes a primary goal of strategy?

<p>To maximize value creation over the long term (C)</p> Signup and view all the answers

Who is responsible for appointing the Chief Executive Officer within a company?

<p>Board of directors (A)</p> Signup and view all the answers

What role does the board of directors play in the strategy implementation process?

<p>Approve strategy and oversee its execution (B)</p> Signup and view all the answers

Which group is NOT mentioned as part of the strategic decision involvement?

<p>Middle management (A)</p> Signup and view all the answers

Which of the following divisions does Philips NOT include?

<p>Industrial engineering (D)</p> Signup and view all the answers

What is the main goal of a Strategic Business Unit within a company?

<p>Gain and sustain competitive advantage in its markets (A)</p> Signup and view all the answers

When should a strategy potentially be reviewed?

<p>When market conditions change or after implementation (D)</p> Signup and view all the answers

Flashcards

What is strategy?

It's the plan of action that aims to achieve a specific goal, often a competitive advantage in the market. Its essence is to make choices for the company's resources and capabilities to outperform its competitors. It involves analyzing the company's environment, setting objectives, and creating a roadmap of how to reach those objectives.

Drivers Of Value Creation

They are the underlying forces that drive the creation of value for a company, like having exceptional resources, valuable capabilities, or a unique position in the market.

Industry Analysis

This involves studying the structure and dynamics of an industry to understand its opportunities and threats. It helps understand the competitive landscape and potential for future growth.

Competitive Strategy

It's the plan to achieve competitive advantage within a specific industry. It involves understanding your competitors, differentiating your product or service, and building sustainable competitive advantages.

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Corporate Strategy

It's the strategy that guides the overall direction of a corporation, typically involves multiple businesses or product lines. It aims to create corporate advantage by coordinating and managing the different business units within the company.

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Financial Ratios

This involves analyzing a company's overall performance and financial health. It uses metrics like profitability, liquidity, leverage, and efficiency to assess how the company is performing and identify areas for improvement.

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Effective Implementation

The process of putting a strategy into action, including organizing the company's structure, systems, and culture.

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Emergent Strategy

The strategy that emerges from the interactions between the intended strategy and the dynamic external and internal environment.

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Realized Strategy

The strategy that the company actually puts into practice.

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Intended Strategy

The strategy that the company initially plans and sets out to achieve.

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Strategic Fit

The company's resources and capabilities must align with the external environment to ensure success.

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Strategy as Interface

The alignment between the company's internal environment (resources and capabilities) and the external environment (competitors, customers, etc.).

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Strategy as Positioning

Defines the company's position in the market in terms of product, geography, and competitive advantage.

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Strategy as Direction

Describes the company's vision, goals, and the means to achieve them.

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Strategic Determination

The process of determining an organization's long-term objectives, adopting courses of action, and allocating resources to achieve those goals.

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Competitive Environment Awareness

A successful strategy involves a clear understanding of the competitive landscape and the strengths and weaknesses of the organization.

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Resource and Capability Utilization

The ability to leverage internal resources, skills, and capabilities to gain a competitive advantage.

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Long-Term Performance Goals

Maximizing value creation for a company through long-term growth and profitability.

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Value Creation Determinants

Measures that indicate a company's overall value creation, including sales growth, sales margin, and capital turnover.

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Strategic Business Unit (SBU)

A unit within a company responsible for its own strategy, market, resources, and capabilities.

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Competition Takes Place at Industry Level

Competition happens between companies within the same industry or market, not at the overall corporate level.

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Divisional SBUs

A company can have different strategic business units (SBUs) within its divisions.

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Strategy Renewal

The process of regularly assessing and updating a company's strategic plan.

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Strategic Decision-Makers

The individuals or groups responsible for developing and implementing strategy.

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Strategic Decision-Making Process

The different stages involved in strategic decision-making, from initial analysis to implementation and control.

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Strategic Experts

The individuals or groups who provide expertise and guidance in strategic decision-making.

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Board of Directors

The top governing body of a company, responsible for overseeing its overall operations and performance.

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New Entrant Threat

A situation where a company's competitive advantage is threatened due to a new player entering the market.

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Resource Repurposing

The ability of a company to leverage its existing resources and capabilities in new ways, like creating new products or markets.

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Strategic Management

A strategic approach that prioritizes a company's position within an industry, focusing on competitive analysis.

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Resource-Based View

A theory that focuses on identifying and developing a company's unique assets (resources) and skills (capabilities) as key drivers of competitive advantage.

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Dynamic Capabilities

The ability of a company to adapt and change its resources and capabilities to constantly innovate and create new competitive advantages.

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Strategic decisions

The long-term plan for a company's growth and success. It outlines where the company plans to compete and how it will achieve its goals.

