Analysis, Formulation, Implementation
(AFI) Strategy Framework.
91.
Award: 1.00 point
92.
Award: 1.00 point
During an AFI planning session, the managers of the Bronco Motorcycle Corporation decided to
place various stages of production in different countries in order to implement the strategy of
cutting overhead costs. By doing this, what issue did the firm address?
philanthropic strategy
business ethics
corporate governance
organizational design
Organizational design involves deciding how the firm should organize to turn the formulated
strategy into action.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-05 Explain the
Analysis, Formulation, Implementation
(AFI) Strategy Framework.
As manager of a major producer of automobile airbags, you have recently introduced the following
vision statement: to protect the health of every driver and passenger. How can you ensure that your
employees feel invested in and inspired by the firm’s vision?
Include a “vision adherence assessment” in each employee’s annual performance review.
Hang banners around the production facility touting the new vision statement.
Ask employees for feedback on the vision statement and revise based on their input.
Give a speech explaining why everyone should support the new vision.
All employees should feel invested in and inspired by the firm’s vision and mission. By inviting
employees to participate in revising the vision statement, you ensure that the final result is
something they believe in and will adhere to.
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 01-05 Explain the
Analysis, Formulation, Implementation
(AFI) Strategy Framework.
93.
Award: 1.00 point
94.
Award: 1.00 point
What are the elements of a good strategy? Provide the elements and briefly explain how they are
accomplished.
A good strategy consists of three elements:
1. A diagnosis of the competitive challenge. This element is accomplished through strategy analysis
of the firm’s external and internal environments.
2. A guiding policy to address the competitive challenge. This element is accomplished through
strategy formulation, resulting in the firm’s corporate, business, and functional strategies.
3. A set of coherent actions to implement the firm’s guiding policy. This element is accomplished
through strategy implementation.
References
Short Answer Difficulty: 2 Medium Learning Objective: 01-01 Explain the role
of strategy in a firm's quest for
competitive advantage.
Define and elaborate on competitive advantage.
Competitive advantage is superior performance relative to other competitors in the same industry or
the industry average. To gain a competitive advantage, a firm needs to provide either goods or
services consumers value more highly than those of its competitors while keeping its costs
comparable to competitors, or goods or services similar in value to the competitors’ at a lower cost.
The rewards of superior value creation and capture are profitability and market share. Managers
achieve this combination of value and cost through strategic positioning. They stake out a unique
position within an industry that allows the firm to provide value to customers, while controlling costs.
References
Short Answer Difficulty: 2 Medium Learning Objective: 01-02 Define
competitive advantage, sustainable
competitive advantage, competitive
disadvantage, and competitive parity.
95.
Award: 1.00 point
96.
Award: 1.00 point
How is competitive advantage different from competitive parity?
A firm that achieves superior performance relative to other competitors in the same industry or the
industry average has a competitive advantage. To gain a competitive advantage, a firm needs to
provide either goods or services consumers value more highly than those of its competitors at a
comparable cost, or goods or services similar to the competitors’ at a lower cost. Should two or
more firms perform at the same level, they have competitive parity.
References
Short Answer Difficulty: 2 Medium Learning Objective: 01-02 Define
competitive advantage, sustainable
competitive advantage, competitive
disadvantage, and competitive parity.
What is the relationship between economic contribution and competitive advantage?
Strategy is about creating superior value, while containing the cost to create it. Managers achieve