MBA 705
MBA 705 LSUS Mclaughlin Practice
Guide Exam 1 2026
Blockholders - -Large shareholders who monitor firm strategies to ensure effective
management.
Business model - -The economic mechanism by which a business hopes to sell its
goods or services and generate a profit.
CEO duality - -A situation in which an individual holds both the CEO and chair of the
board title
Competitive advantage - -A state whereby a business unit's successful strategies
cannot
be easily duplicated by its competitors.
comparative advantage - -The idea that certain products may be produced more
cheaply or at a higher quality in particular countries due to advantages in labor costs or
technology.
Contingency Theory - -A view that states the most profitable firms are likely to be the
ones that develop the best fit with their environment.
Corporate Governance - -The board of directors, institutional investors, and
blockholders who monitor firm strategies to ensure managerial responsiveness.
Distinctive competence - -Unique resources, skills, and capabilities that enable a firm to
Distinguish itself from its competitors and create competitive advantage.
hedge fund - -An investment fund open to only a small number of investors but
permitted by regulators to undertake riskier and more speculative investments
Industrial Organization (IO): - -A view based in microeconomic theory that states firm
Profitability is most closely associated with industry structure.
Intended Strategy: - -The original strategy top management plans and intends to
implement.
Mission - -The reason for an organization's existence. The mission statement is a
broadly defined but enduring statement of purpose that identifies the scope of an
organization's operations and its offerings to affected groups (i.e., stakeholders, as
defined later in the book).
MBA 705
, MBA 705
Realized Strategy - -the strategy that actually takes place
Resource-Based Theory - -The perspective that views performance primarily as a
function of a firm's ability to utilize its resources.
Sarbanes-Oxley Act of 2002 - -created more detailed reporting
Requirements for boards and executives in public U.S. companies and accounting firms
Strategic Management - -The continuous process of determining the mission and goals
of an organization within the context of its external environment and its internal
strengths and weaknesses, formulating and implementing strategies, and exerting
strategic control to ensure that the organization's strategies are successful in attaining
its goals.
Strategy - -a plan of action
Sustained competitive advantage - -A firm's ability to enjoy strategic benefits over an
extended period of time.
Top management team - -A team of top-level executives—headed by the CEO—all of
Whom play instrumental roles in the strategic management process.
T/F A strategy seeks to develop and sustain competitive advantage - -true
T/F Strategic management refers to formulating successful strategies for an
organization. - -false
T/F Each step in the strategic management process is independent so that changes in
one
step will not substantially affect other steps. - -false
T/F The intended strategy and the realized strategy can never be the same. - -false
T/F Whereas IO theory emphasizes the influence of industry factors of firm
performance, resource-based theory emphasizes the role of firm factors. - -true
false - -T/F Strategic decisions are made solely by and are ultimately the responsibility
of the CEO
alone.
Strategies are formulated in the strategic management stage that occurs immediately
after __________.
A. the assessment of internal strengths and weaknesses
B. implementation of the strategy
C. control of the strategy
MBA 705
MBA 705 LSUS Mclaughlin Practice
Guide Exam 1 2026
Blockholders - -Large shareholders who monitor firm strategies to ensure effective
management.
Business model - -The economic mechanism by which a business hopes to sell its
goods or services and generate a profit.
CEO duality - -A situation in which an individual holds both the CEO and chair of the
board title
Competitive advantage - -A state whereby a business unit's successful strategies
cannot
be easily duplicated by its competitors.
comparative advantage - -The idea that certain products may be produced more
cheaply or at a higher quality in particular countries due to advantages in labor costs or
technology.
Contingency Theory - -A view that states the most profitable firms are likely to be the
ones that develop the best fit with their environment.
Corporate Governance - -The board of directors, institutional investors, and
blockholders who monitor firm strategies to ensure managerial responsiveness.
Distinctive competence - -Unique resources, skills, and capabilities that enable a firm to
Distinguish itself from its competitors and create competitive advantage.
hedge fund - -An investment fund open to only a small number of investors but
permitted by regulators to undertake riskier and more speculative investments
Industrial Organization (IO): - -A view based in microeconomic theory that states firm
Profitability is most closely associated with industry structure.
Intended Strategy: - -The original strategy top management plans and intends to
implement.
Mission - -The reason for an organization's existence. The mission statement is a
broadly defined but enduring statement of purpose that identifies the scope of an
organization's operations and its offerings to affected groups (i.e., stakeholders, as
defined later in the book).
MBA 705
, MBA 705
Realized Strategy - -the strategy that actually takes place
Resource-Based Theory - -The perspective that views performance primarily as a
function of a firm's ability to utilize its resources.
Sarbanes-Oxley Act of 2002 - -created more detailed reporting
Requirements for boards and executives in public U.S. companies and accounting firms
Strategic Management - -The continuous process of determining the mission and goals
of an organization within the context of its external environment and its internal
strengths and weaknesses, formulating and implementing strategies, and exerting
strategic control to ensure that the organization's strategies are successful in attaining
its goals.
Strategy - -a plan of action
Sustained competitive advantage - -A firm's ability to enjoy strategic benefits over an
extended period of time.
Top management team - -A team of top-level executives—headed by the CEO—all of
Whom play instrumental roles in the strategic management process.
T/F A strategy seeks to develop and sustain competitive advantage - -true
T/F Strategic management refers to formulating successful strategies for an
organization. - -false
T/F Each step in the strategic management process is independent so that changes in
one
step will not substantially affect other steps. - -false
T/F The intended strategy and the realized strategy can never be the same. - -false
T/F Whereas IO theory emphasizes the influence of industry factors of firm
performance, resource-based theory emphasizes the role of firm factors. - -true
false - -T/F Strategic decisions are made solely by and are ultimately the responsibility
of the CEO
alone.
Strategies are formulated in the strategic management stage that occurs immediately
after __________.
A. the assessment of internal strengths and weaknesses
B. implementation of the strategy
C. control of the strategy
MBA 705