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Growth strategies

Growth strategies aim to increase a company's size and market share. They involve making strategic choices about how to expand.

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Organic growth

Companies use organic growth by expanding their existing operations, like opening new stores or launching new products.

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Mergers & Acquisitions (M&A)

Acquiring other companies (M&A) lets companies quickly enter new markets or gain access to new technologies.

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Strategic choices - difficult to reverse

Strategic choices are difficult to reverse because they often involve significant commitments and investments, like building a new factory.

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Strategic choices impact competitors

Strategic choices can impact competitors, leading to a 'game theory' scenario, where companies react to each other's moves.

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Role of strategy - coordination

Strategy acts as a guide for all departments and employees, ensuring they work towards the same goals and direction.

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Role of strategy - decision support

Strategy provides a framework for decision making, particularly in complex situations, by offering clear guidelines and objectives.

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Study Notes

Course Information

  • Course Title: Strategic Management
  • Course Code: B-KUL-Y00927
  • Professor: Dr. Sam Arts
  • Academic Year: 2024-2025

Course Schedule

  • Lectures: Mondays, 13:30-15:30, CAR 1.09
  • Video recordings from previous years available on Toledo
  • Required readings to be completed before each lecture
  • Interactive class participation encouraged
  • Questions answered in class, not via email
  • Learning materials (slides and notes): available on Toledo
  • Management Project 2 (B-KUL-Y00934)

Course Evaluation

  • 3 ECTS
  • Written exam, closed book. 100% of the final grade
  • Two hours
  • End of first semester
  • Sample exams available on Toledo
  • Exam questions:
    • "Right or wrong" + explanations
    • Theory questions (e.g., explain a concept, discuss a paper)
    • Application of theory to real-world examples (similar to cases discussed in class)
    • Calculation and interpretation of financial ratios
  • Grade of 9 or lower on 20 = failure rate between 30-50%

Reading Material (Chapter Summaries)

  • What is Strategy?
    • Ghemawat (2001), Strategy and the Business Landscape, Chapter 1: The Origins of Strategy (pages 1-9)
    • Porter (1996), What is Strategy?, Harvard Business Review, November-December, (pages 61-78)
  • Drivers of Value Creation
    • Koller (1994), What is value-based management?, The McKinsey Quarterly (pages 87-101)
    • Koller, Goedhart, & Wessels (2010), Valuation: Measuring and Managing the Value of Companies, McKinsey & Company.
      • Chapter 3: Fundamental Principles of Value Creation
      • Chapter 5: Frameworks for Valuation
      • Chapter 6: Thinking about Return on Invested Capital and Growth
    • Baghai, Smit, & Viguerie (2007), The Granularity of Growth, The McKinsey Quarterly (pages 41-51)
  • Industry Analysis
    • Porter (2008), The Five Competitive Forces that Shape Strategy, Harvard Business Review (pages 78-91)
    • McGahan (2004), How Industries Change, Harvard Business Review (pages 87-94)
  • Competitive Strategy and Competitive Advantage
    • Ghemawat (2001), Strategy and the Business Landscape, Chapter 3: Creating Competitive Advantage (pages 44-67)
    • Prahalad & Hamel (1990), The Core Competence of the Corporation, Harvard Business Review (pages 1-15)
    • Kim & Mauborgne (1997), Value Innovation: The Strategic Logic of High Growth, Harvard Business Review (pages 103-112)
    • Collis & Montgomery (2008), Competing on Resources, Harvard Business Review (pages 140-150)
  • Corporate Strategy
    • Collis & Montgomery (1998), Creating Corporate Advantage, Harvard Business Review (pages 71-83)
    • Porter (1987), From Competitive Advantage to Corporate Strategy, Harvard Business Review (pages 1-21)
    • Carlesi, Verster, & Wenger (2007), The New Dynamics of Managing the Corporate Portfolio, McKinsey Quarterly (pages 1-8)

Additional Information

  • Specific question examples:
    • "Right or wrong" + explanation example (page 6)
    • Theory Questions (page 7)
    • Case study: Volvo Ghent (page 8)
    • Financial Ratio calculation and interpretation (page 9)
  • Additional concepts mentioned:
    • Strategic Fit
    • Internal and External Environment
    • Competitive advantage
    • Cost vs. Differentiation Strategy
    • Resources & Capabilities
    • Implementation
    • Strategy as Positioning
    • Strategy as Direction
  • Industry Analysis (Porter's Five Forces, PEST analysis)

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Strategic Management Past Paper PDF 2024-2025

Description

This quiz covers the essential components of the Strategic Management course taught by Dr. Sam Arts for the academic year 2024-2025. It includes information on course schedules, evaluation methods, and key learning materials. Prepare for the written exam and understand the expectations for participation and project work.

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