Strategic Management Exam 1 (Ch. 1,2,3) UPDATED ACTUAL
Questions and CORRECT Answers
Strategy a set of goal-directed actions a firm takes to gain and sustain performance
relative to competitors
Strategic Management an integrative model of AFI
Analyzing, Formulating, Implementing What does AFI stand for?
Competitive Advantage Superior performance relative to other competitors in the same industry or the
industry average
Sustainable Competitive Advantage Outperforming competitors or the industry average over a prolonged period of
time
True The fundamental nature of competition in many of the world's industries is
changing
Hyper competition When competitors engage in intense rivalry, markets change quickly and often,
and entry barriers are low.
Emergence of a global economy and rapid technological What are two primary drivers of hyper competition?
change
True Firm effects outnumber industry effects when it comes to strategy
Manage closely High interest and high power stakeholder
Keep Satisfied Low interest and high power stakeholders
Keep informed High interest and low power stakeholders
Monitor Low interest and low power stakeholders
External Stakeholders Customers, suppliers, alliance partners, creditors, unions, communities,
governments, media
Internal Stakeholders Employees, stockholders, board members
Economic responsibilities, legal responsibilities, ethical Corporate Social Responsibility
responsibilities, philanthropic responsibilities
Political, Economic, Sociocultural, Technological, PESTEL Framework for external alaysis
Ecological, Legal
Questions and CORRECT Answers
Strategy a set of goal-directed actions a firm takes to gain and sustain performance
relative to competitors
Strategic Management an integrative model of AFI
Analyzing, Formulating, Implementing What does AFI stand for?
Competitive Advantage Superior performance relative to other competitors in the same industry or the
industry average
Sustainable Competitive Advantage Outperforming competitors or the industry average over a prolonged period of
time
True The fundamental nature of competition in many of the world's industries is
changing
Hyper competition When competitors engage in intense rivalry, markets change quickly and often,
and entry barriers are low.
Emergence of a global economy and rapid technological What are two primary drivers of hyper competition?
change
True Firm effects outnumber industry effects when it comes to strategy
Manage closely High interest and high power stakeholder
Keep Satisfied Low interest and high power stakeholders
Keep informed High interest and low power stakeholders
Monitor Low interest and low power stakeholders
External Stakeholders Customers, suppliers, alliance partners, creditors, unions, communities,
governments, media
Internal Stakeholders Employees, stockholders, board members
Economic responsibilities, legal responsibilities, ethical Corporate Social Responsibility
responsibilities, philanthropic responsibilities
Political, Economic, Sociocultural, Technological, PESTEL Framework for external alaysis
Ecological, Legal
