Term
| The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its |
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Definition
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Term
| In the course of crafting a strategy, it is common for management to |
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Definition
-decide to abandon certain strategy elements that have grown stale or become obsolete.
-modify the current strategy in response to the fresh strategic maneuvers of rival firms.
modify the current strategy when market and competitive conditions take an unexpected turn or some aspects of the company's strategy hit a stone wall.
-take proactive actions to improve this or that piece of the strategy |
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Term
| Crafting and executing strategy are top-priority managerial tasks because |
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Definition
| good strategy coupled with good strategy execution greatly raises the chances that a company will be a standout performer in the marketplace. |
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Term
| Which of the following statements about a company's strategy is true? |
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Definition
| A company's strategy is typically a blend of proactive and reactive strategy elements. |
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Term
| A company's business model |
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Definition
| sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner. |
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Term
| A company's strategy consists of |
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Definition
| the competitive moves and business approaches that managers are employing to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve targeted objectives. |
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Term
| A company's business model |
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Definition
| sets forth the actions and approaches that it will employ to achieve market leadership. |
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Term
| Which of the following is not one of the basic reasons that a company's strategy evolves over time? |
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Definition
| The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture. |
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Term
| Good strategy combined with good strategy execution |
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Definition
| are the most trustworthy signs of good management. |
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Term
| A winning strategy is one that |
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Definition
| fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance. |
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Term
| Which one of the following does not account for why a company's strategy evolves from one version to another? |
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Definition
| A desire on the part of company managers to develop new strategy elements on the fly |
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Term
| Changing circumstances and ongoing managerial efforts to improve the strategy |
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Definition
| account for why a company's strategy evolves over time. |
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Term
| Which one of the following questions can be used to test the merits of one strategy over another and distinguish a winning strategy from a mediocre or losing strategy? |
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Definition
| How well does the strategy fit the company's situation? |
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Term
| Crafting and executing strategy are top-priority managerial tasks because |
|
Definition
| good strategy coupled with good strategy execution greatly raises the chances that a company will be a standout performer in the marketplace. |
|
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Term
| In crafting a company's strategy, |
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Definition
| managers need to come up with some distinctive "aha" element to the strategy that draws in customers and produces a competitive edge over rivals. |
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Term
| It is normal for a company's strategy to end up being |
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Definition
| a blend of proactive actions to improve the company's competitiveness and financial performance and adaptive reactions to unanticipated developments and fresh market conditions. |
|
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Term
| Crafting and executing strategy are top-priority managerial tasks because |
|
Definition
| there is a compelling need for managers to proactively shape how the company's business will be conducted and because a strategy-focused enterprise is more likely to be a stronger bottom-line performer than a company whose management views strategy as secondary and puts its priorities elsewhere. |
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Term
| A company's business model |
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Definition
| sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner. |
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Term
| Which of the following is not a primary focus of a company's strategy? |
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Definition
| How to achieve above-average gains in the company's stock price and thereby meet or beat shareholder expectations |
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Term
| Excellent execution of an excellent strategy is |
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Definition
| the best test of managerial excellence and the best recipe for making a company a standout performer. |
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Term
| Which one of the following is not one of the five basic tasks of the strategy-making, strategy-executing process? |
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Definition
| Developing a profitable business model |
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Term
| The managerial purpose of setting objectives includes |
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Definition
converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve.
-challenging and helping stretch the organization to perform at its full potential and deliver the best possible results.
-using the objectives as yardsticks for tracking the company's progress and performance.
-pushing company personnel to be more inventive and to exhibit more urgency in improving the company's financial performance and business position. |
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Term
| Which of the following is the best example of a well-stated strategic objective? |
|
Definition
| Overtake key competitors on product quality within three years. |
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Term
| A company's strategic plan consists of |
|
Definition
| a vision of where it is headed, a set of performance targets, and a strategy to achieve them. |
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Term
| Which of the following is the best example of a well-stated financial objective? |
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Definition
| Increase earnings per share by 15% annually. |
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Term
| Which one of the following questions is not something that company managers should consider in choosing to pursue one strategic course or directional path versus another? |
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Definition
| Do we have a better business model than key rivals? |
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Term
| Which one of the following is not a characteristic of an effectively-worded strategic vision statement? |
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Definition
| Consensus-driven (commits the company to a "mainstream" directional path that almost all stakeholders will enthusiastically support) |
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Term
| A company's mission statement typically addresses which of the following questions? |
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Definition
| "Who are we and what do we do?" |
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Term
| A company's values concern |
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Definition
| the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission. |
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Term
| A company exhibits strategic intent when |
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Definition
| it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective. |
|
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Term
| Which of the following is not an accurate description of the task of crafting a company's strategy? |
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Definition
| The task of crafting strategy is best done by a company's chief strategic planning officer, who should report directly to the company's CEO and board of directors. |
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Term
| Which one of the following is not an accurate attribute of an organization's strategic vision? |
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Definition
| Outlining how the company intends to implement and execute its business model |
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Term
| Which of the following is not a common shortcoming of company vision statements? |
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Definition
| Too narrow—doesn't leave enough room for future growth |
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Term
| A company's mission statement should be sufficiently descriptive and includes which of the following? |
|
Definition
-Identify the customer or market that the company intends to serve.
