Strategy Module Quiz - Week 1

The crucial factors that determine a company's competitive advantage and market success.

The concept of viewing a company as part of an interconnected ecosystem. It emphasizes broader returns (not just profits) and a company's impact on the environment and society.

Designing products to streamline production and minimize costs.

The influence customers have on lowering prices in an industry.

A strategy provides a clear direction and framework for decision-making.

A weak market position when a company lacks a clear competitive advantage, neither dominating the low-cost nor high-end markets.

Achieving a low-cost position consistently to create a long-term advantage, not a temporary one.

Competitiveness achieved by consistently offering the lowest prices in the market.

A successful differentiation strategy requires unique product features and clear signaling of new models, combined with effective market reach,not just market leadership.

Analyzing competitors' resources and strategies enables anticipating their actions and decisions, leading to a more informed strategic response.

A sustainable advantage stems from unique capabilities, not just various resources or capabilities alone

Corporate strategy defines the industries a company competes in, focusing on growth and strategic positioning within different markets.

Excess production capacity, not a lack of it, within an industry, will reduce the profitability of established businesses

Strategic fit aligns business resources, capabilities, and strategies with the competitive environment and market to attain competitive advantage.

The PEST analysis is used to understand the broader external factors influencing a company’s performance, such as political, economic, social, and technological forces..

Strategic group analysis identifies companies following similar strategic approaches in a market.

The ability to easily create copies or variations of a resource or capability.

High replicability can be either a good or bad base for creating competitive advantage, depending on how unique and valuable the resource is.

A view of the business as a coalition of different groups (owners, employees, customers, etc.) with varying interests.

A framework for understanding how a company creates value through its activities, from raw materials to final customer delivery.

Involving employees in decision-making processes to increase morale and productivity.

A perspective that views organizations as arenas of power struggles and competing interests.

A view of organizational structure as a stage, with symbolic elements creating an impression and desired image.

Leaders champion employee ideas and growth, creating a supportive and empowering work environment.

Analyzing and improving the performance of the slowest part of a workflow to maximize output and efficiency.

Adjusting plans and actions to align with budget targets when actual results deviate.

Cash flow directly reflects the movement of money in and out of an organization's bank account.

Maximizing the value created from the resources that limit production output in an organization.

A financial roadmap outlining an organization's financial plans and targets for a specific period.

Culture refers to the shared values, beliefs, assumptions, and practices that characterize an organization. It's the unique way an organization operates.

Stories within organizations often carry history, values, and group identity. They shape the organization's past, present, and future.

The 'Dual authority' team structure is commonly used in the White House. It allows the president to focus on mission and external relations while the chief of staff handles operational details.

When facing a difficult problem, Bolman and Deal suggest using different 'lenses'—frameworks or perspectives—to analyze the situation and develop innovative solutions.

Jensen and Meckling emphasize that stock analysts primarily provide oversight to hold managers accountable to shareholders' interests.

The 'professional bureaucracy' is known for its slow response to external change due to its rigid structure and reliance on standardized procedures.

A simple structure consists of a strategic apex (top management) and an operating level (workers). Decisions are centralized, with few managerial layers.

Bolman and Deal identify four key organizational challenges that managers face: complexity, change, conflict, and ambiguity.

The sum of fixed and variable costs equals the total sales revenue at the break-even point.

Within a relevant range, variable cost per unit remains constant regardless of changes in production volume.

Within a relevant range, fixed costs remain unchanged even with changes in the production volume.

Fixed costs divided by the number of units produced determines the fixed cost per unit, which changes with production volume.

Accounting serves three primary functions: scorekeeping, attention directing, and problem solving. Financing is not a core function of accounting.

The key difference between financial and management accounting lies in the stakeholders they address. Financial accounting focuses on external users, while management accounting provides internal information for decision-making.

Responsibility centers are used to monitor the financial performance and control the actions of individuals or departments.

Control in accounting refers to the use of information to achieve set goals by influencing behavior and decision-making.