MANARAT
INTERNATIONAL UNIVERSITY
(MIU)
Department of Business
Administration
Course Title: Strategic
Management (MGT 404)
(Chapter-1:
Introduction)
01. There are five interrelated
managerial tasks of strategy-making or strategy-implementing
process.
02. The first task of strategic
management (SM) is developing a strategic vision
and business mission.
03. The fourth task of SM is
evaluating performance and initiating corrective
adjustments.
04. The third task of SM is
crafting a strategy to achieve the
desired outcomes.
05. A strategic vision is a
roadmap of a company’s future.
06. “Who we are and what we do”
indicates a company’s mission statement.
07. “We are in the picture
business” is the mission statement of Eastman
Kodac Company.
08. “To improve the quality of
human life” is the mission statement of the American
Red Cross
09. Objectives are the “ends”
and strategy is the “means” of achieving
them.
10. The march of external & internal developments dictate that a
company’s strategy change over time.
11. An organisation’s strategy
re-forms over time as the no. of changes & adaptations begin to mount.
12. Managing the strategy execution process is primarily a
hand-on administrative task.
13. There is much interplay & recycling among the five tasks.
14. The five SM tasks have to
be done alongside a manager’s other duties
& responsibilities.
15. Crafting & implementing
strategy make erratic demands on a
manager’s time.
16. There are usually four
distinct levels of strategy managers.
17. The owner or CEO assumes
the role of chief strategist in the
Chief Architect Approach.
18. The managers in charge
delegates big chunks of the strategy-making task to trusted subordinates
in the Delegation Approach.
19. The Collaborative approach
is also called the Team Approach.
20. The Collaborative strategy
making helps win participants’ wholehearted commitment to implementation.
(Chapter-2:
Establishing Company Direction)
01.
Effective strategy making begins with a vision of where the organisation needs to head.
02. A
clear strategic vision is a prerequisite to effective strategic leadership.
03.
Managers have three tasks in forming a strategic vision & making it a
useful direction-setting tool.
04.
Coming up with a mission statement is not as simple as it might seem.
05.
The mission is not to make a profit.
06.
Profit is more correctly an objective & a result of what the company does.
07. A
strategically revealing mission
statement incorporates three elements.
08.
“What is being satisfied” indicates customer
needs.
09.
“Who is being satisfied” indicates customer
groups.
10.
Good mission statements are highly personalized- unique to the organisation for
which they are developed.
11.
If the wrought-iron lawn furniture
business is the narrow definition of mission then its broad definition
will be furniture business.
12.
If the long-distance telephone service
business is the narrow definition of mission then its broad definition
will be telecommunication business.
13.
If the soft-drink business is the
narrow definition of mission then its broad definition will be beverage business.
14. If the global mail delivery
business is the broad definition of mission then its narrow definition will
beovernight package delivery business.
15. If the travel & tourism
business is the broad definition of
mission then its narrow definition will be Caribbean
Cruise Ship business.
16.
Diversified companies have broader missions and business definitions than single-business enterprise.
17. A
well-conceived, well-stated strategic vision pays off in several respects.
18.
The best-worded vision statements clearly & crisply illuminate the
direction in which an organisation is
headed.
19.
Every company needs both strategic objectives and financial objectives.
20. A bigger market share is an example of strategic objective.
21. Stable earnings during periods of recession
is an example of financial objective.
22. A stronger brand name than rivals is an
example of strategic objective.
23. Strong
bond and credit ratings is an example of financial objective
24.
“To attain one billion customers worldwide” is the strategic objective of the CITIGROUP
25. “Become the most competitive enterprise in
the world” is the strategic objective of the GENERAL ELECTRIC.
26.
“Self-funding revenue growth of 15% annually” is the financial objective of the
MOTOROLA.
27.
“To achieve a 20% return on equity” is the financial objective of the McCORMICK & COMPANY.
28.
The full meaning of BHAG is Big,
Hairy, Audacious Goal.
(Chapter-3:
Industry & Competitive Analysis)
01. An
industry’s economic features help frame the window of strategic approaches a company can pursue.
02. The
five competitive forces were identified by Professor
Michael Porter.
03. The
five-force model of competition is depicted in figure 3.4
04. Rivalry
is usually stronger when demand for the product is growling slowly.
05. Rivalry
is stronger when customers’ costs to switch brands
are low.
06. Rivalry
increases in proportion to the size of the payoff from a successful strategic move.
07. Rivalry
tends to be more vigorous when it costs more to get out of a business than to
stay in & compete.
08. The
first one of the five competitive forces
is the rivalry among competing sellers in
the industry.
09. The
second one of the five –forces model
is the potential entry of new
competitors.
