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Strategic Mgmt midterm
chapters 1-6
60
Management
10/06/2012

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Term
Good strategy combined with good strategy execution...
Definition
are the most telling signs of good management
Term
A company's strategy consistis of ...
Definition
the competitive moves and business approaches that managers are employing
Term
A company's business model...
Definition
is management's blueprint for delivering a valuable product or service to customers in a manner that will generate ample revenues to cover costs and yield an attractive profit
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...
Definition
How well does the strategy fit the company's situation
Term
A company's strategy is most accurately defined as...
Definition
management's commitment to pursue a particular set of actions
Term
Excellent execution of an excellent strategy is ...
Definition
the best recipe for making a company a standout performer
Term
A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage...
Definition
is a company's most reliable ticket for earning above-average profitability
Term
Which of the following is NOT one of the basic reasons that a company's strategy evolves over time...
Definition

 

The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture

Term
The heart and soul of a company's strategy-making effort...
Definition
involves coming up with moves and actions that to gain a durable competitive edge over rivals
Term
A company's strategy evolves from one version to the next because of ...
Definition
the proactive efforts of company managers to improve the strategy, a need to respond to changing customer requirements, and reactions to fresh strategic maneuvers of rivals.
Term
The defining characteristic of a well-conceived strategic vision is...
Definition
"the direction we are headed and what our future product-market-customer-technology focus will be."
Term
The primary role of a functional strategy is to...
Definition
is to flesh out the details of a company's business strategy and to support the overall business strategy and competitive approach
Term
A company's mission statement typically addresses which of the following questions...
Definition
"Who are we and what do we do?"
Term
Masterful strategies come from
Definition
doing things differently from competitors where it counts-out-innovating them, being more efficient, adapting faster
Term
 A company's strategic vision
Definition
delineates management's aspirations for the business, providing a panoramic view of "where we are going" and a convincing rationale for why this makes good business sense
Term
The primary roles/obligations of a company's board of directors in the strategy-making, strategy-executing process include...
Definition
oversee the company's strategic direction, evaluate its senior executives, handle executive compensation, and oversee financial reporting practices.
Term
Managerial jobs with strategy-making responsibility..
Definition
is a collaborative team effort in which every manager has a role for the area he or she heads extend throughout the managerial ranks and exist in every part of a company
Term
Which of the following are integral parts of the managerial process of crafting and executing strategy...
Definition
developing a strategic vision, setting objectives, and crafting a strategy
Term
A company exhibits strategic intent when...
Definition
it relentlessly pursues an ambitious strategic objective
Term
Business strategy concerns
Definition
is strategy at the level of a single line of business
Term
A strategic group consists of those firms in an industry that...
Definition
employ similar competitive approaches and occupy similar positions in the market
Term
The bargaining leverage of suppliers is greater when...
Definition
the supplier industry is more concentrated than the industry it sells to and is dominated by a few large companies
Term
Which of the following is not a factor to consider in identifying an industry's dominant economic features?
Definition
strength of driving forces and competitive forces
Term
The rivalry among competing sellers tends to be less intense when...
Definition
industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance
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
In identify an industry's key success factors, strategic should
Definition
consider on what basis customers choose between competing brands, what resources and competitive capabilities firms need to be successful, and what shortcomings are almost certain to put a company at a significant competitive disadvantage
Term
The task of drving forces analysis is to
Definition
identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed
Term
Which of the following factors does not affect whether buyer bargaining power is an important source of competitive pressure in an industry?
Definition
Whether buyers have a strong preference for products of superior quality or just average quality
Term
Which 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
The competitive pressure from substitute products tend to be stronger when
Definition
buyers are relatively comfortable with using substitutes and the costs to buyers of switching over to the substitutes are low
Term
Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because...
Definition
the purpose is to identify the specific issues/problems that management needs to address
Term
Quantitative measures of a company's competitive strength..
Definition
show how a company compares against rivals, factor by factor ( or capability by capability), thus revealing where it is strongest and weakest, and against whom
Term
The two most important parts of SWOT analysis are..
Definition
drawing conclusion from the SWOT listings about the company's overall situation and translating these into strategic actions.
Term
A company requires a dynamically evolving portfolio of resources and capabilities to...
Definition
sustain its competitiveness and help drive improvements in its performance
Term
Which one of the following is not a reliable measure of how well a company's current strategy is working?
Definition
Whether it has a larger number of competitive assets  than competitive liabilities and whether it has a superior quality product
Term
A company's resource and capabilities analysis
Definition
sizing up if they can support sustainable competitive advantage over market rivals
Term
Which of the following is not a component of evaluating a company's resources and competitive position?
Definition
Scanning the environment to determine a company's best and most profitable customers
Term
A company's value chain identifies...
Definition
the primary activities it performs in creating value for its customers and the related support activities
Term
When a company is good at performing a particular internal activity, it is said to have...
Definition
a company competence
Term
A core competence...
Definition
gives a company competitive capability and is a genuine company strength and resource.
Term
The biggest and most important differences among the competitive strategies of different companies boil down to...
Definition
whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation.
Term
A competitive strategy predicated on low-cost leadership tends to work best when...
Definition
price competition is vigorous and the offerings of rivals firms are essential identical
Term
Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?
Definition
Increasing production capacity and then striving hard to operate at full capacity
Term
The keys to sustaining a broad differentiation strategy are...
Definition
to stress constant innovation to stay ahead of imitative rivals and to concentrate on a few differentiating features.
Term
How valuable a low-cost leader's cost advantage is depends on...
Definition
whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs
Term
Successful differentiation allows a firm to...
Definition
command a premium price for its product, and/or increase unit sales, and/or gain buyer loyalty to its brand
Term
The major avenues for achieving a cost advantage over rivals include...
Definition
revamping the firm's value chain to eliminate or bypass some cost-producing activities and/or out-managing rivals in efficiency.
Term

