Halfway point

Who said: “Strategy can be defined as the determination of the long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals"

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Answer explanation

He was a professor of business history at Johns Hopkins University and Harvard Business School, specializing in business size and structures.

His works redefined business and economic history of industrialization. He received the Pulitzer Prize for History for his work, The Visible Hand: The Managerial Revolution in American Business (1977)

In the same way that in companies there are different organizational levels, definition of the strategy is carried out at different levels, and with different approaches, especially in diversified companies or in multi-divisional business groups. Let see what they are....

Answer explanation

The organizational levels are:

a) Corporate strategy

b) Competitive strategy

c) Functional or operative strategies

The difference between the price actually paid and the total cost of producing would be the part of

• Value captured by customers

• Value captured by the company

• Value created by the company

• Value created by the suppliers

Answer explanation

Remember: Value created by the company is the difference between the value for customers or what they are willing to pay, and the total cost of producing the product or service, and is the sum of the company's profit plus the value captured by the customer.

Draw the Michael Porter's value chain!

Answer explanation

Is your drawing alike this graphic?

We know it is difficult to be accurate but just remember the shape of it!

What matrix will help you to answer the following questions:

How well does your business strategy support the fulfillment of your company's purpose?How well does your organization support the achievement of your business strategy?

Answer explanation

Is your drawing similar to this image? : )

We consider six differentiators and consistent characteristics of agile strategy frameworks: [........................], continuity, and consistency, as well as flexibility, feasibility, and commitment.

Answer explanation

Transparency:

It is one of the three basic pillars of scrum; it is vital to increase constant visibility and tangibility. It lays the foundation for good decision making. A collective vision of strategic progress that considers all interdependencies will make organizations more aware of emerging events, risks and issues, but also of potential synergies between existing initiatives.

Managers must consider 5 elements when making decisions. Which of them answers to "Where will we be active?"

• Differentiators

• Arenas

• Staging

• Economic logic.

• Vehicles

Answer explanation

Arenas are areas in which a company will be active. Decisions about a company's scenarios can encompass its products, services, distribution channels, market segments, geographic areas, technologies, and even stages of the value creation process.

A company’s innovative capability as: the set of [........................], functions and organizational routines of the company, which allow it to generate, develop and implement innovations, in a dynamic way that enables adaptation to competitive changes in the sector and changes in customer demand.

Answer explanation

If the organization has a greater innovative capability, it will be able to accumulate knowledge and experience more quickly, which leads to the generation, development and implementation of innovations.

In order for innovations to lead to a real competitive advantage - i.e. to a profitability consistently higher than that of competitors - the organizational capacity that generates them must be dynamic, in the sense that they have to continuously adapt to competitive changes in the sector - imitation, substitution, regulations, etc. - and changes in customer demand - new tastes and preferences, changes in trends, obsolescence of current offer, etc.

Who said: “Starting and growing a business is as much about the innovation, drive, and determination of the people behind it as the product they sell".

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Answer explanation

New digital technologies simultaneously pose an opportunity and a threat for established companies with a long history in their respective industries. They affect their competitive capacity, their profitability, the ability to add value, to innovate and their survival and, therefore, to the essence of the goals pursued by strategic management.

Draw the PORTER 5+2 forces analysis

Answer explanation

Do not forget about Technology and Government!