BA 453 - University of Oregon Questions with Complete Solutions

What is Strategy? Correct Answer-The quest to gain and sustain a competitive advantage while differentiating yourself from rivals, creating value while counting costs, and positioning yourself in a unique way for mutual reinforcement. What is competitive advantage? Correct Answer-Superior performance relative to other competitors in the same industry or the industry average. What is sustained competitive advantage? Correct Answer-Outperforming competitors or the industry average for a prolonged period of time What is the Valuation Principle? Correct Answer-The value of an asset to the firm or investors is determined by its competitive market price What happens when the value of benefits exceeds the costs? Correct Answer-The decision will increase the market value of the firm What are firm effects? Correct Answer-Results of managers' actions to influence firm performance What is industry effects? Correct Answer-The results attributed to the choice of industry in which to co