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who should be involved in strategy implementation?
- CEO & board of directors
- division heads
What is the difference between vision and mission statement?
The mission statement gives more pragmatic (practical consideration) guidelines than vision statement. The vision plan states company's grand plans and overall direction and mission statement ives an idea on how those plans will be implemented.
What strategy is implemented when a chain of grocery stores buys out a number of local farms and begins to grow its own produce?
BACKWARD INTEGRATION. It is backward because the company has taken a step behind them in supply chain and integrated that step into its core business.
When the buyer has a low profit margin, what happens to the seller's bargaining power?
Seller's bargaining power DECREASES. If the buyer has a low profit margin, it is easy for him/her to walk away from a deal. It is much harder to walk away from a deal that is lucrative.
Which of the following does not necessarily increase competition between the companies?
a) industry deregulation
b) high overhead cost
c) slow industry growth
d) presence of equal competitors
DEREGULATION (removal of regulations). It depends on specific regulations being removed.
Which business strategy relies on low-cost-on-time production to reduce the costs associated with idle workers and facilities?
This strategy is called just-in-time production. This strategy relies on highly dependable processes to cut overhead, giving the company a competitive advantage.
Which best determines company's ability to meet short-term goals?
It is best measured by its LIQUIDITY. It measures company's cash on hand and assets that can quickly be converted to cash at or near full value.
Why might the market value of software firm be higher than its book value?
The market value might be higher because the market is pricing based on the firm's intellectual assets. Even if there are no major products being sold, the market might trust that a talented group of software engineers will produce a winning program soon.
Which strategy should a company employ to combat high turnover in a competitive industry?
The company should implement employee retention programs. High turnover makes it impossible to implement larger strategies because the team is being constantly patched together.
Who evaluates an employee in a 360 degree evaluation process?
colleagues, managers & subordinates.
Which is not a good quality in a leader?
Being reactive, becaue reactive behavior precludes the possibility of planning and implmenting an effective strategy.
MBWA (management by walking around)
What should be relationship between a corporate strategy and and corporate structure?
Corporate structure should be designated to implement corporate strategy. Of course, there is a cost associated with reorganization which is another reason why it is vital to develop an effectiveoverall corporate strategy from the beginning.