Strategic Management: A Competitive Advantage Approach Concepts and Cases 17th Edition Instructor ma

 
1-36.  Describe the content available on the strategy club website at www.strategyclub.com. 
 
Answer:  The strategy club website provides the new, free, Excel Student Template designed to help students generate the matrices required for case analyses. The site also provides several sample student case presentations and other resources to benefit strategic management students.
 
1-37.  List four financial and four nonfinancial benefits of a firm engaging in strategic planning.
 
Answer:  Businesses engaging in strategic planning experience many financial benefits, including: 1) significant improvement in sales, profitability, and productivity compared to firms without strategic planning activities, 2) superior long-term financial performance relative to their industry, 3) seem to make more informed decisions with good anticipation of both short and long-term consequences, and 4) better prepared for fluctuations in their external and internal environments. In addition to the financial benefits, firms using strategic planning also experience nonfinancial benefits that include 1) an enhanced awareness of external threats, 2) an improved understanding of competitors’ strategies, 3) increased employee productivity, 4) reduced resistance to change, and 5) a clearer understanding of performance-reward relationships.
 
1-38.  Why is it that a firm can sustain a competitive advantage normally for only a limited period of time?
 
Answer:  A firm can sustain a competitive advantage for only a certain period of time due to rival firms continually trying to imitate and duplicate strategies, products, and services of the lead firm, in order to take market share from the leader, and build their own competitive advantage.
 
1-39.  Why is it not adequate to simply obtain competitive advantage?
 
Answer:  Rival firms will constantly attempt to undermine firms with competitive advantages and try to imitate/duplicate those advantages/products/services – and perhaps offer similar products at much lower prices. Organizations must constantly strive to achieve sustained competitive advantage by continually evaluating their own strategies/products/services as well as rival firms’ efforts to undermine and overcome.
 
1-40.  How can a firm best achieve sustained competitive advantage?
 
Answer:  Sustained competitive advantage can best be achieved by 1) continually adapting to changes in external trends and events and internal capabilities, competencies, and resources, and by 2) effectively formulating, implementing, and evaluating strategies that capitalize upon those factors.
 
* 1-41.  In sequential order in the strategic-planning process, arrange the following appropriately:  policies, objectives, vision, strategies, mission, strengths.
 
Answer:  Vision > Mission > Strengths > Objectives > Strategies > Policies
 
* 1-42.  Label the following as an opportunity, a strategy, or a strength.
 
a.  XYZ, Inc. is hiring 50 more salespersons.
b.  XYZ, Inc. has 50 salespersons.
c.  XYZ, Inc.’s rival firm has only 50 salespersons.
 
Answer:
a.  XYZ, Inc. is hiring 50 more salespersons. > A Strategy
b.  XYZ, Inc. has 50 salespersons. > A Strength
c.  XYZ, Inc.’s rival firm has only 50 salespersons. > An Opportunity
 
* 1-43.  Explain why internal strengths and weaknesses should be stated in divisional terms to the extent possible.
 
Answer:  Arguably the most important strategic decision facing firms is how best to allocate resources across divisions. To facilitate this decision making, internal strengths and weaknesses should be stated in divisional terms to the extent possible.
 
* 1-44.  Explain why both internal and external factors should be stated in specific terms, i.e., using #’s, %’s, $’s, ratios, and comparisons over time, to the extent possible.
 
Answer:  Business people already know the vague generalities, and desperately need to know the specifics, in order to decide among many available good alternative strategies. Thus, the underlying external opportunities/threats must be stated in specific terms to give guidance in formulating and selecting alternative strategies. Thus, avoid saying “Canada’s GDP is increasing.” Instead, say “Canada’s expected GDP next year is 6% and Mexico’s expected GDP is 3%.” Words such as increasing, decreasing, growing, and expanding can mean virtually anything. Avoid vagueness. Vagueness is not helpful in making tough resource allocation decisions among divisions, regions, products, etc.