40 Questions
Who is responsible for steering the corporate strategy?
Top management team (CEO, CFO, etc.)
What is the main focus of the business strategy?
How to compete in an industry and market?
Which level of strategy is concerned with executing the business and functional area strategy?
Operating strategy
What is the main focus of the functional area strategy?
How to implement a chosen business strategy?
Who is responsible for steering the functional area strategy?
Heads of functional areas
What is the main focus of the first half of the course?
Business strategy
What is the relationship between functional area strategy and other subjects?
It overlaps with several other subjects
Who is responsible for steering the operating strategy?
Middle management
What is the purpose of decisions to enter or exit markets or products?
To strengthen market position through differentiation
What type of actions can help a company defend against external threats?
Systematic decisions and actions that define a strategy
What is the purpose of actions regarding R&D, production, sales/marketing, and finance?
To strengthen or build resources and capabilities
What is the goal of decisions that strengthen market position?
To differentiate the company from competitors
What type of actions can help a company gain market share?
Actions to reduce costs
What is the purpose of collaboration with external parties?
To strengthen or build resources and capabilities
What type of decisions help a company seize opportunities?
Decisions to identify and seize opportunities
What is the goal of systematic decisions and actions?
To define a strategy
What is the primary focus of the 'Actions to gain market share by reducing costs' strategy in the business of Padel?
Reducing costs to gain market share
What is the main objective of 'Decisions that strengthen market position'?
To strengthen market position through M&A
What is the primary focus of 'Actions to strengthen, build, or obtain resources and capabilities'?
Strengthening, building, or obtaining resources and capabilities
What is the main objective of 'Decisions to enter or exit markets or products'?
To enter or exit markets or products
What is the primary focus of 'Actions to strengthen the bargaining position with suppliers'?
Strengthening the bargaining position with suppliers
What is the main objective of 'Collaboration/Alliances with external parties'?
To collaborate with external parties
What is the main objective of 'Actions regarding R&D, production, sales/marketing, finance, and other core activities'?
To manage core activities effectively
What is the main objective of 'Actions to identify and seize opportunities, and to defend against external threats'?
To identify and seize opportunities, and to defend against external threats
What is a key aspect of a company's values?
Guiding management and employee behavior
What is the primary purpose of a clear vision?
To determine the company's purpose and direction
What is included in a company's external environment?
The competitive environment
What is the role of strategic analysis in the strategy process?
To analyze the internal and external environment
What is an example of a core value?
All of the above
What is the purpose of a company's vision?
To determine the company's purpose and direction
What is included in the internal environment?
Internal resources and capabilities
What is the relationship between a company's vision and its objectives?
The vision determines the objectives
What is the relationship between intended strategy and realized strategy?
Realized strategy is a combination of intended and emergent strategy
What is the focus of Honda's US-market expansion in the 1950s and 1960s?
Focus on 250 and 305 CC engines for mainstream market
What is the characteristic of the emergent strategy?
It is a continuous and adaptive approach
What is the main difference between intended strategy and emergent strategy?
Intended strategy is a top-down approach, while emergent strategy is a bottom-up approach
What is the outcome of Honda's strategy shift in the US market?
Honda's sales increased significantly
What is the role of values, vision, mission, and goals in the strategy process?
They are the inputs to the strategy process
What is the basis of coordination in the emergent strategy?
Coordination based on adaptation and spontaneous interventions
What is the characteristic of the realized strategy?
It is a combination of proactive and reactive elements
Study Notes
Strategy Hierarchy
- Corporate strategy: how to compete in an industry and market, steered by top management team (CEO, CFO, etc.)
- Business strategy: how to implement a chosen business strategy, steered by management of specific industry/market branches of a company
- Functional area strategy: how to execute a business strategy, steered by heads of different functional areas (e.g., R&D, marketing, supply chain)
- Operating strategy: executes the business and functional area strategy, steered by middle management (e.g., managers of production facilities)
Strategy Process
- Successful strategy: effective implementation of a clear vision, values, and mission
- Values: norms, traits, and beliefs expected of management and employees, serving as a guideline for adhering to the company's vision and mission
- Vision: management's aspirations for the future, setting the course and direction for the long term
- Mission: a clear and concise statement of the company's purpose and objectives
- Goals: simple, consistent, and long-term objectives
Strategic Analysis
- Internal and external environment analysis: understanding the company's strengths, weaknesses, opportunities, and threats
- Intended strategy: top-down, cyclical, predetermined, and limited involvement of the organization
- Emergent strategy: bottom-up, continuous, adapted, and extensive involvement of the organization
- Realized strategy: partly proactive (intended) and partly reactive (emergent)
Examples
- Honda's US-market expansion: initially focused on 250 and 305 CC engines, but adapted to focus on 50CC engines and the mainstream market through major retailers
- Other examples: (no specific details provided)
This quiz covers the different levels of strategy in a business, from corporate to operating strategy, and how they are steered by different management teams.
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