Chapter 1 Strategic Management Exam 1 Material

question

What is strategy?
answer

An action a company takes to attain superior performance through the creation advantages.
question

What is the strategic management process?
answer

The process by which managers choose a set of “good” strategies for the enterprise to pursue its objectives.
question

Why study strategic management process?
answer

A central objective of strategic management is to learn why some firms earn more economic profits that others.
question

The Strategic Management Process
answer

Mission > Objectives > External and Internal Analysis > Strategic Choice > Strategy Implementation > Competitive Advantage
question

The mission or long term purpose of the company answers the question _________ and _________.
answer

who we are, what are we going to do
question

The objective of a company should answer the question ________ and should include ________.
answer

how we are going to do it, measurable targets
question

Consolidation and the changing face of competition in an industry is an example of ________.
answer

External Environment – External Opportunities and Threats
question

Differences in resources and capabilities between firms are an example of ________.
answer

Internal Strengths and Weaknesses
question

Business Level Strategy is an example of a _________.
answer

Strategic Choice
question

Walmart, Target, and Dollar stores compete with different resources/capabilities and different or overlapping market segments these strategies are an example of __________.
answer

business level strategies
question

________ are actions firms take to gain competitive advantages in a single market or industry.
answer

Business-level strategies
question

________ are actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously.
answer

Corporate-level strategies
question

Domestic Expansions, Ventures, Vertical Integration, Diversification, Strategic Alliances, and Global Expansion are all examples of _________.
answer

corporate level strategies
question

The strategic management process includes effective theories on how to create ________.
answer

competitive advantage
question

Actions to: -Respond to changing market conditions, -Gain sales/market share via lower prices, higher, performances, better quality, etc., -Enter/exit new geographic or product markets, -Strengthen competitiveness via mergers/acquisitions or strategic alliances, and -Strengthen capabilities and neutralize weaknesses are
answer

the pattern of actions and business approaches that define a company’s strategy.
question

________ are theories of how to gain competitive advantage in an industry that emerge over time or that have been radically reshaped once they are initially implemented.
answer

Emergent strategies
question

Economic value
answer

the difference between the perceived benefits gained by a customer that purchases a firm’s products or services and the full economic cost of these products or services

Get instant access to
all materials

Become a Member