Exam 1 Study Guide
Exam 1 will cover Chapters 1, 2 and 3 and will consist of 30-50 multiple choice questions and no more than 3 short answer questions. You will be given a maximum of 60 minutes to complete the exam.
Contrary to some beliefs, I’m certain you will find that the Learning Module Assignments (LMAs) you have spent so much time and effort completing to be far from “busywork.” In fact, in addition to the self-graded quizzes on the McGraw Hill website, your comprehension of the learning module assignments will be key success factors for the quiz. Those who understand the concepts advanced in the LMAs will find the exam to be straightforward. Those who have given only half-hearted effort towards understanding the concepts in the LMAs or who don’t have a textbook may find the exam extremely challenging.
How do I prepare?
To prepare for your exam, I recommend that for each concept covered in Chapters 1-3 of our textbook, you should be prepared to a) define it, b) explain its importance to effective strategy making/execution, and c) demonstrate your ability to apply it in a short answer format. Also, you should be prepared to define and apply each of these concepts in the context of organizational strategy (“a” module assignments) or career strategy (“b” module assignments).
The following charts might be helpful in this regard:
| Definition | Locate the definition of this term, principle or analytical tool in your textbook or other source material. Then, in your own words, define and/or describe the term, principle or analytic tool. |
| Importance | Describe why it is important for strategists to have or make use of this term concept, tool or principle. For example, why should every organization set financial and strategic objectives?
What are the consequences for not having this? For example, what are the consequences if an organization attempts to compete without clear financial and strategic objectives? |
| Application | Describe how to apply this term, tool or concept to improve an organization’s strategy and competitiveness. In the case of an analytical tool, you should be able to describe, STEP BY STEP, how to conduct the analysis. |
| Strategy Concepts Covered | Chapter # | You should know the following for each of these concepts. |
| 3 Central Questions of Strategy | 1 | Definition, Importance, Application |
| Mission, Vision and Core Values | 2 | Definition, Importance, Application |
| Financial Objectives | 2 | Definition, Importance, Application |
| Strategic Objectives | 2 | Definition, Importance, Application |
| Strategic Intent | 2 | Definition, Importance, Application |
| Strategic Plan | 2 | Definition, Importance, Application |
| Strategy Execution | 2 | Definition, Importance, Application |
| Board of Directors | 2 | Definition, Importance, Application |
| Industry Description | 3 | Definition, Importance, Application |
| Macroenvironmental Analysis | 3 | Definition, Importance, Application |
| Five Forces Model of Competition | 3 | Definition, Importance, Application |
| Dynamic Industry Analysis | 3 | Definition, Importance, Application |
| Strategic Group Mapping | 3 | Definition, Importance, Application |
| Competitive Intelligence | 3 | Definition, Importance, Application |
| Key Success Factors | 3 | Definition, Importance, Application |
| Industry Prospects | 3 | Definition, Importance, Application |
In summary, if you can define, understand and apply the concepts above or in bold print below, you will likely do very well on the exam. Good luck!
Chapter 1 Study Guide
What are the 3 central questions that define what is meant by the concept of strategy?
- What is your current situation?
- Where do you want to go?
- How are you going to get there? Your answer should cover these issues:
- Which of the basic strategic and competitive approaches discussed in this chapter do you think makes the most sense for you to pursue to achieve your professional goals?
- What kind of competitive advantage over your competitors will you try to achieve?
- How would you describe your business model?
- What kinds of actions will support these objectives?
Chapter 2 Study Guide
What are the 5 stages of the strategic management process?
- Developing a strategic vision, mission, and a set of core values.
- Using the concept of a company strategic vision, what is a strategic career vision? Why is having a strategic vision for your career important?
- Using the guidelines in Table 2.1 on page 24 (18th ed), describe your strategic career vision.
- Using the concept of a company mission statement, what is a career mission statement? Why is having a mission statement for your career important?
- Using the guidelines on page 27 (18th ed), develop a career mission statement.
- Based on the discussion in the text concerning a company’s core values, discuss briefly how personal career values relate to an individual’s career strategy.
- What are the core values that you intend to use to direct and support your career strategy?
- Setting objectives for measuring performance and progress.
- What are financial career objectives and why are stretch financial career objectives important for you to set and pursue?
- What are strategic career objectives and why are stretch strategic career objectives important for you to set and pursue?
- Using the chart on page 30 as a guide, list 3-5 stretch financial objectives you would like to achieve over the next 5 years.
- Using the chart on page 30 as a guide, list 3-5 stretch strategic objectives you would like to achieve over the next 5 years.
- Crafting a strategy to achieve those objectives.
- What is a strategic career plan and why is it important for your career? What are the possible consequences of not having one?
- What is strategic career intent? What is your strategic career intent?
- Executing the chosen strategy efficiently and effectively.
- List some of the principal aspects you feel would be involved in managing the execution process of your career strategy.
- Monitoring strategic developments, evaluating execution, and making adjustments in the vision and mission, objectives, strategy, or execution as necessary.
- Although individuals typically don’t have boards of directors, many successful people have attributed their success to having career advisory teams. This career advisory team may consist of mentors, accountants, lawyers, consultants, personal coaches, elders, religious leaders, supervisors, former teachers, parents and others whom an individual respects and from whom he or she may receive career guidance. What role could a career advisory team play in helping you to craft, manage, and execute your career strategy?
- Identify 3-5 people that you feel would be good career advisors for you.
- Begin thinking about and writing down what you will say when you ask them to assume the role of being your career advisor.
- Although individuals typically don’t have boards of directors, many successful people have attributed their success to having career advisory teams. This career advisory team may consist of mentors, accountants, lawyers, consultants, personal coaches, elders, religious leaders, supervisors, former teachers, parents and others whom an individual respects and from whom he or she may receive career guidance. What role could a career advisory team play in helping you to craft, manage, and execute your career strategy?
Chapter 3 Study Guide
This Learning Module introduces the learner to the tools for external environmental analysis. Properly understanding a company’s external environment requires asking and answering the 7 questions below. The tools of external analysis are required to answer these questions.
- Does your career industry offer attractive opportunities for growth?
- In which career industry do you or will you compete?
- Which macro-environmental factors pose the most strategically relevant influences on the effectiveness of your career strategy and why? (Macro-Environmental Analysis, pg 50-52 and Table 3.1)
- What kinds of competitive forces are industry members facing, and how strong (strong, moderate, or weak) is each force? (Five Forces Analysis, pgs 54-71)
- Competition from rival sellers (Fg 3.4, pg 57) –
- Competition from potential new entrants (Fg. 3.5, pg 62) –
- Competition from substitute products (Fg 3.6, pg 64) –.
- Supplier bargaining power (Fg 3.7, pg 66) –.
- Customer bargaining power (Fg 3.8, pg 69) –.
- What factors are driving changes in your career industry, and what impact will these changes have on competitive intensity and industry profitability?
- Identify the top 3 factors driving change in your career industry. (Dynamic Industry Analysis Table 3.3, pg 76)
- Are these factors making your career industry more or less attractive by influencing competition and profitability?
- What career strategy adjustments will be needed to deal with the impacts of the changes in industry conditions?
- What market positions do your rivals occupy—who is strongly positioned and who is not? (Strategic Group Mapping pg 77-81)
- What strategic moves are your rivals likely to make next? (Competitive intelligence, pg 81)
- What are the key factors for competitive success in the industry? (Key Success Factors Analysis pg 82-83)
- Does your industry offer good prospects for attractive profits? (Industry prospects, pg 84– this should be a brief summary of the analyses conducted above).