 

the competitive advantage of a best-cost provider is...

Definition
its capability to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes.
Term
A focused low-cost strategy can lead to attractive competitive advantage when...
Definition
a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment
Term
Broad differentiation strategies are well-suited for market circumstances where...
Definition
there are many ways to differentiate the product or service and many buyers perceive these differences as having value.
Term
What does the scope of the firm refer to?
Definition
The range of activities the firm performs internally and the breadth of its product offerings.
Term
Which of the following rivals make the best targets for an offensive attack?
Definition
Firms that are weak in areas where challenger is strong
Term
Incorporating opportunities for organizational learning can
Definition
increase a company's knowledge asset and capabilities
Term
What is the goal of signaling a challenger that strong retaliation is likely in the event of an attack?
Definition
Divert the challenger to use less threatening options
Term
Which of the following is not a strategic disadvantage of vertical integration?
Definition
Vertical integration reduces the opportunity for achieving greater product differentiation
Term
Because when to make a strategic move can be just as important as what move to make, a company's best option with respect to timing is...
Definition
to carefully weigh the first-mover advantages against the first-mover disadvantages and act accordingly
Term
A good example of vertical integration is
Definition
a crude oil refiner purchasing a firm engaged in drilling and exploring for oil.
Term
A company racing to seize opportunities on the frontiers of advancing technology often utilizes strategic alliances and collaborative partnerships to...
Definition
help master new technologies and build new expertise and competencies, establish a stronger beachhead for participating in the target industry, and open up broader opportunities in the target industry
Term
Which of the following is not one of the benefits of outsourcing value chain activities presently performed in-house?
Definition
Enables a company to gain better access to end users and better market visibility
Term
Entering into strategic alliances and collaborative partnerships can be competitively valuable because...
Definition
cooperative arrangements with other companies are very helpful in racing against rivals to build a strong global presence and/or racing to seize opportunities on the frontiers of advancing technology