MGMT 466 - Exam 1 Practice Question Guide With Verified Answers.

Strategic management - correct answer Integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage Strategy - correct answer A set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors 1. Diagnosis of the competitive challenge 2. A guiding policy to address the competitive challenge 3. A set of coherent actions to implement the firm's guiding policy - correct answer 3 elements of a good strategy Analysis of the firm's external and internal environments - correct answer Diagnosis of the competitive challenge is accomplished through... Strategy formulation, resulting in the firm's corporate, business, and functional strategies - correct answer A guiding policy is accomplished through... Strategy implementation - correct answer A set of coherent actions to implement the firm's guiding policy is accomplished through... Clear and critical diagnosis of the competitive challenge - correct answer A good strategy needs to start with... To grow its user base to be more valuable for advertisers - correct answer What is Twitter's biggest competitive challenge? Relative, not absolute - correct answer Competitive advantage is always... Benchmark - correct answer To assess competitive advantage, we compare firm performance to a... Competitive advantage - correct answer Superior performance relative to other competitors in the same industry or the industry average Sustainable competitive advantage - correct answer Outperforming competitors or the industry average over a prolonged period of time Competitive disadvantage - correct answer Underperformance relative to other competitors in the same industry or the industry average Competitive parity - correct answer Performance of two or more firms at the same level Strategic positioning - correct answer Managers achieve the combination of superior value and contained cost to create through... Economic contribution - correct answer The greater the difference between value creation and cost, the greater the firm's... Industry effects and firm effects - correct answer Firm performance is determined primarily by two factors: Industry effects - correct answer Firm performance attributed to the structure of the industry in which the firm competes Firm effects - correct answer Firm performance attributed to the actions managers take The industry it's in - correct answer About 20% of a firm's profitability depends on... The firm's strategy - correct answer Up to 55% of a firm's performance can be explained by... Black swan events - correct answer Incidents that describe highly improbably but high-impact events Stakeholders - correct answer Organizations, groups, and individuals that can affect or are affected by a firm's actions Stockholders, employees, and board members - correct answer Internal stakeholders include... Customers, suppliers, alliance partners, creditors, unions, communities, governments, and the media - correct answer External stakeholders include... 1. Analyze 2. Formulate 3. Implement - correct answer Effectively managing the strategy process is the result of 3 broad tasks: 1. Strategic planning 2. Scenario planning 3. Strategy as planned emergence - correct answer When strategizing for competitive advantage, managers rely on 3 approaches: Top-down strategic planning - correct answer Rational, data-driven strategy process through which top management attempts to program future successes The CEO - correct answer In top-down approach, all strategic intelligence and decision-making responsibilities are concentrated in Predict the future from the past - correct answer Top-down strategic planning often assumes that we can... Formulation is separate from implementation - correct answer Major shortcoming of top-down strategic planning Scenarior planning - correct answer Strategy-planning activity in which top management envisions different what-if scenarios to anticipate plausible futures in order to derive strategic responses Intended strategy - correct answer Outcome of a rational and structured top-down strategic plan Realized strategy - correct answer Combination of intended and emergent strategy Emergent strategy - correct answer Any unplanned strategic initiative bubbling up from the bottom of the organization