BCOR 2304: Exam 1 QUESTIONS AND CORRECT
ANSWERS (VERIFIED AND WELL DETAILED
ANSWERS) LATEST UPDATE 2024/2025
What is a shareholder? - ✔✔People who own a part of the frim (common stock,
preferred stock, bonds)
What is a stakeholder? - ✔✔people who can potentially influence the companies
perfromance
What are the difference between shareholders and stakeholders - ✔✔Shareholders:
Are always stakeholders, care about the company's financial success and can have short
term perspectives
Stakeholders: Not always shareholders, care about other non financial metrics, long
term perspective
What is the AFI Framework stand for? - ✔✔Analysis
Formulation
Implementation
Analysis (AFI Framework) - ✔✔diagnosis of competitive challenge (what is the
problem)
ie: loss of customers, decreased sales
Formulation (AFI) - ✔✔a guiding policy
(what we should to do to address the competitive problem)
, Implementation (AFI) - ✔✔a set of coherent actions based off the policy defined
(what specifically the firm should do to follow the guiding policy)
What are the limitations with AFI - ✔✔1. uncertainty in real world is high
2. firms usually do not know for sure whether they are on the right trak
3. evaluating and monitoring performance can be difficult
What is top down strategic planning? - ✔✔Top down management analyses internal
and external data to formulate strategies based on the analysis and implemented using
controls or governance mechanisms
AFI top down - ✔✔Analysis: Mission, internal, external
Formulation: Corporate Strategy, Business Strategy, Functional Strategy
Implementation: Structure, control and governance
What are the three pros to top down strategic management? - ✔✔1. can be easily
understood and implemented
2. allows top managers to monitor progress
3. works well in stable environments in which top managers have sufficient experiences
What are the cons of top down strategic management? - ✔✔Limited feedback'
top management struggles when uncertainty is high
What are some solutions that firms can focus on to increase efficiency of top down
strategic managment? - ✔✔1. Allow front line employees to participate in the
strategic planning process
ANSWERS (VERIFIED AND WELL DETAILED
ANSWERS) LATEST UPDATE 2024/2025
What is a shareholder? - ✔✔People who own a part of the frim (common stock,
preferred stock, bonds)
What is a stakeholder? - ✔✔people who can potentially influence the companies
perfromance
What are the difference between shareholders and stakeholders - ✔✔Shareholders:
Are always stakeholders, care about the company's financial success and can have short
term perspectives
Stakeholders: Not always shareholders, care about other non financial metrics, long
term perspective
What is the AFI Framework stand for? - ✔✔Analysis
Formulation
Implementation
Analysis (AFI Framework) - ✔✔diagnosis of competitive challenge (what is the
problem)
ie: loss of customers, decreased sales
Formulation (AFI) - ✔✔a guiding policy
(what we should to do to address the competitive problem)
, Implementation (AFI) - ✔✔a set of coherent actions based off the policy defined
(what specifically the firm should do to follow the guiding policy)
What are the limitations with AFI - ✔✔1. uncertainty in real world is high
2. firms usually do not know for sure whether they are on the right trak
3. evaluating and monitoring performance can be difficult
What is top down strategic planning? - ✔✔Top down management analyses internal
and external data to formulate strategies based on the analysis and implemented using
controls or governance mechanisms
AFI top down - ✔✔Analysis: Mission, internal, external
Formulation: Corporate Strategy, Business Strategy, Functional Strategy
Implementation: Structure, control and governance
What are the three pros to top down strategic management? - ✔✔1. can be easily
understood and implemented
2. allows top managers to monitor progress
3. works well in stable environments in which top managers have sufficient experiences
What are the cons of top down strategic management? - ✔✔Limited feedback'
top management struggles when uncertainty is high
What are some solutions that firms can focus on to increase efficiency of top down
strategic managment? - ✔✔1. Allow front line employees to participate in the
strategic planning process
