Globus Exam 1 Questions and Complete
Solutions Graded A+
strategic management - Answer: integrative management field that combines analysis, formulation, and
implementation in the quest for competitive advantage
strategy - Answer: the set of goal-directed actions a firm takes to gain and sustain superior performance
relative to competitors
good strategy - Answer: enable a firm to achieve superior performance relative to its competitors.
Consisted of
1) a diagnosis of the competitive challenge.
2) a guiding policy to address the competitive challenge.
3) a set of coherent actions to implement a firm's guiding policy
competitive advantage - Answer: superior performance relative to other competitors in the same
industry or the industry average
sustainable competitive advantage - Answer: outperforming competitors or the industry average over a
prolonged period of time
competitive disadvantage - Answer: under performance relative to other competitors in the same
industry or the industry average
competitive parity - Answer: performance of two or more firms at the same level
vision - Answer: a statement about what an organization ultimately wants to accomplish; captures the
company's aspirations
mission - Answer: Description of what an organization actually does—the products and services it plans
to provide, and the markets in which it will compete.
, core values statement - Answer: statement of principles to guide an organization as it works to achieve
its vision and fulfill its mission, for both internal conduct and external interactions; it often includes
explicit ethical considerations
organizational core values - Answer: ethical standards and norms that govern the behavior of individuals
within a firm or organization
Product-Oriented Vision Statements - Answer: defines a business in terms of a good or service provided
customer oriented vision statement - Answer: defines a business in terms of providing solutions to
customer needs
AFI strategy framework - Answer: A model that links three interdependent strategic management tasks
—analyze, formulate, and implement—that, together, help managers plan and implement a strategy
that can improve performance and result in competitive advantage.
1) explains and predicts differences in firm performance
2)helps managers formulate and implement a strategy that can result in superior performance
Strategic Leadership - Answer: executives' use of power and influence to direct the activities of others
when pursuing an organization's goals
upper-echelons theory - Answer: A conceptual framework that views organizational outcomes—
strategic choices and performance levels—as reflections of the values of the members of the top
management team.
strategy formulation - Answer: concerns the choice of strategy in terms of where and how to compete
strategy implementation - Answer: concerns the organization, coordination, and integration of how
work gets done
Solutions Graded A+
strategic management - Answer: integrative management field that combines analysis, formulation, and
implementation in the quest for competitive advantage
strategy - Answer: the set of goal-directed actions a firm takes to gain and sustain superior performance
relative to competitors
good strategy - Answer: enable a firm to achieve superior performance relative to its competitors.
Consisted of
1) a diagnosis of the competitive challenge.
2) a guiding policy to address the competitive challenge.
3) a set of coherent actions to implement a firm's guiding policy
competitive advantage - Answer: superior performance relative to other competitors in the same
industry or the industry average
sustainable competitive advantage - Answer: outperforming competitors or the industry average over a
prolonged period of time
competitive disadvantage - Answer: under performance relative to other competitors in the same
industry or the industry average
competitive parity - Answer: performance of two or more firms at the same level
vision - Answer: a statement about what an organization ultimately wants to accomplish; captures the
company's aspirations
mission - Answer: Description of what an organization actually does—the products and services it plans
to provide, and the markets in which it will compete.
, core values statement - Answer: statement of principles to guide an organization as it works to achieve
its vision and fulfill its mission, for both internal conduct and external interactions; it often includes
explicit ethical considerations
organizational core values - Answer: ethical standards and norms that govern the behavior of individuals
within a firm or organization
Product-Oriented Vision Statements - Answer: defines a business in terms of a good or service provided
customer oriented vision statement - Answer: defines a business in terms of providing solutions to
customer needs
AFI strategy framework - Answer: A model that links three interdependent strategic management tasks
—analyze, formulate, and implement—that, together, help managers plan and implement a strategy
that can improve performance and result in competitive advantage.
1) explains and predicts differences in firm performance
2)helps managers formulate and implement a strategy that can result in superior performance
Strategic Leadership - Answer: executives' use of power and influence to direct the activities of others
when pursuing an organization's goals
upper-echelons theory - Answer: A conceptual framework that views organizational outcomes—
strategic choices and performance levels—as reflections of the values of the members of the top
management team.
strategy formulation - Answer: concerns the choice of strategy in terms of where and how to compete
strategy implementation - Answer: concerns the organization, coordination, and integration of how
work gets done
