MAN 4720 (9) | UPDATED Questions with 100% Verified
Answers
Q1: In the A-S-P model of strategic management, what does the
Strategy component involve?
A: The Strategy component involves formulating and implementing actions that help the
firm achieve its goals and gain a competitive advantage.
Q2: Under what circumstances can a firm be considered to have a
competitive advantage?
A: when it creates more economic value than its rivals by delivering lower costs or superior
products.
Q3: In the Industrial Organization (I/O) model, what factor most
strongly influences a firm's profitability?
A: Performance of a firm / the external environment and the structural characteristics of the
industry in which it chooses to compete / attractiveness
Q4: What distinguishes a global value chain from a global supply
chain in the global economy?
A: A global value chain focuses on all activities that add value to a product or service, while
a global supply chain focuses mainly on sourcing, production, and distribution of goods.
Q5: What term refers to a market characterized by fierce
competition, low entry barriers, and advantages that are
difficult to sustain?
A: hypercompetition
Q6: What is meant by the term liability of foreignness?
A: the inherent disadvantage that foreign firms experience in host countries because of their
nonnative status
/
the disadvantages and extra costs a company faces when operating in a foreign country
because it is unfamiliar with the local culture, laws, business practices, and market
Q7: Which statement represents a basic assumption of the
Industrial Organization (I/O) model?
A: The external environment is assumed to impose pressures and constraints that dictate
the strategies necessary to achieve above-average returns.
Most firms competing within an industry (or a specific segment) are assumed to control
similar strategically relevant resources and pursue similar strategies.
Resources used to implement strategies are highly mobile across firms.
, Organizational decision makers are assumed to be rational and committed to acting in
the firm's best interests.
Q8: In corporate social responsibility, what does greenwashing
mean?
A: Greenwashing is the deceptive practice of making false or exaggerated claims about a
company's environmental efforts to appear sustainable when its actual operations are
not.
Q9: From the resource-based perspective, what primarily explains
why firms perform differently over time?
A: because they possess unique internal resources and capabilities that competitors cannot
easily copy
Q10: Within an organization, how is a capability defined?
A: the collective ability to deliver a specific business outcome by combining people,
processes, and technology to perform a specific task or activity.
Q11: Under the resource-based model, what characteristics make a
resource expensive or difficult for competitors to imitate?
A: Unique historical conditions, causal ambiguity, and social complexity
Q12: Which situation is an example of interactional justice within an
organization?
A: a manager treating an employee with dignity, kindness, and respect while explaining the
reasons behind a difficult workplace decision
Q13: Based on the Business Roundtable statement, which parties
are considered primary stakeholders?
A: Customers, Employees, Suppliers, Communities, Shareholders
Q14: Why might managing a firm for the benefit of its stakeholders
make economic sense despite higher short-term costs?
A: it creates lasting value and create greater long-term value and profitability, as well as
prevents expensive problems later
Q15: How are a firm's vision and mission different in establishing
strategic direction?
A: A firm's vision describes what it hopes to become in the future, while its mission explains
what the firm does, who it serves, and why it exists today
Answers
Q1: In the A-S-P model of strategic management, what does the
Strategy component involve?
A: The Strategy component involves formulating and implementing actions that help the
firm achieve its goals and gain a competitive advantage.
Q2: Under what circumstances can a firm be considered to have a
competitive advantage?
A: when it creates more economic value than its rivals by delivering lower costs or superior
products.
Q3: In the Industrial Organization (I/O) model, what factor most
strongly influences a firm's profitability?
A: Performance of a firm / the external environment and the structural characteristics of the
industry in which it chooses to compete / attractiveness
Q4: What distinguishes a global value chain from a global supply
chain in the global economy?
A: A global value chain focuses on all activities that add value to a product or service, while
a global supply chain focuses mainly on sourcing, production, and distribution of goods.
Q5: What term refers to a market characterized by fierce
competition, low entry barriers, and advantages that are
difficult to sustain?
A: hypercompetition
Q6: What is meant by the term liability of foreignness?
A: the inherent disadvantage that foreign firms experience in host countries because of their
nonnative status
/
the disadvantages and extra costs a company faces when operating in a foreign country
because it is unfamiliar with the local culture, laws, business practices, and market
Q7: Which statement represents a basic assumption of the
Industrial Organization (I/O) model?
A: The external environment is assumed to impose pressures and constraints that dictate
the strategies necessary to achieve above-average returns.
Most firms competing within an industry (or a specific segment) are assumed to control
similar strategically relevant resources and pursue similar strategies.
Resources used to implement strategies are highly mobile across firms.
, Organizational decision makers are assumed to be rational and committed to acting in
the firm's best interests.
Q8: In corporate social responsibility, what does greenwashing
mean?
A: Greenwashing is the deceptive practice of making false or exaggerated claims about a
company's environmental efforts to appear sustainable when its actual operations are
not.
Q9: From the resource-based perspective, what primarily explains
why firms perform differently over time?
A: because they possess unique internal resources and capabilities that competitors cannot
easily copy
Q10: Within an organization, how is a capability defined?
A: the collective ability to deliver a specific business outcome by combining people,
processes, and technology to perform a specific task or activity.
Q11: Under the resource-based model, what characteristics make a
resource expensive or difficult for competitors to imitate?
A: Unique historical conditions, causal ambiguity, and social complexity
Q12: Which situation is an example of interactional justice within an
organization?
A: a manager treating an employee with dignity, kindness, and respect while explaining the
reasons behind a difficult workplace decision
Q13: Based on the Business Roundtable statement, which parties
are considered primary stakeholders?
A: Customers, Employees, Suppliers, Communities, Shareholders
Q14: Why might managing a firm for the benefit of its stakeholders
make economic sense despite higher short-term costs?
A: it creates lasting value and create greater long-term value and profitability, as well as
prevents expensive problems later
Q15: How are a firm's vision and mission different in establishing
strategic direction?
A: A firm's vision describes what it hopes to become in the future, while its mission explains
what the firm does, who it serves, and why it exists today