-Specify the approach taken by the company to satisfy its customer's needs.
-Relate to the buyer's needs that the company seeks to satisfy.
-Identify the company's services and products to give the company its own identity. |
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Term
| The difference between the concept of a company mission statement and the concept of a strategic vision is that |
|
Definition
| a mission statement typically concerns a company's present business scope ("who we are and what we do") whereas the principal concern of a strategic vision is the company's long term direction and future product-market-customer-technology focus. |
|
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Term
|
Definition
| relate to strengthening a company's overall business and competitive position. |
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Term
| The primary roles/obligations of a company's board of directors in the strategy-making, strategy-executing process include |
|
Definition
| overseeing the company's direction, strategy and business approaches and evaluating the caliber of senior executives' strategy-making and strategy-executing skills. |
|
|
Term
| A company's values concern |
|
Definition
| the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission. |
|
|
Term
| Which one of the following is not one of the five basic tasks of the strategy-making, strategy-executing process? |
|
Definition
| Developing a profitable business model |
|
|
Term
| The difference between the concept of a company mission statement and the concept of a strategic vision is that |
|
Definition
| a mission statement typically concerns a company's present business scope ("who we are and what we do") whereas the principal concern of a strategic vision is the company's long term direction and future product-market-customer-technology focus. |
|
|
Term
| A company's strategic plan consists of |
|
Definition
| a vision of where it is headed, a set of performance targets, and a strategy to achieve them. |
|
|
Term
| Which of the following is the best example of a well-stated strategic objective? |
|
Definition
| Overtake key competitors on product quality within three years. |
|
|
Term
| The managerial purpose of setting objectives includes |
|
Definition
-using the objectives as yardsticks for tracking the company's -progress and performance.
challenging and helping stretch the organization to perform at its full potential and deliver the best possible results.
-pushing company personnel to be more inventive and to exhibit more urgency in improving the company's financial performance and business position.
-converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve. |
|
|
Term
| A company exhibits strategic intent when |
|
Definition
| it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective. |
|
|
Term
| Which one of the following questions is not something that company managers should consider in choosing to pursue one strategic course or directional path versus another? |
|
Definition
| Do we have a better business model than key rivals? |
|
|
Term
| A company's mission statement should be sufficiently descriptive and includes which of the following? |
|
Definition
-Relate to the buyer's needs that the company seeks to satisfy.
-Identify the company's services and products to give the company its own identity.
-Identify the customer or market that the company intends to serve.
-Specify the approach taken by the company to satisfy its customer's needs. |
|
|
Term
| Which of the following is not an accurate description of the task of crafting a company's strategy? |
|
Definition
| The task of crafting strategy is best done by a company's chief strategic planning officer, who should report directly to the company's CEO and board of directors. |
|
|
Term
| As a rule, the stronger the collective impact of competitive pressures associated with the five competitive forces, |
|
Definition
| the lower the combined profitability of industry members. |
|
|
Term
| Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors? |
|
Definition
| Whether the industry's product is strongly or weakly differentiated |
|
|
Term
| Good competitive intelligence about the strategies and competitive strengths and weaknesses of rival companies helps management determine |
|
Definition
-which rivals are likely to rank among the industry leaders on the road ahead.
-which rivals are poised to gain market share and which seem destined to lose market share.
-which rivals are likely to initiate what kinds of fresh strategic moves and why.
