Chapter 7 – Creating Advantage, Synergy, and Strategic Philosophies
7.1
Among the critical determinants of an SCA is the choice of the product-market and the identity and nature
of competitors.
7.2
An effective sustainable competitive advantage needs to be both meaningful and sustainable. And it should
be substantial to make a difference.
7.3
In the survey of 248 West Coast business managers, the most frequently mentioned SCA was financial
resources.
7.4
The assets and competencies of an organization represent the most sustainable element of a business
strategy, because these are usually difficult to copy or counter.
7.5
If two businesses have synergy, their profitability operating together will be higher than if they operated
separately.
7.6
Synergy will result in one or more of the following: decreased revenues, increased operating costs, or
increased investment.
7.7
Synergy in practice is difficult because it can be difficult to predict whether synergy will actually emerge.
7.8
Strategic commitment is superior to strategic opportunism.
7.9
Strategic intent is a sustained obsession with winning which involves a stretch of the organization and real
innovation.
7.10
An organization implementing a strategic commitment should have an on-line information system and be
capable of fast response.
7.11
Strategic drift is associated with an orientation toward the present.
7.12
To successfully manage a strategic commitment, a firm should have four characteristics—a clear future
strategy, assets, competencies, and resources to implement the strategy, and _________, and _________.
7.13
To successfully manage a strategic commitment, a firm should have four characteristics. Which of the
following is not one of the four?
a. Senior management with MBAs
b. Buy-in throughout the organization
c. Assets, competencies, and resources to implement it
d. Patience
e. A clear future strategy
7.14
A sustainable competitive advantage has several characteristics. Which of the following is not one of them?
a. Sustainability
b. They can be leveraged
c. They should be supported by assets and competencies
d. They cannot easily be neutralized by competitors
e. They are easily copied
7.15
Synergy between firms can provide an SCA that is truly sustainable because it is based on the
characteristics of a firm that are probably unique.
7.16
Four factors are required for the creation of a sustainable competitive advantage. Which of the following is
not one of those factors?
a. Whom you compete against
b. Basis of competition
c. Where you compete
d. Your strategic intent.
e. The way you compete
7.17
The four strategic philosophies are strategic commitment, strategic opportunism, strategic vision and
strategic intent.
7.18
Key success factors (KSF’s) and sustainable competitive advantages (SCA’s) are different in that an SCA
is necessary to compete and a KSF is the basis for a continuing advantage.
7.19
A key success factor can be a point of parity.
7.20
Which of the following is not one of the three philosophies of developing strategy?
a. Strategic Drift
b. Strategic Opportunism
c. Strategic Adaptability
d. Strategic Commitment
7.21
Strategic commitment has a long term perspective, while strategic opportunism is short term and strategic
adaptability is medium term.
7.22
In an organization that subscribes to a strategically adaptable mentality, it is okay to fail.
7.23
Strategic intent recognizes the essence of winning, involves stretching an organization to continue to
improve old SCA’s or develop new ones, and requires real innovation.