Glo-Bus-Strategy Exam1 Solved correctly

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What is a company's Strategy? - ANSWER -consists of the competitive moves and business approaches that managers employ to attract and please customers, compete successfully, capitalize on opportunitie ... s to grow the business, respond to changing market conditions, conduct operations, and achieve the targeted financial and market performance How does a company compete differently? - ANSWER -by having a creative, distinctive strategy that sets a company apart from rivals and delivers superior value to customers is a company's most reliable ticket for winning a competitive advantage over rivals How does a company achieve a competitive advantage? - ANSWER -when an attractive number of buyers are drawn to purchase its products or services rather than those of competitors. IE. Low cost provider, higher quality, more selection, more value, narrow market niche, expertise and resource strengths. How does a company achieve sustainable competitive advantage - ANSWER -when the basis for buyer preferences for its product offering relative to the offerings of its rivals is durable, despite competitors' efforts to nullify or overcome the appeal of its product offering. Evolving Company Strategy - ANSWER -changing circumstances and ongoing management efforts to improve the strategy cause a company's strategy to evolve over time-a condition that makes the task of crafting a strategy a work in progress, not a one-time event. Proactive Strategy Elements - ANSWER -new initiatives plus ongoing strategy elements continued form prior periods Reactive Strategy Elements - ANSWER Adaptive reactions to changing circumstances How is a strategy ethical? - ANSWER 1) it does not entail actions and behaviors that cross the line from "should do" to "should not do" (because such actions are "unsavory", unconscionable, injurious to other people, or unnecessarily harmful to the environment); and 2) it allows management to fulfill its ethical duties in a manner that takes into account the legitimate interests of all stakeholders- owners/shareholders, employees, customers, suppliers, the communities in which it operates, and society at large What is a company's Business Model & its core elements? - ANSWER -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. 1)Value Proposition: company's approach to satisfying buyer needs and requirements at a price they will consider a good value. 2)Profit Proposition: concerns a company's business approach, the means of generating revenues, and the principal resources and operating systems that will be employed to create and deliver the intended customer value in a cost-effecient manner and the company's consequent abiity to charge a price for the value provided to customers that produces acceptable profit levels. Elements of a "winning strategy"? - ANSWER -(1)must fit the enterprise's external and internal situation, (2) help build sustainable competitive advantage, (3) and improve company performance "the best test" of managerial excellence? - ANSWER -the level at which a company's strategy is conceived and how competently the strategy is executed are directly correlated to a company's success within a given market. *Excellent execution of an excellent strategy is the best test of managerial excellence* 5 managerial tasks for crafting and executing a company's strategy - ANSWER 1) Developing a strategic vision: that charts the company's long-term direction, a mission statement that describes the company's business, and a set of core values to guide the pursuit of the vision and mission. 2) Setting objectives: and using them as yardsticks for measuring the company's performance and the progress it is making in achieving the intended strategic vision and mission. 3) Crafting a strategy: to achieve the objectives and move the company along the strategic course management has charted. 4) Implementing and executing the chosen strategy efficiently and effectively. 5) Monitoring developments, evaluating performance, and initiating corrective adjustments in the company's long-term direction, objectives, strategy, or execution in light of actual experience, changing conditions, fresh managerial ideas for improving the strategy, and newly emerging market opportunities. Strategic Vision - ANSWER -describes the route a company intends to take in developing and strengthening its business. It lays out the company's strategic course in preparing for the future. It communicates management's aspirations to stakeholders and helps steer the energies of company personnel in a common direction. *A strategic vision can usually be adequately stated in less than a page, and managers should be able to explain it to company personnel and outsiders in five to ten minutes. Vision Statement - ANSWER -should clearly convey a company's long-term direction, rather than hide it in foggy language [Show More]

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