10. Regardless
of the industry, several common factors seem to influence the tempo of cross-company rivalry.
11. High
switching costs create buyer lock-in & weaken a buyer’s bargaining power.
12. The
driving forces are the major underlying causes of changing industry & competitive conditions.
13. The
task of driving forces analysis is to separate the major causes of industry
change from the minor ones.
14. Usually
no more than three or four factors qualify as driving forces.
15. The
full meaning of E.S.T is Environmental
Scanning Technique.
16. The
full meaning of S.G.M is Strategic
Group Mapping.
17. The
S.G.M is a technique for displaying the different competitive positions that
rival firms occupy in the industry.
18. The
procedure for constructing a S.G.M is straightforward in four steps.
19. S.G.M
of competitors in the video game industry is shown in illustration capsule 14.
20. The
full meaning of KSFs is Key Success
Factors.
21. The
prerequisites for industry success
are called the Key Success Factors.
22. The
rules that shape whether a company will
be financially successful are called the Key Success Factors.
23. Product
innovation capability is one of the technology-related
KSFs.
24. Low-cost
plant locations are one of the manufacturing-
related KSFs
25. Low
distribution costs are one of the distribution-related
KSFs.
26. Merchandising
skills are one of the marketing-related
KSFs.
27. Quality
control know-how is one of the skills-related
KSFs.
28. Managerial
experience is one of the organisational capability-related
KSFs.
29. Patent
protection is one of the other types
of KSFs.
30. Overall low cost (not just in mfg.) is one of
the other types of KSFs.
(Chapter-4:
Evaluating Co. Resources & Competitive
Capabilities)
01. Sometimes
company objectives are not explicit enough to benchmark actual performance.
02. The
stronger a company’s financial performance, the more likely it has a
well-conceived, well-executed
strategy.
03. A
strength can take any of several
forms.
04. A
co. is positioned to succeed if it has a competitively valuable complement of
resources at its command.
05. A
company’s resource strengths represent competitive
assets.
06. A
company’s resource weaknesses represent competitive
liabilities.
07. A
co. competence is the product of learning
& experience.
08. A
co. competence represents real proficiency in performing an internal activity.
09. Product innovation skills is an example of
a company’s potential resource
strengths.
10. Integrating forward or backward is an
example of a company’s potential
opportunities.
11. No clear strategic direction is an
example of a company’s potential
resource weaknesses.
12. Slowdowns in market growth is an example
of a company’s potential external
threats.
13. Cost advantages is an example of a company’s
potential resource strengths.
14. Falling trade barriers in attractive
foreign markets is an example of a company’s potential opportunities.
15. Obsolete facilities is an example of a
company’s potential resource
weaknesses.
16. Loss of sale of substitute products is
an example of a company’s potential
external threats.
17. A
core competence is something that a company does well relative to other internal activities.
18. A
distinctive competence is something that a company does well relative to competitors.
19. A
distinctive competence empowers a company to build competitive advantage.
20. The
primary analytical tool of strategic cost analysis is a value chain.
(Chapter-5:
Strategy & Competitive Advantage)
01.
Competitive strategy has a narrower scope than business strategy.
02. A
low-cost leader’s basis for competitive advantage is lower overall costs than competitors.
03.
Successful low-cost leaders are exceptionally good at finding ways to drive
costs out of their businesses.
04. The
basis of competitive advantage of low-cost provider strategy is lower costs than competitors.
05. The
basis of competitive advantage of best-cost provider strategy is more value for money.
06. The
strategic target of low-cost provider strategy is a broad cross-section of the market.
07. The
strategic target of low-cost provider strategy is a broad cross-section of the market.
08. The
strategic target of broad differentiation strategy is a broad cross-section of the market.
09. The
strategic target of best-cost provider strategy is the value-conscious buyers.
10. The
reconfiguring value chain system of software developers is shown in figure 5.2.
11. A
low-cost leader is in the strongest position to win the business of price-sensitive buyers.
12. The
essence of differentiation strategy is to be unique in ways that are valuable to customers.
13. Easy-to-copy
differentiating features cannot produce sustainable competitive advantage.
14. Any
differentiating element that works well tends to draw imitators.
15. Alliances
are highly beneficial in racing against rivals for global market leadership.
16. Using
outsourcing to narrow a company’s business boundaries offers significant advantages.
17. Competitive
advantage is usually acquired by employing a creative offensive strategy.
18. One
of the most powerful offensive strategies is to challenge rivals with an
equally goods at a lower price.
19. Successful
preemptive strikes relegate rivals to competing for second-best positions.
20. There
are many ways to throw obstacles in the path of would-be challengers.
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