2
BUAD 453 Exam 1 with verified detailed answers || || || || || || ||
the ability of a firm to outperform its rivals by achieving greater profitability and growth
|| || || || || || || || || || || || || || ||
than others in the industry is an example of _____________. - ✔✔competitive advantage
|| || || || || || || || || || || ||
A tech company determines that it should pay its top-performing employees above-market
|| || || || || || || || || || || ||
wages, decreasing shareholder returns in the short-term. But the employee longevity pays
|| || || || || || || || || || || ||
off through sustained R&D and breakthrough products that result in sales growth and lower
|| || || || || || || || || || || || ||
recruitment costs. This is an example of: - ✔✔maximizing the return to shareholders is to
|| || || || || || || || || || || || || || || ||
focus on the customers and employees
|| || || || ||
a company in the airline industry with an ROIC recorded above 25% in each of the last 5
|| || || || || || || || || || || || || || || || || ||
years is an example of ___________________________. - ✔✔sustained competitive
|| || || || || || || || ||
advantage
a nonprofit organization is considering holding a series of sessions to develop its mission,
|| || || || || || || || || || || || || ||
vision,goals, operation model, and strategic plan. Differentiate between planning for
|| || || || || || || || || ||
charities vs for companies. How will the process be different for the nonprofit? - ✔✔The
|| || || || || || || || || || || || || || ||
strategic goals of the organization will include a combination of performance goals toward
|| || || || || || || || || || || || ||
the charity's mission, revenue, and fundraising goals.
|| || || || || ||
A business-level manager in a multi-divisional company is: - ✔✔a strategic manager who is
|| || || || || || || || || || || || || ||
the head of an entire division, responsible for translating the corporate strategy into
|| || || || || || || || || || || || ||
concrete strategies for the business unit. || || || || ||
Bhascar recently named general manager of a newly created business unit of a
|| || || || || || || || || || || || ||
multidivisional company. His first order of business will be to implement the new division's || || || || || || || || || || || || || ||
strategic plan. Which of these statements about Bhascar's responsibilities for the company is
|| || || || || || || || || || || ||
true? - ✔✔Bhascar works with managers within his business to develop and implement
|| || || || || || || || || || || || || ||
concrete strategies for his division that align with corporate goals.
|| || || || || || || || ||
,2
Lisa is the VP of sales and marketing for a software development company. She's been
|| || || || || || || || || || || || || || ||
working with her sales force in recent months to develop a promotion strategy to sell
|| || || || || || || || || || || || || || ||
obsolete software quickly at a reduced price rather than the original suggested price. Which
|| || || || || || || || || || || || || ||
strategic manager role is Lisa fulfilling with this approach? - ✔✔functional-level manager
|| || || || || || || || || || ||
According to Hill and Schilling, which would be considered an important step in a formal
|| || || || || || || || || || || || || || ||
strategic management process? - ✔✔defining the company's corporate mission and major
|| || || || || || || || || || ||
corporate goals ||
a mission statement describes: - ✔✔what the company does in terms of its customers, their
|| || || || || || || || || || || || || || ||
needs, and through what core competencies.
|| || || || ||
Nike: "To bring inspiration and innovation to every athlete in the world."
|| || || || || || || || || || ||
this is an example of a _______________ mission statement - ✔✔customer-focused
|| || || || || || || || || ||
the idea that the strategy-making process is constantly ongoing and adapting over time with
|| || || || || || || || || || || || ||
the input of additional information is: - ✔✔the feedback loop
|| || || || || || || || || ||
My company has set a goal of launching five new products each year for the next five years
|| || || || || || || || || || || || || || || || || ||
through at least 10% annual investment in R&D.
|| || || || || || ||
This is characteristic of a: - ✔✔well-constructed goal
|| || || || || || ||
The primary objective of managers participating in a SWOT analysis is to: - ✔✔identify
|| || || || || || || || || || || || || ||
strategies that exploit external opportunities, counter threats, build on strengths, and
|| || || || || || || || || || ||
eradicate weaknesses. ||
An HVAC contractor is considering expanding into a new business line, offering
|| || || || || || || || || || || ||
commercial facility maintenance and service in addition to construction contracting
|| || || || || || || || || ||
, 2
services. As the contractor considers this potential strategy, it conducts a strategic planning
|| || || || || || || || || || || || ||
process for this business unit, analyzing external and internal factors. Which of these can be
|| || || || || || || || || || || || || ||
classified as a part of the external operating environment of the company? - ✔✔local
|| || || || || || || || || || || || || || ||
commercial properties are most often served by one of the three big national HVAC service || || || || || || || || || || || || || || ||
firms and a handful of local smaller firms.
