BADM 4801: STRATEGY
FORMULATION &
IMPLEMENTATION
MIDTERM EXAM PART 1
EXAM QUESTIONS AND
DETAILED ANSWERS
, BADM 4801: STRATEGY FORMULATION &
IMPLEMENTATION MIDTERM EXAM PART 1 EXAM
QUESTIONS AND DETAILED ANSWERS
According to the I/O model firms earn above-average returns by locating an attractive industry
or part of an attractive industry and then implementing the strategy dictated by that industry's
characteristics successfully. - - Answer --According to the I/O model firms earn above-average
returns by locating an attractive industry or part of an attractive industry and then implementing
the strategy dictated by that industry's characteristics successfully.
According to the RBV model when firms use their valuable, rare, costly-to-imitate, and non-
substitutable resources and capabilities effectively when competing against rivals in one or
more industries, they earn above-average returns. - - Answer --According to the RBV model
when firms use their valuable, rare, costly-to-imitate, and non-substitutable resources and
capabilities effectively when competing against rivals in one or more industries, they earn
above-average returns.
Accounting-based metric - - Answer --return on assets, return on equity, and return on sales,
etc. to assess a firm's performance
Business-level strategy - - Answer --is an integrated and coordinated set of commitments and
actions the firm uses to gain a competitive advantage by exploiting core competencies in a
specific product market.
Capabilities - - Answer --are used to complete the organizational tasks required to produce,
distribute, and service the goods or services the firm provides to customers for the purpose of
creating value for them.
Competitive Advantage - - Answer --a firm has a competitive advantage when by implementing
a chosen strategy, it creates superior value for customers and when competitors are not able to
imitate the value the firm's products create or find it too expensive to attempt imitation.
Competitor Analysis - - Answer --How companies gather and interpret information about their
competitors
Core Competencies - - Answer --are resources and capabilities that serve as a source of
(sustainable) competitive advantage for the firm over its rivals.
Core Competencies - - Answer --Core competencies are capabilities that serve as a source of
competitive advantage for a firm over its rivals
Core Strategy - - Answer --the strategy that the firm forms to describe how it intends to compete
against rivals on a day-to-day basis in its chosen product market.
Cost Leadership Strategy - - Answer --is an integrated set of actions taken to produce products
with features that are acceptable to customers at he lowest cost, relative to that of competitors.
FORMULATION &
IMPLEMENTATION
MIDTERM EXAM PART 1
EXAM QUESTIONS AND
DETAILED ANSWERS
, BADM 4801: STRATEGY FORMULATION &
IMPLEMENTATION MIDTERM EXAM PART 1 EXAM
QUESTIONS AND DETAILED ANSWERS
According to the I/O model firms earn above-average returns by locating an attractive industry
or part of an attractive industry and then implementing the strategy dictated by that industry's
characteristics successfully. - - Answer --According to the I/O model firms earn above-average
returns by locating an attractive industry or part of an attractive industry and then implementing
the strategy dictated by that industry's characteristics successfully.
According to the RBV model when firms use their valuable, rare, costly-to-imitate, and non-
substitutable resources and capabilities effectively when competing against rivals in one or
more industries, they earn above-average returns. - - Answer --According to the RBV model
when firms use their valuable, rare, costly-to-imitate, and non-substitutable resources and
capabilities effectively when competing against rivals in one or more industries, they earn
above-average returns.
Accounting-based metric - - Answer --return on assets, return on equity, and return on sales,
etc. to assess a firm's performance
Business-level strategy - - Answer --is an integrated and coordinated set of commitments and
actions the firm uses to gain a competitive advantage by exploiting core competencies in a
specific product market.
Capabilities - - Answer --are used to complete the organizational tasks required to produce,
distribute, and service the goods or services the firm provides to customers for the purpose of
creating value for them.
Competitive Advantage - - Answer --a firm has a competitive advantage when by implementing
a chosen strategy, it creates superior value for customers and when competitors are not able to
imitate the value the firm's products create or find it too expensive to attempt imitation.
Competitor Analysis - - Answer --How companies gather and interpret information about their
competitors
Core Competencies - - Answer --are resources and capabilities that serve as a source of
(sustainable) competitive advantage for the firm over its rivals.
Core Competencies - - Answer --Core competencies are capabilities that serve as a source of
competitive advantage for a firm over its rivals
Core Strategy - - Answer --the strategy that the firm forms to describe how it intends to compete
against rivals on a day-to-day basis in its chosen product market.
Cost Leadership Strategy - - Answer --is an integrated set of actions taken to produce products
with features that are acceptable to customers at he lowest cost, relative to that of competitors.
