Exam 4: Strategic Management and the Entrepreneur

In a competitive profile matrix,a major strength is given a ranking of 1.

Michael Porter defines three basic strategies: cost leadership,differentiation,and focus.Describe each,explain under what conditions each works,and what the pitfalls are of each one.

The best way to build a cost leadership competitive advantage is to focus entirely on manufacturing costs.

One of the strategic management processes is to establish accurate control.

A small business owner would conduct a competitive analysis in order to:

The balanced scorecard is a set of measurements unique to a company that includes both financial and operational measures and gives managers a quick yet comprehensive picture of the company's total performance.

The first step in creating a knowledge management program is to take an inventory of the special knowledge a company possesses that gives it a competitive advantage.

A ________ strategy tends to be ideally suited to the small business.

A small company following a ________ strategy seeks to build customer loyalty by positioning its goods and services in a unique fashion.

Offering lower prices is the best method for a small business to establish its competitive edge.

To be successful,a differentiation strategy must create the perception of value in the customer's eyes.

A company may have a powerful competitive advantage,but it is wasted unless:

Sound strategies increase the likelihood that business objectives will be achieved.

What is the importance of strategic management to small businesses? In your discussion,explain how strategic planning is different for a small business.

Small businesses have a natural advantage over large competitors when it comes to developing a strategy for competitive advantage because small businesses have all these except:

Explain how vision and mission work together,providing direction for the small business.In your discussion,identify at least five key questions a mission statement should answer.

Intellectual capital of a company is comprised of which components?

Small firms pursuing a cost leadership strategy have an advantage in reaching customers whose primary purchase criterion is high quality.

The secret to good control is the identification and tracking of key performance indicators.

A well-conceived and defined vision can be a competitive weapon in the marketplace by helping everyone understand and focus on the same target.