MANA EXAM 1 VOCAB
competitive advantage - correct answer ✔✔When a firm generates higher profits compared to its
competitors.
The four key questions of strategy - correct answer ✔✔1) markets to compete in;
(2) unique value the firm will offer in those markets; (
3) the resources and capabilities required to offer that unique value better than competitors; and
4) ways to sustain the advantage by preventing imitation.
above average - correct answer ✔✔better than most
Strategic Management Process - correct answer ✔✔The full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness and earn above-average returns.
External environment analysis - correct answer ✔✔Examining the forces that influence industry
attractiveness, including opportunities and threats that exist in the environment.
Internal environment analysis - correct answer ✔✔The analysis of a firm's resources and capabilities (its
strength and weaknesses) to assess how effectively the firm is able to deliver the unique value (value
proposition) that it hopes to provide to customers.
Low costs strategy - correct answer ✔✔When a company has a clear strategy regarding how it plans to
offer unique value, or "win" with customers, this
Differentiation strategy - correct answer ✔✔An advantage a firm has over its competitors by making a
product more attractive by offering unique qualities in the form of features, reliability, and convenience
that distinguishes it from competing products.
competitive advantage - correct answer ✔✔When a firm generates higher profits compared to its
competitors.
The four key questions of strategy - correct answer ✔✔1) markets to compete in;
(2) unique value the firm will offer in those markets; (
3) the resources and capabilities required to offer that unique value better than competitors; and
4) ways to sustain the advantage by preventing imitation.
above average - correct answer ✔✔better than most
Strategic Management Process - correct answer ✔✔The full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness and earn above-average returns.
External environment analysis - correct answer ✔✔Examining the forces that influence industry
attractiveness, including opportunities and threats that exist in the environment.
Internal environment analysis - correct answer ✔✔The analysis of a firm's resources and capabilities (its
strength and weaknesses) to assess how effectively the firm is able to deliver the unique value (value
proposition) that it hopes to provide to customers.
Low costs strategy - correct answer ✔✔When a company has a clear strategy regarding how it plans to
offer unique value, or "win" with customers, this
Differentiation strategy - correct answer ✔✔An advantage a firm has over its competitors by making a
product more attractive by offering unique qualities in the form of features, reliability, and convenience
that distinguishes it from competing products.
