MGT 449 EXAM 1 VERIFIED STUDY GUIDE
Strategy - Answers - A set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
Competitive Advantage - Answers - A firm that achieves superior performance relative
to other competitors in the same industry or the industry average
Sustainable Competitive Advantage - Answers - A firm that is able to outperform its
competitors or the industry average over a prolonged period of time
Competitor Disadvantage - Answers - If a firm underperforms its rival or the industry
average
Competitive Parity - Answers - Should two or more levels perform at the same level
Industry Effects - Answers - Describe the underlying economic structure of the industry
Firm Effects - Answers - Attribute firm performance to the actions managers take
Black Swan Events - Answers - Eroeded the public's trust in business as an institution
and capitalism as an economic system
Stakeholders - Answers - Organizations, groups, and individuals that can affect or be
affected by a firm's actions
Stakeholder Strategy - Answers - An integrative approach to managing a diverse set of
stakeholders effectively in order to gain and sustain competitive advantage
Stakeholder impact analysis - Answers - Provides a decision tool with which managers
can recognize, prioritize, and address the needs of different stakeholders
Corporate Social Responsibility - Answers - Helps firms recognize and address the
economic, legal, ethical, and philanthropic expectations that society has of the business
enterprise at a given point in time
AFI Strategy Framework - Answers - This framework explains and predicts differences
in firm performance and helps managers formulate and implement a strategy that
results in superior performance
Strategic management Process - Answers - The method put in place by strategic
leaders to conceive and implant a strategy
, Strategic Leadership - Answers - Pertains to executives' use of power and influence to
direct the activities of others when pursuing an organization's goals
Vision - Answers - Such a statement about what an organization ultimately wants to
accomplish is
Mission - Answers - Describes what an organization actually does - that is, the produces
and services it plans to provide, and the markets in which it will compete
Strategic Commitments - Answers - Actions that are costly, long-term-oriented, and
difficult to reverse
Customer Oriented Vision - Answers - A business in terms of providing solutions to
customer needs
Organized Values - Answers - The ethical standards and norms that govern the
behavior of individuals within a firm or organization
Upper Echelons Theory - Answers - Organization outcomes including strategic choices
and performance levels reflect the values of the top management team
Level 5 Leadership Pyramid - Answers - Effective strategic leaders go through a natural
progression of five different levels
Strategic Business Units - Answers - The standalone divisions of a larger conglomerate,
each with its own profit-and-loss responsibility
Top Down Strategic Planning - Answers - A rational, top-down process through which
executives attempt to program future success
Scenario Planning - Answers - Asks those 'what if" questions
Dominant Strategic Plan - Answers - The option that top managers decide most closely
matches the current reality
Intended Strategy - Answers - The outcome of a rational and structural, top-down
strategic plan
Realized Strategy - Answers - Generally a combination of its top-down strategic
intentions and bottom-up emergent strategy
Emergent Strategy - Answers - Describes any unplanned strategic initiative undertaken
by mid-level employees of their own volitation
Strategic Initiative - Answers - Any activity a firm pursues to explore and develop new
products and processes, new markets, or new ventures
Strategy - Answers - A set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
Competitive Advantage - Answers - A firm that achieves superior performance relative
to other competitors in the same industry or the industry average
Sustainable Competitive Advantage - Answers - A firm that is able to outperform its
competitors or the industry average over a prolonged period of time
Competitor Disadvantage - Answers - If a firm underperforms its rival or the industry
average
Competitive Parity - Answers - Should two or more levels perform at the same level
Industry Effects - Answers - Describe the underlying economic structure of the industry
Firm Effects - Answers - Attribute firm performance to the actions managers take
Black Swan Events - Answers - Eroeded the public's trust in business as an institution
and capitalism as an economic system
Stakeholders - Answers - Organizations, groups, and individuals that can affect or be
affected by a firm's actions
Stakeholder Strategy - Answers - An integrative approach to managing a diverse set of
stakeholders effectively in order to gain and sustain competitive advantage
Stakeholder impact analysis - Answers - Provides a decision tool with which managers
can recognize, prioritize, and address the needs of different stakeholders
Corporate Social Responsibility - Answers - Helps firms recognize and address the
economic, legal, ethical, and philanthropic expectations that society has of the business
enterprise at a given point in time
AFI Strategy Framework - Answers - This framework explains and predicts differences
in firm performance and helps managers formulate and implement a strategy that
results in superior performance
Strategic management Process - Answers - The method put in place by strategic
leaders to conceive and implant a strategy
, Strategic Leadership - Answers - Pertains to executives' use of power and influence to
direct the activities of others when pursuing an organization's goals
Vision - Answers - Such a statement about what an organization ultimately wants to
accomplish is
Mission - Answers - Describes what an organization actually does - that is, the produces
and services it plans to provide, and the markets in which it will compete
Strategic Commitments - Answers - Actions that are costly, long-term-oriented, and
difficult to reverse
Customer Oriented Vision - Answers - A business in terms of providing solutions to
customer needs
Organized Values - Answers - The ethical standards and norms that govern the
behavior of individuals within a firm or organization
Upper Echelons Theory - Answers - Organization outcomes including strategic choices
and performance levels reflect the values of the top management team
Level 5 Leadership Pyramid - Answers - Effective strategic leaders go through a natural
progression of five different levels
Strategic Business Units - Answers - The standalone divisions of a larger conglomerate,
each with its own profit-and-loss responsibility
Top Down Strategic Planning - Answers - A rational, top-down process through which
executives attempt to program future success
Scenario Planning - Answers - Asks those 'what if" questions
Dominant Strategic Plan - Answers - The option that top managers decide most closely
matches the current reality
Intended Strategy - Answers - The outcome of a rational and structural, top-down
strategic plan
Realized Strategy - Answers - Generally a combination of its top-down strategic
intentions and bottom-up emergent strategy
Emergent Strategy - Answers - Describes any unplanned strategic initiative undertaken
by mid-level employees of their own volitation
Strategic Initiative - Answers - Any activity a firm pursues to explore and develop new
products and processes, new markets, or new ventures
