SEVI 3013 EXAM PREP QUESTIONS AND
ANSWERS GRADED A PLUS STUDY
RESOURCE
●● strategy
Answer: an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
●● competitor analysis
Answer: focuses on each company against which a firm competes
directly
●● In a competitor analysis, the firm seeks to understand the following:
Answer: - What drives the competitor, as shown by its future objectives
- What the competitor is doing, as revealed by its current strategy
- What the competitor believes about the industry, as shown by its
assumptions
- What the competitor's capabilities are, as shown by its strengths and
weaknesses
●● Above-average returns
Answer: returns in excess of what an investor expects to earn from other
investments with a similar amount of risk
,●● strategic management process
Answer: the full set of commitments, decisions, and actions firms take to
achieve strategic competitiveness and earn about-average returns
- the process involves analysis, strategy, and performance (the A-S-P
model)
●● Competitive Landscape
Answer: The fundamental nature of competition in many of the worlds
industries is changing
●● Hypercompetition
Answer: a condition where competitors engage in intense rivalry,
markets change quickly and often, and entry barriers are low
makes it difficult for firms to maintain a competitive advantage
●● Hypercompetition is constantly changing based on
Answer: - Price-quality positioning
- Competition to create new know-how and establish first-mower
advantage
- Competition to protect or invade
, ●● Two types of hypercompetition
Answer: 1. The emergence of a global economy
2. Rapid technology change
●● I/O Model
Answer: the profitability potential of an industry or a segment of it as
well as the actions firms should take to operate profitably are determined
by a set of industry characteristics, such as:
· Economies of scale
· Barriers to market entry
· Diversification
· Product differentiation
suggests that returns are influenced more so by the characteristics of the
external environment than a firm's unique internal resources and
capabilities.
●● Risk
Answer: Degree of uncertainty of return on an asset; in business, the
likelihood of loss or reduced profit.
●● how firms can earn above-average returns
ANSWERS GRADED A PLUS STUDY
RESOURCE
●● strategy
Answer: an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
●● competitor analysis
Answer: focuses on each company against which a firm competes
directly
●● In a competitor analysis, the firm seeks to understand the following:
Answer: - What drives the competitor, as shown by its future objectives
- What the competitor is doing, as revealed by its current strategy
- What the competitor believes about the industry, as shown by its
assumptions
- What the competitor's capabilities are, as shown by its strengths and
weaknesses
●● Above-average returns
Answer: returns in excess of what an investor expects to earn from other
investments with a similar amount of risk
,●● strategic management process
Answer: the full set of commitments, decisions, and actions firms take to
achieve strategic competitiveness and earn about-average returns
- the process involves analysis, strategy, and performance (the A-S-P
model)
●● Competitive Landscape
Answer: The fundamental nature of competition in many of the worlds
industries is changing
●● Hypercompetition
Answer: a condition where competitors engage in intense rivalry,
markets change quickly and often, and entry barriers are low
makes it difficult for firms to maintain a competitive advantage
●● Hypercompetition is constantly changing based on
Answer: - Price-quality positioning
- Competition to create new know-how and establish first-mower
advantage
- Competition to protect or invade
, ●● Two types of hypercompetition
Answer: 1. The emergence of a global economy
2. Rapid technology change
●● I/O Model
Answer: the profitability potential of an industry or a segment of it as
well as the actions firms should take to operate profitably are determined
by a set of industry characteristics, such as:
· Economies of scale
· Barriers to market entry
· Diversification
· Product differentiation
suggests that returns are influenced more so by the characteristics of the
external environment than a firm's unique internal resources and
capabilities.
●● Risk
Answer: Degree of uncertainty of return on an asset; in business, the
likelihood of loss or reduced profit.
●● how firms can earn above-average returns
