Define a Strategy
A company’s strategy consists of competitive move and business approaches managers use to run a company. It is the managers “action plan” to grow the business, attract customers and become competitive in the market.
How can a strategy be ethical?
A company’s strategy must entail actions that can pass moral scrutiny. It should not be shady, unconscionable, injurious to others, or harmful to the environment.
What’s the difference between a strategy and a business model?
A strategy consists of the competitive initiatives and business approaches a firm will use, whereas a business model determines if the revenue and cost flow from the strategy will be profitable.
What’s the purpose of crafting a strategy?
The purpose of crafting a strategy is to proactively shape how a company will conduct its business. Crafting and execution of the strategy are core management functions.
What are the elements to a strategic objective?
Strategic objectives turn a company’s vision into a specific target. It must be measurable, quantifiable, and have a deadline.
What are porters 5 forces and the applications of them?
Porters 5 forces include the threat of new entrants, the threat of substitute products, the bargaining power of buyers, the bargaining power of suppliers and competitive rivalry.
What are some factors that make an industry competitive?
Some factors may include lower prices, higher quality, better performing products, slow market growth; buyer cost to switch is low.
What are the steps in doing a swot analysis?
There is more than just determining a company’s Strengths, Weaknesses, and Opportunities & Threats. After compiling those lists, you must use the lists to match a company’s strategy with its strengths and market opportunities, correct the important weaknesses, and defend against possible threats.
What is the purpose of a value chain, and what are the main areas?
The ultimate purpose behind a value chain is to create value for buyers. It contains 2 major activities, Primary and support. Primary activities are where most value is created and consist of: supply chain mgmt, operations, distribution, sales and marketing, services, and profit margins. Support activities consist of: R&D, Human resource management, and general administration.
What is the purpose of having a strategic vision?
The purpose of a strategic vision is that it describes the route a company intends to take in developing and strengthening its business. It asks the question “where are we going?”
What is a strategic group map & how are they developed?
Strategic group maps are an analytical tool for determining which companies closely compete with each other. They are developed by identifying different characteristics of firms and placing them on a 2 variable map. The closer companies are to one another, the more competitive they are.
What are key success factors and what is their purpose?
Key Success Factors are competitive factors and attributes that affect every industry member’s ability to be competitively and financially successful. They can spell the difference between profit and loss or success and failure.
What are the objectives of benchmarking?
The objectives of benchmarking include identifying the best way to perform value chain activities, learn the best way other successful companies have demonstrated, learn how other companies perform that way at a lower cost, and figure out how to improve a company’s own cost effectiveness
What is sustainable competitive advantage?
Sustainable competitive advantage is a competitive advantage that other companies have tried unsuccessfully to duplicate.
Why do company strategies evolve?
The main reason company strategies evolve are ongoing changing circumstances and management efforts to further improve the strategy. This makes the task of crafting a strategy a continuous work in progress.
What is the difference between corporate, business, functional, and operating strategies?
A corporate strategy is the overall gameplan for the company, orchestrated by the ceo. A business strategy concerns performance in one particular line of business, and is conducted by the manager in charge of that business. A functional strategy concerns a certain function or activity with a business, conducted by the functional head. An operating strategy concerns narrow key operating units in a business, conducted by frontline managers.
What is the difference between a company’s mission and vision?
A company’s mission or mission statement states where the company presently is, and a company’s vision or strategic vision tell where the company is headed for the future. The strategy gets the company from the mission to the vision.
Should a company’s strategy be tightly connected to its quest for competitive advantage?
Yes, because a strategy that leads to sustainable competitive advantage is a company’s most reliable means of achieving above average profitability.
Discuss the source of Valero’s competitive advantage.
The competitive advantage Valero holds is the fact that they are able to turn thick, crude oil into usable fuel. This way, they can get heavy fuel for cheap and sell it at the same price as competitors.
Discuss the source of Intel’s competitive advantage
Intel’s competitive advantage comes from them having an established superiority in a high demand computer chip industry with virtually no new entrants, no substitutes, and very little competition. They also have the upper hand on the suppliers and buyers because both have a high demand for intels products.
Explain what happened during the Tylenol crisis?
In the 1980s, Tylenol had to pull its products off of the shelves because numerous people had died after capsules were filled with cyanide. Rather than try to cover it up, Tylenol confronted the issue openly with the public, gaining back the trust of the public.
What makes/made McDonalds successful?
Mcdonalds has continued success because of the location of their restaurants, the cleanliness of their restrooms, and the consistency of their products.