MANA 4322 MIDTERM - EXTERNAL & INTERNAL ENVIRONMENT, STRATEGIES, AND INTERNATIONAL
EXPANSION QUESTIONS ANSWERED CORRECTLY LATEST 2026
Why must firms be aware of their external environment? - Answers Firms must be aware of their
external environment to identify opportunities and threats, adapt to changes, and maintain a
competitive advantage.
Describe the six elements of the general external environment. - Answers The six elements are: 1)
Economic, 2) Technological, 3) Sociocultural, 4) Political/Legal, 5) Demographic, and 6) Global.
Briefly describe each of Porter's five forces. - Answers 1) Threat of new entrants: Barriers to entry
that affect new competitors. 2) Bargaining power of suppliers: Influence suppliers have on the price of
goods. 3) Bargaining power of buyers: Influence customers have on pricing and quality. 4) Threat of
substitute products: Availability of alternative products that can replace existing ones. 5) Industry
rivalry: Competition among existing firms in the industry.
Describe the primary and support activities in a firm's value chain. - Answers Primary activities
include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support
activities include firm infrastructure, human resource management, technology development, and
procurement.
Explain the four criteria for sustainable competitive advantage. - Answers The four criteria are: 1)
Valuable: Must provide value to customers. 2) Rare: Not widely possessed by competitors. 3)
Inimitable: Difficult for competitors to replicate. 4) Organized: Firm must be organized to exploit the
resource.
What would be the competitive implications of a resource if it were not valuable? - Answers If a
resource is not valuable, it does not contribute to competitive advantage and may even be a liability.
What would be the competitive implications of a resource if it were valuable but not rare? - Answers
If a resource is valuable but not rare, it can provide competitive parity but not a competitive
advantage.
What would be the competitive implications of a resource if it were rare but not inimitable? -
Answers If a resource is rare but not inimitable, it can provide a temporary competitive advantage
until competitors can acquire similar resources.
What would be the competitive implications of a resource if it were inimitable but not organized? -
Answers If a resource is inimitable but not organized, the firm cannot fully leverage the resource for
competitive advantage.
What would be the competitive implications of a resource if it were valuable, rare, inimitable, and
organized? - Answers If a resource meets all four criteria, it can provide a sustainable competitive
advantage.
Explain why it's important to hire slow and fire fast. - Answers Hiring slowly allows for careful
selection of candidates who fit the company culture and possess necessary skills, while firing fast
helps to quickly remove underperformers who do not contribute to the firm's success.
What are the key considerations when hiring and when firing? - Answers Key considerations include
assessing skills, cultural fit, potential for growth, and the impact on team dynamics.
Where is the line between culture fit and discrimination? - Answers The line is crossed when hiring
decisions are based on personal characteristics unrelated to job performance, rather than on shared
values and work ethic.
Briefly describe how intellectual assets can be protected. - Answers Intellectual assets can be
protected through legal means such as patents, copyrights, and trademarks, as well as through trade
secrets and non-disclosure agreements.
Describe the two basic competitive strategies. - Answers The two basic competitive strategies are
cost leadership, which focuses on being the lowest cost producer, and differentiation, which focuses
on offering unique products or services.
What are some of the pitfalls associated with each strategy? - Answers Pitfalls of cost leadership
include potential loss of quality and customer loyalty, while pitfalls of differentiation include higher
costs and the risk of competitors imitating unique features.
Can firms combine the generic strategies of cost leadership and differentiation? - Answers Firms can
attempt to combine these strategies, but it is challenging as it may lead to a dilution of focus and
resources.
How can companies benefit from related diversification? - Answers Companies can benefit from
related diversification by leveraging synergies, sharing resources, and enhancing market power.
EXPANSION QUESTIONS ANSWERED CORRECTLY LATEST 2026
Why must firms be aware of their external environment? - Answers Firms must be aware of their
external environment to identify opportunities and threats, adapt to changes, and maintain a
competitive advantage.
Describe the six elements of the general external environment. - Answers The six elements are: 1)
Economic, 2) Technological, 3) Sociocultural, 4) Political/Legal, 5) Demographic, and 6) Global.
Briefly describe each of Porter's five forces. - Answers 1) Threat of new entrants: Barriers to entry
that affect new competitors. 2) Bargaining power of suppliers: Influence suppliers have on the price of
goods. 3) Bargaining power of buyers: Influence customers have on pricing and quality. 4) Threat of
substitute products: Availability of alternative products that can replace existing ones. 5) Industry
rivalry: Competition among existing firms in the industry.
Describe the primary and support activities in a firm's value chain. - Answers Primary activities
include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support
activities include firm infrastructure, human resource management, technology development, and
procurement.
Explain the four criteria for sustainable competitive advantage. - Answers The four criteria are: 1)
Valuable: Must provide value to customers. 2) Rare: Not widely possessed by competitors. 3)
Inimitable: Difficult for competitors to replicate. 4) Organized: Firm must be organized to exploit the
resource.
What would be the competitive implications of a resource if it were not valuable? - Answers If a
resource is not valuable, it does not contribute to competitive advantage and may even be a liability.
What would be the competitive implications of a resource if it were valuable but not rare? - Answers
If a resource is valuable but not rare, it can provide competitive parity but not a competitive
advantage.
What would be the competitive implications of a resource if it were rare but not inimitable? -
Answers If a resource is rare but not inimitable, it can provide a temporary competitive advantage
until competitors can acquire similar resources.
What would be the competitive implications of a resource if it were inimitable but not organized? -
Answers If a resource is inimitable but not organized, the firm cannot fully leverage the resource for
competitive advantage.
What would be the competitive implications of a resource if it were valuable, rare, inimitable, and
organized? - Answers If a resource meets all four criteria, it can provide a sustainable competitive
advantage.
Explain why it's important to hire slow and fire fast. - Answers Hiring slowly allows for careful
selection of candidates who fit the company culture and possess necessary skills, while firing fast
helps to quickly remove underperformers who do not contribute to the firm's success.
What are the key considerations when hiring and when firing? - Answers Key considerations include
assessing skills, cultural fit, potential for growth, and the impact on team dynamics.
Where is the line between culture fit and discrimination? - Answers The line is crossed when hiring
decisions are based on personal characteristics unrelated to job performance, rather than on shared
values and work ethic.
Briefly describe how intellectual assets can be protected. - Answers Intellectual assets can be
protected through legal means such as patents, copyrights, and trademarks, as well as through trade
secrets and non-disclosure agreements.
Describe the two basic competitive strategies. - Answers The two basic competitive strategies are
cost leadership, which focuses on being the lowest cost producer, and differentiation, which focuses
on offering unique products or services.
What are some of the pitfalls associated with each strategy? - Answers Pitfalls of cost leadership
include potential loss of quality and customer loyalty, while pitfalls of differentiation include higher
costs and the risk of competitors imitating unique features.
Can firms combine the generic strategies of cost leadership and differentiation? - Answers Firms can
attempt to combine these strategies, but it is challenging as it may lead to a dilution of focus and
resources.
How can companies benefit from related diversification? - Answers Companies can benefit from
related diversification by leveraging synergies, sharing resources, and enhancing market power.
