Fundamentals of Strategic Thinking

According to Rumelt (2011), what is the essence of a good strategy?

• It urges us to pursue specific financial goals

• It urges us to focus and coordinate efforts

• It urges us to craft a vision

Which element of the kernel of good strategy includes "deciding under uncertainty and complexity"?

• Guiding policy

• Concentration of effort on leverage points

• Coordination of efforts and coherent actions

What is not one of the key characteristics of strategy?

• Strategy can be either deliberate or emergent

• Strategy is about rational choices under certainty

• Strategy includes a focus on an external market

Porter (1996) deals with what constitutes a strategy. What contributes to a successful strategy?

• Making clear trade-offs and tightening strategic fit

• Defining a unique position and reinforcing and extending this position

• Showing discipline and continuity

According to Porter (1996), competitive strategy is about...

• ...being different from other companies to deliver a unique mix of value.

• ...constant improvement in operational effectiveness in order to shift the productivity frontier outwards.

• ... doing more benchmarking and analyses than other companies.

Applying the Strategy Stack, the three key elements of strategic decision-making are:

• Criteria, trade-offs, choices

• Options, choices, implementation

• Dimensions, options, criteria

Options as key elements of the Strategy Stack are...

• ... reflections of the unbiased rationality of the strategic leader.

• ... an array of various alternatives to solve a given problem.

• ... subject to trade-offs that decision-makers must consider.

The Value Process Framework (VPF) is a concept that serves to understand...

• ... the external environment

• ... the notion of strategic fit

• ... competitive advantages

The value created following the VPF is equal to...

• ... the difference between perceived benefit and costs

• ... the addition of perceived benefit and costs

• ... the addition of the price and the competitive discount

In a monopolistic environment, ...

• ... the willingness to pay is higher than the price

• ... the value captured is equal to the value created

• ... the price is lower than the willingness to pay