|| || || || || || ||
There are four main categories of strategies that managers may define to create and sustain
|| || || || || || || || || || || || || || ||
a competitive advantage. What is an example of a business-level strategy? - ✔✔A general
|| || || || || || || || || || || || || ||
manager defining a superior customer service strategy for his division to better deliver its
|| || || || || || || || || || || || || ||
products
Strategies that evolve as the unplanned responses to unforeseen circumstances, arising from
|| || || || || || || || || || ||
autonomous action by individual managers, serendipitous events, and changed
|| || || || || || || || || ||
circumstances - ✔✔Define emergent strategy making process || || || || || ||
What are some common pitfalls of the strategic planning process? - ✔✔- attaching too
|| || || || || || || || || || || || || ||
much importance to the role of top management and ignoring the input and strategic ideas
|| || || || || || || || || || || || || || ||
of lower-level managers
|| ||
- failing to take advantage of opportunities that arise that were unplanned for within the
|| || || || || || || || || || || || || || ||
company's strategic plan || ||
refusing to adapt to breakthrough technologies and shifts in the competitive environment
|| || || || || || || || || || || ||
because the strategic plan didn't account for these changes.
|| || || || || || || ||
Michael is the CEO of a multidivisional company who has determined that it is time for his
|| || || || || || || || || || || || || || || || ||
company to revisit its strategic plan. He is working on the agenda for the meeting and is
|| || || || || || || || || || || || || || || || ||
beginning with a review of the company's mission, vision, and values. On day 2, he plans to
|| || || || || || || || || || || || || || || || ||
conduct an analysis of internal and external forces affecting the company. His invitee list for
|| || || || || || || || || || || || || ||
the strategic planning session includes the CFO, the COO, the Vice President of Human
|| || || || || || || || || || || || || || ||
Resources, and the Vice President of Sales. He believes this smaller team will be able to
|| || || || || || || || || || || || || || || ||
reach a greater consensus and be efficient in developing the strategic plan for the next five
|| || || || || || || || || || || || || || || ||
years. Which potential pitfall could impact the strategic plan for this company? - ✔✔an
|| || || || || || || || || || || || || ||
"ivory tower" approach could lead the executive team to a plan created in a vacuum without
|| || || || || || || || || || || || || || || ||
an understanding of current operating realities.
|| || || || ||
BUAD 453 Exam 1 with verified detailed answers || || || || || || ||
the ability of a firm to outperform its rivals by achieving greater profitability and growth
|| || || || || || || || || || || || || || ||
than others in the industry is an example of _____________. - ✔✔competitive advantage
|| || || || || || || || || || || ||
A tech company determines that it should pay its top-performing employees above-market
|| || || || || || || || || || || ||
wages, decreasing shareholder returns in the short-term. But the employee longevity pays
|| || || || || || || || || || || ||
off through sustained R&D and breakthrough products that result in sales growth and lower
|| || || || || || || || || || || || ||
recruitment costs. This is an example of: - ✔✔maximizing the return to shareholders is to
|| || || || || || || || || || || || || || || ||
focus on the customers and employees
|| || || || ||
a company in the airline industry with an ROIC recorded above 25% in each of the last 5
|| || || || || || || || || || || || || || || || || ||
years is an example of ___________________________. - ✔✔sustained competitive
|| || || || || || || || ||
advantage
a nonprofit organization is considering holding a series of sessions to develop its mission,
|| || || || || || || || || || || || || ||
vision,goals, operation model, and strategic plan. Differentiate between planning for
|| || || || || || || || || ||
charities vs for companies. How will the process be different for the nonprofit? - ✔✔The
|| || || || || || || || || || || || || || ||
strategic goals of the organization will include a combination of performance goals toward
|| || || || || || || || || || || || ||
the charity's mission, revenue, and fundraising goals.
|| || || || || ||
A business-level manager in a multi-divisional company is: - ✔✔a strategic manager who is
|| || || || || || || || || || || || || ||
the head of an entire division, responsible for translating the corporate strategy into
|| || || || || || || || || || || || ||
concrete strategies for the business unit. || || || || ||
Bhascar recently named general manager of a newly created business unit of a
|| || || || || || || || || || || || ||
multidivisional company. His first order of business will be to implement the new division's || || || || || || || || || || || || || ||
strategic plan. Which of these statements about Bhascar's responsibilities for the company is
|| || || || || || || || || || || ||
true? - ✔✔Bhascar works with managers within his business to develop and implement
|| || || || || || || || || || || || || ||
concrete strategies for his division that align with corporate goals.
