BUSINESS STRATEGIES AND MODELSSUBIECTE DE EXAMEN 06.2013 1.

When was the concept of strategy implemented in the business world ? Answer: In the 1960's the concept was implemented in the business world. 2. The first treatise on strategy was The Art of War written by !. "on !lausewit#. a$ true b$ false Answer: %alse. The Art of War was written by &un T#u. '. The Art of War(( is concerned to analyse the nature of war and to show how "ictory can be assured. a$ true b$ false Answer: True. ). According to The Art of War((* conflict is not an inescapable part of human life. a$ true b$ false Answer: %alse. At the core of this ancient strategy manual is the understanding that conflict is an inescapable part of human life. +. According to &un T#u* people must learn to wor, with conflict in a more profound and effecti"e way. a$ true b$ false Answer: True. -. The Art of War(( shows how to con.uer with aggression. a$ true b$ false Answer: %alse. &un T#u teaches* aggression and response in ,ind can lead only to destruction. The manual shows how to con.uer without agression /. According to &un T#u war has to be studied in terms of the following fundamentals factors: a$ politics0 b$ weather0 c$ the commander0 d$ doctrine. Answer: all War has to be studied in terms of fi"e fundamentals factors: politics* weather* terrain* the commander* doctrine. 1. &un T#u stated that the first ,ey to success is decei"ing the enemy. a$ true b$ false Answer: True. 2. What is military strategy ?

Answer: &trategy3 the o"erall plan for deploying resources to establish a fa"orable position 14. &trategy represents a scheme for a specific action. a$ true b$ false Answer: %alse. Tactic3 a scheme for a specific action 11. Whereas tactics e"o,es the war at large* as a whole* strategy e"o,es the ideea of regular* clear defined mo"es which are concei"ed only in the battlefield. a$ true b$ false Answer: %alse. Whereas strat !" e"o,es the war at large* as a whole* ta#ti#s e"o,es the ideea of regular* clear defined mo"es which are concei"ed only in the battlefield. 12. &trategy is the science of war. a$ true b$ false Answer: True. &trategy is the science of war: designs the battle plans and uses the battles in the war. Tactics uses the troops in the war. 1'. According to !. "on !lausewit#* tactics constitutes the theory of using the battles in order to reach the scope of the war. a$ true b$ false Answer: %alse According to !. "on !lausewit#: Strat !" constitutes 5the theory of using the battles in order to reach the scope of the war5 1). According to !. "on !lausewit#* strategy represents the theory of using the troops in the battle. a$ true b$ false Answer: %alse According to !. "on !lausewit#: Ta#ti#s represents 5the theory of using the troops in the battle5 1+. &trategy says how one must fight. a$ true b$ false Answer: %alse Ta#ti# says how one must fight. 1-. Tactics says when and where one must fight. a$ true b$ false Answer: %alse Strat !" says when and where one must fight. It guides the tactic.

1/. &trategy represents the art of concei"ing* en"isioning and creating. a$ true b$ false Answer: True 11. Tactics constitutes the science of performing6e7ecution. a$ true b$ false Answer: True 12. When and why was corporate planning de"eloped ? Answer: The e"olution of business strategy has been dri"en more by the practical needs of business than by the de"elopment of theory. 8uring the 12+4s and 12-4s* senior e7ecuti"es e7perienced increasing difficulty in coordinating decisions and maintaining control in companies that were growing in si#e and comple7ity. !orporate planning was de"eloped during the late 12+4s to ser"e this purpose. 24. &trategy and structure was written by A. !handler 9r. a$ true b$ false Answer: True In 12-2* A. 8upont !handler 9r. published &trategy and structure5. 21. What is strategy according to A. !handler 9r. ? Answer: According to A. 8upont !handler 9r. Strat !" is 5the determination of the basic long: term goals and ob;ecti"es of an enterprise5. 22. What is structure according to A. !handler 9r. ? Answer: According to A. 8upont !handler 9r. Str$#t$r can be defined as 5the design of organi#ation through which the enterprise is administered5 <lines of authority and communication* flows of information$. 2'. According to A. !handler 9r.* the long:run health of the company is the ob;ect of strategic decisions. a$ true b$ false Answer: True According to A. 8upont !handler 9r. the long:run health of the company is the ob;ect of strategic decisions. 2). =ow can structure be defined according to A. !handler 9r.? Answer: According to A. 8upont !handler 9r. Str$#t$r can be defined as 5the design of organi#ation through which the enterprise is administered5 <lines of authority and communication* flows of information$.

