MAN 4720 UCF Capstone Midterm exam 2023 Updated Questions with Correct Solutions

Competitive Advantage - Generating above average returns. Measured relative to other firms. Should rely on a more holistic perspective vs. just using one metric. Strategic Analysis framework - AFI Strategy - quest to gain and sustain competitive advantage over Companies - array of activities vision statement - paints a picture of where a company wants to be Balanced Scorecard - harnesses multiple internal and external performance metrics in order to balance both financial and strategic goals. USED IN IMPLEMENTATION PHASE strategic management - an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantages competitive disadvantage - under performance relative to other competitors in the same industry or industry average competitive parity - performance of two or more firms at the same level sustainable competitive advantage - outperforming competitors or the industry over a prolonged period co-opetition - cooperation by competitors to achieve a strategic objective firm effects - results of mangers actions to influence firm performance industry effects - the results attributed to the choice of industry in which to compete strategic business unit (SBU) - a standalone division of a larger conglomerate, with its own profit and loss responsibility business model - organizational plan that details the firms competitive tactics and initiatives; how the firm intends to make money bottom of the pyramid - the largest but poorest socioeconomic group of the world's population externalities - side-effects of production and consumption that are not reflected in the price of a product. crowdsourcing - process in which people voluntarily performs tasks they were traditionally completed by a firms employees Stakeholders - Individuals or groups who can affect or are affected by the action of a firm. A.F.I. - 1.) Analyze 2.) Formulate 3.) Implement AFI strategy framework - a model that links three interdependent strategic management tasks- Analyze, Formulate, and Implement. together help firms conceive of and implement a strategy that can improve performance and result in competitive advantage strategic management process - Method by which managers conceive and implement a strategy that can lead to a sustainable competitive advantage. Vision - A statement about what an organization ultimately wants to accomplish; It captures the company's aspiration. strategic intent - staking out of a desired leadership position that far exceeds a company's current resources and capabilities. mission - Description of what an organization actually does- what its business is- and why it does it; can be customer-oreiented or product-oriented. strategic commitments - actions that are costly, long-term oriented, and difficult to reverse . organizational values - ethical standards and norms that govern the behavior of individuals within a firm or organization. strategic (long range) planning - a rational, top down process through which management can program future success; typically concentrates strategic intelligence and decision-making responsibilities in the office of the CEO. scenario planning - strategy planning activity in which managers envision different what-if scenarios to anticipate plausible futures dominant strategic plan - the strategic option that managers think most closely matches reality at a given point in time