|| || || || || || || || ||
,2
Lisa is the VP of sales and marketing for a software development company. She's been
|| || || || || || || || || || || || || || ||
working with her sales force in recent months to develop a promotion strategy to sell
|| || || || || || || || || || || || || || ||
obsolete software quickly at a reduced price rather than the original suggested price. Which
|| || || || || || || || || || || || || ||
strategic manager role is Lisa fulfilling with this approach? - ✔✔functional-level manager
|| || || || || || || || || || ||
According to Hill and Schilling, which would be considered an important step in a formal
|| || || || || || || || || || || || || || ||
strategic management process? - ✔✔defining the company's corporate mission and major
|| || || || || || || || || || ||
corporate goals ||
a mission statement describes: - ✔✔what the company does in terms of its customers, their
|| || || || || || || || || || || || || || ||
needs, and through what core competencies.
|| || || || ||
Nike: "To bring inspiration and innovation to every athlete in the world."
|| || || || || || || || || || ||
this is an example of a _______________ mission statement - ✔✔customer-focused
|| || || || || || || || || ||
the idea that the strategy-making process is constantly ongoing and adapting over time with
|| || || || || || || || || || || || ||
the input of additional information is: - ✔✔the feedback loop
|| || || || || || || || || ||
My company has set a goal of launching five new products each year for the next five years
|| || || || || || || || || || || || || || || || || ||
through at least 10% annual investment in R&D.
|| || || || || || ||
This is characteristic of a: - ✔✔well-constructed goal
|| || || || || || ||
The primary objective of managers participating in a SWOT analysis is to: - ✔✔identify
|| || || || || || || || || || || || || ||
strategies that exploit external opportunities, counter threats, build on strengths, and
|| || || || || || || || || || ||
eradicate weaknesses. ||
An HVAC contractor is considering expanding into a new business line, offering
|| || || || || || || || || || || ||
commercial facility maintenance and service in addition to construction contracting
|| || || || || || || || || ||
, 2
services. As the contractor considers this potential strategy, it conducts a strategic planning
|| || || || || || || || || || || || ||
process for this business unit, analyzing external and internal factors. Which of these can be
|| || || || || || || || || || || || || ||
classified as a part of the external operating environment of the company? - ✔✔local
|| || || || || || || || || || || || || || ||
commercial properties are most often served by one of the three big national HVAC service || || || || || || || || || || || || || || ||
firms and a handful of local smaller firms.
|| || || || || || ||
There are four main categories of strategies that managers may define to create and sustain
|| || || || || || || || || || || || || || ||
a competitive advantage. What is an example of a business-level strategy? - ✔✔A general
|| || || || || || || || || || || || || ||
manager defining a superior customer service strategy for his division to better deliver its
|| || || || || || || || || || || || || ||
products
Strategies that evolve as the unplanned responses to unforeseen circumstances, arising from
|| || || || || || || || || || ||
autonomous action by individual managers, serendipitous events, and changed
|| || || || || || || || || ||
circumstances - ✔✔Define emergent strategy making process || || || || || ||
What are some common pitfalls of the strategic planning process? - ✔✔- attaching too
|| || || || || || || || || || || || || ||
much importance to the role of top management and ignoring the input and strategic ideas
|| || || || || || || || || || || || || || ||
of lower-level managers
|| ||
- failing to take advantage of opportunities that arise that were unplanned for within the
|| || || || || || || || || || || || || || ||
company's strategic plan || ||
refusing to adapt to breakthrough technologies and shifts in the competitive environment
|| || || || || || || || || || || ||
because the strategic plan didn't account for these changes.
|| || || || || || || ||
Michael is the CEO of a multidivisional company who has determined that it is time for his
|| || || || || || || || || || || || || || || || ||
company to revisit its strategic plan. He is working on the agenda for the meeting and is
|| || || || || || || || || || || || || || || || ||
beginning with a review of the company's mission, vision, and values. On day 2, he plans to
|| || || || || || || || || || || || || || || || ||
conduct an analysis of internal and external forces affecting the company. His invitee list for
|| || || || || || || || || || || || || ||
the strategic planning session includes the CFO, the COO, the Vice President of Human
|| || || || || || || || || || || || || || ||
Resources, and the Vice President of Sales. He believes this smaller team will be able to
|| || || || || || || || || || || || || || || ||
reach a greater consensus and be efficient in developing the strategic plan for the next five
|| || || || || || || || || || || || || || || ||
years. Which potential pitfall could impact the strategic plan for this company? - ✔✔an
|| || || || || || || || || || || || || ||
"ivory tower" approach could lead the executive team to a plan created in a vacuum without
|| || || || || || || || || || || || || || || ||
an understanding of current operating realities.
|| || || || ||