2+. According to A. !handler 9r.* the organisational structure must always follow strategy6comes after the strategy. a$ true b$ false Answer: True The organisational structure must always follow strategy6comes after the strategy 2-. According to A. !handler 9r.* the new organisational structures are the effects of the strategic changes. a$ true b$ false Answer: True The new organisational structures are the effects of the strategic changes. 2/. >. ?. Andrews is considered the father of strategic management. a$ true b$ false Answer: %alse =. I. A%s&'' <1211:2442$ is considered the father of strat !i# (a%a! ( %t. In 12-+* he published 5!orporate strategy: an analytic approach to business policy for growth and e7pansion5 >. ?. A%)r *s <121-:244+$ is considered the father of #&r+&rat strat !" after he published 5the !oncept of corporate strategy5 in 12/1 21. =. I. Ansoff stated that strategic decisions address the selection of product:mar,et opportunities. a$ true b$ false Answer: True 22. Which is the firm(s central purpose according to Ansoff ? Answer: According to Ansoff: The firm@s central purpose is the ma7imi#ation of the long: term return on resources employed within the firm. '4. According to Ansoff* an ob;ecti"e is seen as an end* while strategy is a means to that end. a$ true b$ false Answer: True '1. Aresent the product:mar,et6Ansoff matri7. There is a product:mar,et matri7. &omehow* I cannot paste the picture here* but you can find it online at http:66www..uic,mba.com6strategy6matri76ansoff6 http:66www.tutor2u.net6business6strategy6ansoffBmatri7.htm '2. Cnumerate the ) strategy components according to Ansoff. Answer:

According to A%s&'' there are ) strategy components: : product:mar,et scope : growth "ector : competiti"e ad"antage : synergy ''. According to >. ?. Andrews* corporate strategy is the pattern of decisions in a company that: a$ determines and re"eals its ob;ecti"es* purposes or goals0 b$ produces the principal policies and plans for achie"ing those goals0 c$ defines the range of businesses the company is to pursue0 d$ defines the ,ind of economic and human organi#ation it is or intends to be Answer: all '). Cnumerate the ) strategy components according to Andrews. Answer: According to A%)r *s* &trategy has ) components: :mar,et opportunity* :corporate competence and resources* :personal "alues and aspirations* :ac,nowledged obligations to people in society other than shareholders. '+. According to >. ?. Andrews* corporate strategy is to be seen as an organi#ation process* in many ways separable from the structure* beha"iour and culture of the company. a$ true b$ false Answer: %alse !orporate strategy is to be seen as an organi#ation process* in many ways i%s +ara,from the structure* beha"iour and culture of the company. '-. Which are the 2 aspects interrelated in practice of corporate strategy according to >. ?. Andrews ? Answer: !orporate strategy has 2 aspects interrelated in practice: formulation <deciding what to do$ and implementation <achie"ing results$. '/. According to >. ?. Andrews* corporate strategy is a subset of business strategy. a$ true b$ false Answer: Dusiness strategy is a subset of corporate strategy '1. According to E. C. Aorter* the intensity of competition in an industry is a matter of coincidence or luc,. a$ true b$ false
The intensity of competition in an industry is neither a matter of coincidence nor bad luck. Rather, competition in an industry is rooted in its underlying economic structure and goes well beyond the behaviour of current competitors.

'2. According to E. C. Aorter* the intensity of competition in an industry depends upon the collecti"e effect of fi"e forces. Cnumerate these forces. Cntry barriers* threat of substitution* bargaining power of buyers* bargaining power of suppliers* ri"alry among current competitors. )4. Aresent the E. C. Aorter(s diamond model. The )ia(&%) (&) - is an economical model de"eloped by Eichael Aorter in his boo, The Competitive Advantage of Nations* where he published his theory of why particular industries become competiti"e in particular locations. Afterwards* this model has been e7panded by other scholars.

Fa pun un lin, pentru ca e foarte mult de citit aici si fiecare poate sinteti#a ce crede ca ar trebui scris: http:66"ectorstudy.com6management:theories6diamond:model )1. Aresent the E. C. Aorter(s "alue chain. A .a-$ #/ai% is a chain of acti"ities that a firm operating in a specific industry performs in order to deli"er a "aluable product or ser"ice for the mar,et. The concept comes from business management and was first described and populari#ed by Eichael Aorter in his 121+ best:seller* Competitive Advantage: Creating and Sustaining Superior Performance.

http:66www.managemente7change.com6hac,6mapping:porterGC2G14G22s:"alue:chain: acti"ities:business:functional:units H sa re"in la astea sa le fac un summaryI )2. =. Eint#berg states that strategy is not the conse.uence of the planification* but its starting point. a$ true b$ false =e sees strategy: '...not as the consequence of planning but the opposite: its starting point'. )'. Which are the + forms of strategy according to =. Eint#berg ? 1. Alan. 3 &trategy is a plan : some sort of consciously intended course of action* a guideline <or set of guidelines$ to deal with a situation. Dy this definition strategies ha"e two essential characteristics: they are made in ad"ance of the actions to which they apply* and they are de"eloped consciously and purposefully. 2. Aloy. 3 As plan* a strategy can be a ploy too* really ;ust a specific manoeu"re intended to outwit an opponent or competitor. '. Aattern. 3 If strategies can be intended <whether as general plans or specific ploys$* they can also be realised. In other words* defining strategy as plan is not sufficient0 we also need a definition that encompasses the resulting beha"iour:

&trategy is a pattern : specifically* a pattern in a stream of actions. &trategy is consistency in beha"iour* whether or not intended. The definitions of strategy as plan and pattern can be .uite independent of one another: plans may go unrealised* while patterns may appear without preconception. Alans are intended strategy* whereas patterns are realised strategy0 from this we can distinguish deliberate strategies* where intentions that e7isted pre"iously were realised* and emergent strategies where patterns de"eloped in the absence of intentions* or despite them. ). Aosition. 3 &trategy is a position : specifically a means of locating an organisation in an 5en"ironment5. Dy this definition strategy becomes the mediating force* or 5match5* between organisation and en"ironment* that is* between the internal and the e7ternal conte7t. +. Aerspecti"e.3 &trategy is a perspecti"e : its content consisting not ;ust of a chosen position* but of an ingrained way of percei"ing the world. &trategy in this respect is to the organisation what personality is to the indi"idual. What is of ,ey importance is that strategy is a perspecti"e shared by members of an organisation* through their intentions and 6 or by their actions. In effect* when we tal, of strategy in this conte7t* we are entering the realm of the collecti"e mind : indi"iduals united by common thin,ing and 6 or beha"iour.

)). According to T. 9. Aeters top companies are concentrated around: a$ essential "alues0 b$ strategic priorities0 c$ some financial ,ey indicators. All answers. )+. J. =amel and !. =. Arahalad created the concept of ,ey competences. a$ true b$ false )-. 8efine the concept of competence. A competence represents the sum of learning across indi"idual s,ill sets and organi#ational units. )/. Cnumerate the ' !(s of the strategic triangle . : the customer : the corporation : the competition )1. Driefly describe the tools:dri"en approach to learning strategy. tools:dri"en : understanding each tool comes first* while combining them to sol"e real problems comes later. All ma;or theories would first be understood separately* to be compared or combined later when using them in practice. )2. Driefly describe the problem:dri"ing approach to learning strategy.

problem:dri"ing K understanding problems comes first* while searching for the appropriate tools is based on the type of problem. >ey strategy issues are first identified and then each is loo,ed at from the perspecti"e of the most appropriate theories. +4. 8efine strategy. The term strategy deri"es from the Jree, word strategia * meaning generalship. &trategy 3 the o"erall plan for deploying resources to establish a fa"orable position. 3 a plan* method or series of actions designed to achie"e a specific goal or effect 3 the determination of the long:run goals and ob;ecti"es of an entreprise and the adoption of courses and action and the allocation of resouces necessary for carrying out these goals 3 the pattern of ob;ecti"es* purposes or goals and the ma;or policies and plans for achie"ing these goals* stated in such a way as to define what business the company is in or is to be in and the ,ind of company it is or is to be +1. &trategy: a$ is focused on achie"ing ce rtain goals0 b$ in"ol"es allocating resources0 c$ implies some consistency* integration* or cohesi"eness of decisions and actions. Answer: a$* b$* c$ +2. &trategy can be defined as a plan* method or series of actions designed to achie"e a specific goal or effect. a$ true b$ false Answer: a$ +'. The more turbulent the en"ironment* the more must strategy embrace fle7ibility and responsi"eness. a$ true b$ false +). Why do firms need strategy ? Strateg is the direction and scope of an organisation over the long term! "hich achieves advantage in a changing environment through its configuration of resources and competences "ith the aim of fulfilling stoc#holder e$pectations% 0&/%s&% t a120023 Without a strategy an e7isting business can drift away from its customers and become uncompetiti"e within its en"ironment and e"entually stops ma,ing profit* this is ,nown as &trategic 8rift. Therefore ha"ing a strategy is a way to remain competiti"e or a way of forcing a strategic change when an organisation has drifted away from its en"ironment and is starting to fail. ++. =ow does strategy assist the effecti"e management of organi#ations ? L : Cnhancing the .uality of decision ma,ing <strategy as decision support$

L M %acilitating coordination <strategy as a coordinating de"ice$ L M %ocusing organi#ations on the pursuit of long:terms goals <strategy as a target$ +-. In which places can we find the company(s strategy? : in the heads of managers : in their articulations of strategy in speeches and written documents : in the decisions through which strategy is enacted +/. Why is strategic thin,ing fundamental ? Decause strategy has its origins in the thought processes of entrepreneurs and senior managers. +1. Where can we find the statements of strategy in the case of large companies ? %or large companies statements of strategy are found in board minutes and strategic planning documents* which are in"ariably confidential. =owe"er* most companies see employees* customers* in"estors and business partners. +2. Cnumerate the ' acti"ities in"ol"ed by strategic thin,ing. : ma,ing sense of information : formulating ideas : planning action