Question #1

McDonald’s “Plan to Win” strategy aimed to move from being quick and fast, and shift their focus on
being a place that someone would enjoy eating. The strategy aims to focus on how customers would
feel rather than the service. The initiatives focused on the five basic things to promote good customer
service: People, Products, Place, Price, and Promotion. The strategy aims to focus on customer
experience rather than merely working upon quick service and cheapest food [ CITATION Him17 \l
1033 ].

The tests that any winning strategy must have are the following:

 Goodness of Fit Test – this test identifies if the strategy is applicable to the current situation of a
certain company. A strategy must be tailored to the company’s resources, strength, weaknesses,
competencies, and competitive capabilities [ CITATION Fac \l 1033 ]
 Competitive Advantage Test – any good strategy leads to making sure your company is cut
above the competition. By making sure that the strategy gives you more advantage over the
competition, the more effective it is.
 Performance of Test – ultimately, any strategy aims to improve the overall performance of a
company. Two kinds of performance improvements are the most telling: gains in profitability
and gains in the company's long-term business strength and competitive position [ CITATION
Tes18 \l 1033 ].

Question #2

The strategy-making and strategy-executing process entail the following processes/factors:

 Developing a vision, a mission, and a set of values. In order to start a strategy, it is important to
establish the desire outcome of the strategy. This helps shape the succeeding steps and makes
sure that the processes are aligned to what is being achieved.
 Establishing objectives to measure performance and progress. It is important that the objectives
need to be detailed, realistic, and match the values of the vision [ CITATION Jim19 \l 1033 ].
 Crafting a strategy follows in order to achieve aforementioned objectives.
 After crafting a strategy, it is important to execute the strategy effectively.
 Monitoring the strategy and its results, making sure that the results are aligned with the
objectives, and that the vision are being met and satisfied.
Question #3

The difference between the two is that the vision statement focuses on tomorrow and what the
organization wants to become, while the mission statement focuses on today and what the organization
does [ CITATION Bri18 \l 1033 ]. Mission statement establishes why the company exists and why it was
founded, while the vision statement establishes what it wants to produce and what it wants to become.

An ideal mission statement answers the following questions:

 What is the organization’s purpose?

 Why does the organization exist?

As stated earlier, the mission statement establishes the very existence of the company, so it the purpose
and raison d’etre should be established.

For example, Google’s mission statement is “Our mission is to organize the world’s information and
make it universally accessible and useful.”, while Coca-Cola’s mission statement is “To refresh the world.
To inspire moments of optimism and happiness. To create value and make a difference.”.

Question #4

A firm’s strategy-making hierarchy are as follows:

 Corporate – which refers to the overarching strategy of the diversified firm [ CITATION THE \l
1033 ]. They are concerned with which businesses the company should be involved in.
 Business – after the corporate decides which businesses you will be competing with, the
business-level strategies determine how you would compete in aforementioned business. This is
 Functional – is the level of the operating divisions and departments [ CITATION The \l 1033 ].
This level focuses on improving the productivity and effectiveness of the operations involved
within the company.
 Operating – this focuses on more on the operations side of the business. The departments,
clusters, and sections within the company involved.

Question #5

Board of directors have a great responsibility for any firm, four of their obligations are the following:

 Select, evaluate, and appoint the CEO

 Approve the company’s financial statements
 Recommend or discourage mergers and acquisitions
 Oversee repurchase programs

Financial objectives are goals on earnings and revenues, while strategic objectives are goals that affect
any other factors that’s not involved financially. Both objectives aim to be in line with a specific indicator
that allow it to be measured in a specific period of time [ CITATION Fin \l 1033 ].
Question #6

According to John Gamble and Arthur Thompson’s book Essentials of Strategic Management, the
following are the factors:

Rivalry is high intensity if:

 Competitors and numerous

 Industry growth is slow
 Fixed costs are high
 Competitors have equal size
 Competitors have equal market share and are strategically diverse
 Exit barriers are high
 Brand loyalty is significant

Rivalry is low intensity if:

 There aren’t a lot of competitors

 Competitors have unequal market share
 Industry growth is fast
 Brand loyalty are significant
 Consumer switching costs are high
 No excess production capacity

Question #7

A company’s competitive strategy is defined as a long-term plan of action that a company devises
towards achieving a competitive advantage over the competitors after examining the strengths and
weaknesses of the latter and comparing them to its own [ CITATION Mar14 \l 1033 ]. The strategy is
focused on achieving a leverage against the competitors and making sure to generate the most superior
return of investment.

The following are the five distinct competitive strategy approaches:

 Low-Cost Provider Strategy, which aims to pursue cost-savings that gives them greater profit
and increased market share from underpricing
 Broad Differentiation, which aims to develop advantage by making your service unique from its
competitor
 Focused Low-Cost Strategy, which is similar to low-cost provider strategy, but at a more
“focused point”. For example, a store may not be the “cheapest one overall” but the “cheapest
one in town”
 Focused Differentiation, also similar to differentiation but with a more “focused point”
 Best Cost Provider, which is a hybrid of low cost provider and differentiation that aim to provide
both a unique feature while rivalling them in price.
Question #8

Strategic alliance is defined as an arrangement between two companies to undertake a mutually

beneficial project while each retain its independence [ CITATION Wil19 \l 1033 ].

An alliance becomes strategic, as opposed to just being convenient, when the following criterion are
met:

 When it is critical to a business objective, which may include lowering cost or delivering better
quality product
 When competitive advantage and core competency is either improved or sustained
 When it blocks a competitive threat
 When it helps mitigate risks
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