WPC 480 Zhu Midterm UPDATED
ACTUAL Questions and CORRECT
Answers
an integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage - CORRECT ANSWER - strategy
a firm has a __________ __________ when it creates superior call for customers in ways that
competitors are unable to imitate or find too costly to imitate - CORRECT ANSWER -
competitive advantage
a competitive advantage often leads to __________-average returns- returns in excess of what an
investor expects to earn from other investments with a similar level of risk (ROE, ROA, ROS,
EPS, EBITA, etc.) - CORRECT ANSWER - above
What Model is this?
1. External Environment
2. An Attractive Industry
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns - CORRECT ANSWER - I/O Model of Above-Average Returns
I/O Assumption:
1. strategic decision makers are __________ and engage in profit-__________ behaviors -
CORRECT ANSWER - rational, maximizing
I/O Assumption:
2. Resource differences among competitors are __________-lived due to resource __________
across firms - CORRECT ANSWER - short, mobility
,I/O Assumption:
3. __________ in strategically relevant resources causes competitors to pursue __________
strategies - CORRECT ANSWER - similarity, similar
I/O Assumption:
4. The __________ environment imposes pressures and contusing that determine strategic
__________. - CORRECT ANSWER - external, choices
Five Forces Model of Competition - CORRECT ANSWER - 1. Industry Rivalry
2. Threat of Substitutes
3. Buying Power of Buyers
4. Threat of Potential Entrants
5. Buying Power of Suppliers
Five Forces Model Assumptions:
1. Industry __________ is a function of interactions among the five forces - CORRECT
ANSWER - profitability
Five Forces Model Assumptions:
2. Industry __________ equates to its potential earning above-average returns by:
- producing standardized goods or services at costs __________ competitor costs (cost leadership
strategy)
- producing differentiated goods or services for which customers are willing to pay a price
__________ (a differentiation strategy) - CORRECT ANSWER - attractiveness, below,
premium
The Resource Based Model of Above-Average Returns - CORRECT ANSWER - building
competitive advantage:
1. resources
, 2. capability
3. core competency
Resource-Based Model Assumption:
1. resources and certain capabilities are not highly __________ across firms - CORRECT
ANSWER - mobile
Resource-Based Model Assumption:
2. firms acquire __________ resources - CORRECT ANSWER - different
Resource-Based Model Assumption:
3. Firms develop __________ capabilities based on how they ___________ and _____ resources
- CORRECT ANSWER - unique, combine, use
Resource-Based Model assumption:
4. __________ in resources and capabilities are the bases of competitive advantage and a firm's
performance rather than its industry's structural characteristics. - CORRECT ANSWER -
differences
how resources become core competencies:
- costly to __________
- valuable
- nonsubstitutable
- rare - CORRECT ANSWER - imitate
What model is this?
1. Resources
2. Capability
3. Competitive Advantage
ACTUAL Questions and CORRECT
Answers
an integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage - CORRECT ANSWER - strategy
a firm has a __________ __________ when it creates superior call for customers in ways that
competitors are unable to imitate or find too costly to imitate - CORRECT ANSWER -
competitive advantage
a competitive advantage often leads to __________-average returns- returns in excess of what an
investor expects to earn from other investments with a similar level of risk (ROE, ROA, ROS,
EPS, EBITA, etc.) - CORRECT ANSWER - above
What Model is this?
1. External Environment
2. An Attractive Industry
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns - CORRECT ANSWER - I/O Model of Above-Average Returns
I/O Assumption:
1. strategic decision makers are __________ and engage in profit-__________ behaviors -
CORRECT ANSWER - rational, maximizing
I/O Assumption:
2. Resource differences among competitors are __________-lived due to resource __________
across firms - CORRECT ANSWER - short, mobility
,I/O Assumption:
3. __________ in strategically relevant resources causes competitors to pursue __________
strategies - CORRECT ANSWER - similarity, similar
I/O Assumption:
4. The __________ environment imposes pressures and contusing that determine strategic
__________. - CORRECT ANSWER - external, choices
Five Forces Model of Competition - CORRECT ANSWER - 1. Industry Rivalry
2. Threat of Substitutes
3. Buying Power of Buyers
4. Threat of Potential Entrants
5. Buying Power of Suppliers
Five Forces Model Assumptions:
1. Industry __________ is a function of interactions among the five forces - CORRECT
ANSWER - profitability
Five Forces Model Assumptions:
2. Industry __________ equates to its potential earning above-average returns by:
- producing standardized goods or services at costs __________ competitor costs (cost leadership
strategy)
- producing differentiated goods or services for which customers are willing to pay a price
__________ (a differentiation strategy) - CORRECT ANSWER - attractiveness, below,
premium
The Resource Based Model of Above-Average Returns - CORRECT ANSWER - building
competitive advantage:
1. resources
, 2. capability
3. core competency
Resource-Based Model Assumption:
1. resources and certain capabilities are not highly __________ across firms - CORRECT
ANSWER - mobile
Resource-Based Model Assumption:
2. firms acquire __________ resources - CORRECT ANSWER - different
Resource-Based Model Assumption:
3. Firms develop __________ capabilities based on how they ___________ and _____ resources
- CORRECT ANSWER - unique, combine, use
Resource-Based Model assumption:
4. __________ in resources and capabilities are the bases of competitive advantage and a firm's
performance rather than its industry's structural characteristics. - CORRECT ANSWER -
differences
how resources become core competencies:
- costly to __________
- valuable
- nonsubstitutable
- rare - CORRECT ANSWER - imitate
What model is this?
1. Resources
2. Capability
3. Competitive Advantage
