GLO-BUS MIDTERM MOCK TEST AND STUDY
MATERIAL WITH BUSINESS DECISION-MAKING
SIMULATION PRACTICE
◉ Sustainable Competitive Advantage.
Answer: Outperforming competitors or the industry average over a
prolonged period of time
◉ Competitive Disadvantage.
Answer: Underperformance relative to other competitors in the
same industry or the industry average
◉ Competitive Parity.
Answer: Performance of two or more firms at the same level
◉ How to Gain a Competitive Advantage.
Answer: -Provide goods or services consumers value more highly
than those of its competitors
-Provide goods or services similar to the competitors' at a lower
price
◉ Vision.
,Answer: A statement about what an organization ultimately wants to
accomplish; it captures the company's aspiration. What do we want
to accomplish ultimately?
◉ Effective Vision.
Answer: -Pervades the organization
-Provides a sense of winning
-Motivates employees to aim for the same target
◉ Strategic Intent.
Answer: Outlines a firm's stretch goal that is based on a firm's vision
◉ Actions Based on Vision.
Answer: -Build necessary resources
-Build capabilities
-Ensure continuous organizational learning
-Ensure learning from failure
◉ Customer-Oriented Vision.
Answer: Focus employees on problem solving for the customer.
Customer needs may change. The means of meeting those needs
may change also.
, ◉ Product-Oriented Vision.
Answer: Focus employees on improving existing products and
services. Forces managers to take a more myopic view. Can hinder
understanding of the competitive landscape.
◉ Vision and Competitive Advantage Relationship is Strongest.
Answer: When:
-The vision is customer-oriented
-Internal stakeholders help define the vision
-Organizational structures align to the vision
◉ Strategic Positioning.
Answer: A unique position within an industry that allows the firm to
provide value to customers, while controlling costs
◉ Unique Strategic Position.
Answer: The key to successful strategy requires combining activities
◉ Economic Contribution.
Answer: Value creation minus costs. The greater, the better.
Enhances the likelihood of a competitive advantage
◉ Trade-Offs Managers Must Make.
MATERIAL WITH BUSINESS DECISION-MAKING
SIMULATION PRACTICE
◉ Sustainable Competitive Advantage.
Answer: Outperforming competitors or the industry average over a
prolonged period of time
◉ Competitive Disadvantage.
Answer: Underperformance relative to other competitors in the
same industry or the industry average
◉ Competitive Parity.
Answer: Performance of two or more firms at the same level
◉ How to Gain a Competitive Advantage.
Answer: -Provide goods or services consumers value more highly
than those of its competitors
-Provide goods or services similar to the competitors' at a lower
price
◉ Vision.
,Answer: A statement about what an organization ultimately wants to
accomplish; it captures the company's aspiration. What do we want
to accomplish ultimately?
◉ Effective Vision.
Answer: -Pervades the organization
-Provides a sense of winning
-Motivates employees to aim for the same target
◉ Strategic Intent.
Answer: Outlines a firm's stretch goal that is based on a firm's vision
◉ Actions Based on Vision.
Answer: -Build necessary resources
-Build capabilities
-Ensure continuous organizational learning
-Ensure learning from failure
◉ Customer-Oriented Vision.
Answer: Focus employees on problem solving for the customer.
Customer needs may change. The means of meeting those needs
may change also.
, ◉ Product-Oriented Vision.
Answer: Focus employees on improving existing products and
services. Forces managers to take a more myopic view. Can hinder
understanding of the competitive landscape.
◉ Vision and Competitive Advantage Relationship is Strongest.
Answer: When:
-The vision is customer-oriented
-Internal stakeholders help define the vision
-Organizational structures align to the vision
◉ Strategic Positioning.
Answer: A unique position within an industry that allows the firm to
provide value to customers, while controlling costs
◉ Unique Strategic Position.
Answer: The key to successful strategy requires combining activities
◉ Economic Contribution.
Answer: Value creation minus costs. The greater, the better.
Enhances the likelihood of a competitive advantage
◉ Trade-Offs Managers Must Make.