-which competitor has the best strategy and which competitors have flawed or weak strategies. |
|
|
Term
| Having good competitive intelligence about rivals' strategies and moves to improve their situation is important because |
|
Definition
| it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence about what market maneuvers to expect from its rivals. |
|
|
Term
| Strategic group mapping is a technique for displaying |
|
Definition
| the different market or competitive positions that rival firms occupy in an industry and identifying each rival's closest competitors. |
|
|
Term
| The bargaining leverage of suppliers is greater when |
|
Definition
| industry members purchase in large quantities and thus are important customers of the suppliers. |
|
|
Term
| Using the five-forces model of competition to determine what competition is like in a given industry involves |
|
Definition
| building the picture of competition in three steps: (1) identifying the specific competitive pressures associated with each of the five competitive forces; (2) evaluating how strong the pressures comprising each competitive force are; and (3) determining whether the collective impact of all five competitive forces is conducive to earning attractive profits. |
|
|
Term
| Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on |
|
Definition
| whether demand-supply conditions represent a buyer's market or a seller's market. |
|
|
Term
| Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions? |
|
Definition
| Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration |
|
|
Term
| Which of the following is generally not considered as a barrier to entry? |
|
Definition
|
|
Term
| Which of the following is not a good example of a substitute product that triggers stronger competitive pressures? |
|
Definition
| Coca-Cola as a substitute for Pepsi |
|
|
Term
| Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry? |
|
Definition
| How many companies in the industry have good track records for revenue growth and profitability? |
|
|
Term
| Which of the following is not a question asked to deduce a marketing-related key success factor? |
|
Definition
| What are the industry product R & D capabilities and expertise in product design? |
|
|
Term
| Which of the following is not a relevant consideration in identifying an industry's dominant economic features? |
|
Definition
| How many strategic groups the industry has and which ones are most profitable and least profitable |
|
|
Term
| Which of the following is not among the factors that affect whether competitive rivalry among participating firms is strong, moderate, or weak? |
|
Definition
| Whether industry driving forces are strong or weak |
|
|
Term
| Which of the following is not an appropriate guideline for developing a strategic group map for a given industry? |
|
Definition
| The variables chosen as axes for the map should be highly correlated. |
|
|
Term
| Which of the following is not one of the five typical sources of competitive pressures? |
|
Definition
| The power and influence of industry driving forces |
|
|
Term
| Which one of the following does not intensify the competitive pressures associated with the threat of entry? |
|
Definition
| When industry members are struggling to earn good profits |
|
|
Term
| Which one of the following is not an integral part of driving forces analysis? |
|
Definition
| Determining whether the driving forces are acting to cause one or more industry rivals to shift to a different strategic group |
|
|
Term
| Which one of the following is not part of a company's macroenvironment? |
|
Definition
| The company's resource strengths, resource weaknesses, and competitive capabilities |
|
|
Term
| Using the five-forces model of competition to determine what competition is like in a given industry involves |
|
Definition
| building the picture of competition in three steps: (1) identifying the specific competitive pressures associated with each of the five competitive forces; (2) evaluating how strong the pressures comprising each competitive force are; and (3) determining whether the collective impact of all five competitive forces is conducive to earning attractive profits. |
|
|
Term
| The bargaining leverage of suppliers is greater when |
|
Definition
| there are no good substitutes for the items being furnished by the suppliers and the number of suppliers is relatively small. |
|
|
Term
| Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on |
|
Definition
| whether demand-supply conditions represent a buyer's market or a seller's market. |
|
|
Term
| Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions? |
|
Definition
| Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration |
|
|
Term
| As a rule, the stronger the collective impact of competitive pressures associated with the five competitive forces, |
|
Definition
| the lower the combined profitability of industry members. |
|
|
Term
| Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors? |
|
Definition
| Whether the industry's product is strongly or weakly differentiated |
|
|
Term
| Having good competitive intelligence about rivals' strategies and moves to improve their situation is important because |
|
Definition
| it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence about what market maneuvers to expect from its rivals. |
|
|
Term
| Good competitive intelligence about the strategies and competitive strengths and weaknesses of rival companies helps management determine |
|
Definition
-which rivals are likely to rank among the industry leaders on the road ahead.
-which rivals are likely to initiate what kinds of fresh strategic moves and why.
-which competitor has the best strategy and which competitors have flawed or weak strategies.
-which rivals are poised to gain market share and which seem destined to lose market share. |
|
|
Term
| Which of the following is not a question asked to deduce a marketing-related key success factor? |
|
Definition
| What are the industry product R & D capabilities and expertise in product design? |
|
|
Term
| Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry? |
|
Definition
| How many companies in the industry have good track records for revenue growth and profitability? |
|
|
Term
| Which one of the following is not an integral part of driving forces analysis? |
|
Definition
| Determining whether the driving forces are acting to cause one or more industry rivals to shift to a different strategic group |
|
|
Term
| Which of the following is not an appropriate guideline for developing a strategic group map for a given industry? |
|
Definition
| The variables chosen as axes for the map should be highly correlated. |
|
|
Term
| Strategic group mapping is a technique for displaying |
|
Definition
| the different market or competitive positions that rival firms occupy in an industry and identifying each rival's closest competitors. |
|
|
Term
| Which one of the following does not intensify the competitive pressures associated with the threat of entry? |
|
Definition
| When industry members are struggling to earn good profits |
|
|
Term
| Which of the following is not a good example of a substitute product that triggers stronger competitive pressures? |
|
Definition
| Coca-Cola as a substitute for Pepsi |
|
|
Term
| Which one of the following is not part of a company's macroenvironment? |
|
Definition
| The company's resource strengths, resource weaknesses, and competitive capabilities |
|
|
Term
| Which of the following is not one of the five typical sources of competitive pressures? |
|
Definition
| The power and influence of industry driving forces |
|
|
Term
| Which of the following is generally not considered as a barrier to entry? |
|
Definition
|
|
Term
| Which of the following is not a relevant consideration in identifying an industry's dominant economic features? |
|
Definition
| How many strategic groups the industry has and which ones are most profitable and least profitable |
|
|
Term
| Which of the following is not among the factors that affect whether competitive rivalry among participating firms is strong, moderate, or weak? |
|
Definition
| Whether industry driving forces are strong or weak |
|
|
