SEVI 3013 Exam 1 Questions & Anwers
100% Correct!!
strategic competitiveness - ANSWERSachieved when a firm successfully formulates
and implements a value-creating strategy
strategy - ANSWERSan integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
competitor analysis - ANSWERSfocuses on each company against which a firm
competes directly
In a competitor analysis, the firm seeks to understand the following: - ANSWERS- What
drives the competitor, as shown by its future objectives
- What the competitor is doing, as revealed by its current strategy
- What the competitor believes about the industry, as shown by its assumptions
- What the competitor's capabilities are, as shown by its strengths and weaknesses
Above-average returns - ANSWERSreturns in excess of what an investor expects to
earn from other investments with a similar amount of risk
strategic management process - ANSWERSthe full set of commitments, decisions, and
actions firms take to achieve strategic competitiveness and earn about-average returns
- the process involves analysis, strategy, and performance (the A-S-P model)
Competitive Landscape - ANSWERSThe fundamental nature of competition in many of
the worlds industries is changing
Hypercompetition - ANSWERSa condition where competitors engage in intense rivalry,
markets change quickly and often, and entry barriers are low
makes it difficult for firms to maintain a competitive advantage
Hypercompetition is constantly changing based on - ANSWERS- Price-quality
positioning
- Competition to create new know-how and establish first-mower advantage
- Competition to protect or invade
Two types of hypercompetition - ANSWERS1. The emergence of a global economy
2. Rapid technology change
, I/O Model - ANSWERSthe profitability potential of an industry or a segment of it as well
as the actions firms should take to operate profitably are determined by a set of industry
characteristics, such as:
· Economies of scale
· Barriers to market entry
· Diversification
· Product differentiation
suggests that returns are influenced more so by the characteristics of the external
environment than a firm's unique internal resources and capabilities.
Risk - ANSWERSDegree of uncertainty of return on an asset; in business, the likelihood
of loss or reduced profit.
how firms can earn above-average returns - ANSWERSthrough the strategic
management process
A-S-P model - ANSWERSA firm analyzes the external environment and its internal
organization, then formulates and implements strategies to achieve a desired level of
performance.
*WITHIN THE STRATEGIC MANAGEMENT PROCESS*
Stakeholders - ANSWERSindividuals, groups, and organizations that can affect the
firm's vision and mission, are affected by the strategic outcomes achieved, and have
enforceable claims on the firm's performance
Stakeholders ability to influence organizations - ANSWERSBecause firms are not
equally dependent on all stakeholders at all times, stakeholders possess different
degrees of ability to influence an organization.
Greater dependence gives the stakeholder more potential influence over a firm's
commitments, decisions, and actions
shareholders - ANSWERSindividuals and groups who have invested capital in a firm in
the expectation of earning a positive return on their investments.
3 Stakeholder Groups - ANSWERS-Capital Market Stakeholders (shareholders & major
suppliers)
-Product Market Stakeholders (customers)
-Organizational Stakeholders (employees)
General Environment - ANSWERScomposed of dimensions in the broader society that
influence an industry and the firms within it
100% Correct!!
strategic competitiveness - ANSWERSachieved when a firm successfully formulates
and implements a value-creating strategy
strategy - ANSWERSan integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
competitor analysis - ANSWERSfocuses on each company against which a firm
competes directly
In a competitor analysis, the firm seeks to understand the following: - ANSWERS- What
drives the competitor, as shown by its future objectives
- What the competitor is doing, as revealed by its current strategy
- What the competitor believes about the industry, as shown by its assumptions
- What the competitor's capabilities are, as shown by its strengths and weaknesses
Above-average returns - ANSWERSreturns in excess of what an investor expects to
earn from other investments with a similar amount of risk
strategic management process - ANSWERSthe full set of commitments, decisions, and
actions firms take to achieve strategic competitiveness and earn about-average returns
- the process involves analysis, strategy, and performance (the A-S-P model)
Competitive Landscape - ANSWERSThe fundamental nature of competition in many of
the worlds industries is changing
Hypercompetition - ANSWERSa condition where competitors engage in intense rivalry,
markets change quickly and often, and entry barriers are low
makes it difficult for firms to maintain a competitive advantage
Hypercompetition is constantly changing based on - ANSWERS- Price-quality
positioning
- Competition to create new know-how and establish first-mower advantage
- Competition to protect or invade
Two types of hypercompetition - ANSWERS1. The emergence of a global economy
2. Rapid technology change
, I/O Model - ANSWERSthe profitability potential of an industry or a segment of it as well
as the actions firms should take to operate profitably are determined by a set of industry
characteristics, such as:
· Economies of scale
· Barriers to market entry
· Diversification
· Product differentiation
suggests that returns are influenced more so by the characteristics of the external
environment than a firm's unique internal resources and capabilities.
Risk - ANSWERSDegree of uncertainty of return on an asset; in business, the likelihood
of loss or reduced profit.
how firms can earn above-average returns - ANSWERSthrough the strategic
management process
A-S-P model - ANSWERSA firm analyzes the external environment and its internal
organization, then formulates and implements strategies to achieve a desired level of
performance.
*WITHIN THE STRATEGIC MANAGEMENT PROCESS*
Stakeholders - ANSWERSindividuals, groups, and organizations that can affect the
firm's vision and mission, are affected by the strategic outcomes achieved, and have
enforceable claims on the firm's performance
Stakeholders ability to influence organizations - ANSWERSBecause firms are not
equally dependent on all stakeholders at all times, stakeholders possess different
degrees of ability to influence an organization.
Greater dependence gives the stakeholder more potential influence over a firm's
commitments, decisions, and actions
shareholders - ANSWERSindividuals and groups who have invested capital in a firm in
the expectation of earning a positive return on their investments.
3 Stakeholder Groups - ANSWERS-Capital Market Stakeholders (shareholders & major
suppliers)
-Product Market Stakeholders (customers)
-Organizational Stakeholders (employees)
General Environment - ANSWERScomposed of dimensions in the broader society that
influence an industry and the firms within it
