Exam 7: Creating Advantage, Synergy, and Strategic Philosophies

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.

Synergy in practice is difficult because it can be difficult to predict whether synergy will actually emerge.

In an organization that subscribes to a strategically adaptable mentality, it is okay to fail.

the survey of 248 West Coast business managers, the most frequently mentioned SCA was financial resources.

Strategic commitment has a long term perspective, while strategic opportunism is short term and strategic adaptability is medium term.

A sustainable competitive advantage has several characteristics. Which of the following is not one of them?

The four strategic philosophies are strategic commitment, strategic opportunism, strategic vision and strategic intent.

Four factors are required for the creation of a sustainable competitive advantage. Which of the following is not one of those factors?

Which of the following is not one of the three philosophies of developing strategy?

Strategic intent is a sustained obsession with winning which involves a stretch of the organization and real innovation.

two businesses have synergy, their profitability operating together will be higher than if they operated separately.

Strategic commitment is superior to strategic opportunism.

assets and competencies of an organization represent the most sustainable element of a business strategy, because these are usually difficult to copy or counter.

Among the critical determinants of an SCA is the choice of the product-market and the identity and nature of competitors.

A key success factor can be a point of parity.

Strategic drift is associated with an orientation toward the present.

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.

An organization implementing a strategic commitment should have an on-line information system and be capable of fast response.

Synergy will result in one or more of the following: decreased revenues, increased operating costs, or increased investment.

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.