GEB 4890 1 ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Competitive Advantage.
Answer: Doing something better or cheaper than rivals in a way that is
difficult to imitate.
◍ Performance Advantage.
Answer: Superior results such as profits or growth; may be temporary and
not always caused by competitive advantage.
◍ Deliberate Strategy.
Answer: Strategy that is planned and intentionally pursued.
◍ Emergent Strategy.
Answer: Strategy that develops unintentionally as firms respond to
real-world conditions.
◍ Realized Strategy.
Answer: The strategy actually implemented; combination of deliberate and
emergent strategies.
◍ company strategy.
Answer: the set of actions that its managers take to outperform the
company's competitors and achieve superior profitability.
◍ Mission.
Answer: The organization's current purpose and reason for existence.
◍ Vision.
Answer: A future-oriented statement of what the organization aims to
become.
,◍ Values.
Answer: Core beliefs that guide behavior and decision-making.
◍ Utilitarian Ethical Lens.
Answer: Chooses actions that create the greatest good for the greatest
number.
◍ what makes a competitive advantage sustainable:.
Answer: are elements of the strategy that give buyers lasting reasons to
prefer a company's products or services over those of competitors--reasons
that the competitors are unable to nullify or overcome despite their best
efforts.
◍ Rights-Based Ethics.
Answer: Focuses on protecting individual rights and freedoms.
◍ Justice/Fairness Ethics.
Answer: Emphasizes equal and fair treatment.
◍ most basic 5 approaches for setting a company apart from rivals and
winning a sustainable competitive advantage.
Answer: 1-low-cost provider strategy, 2-broad differentiation strategy,
3-focused low-cost strategy 4-focused differentiation strategy, 5-best-cost
provider strategy
◍ company's strategy tends to evolve.
Answer: because of changing circumstances and ongoing efforts by
management to improve the strategy.
◍ why should a company have a viable business model that outlines the
company's customer value proposition and its profit formula?.
Answer: A company's business model sets forth the logic for how its
strategy will create value for customers and at the same time generate
revenues sufficient to cover costs and realize a profit. Thus, it contains 2
crucial elements, (1) the customer value proposition, & (2) the profit
formula. These elements are illustrated by the value-price-cost framework.
, ◍ Virtue Ethics.
Answer: Focuses on moral character and doing what a "good" person or
company would do.
◍ Professional Service Firms (PSFs).
Answer: Knowledge-based firms like law or consulting that rely primarily
on human capital.
◍ A winning strategy must pass three tests:.
Answer: (1) fit (external, internal, and dynamic consistency), (2)
competitive advantage ( durable competitive advantage), and (3)
performance (outstanding financial and market performance).
◍ low-cost provider strategy.
Answer: achieving a cost-based advantage over rivals.
◍ broad differentiation strategy.
Answer: seeking to differentiate the company's product or service from that
of rivals in ways that will appeal to a broad spectrum of buyers.
◍ Profits Per Partner (PPP).
Answer: Key performance metric for PSFs measuring profit generated per
partner.
◍ Human Capital Leverage.
Answer: Ratio of junior employees to senior professionals; higher leverage
increases profitability.
◍ Broad Strategy.
Answer: Targets a wide market.
◍ focused low-cost strategy.
Answer: concentrating on a narrow buyer segment and outcompeting rivals
by having lower costs and thus being able to serve niche members at a lower
price.
◍ Narrow (Focused) Strategy.
Answer: Targets a specific niche or segment.
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Competitive Advantage.
Answer: Doing something better or cheaper than rivals in a way that is
difficult to imitate.
◍ Performance Advantage.
Answer: Superior results such as profits or growth; may be temporary and
not always caused by competitive advantage.
◍ Deliberate Strategy.
Answer: Strategy that is planned and intentionally pursued.
◍ Emergent Strategy.
Answer: Strategy that develops unintentionally as firms respond to
real-world conditions.
◍ Realized Strategy.
Answer: The strategy actually implemented; combination of deliberate and
emergent strategies.
◍ company strategy.
Answer: the set of actions that its managers take to outperform the
company's competitors and achieve superior profitability.
◍ Mission.
Answer: The organization's current purpose and reason for existence.
◍ Vision.
Answer: A future-oriented statement of what the organization aims to
become.
,◍ Values.
Answer: Core beliefs that guide behavior and decision-making.
◍ Utilitarian Ethical Lens.
Answer: Chooses actions that create the greatest good for the greatest
number.
◍ what makes a competitive advantage sustainable:.
Answer: are elements of the strategy that give buyers lasting reasons to
prefer a company's products or services over those of competitors--reasons
that the competitors are unable to nullify or overcome despite their best
efforts.
◍ Rights-Based Ethics.
Answer: Focuses on protecting individual rights and freedoms.
◍ Justice/Fairness Ethics.
Answer: Emphasizes equal and fair treatment.
◍ most basic 5 approaches for setting a company apart from rivals and
winning a sustainable competitive advantage.
Answer: 1-low-cost provider strategy, 2-broad differentiation strategy,
3-focused low-cost strategy 4-focused differentiation strategy, 5-best-cost
provider strategy
◍ company's strategy tends to evolve.
Answer: because of changing circumstances and ongoing efforts by
management to improve the strategy.
◍ why should a company have a viable business model that outlines the
company's customer value proposition and its profit formula?.
Answer: A company's business model sets forth the logic for how its
strategy will create value for customers and at the same time generate
revenues sufficient to cover costs and realize a profit. Thus, it contains 2
crucial elements, (1) the customer value proposition, & (2) the profit
formula. These elements are illustrated by the value-price-cost framework.
, ◍ Virtue Ethics.
Answer: Focuses on moral character and doing what a "good" person or
company would do.
◍ Professional Service Firms (PSFs).
Answer: Knowledge-based firms like law or consulting that rely primarily
on human capital.
◍ A winning strategy must pass three tests:.
Answer: (1) fit (external, internal, and dynamic consistency), (2)
competitive advantage ( durable competitive advantage), and (3)
performance (outstanding financial and market performance).
◍ low-cost provider strategy.
Answer: achieving a cost-based advantage over rivals.
◍ broad differentiation strategy.
Answer: seeking to differentiate the company's product or service from that
of rivals in ways that will appeal to a broad spectrum of buyers.
◍ Profits Per Partner (PPP).
Answer: Key performance metric for PSFs measuring profit generated per
partner.
◍ Human Capital Leverage.
Answer: Ratio of junior employees to senior professionals; higher leverage
increases profitability.
◍ Broad Strategy.
Answer: Targets a wide market.
◍ focused low-cost strategy.
Answer: concentrating on a narrow buyer segment and outcompeting rivals
by having lower costs and thus being able to serve niche members at a lower
price.
◍ Narrow (Focused) Strategy.
Answer: Targets a specific niche or segment.
