WPC 480 Zhu Midterm Exam Questions With 100% Correct Answers

WPC 480 Zhu Midterm Exam Questions With 100% Correct Answers. an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage - answerstrategy a firm has a __________ __________ when it creates superior call for customers in ways that competitors are unable to imitate or find too costly to imitate - answercompetitive advantage a competitive advantage often leads to __________-average returns- returns in excess of what an investor expects to earn from other investments with a similar level of risk (ROE, ROA, ROS, EPS, EBITA, etc.) - answerabove What Model is this? 1. External Environment 2. An Attractive Industry 3. Strategy Formulation 4. Assets and Skills 5. Strategy Implementation 6. Superior Returns - answerI/O Model of Above-Average Returns I/O Assumption: 1. strategic decision makers are __________ and engage in profit-__________ behaviors - answerrational, maximizing I/O Assumption: 2. Resource differences among competitors are __________-lived due to resource __________ across firms - answershort, mobility I/O Assumption: 3. __________ in strategically relevant resources causes competitors to pursue __________ strategies - answersimilarity, similar I/O Assumption: 4. The __________ environment imposes pressures and contusing that determine strategic __________. - answerexternal, choices Five Forces Model of Competition - answer1. Industry Rivalry 2. Threat of Substitutes 3. Buying Power of Buyers 4. Threat of Potential Entrants 5. Buying Power of Suppliers Five Forces Model Assumptions: 1. Industry __________ is a function of interactions among the five forces - answerprofitability Five Forces Model Assumptions: 2. Industry __________ equates to its potential earning above-average returns by: - producing standardized goods or services at costs __________ competitor costs (cost leadership strategy) - producing differentiated goods or services for which customers are willing to pay a price __________ (a differentiation strategy) - answerattractiveness, below, premium The Resource Based Model of Above-Average Returns - answerbuilding competitive advantage: 1. resources 2. capability 3. core competency Resource-Based Model Assumption: 1. resources and certain capabilities are not highly __________ across firms - answermobile Resource-Based Model Assumption: 2. firms acquire __________ resources - answerdifferent Resource-Based Model Assumption: 3. Firms develop __________ capabilities based on how they ___________ and _____ resources - answerunique, combine, use Resource-Based Model assumption: 4. __________ in resources and capabilities are the bases of competitive advantage and a firm's performance rather than its industry's structural characteristics. - answerdifferences how resources become core competencies: - costly to __________ - valuable - nonsubstitutable - rare - answerimitate What model is this? 1. Resources 2. Capability 3. Competitive Advantage 4. An Attractive Industry 5. Strategy Formulation and Implementation 6. Superior Returns - answerThe Resource-Based Model of Above-Average Returns - is an enduring word picture of what the firm wants to be and expects to achieve in the future. - stretches and challenges its people. - reflects the firm's values and aspirations. - is most effective when its development includes all stakeholders. - recognizes the firm's internal and external competitive environments. - is supported by upper management decisions and actions. - answera successful vision statement - specifies the present business or businesses in which the firm intends to compete and customers it intends to serve. - has a more concrete, near-term focus on current product markets and customers than the firm's vision. - should be inspiring and relevant to all stakeholders. - answeran effective mission statement categories of stakeholders - answer- capital market - product market - organizational