SEVI 3013 Exam One - Carolyn Rodeffer
UPDATED Exam Questions and
CORRECT Answers
Strategy - CORRECT ANSWER - Is a set of goal-directed actions a firm takes to gain a
sustain superior performance relative to competitors.
Why is Strategy Important? - CORRECT ANSWER - Effective Strategy enables a firm to
exploit core competencies in a way that differentiates itself from competitors - enabling the firm
to outperform its rivals and achieve above average returns.
Strategic Management - CORRECT ANSWER - - An integrative management field.
- Combine analysis, formulation, and implementation in the quest for competitive advantage.
Key Attributes of Strategic Management - CORRECT ANSWER - - Directs the organization
toward overall goals and objectives
- Includes multiple stakeholders in decision-making
- Incorporates short-term and long-term perspectives
- Recognizes trade-offs between efficiency and effectiveness
Mastery of Strategic Management enables you to: - CORRECT ANSWER - o View a firm in
its entirety.
o Think like a general manager.
o Position your organization for superior performance.
A good strategy is based on three elements: - CORRECT ANSWER - 1) A Diagnosis of the
Competitive Challenge
2) A Guiding Policy to Address the Competitive Challenge
3) A Set of Coherent Actions to Implement the Firm's Guiding Policy
,1) A Diagnosis of the Competitive Challenge - CORRECT ANSWER - Analysis of the
Internal and External Environments
2) A Guiding Policy to Address the Competitive Challenge - CORRECT ANSWER -
Formulation of Corporate, Business, and Functional Strategies.
3) A Set of Coherent Actions to Implement the Firm's Guiding Policy - CORRECT
ANSWER - Strategy Implementation
Elements of Tesla's Strategy: Competitive Challenge - CORRECT ANSWER - Manufacture
attractive and affordable vehicles using new technology and build the required infrastructure
Elements of Tesla's Strategy: Guiding Policy - CORRECT ANSWER - - Build cost-
competitive mass-market vehicles
- Make significant investments in lithium-ion battery production.
Elements of Tesla's Strategy: Coherent Actions - CORRECT ANSWER - - Ramp up
productive to achieve economies of scale
- New factory in Shanghai
- Make some proprietary technology available to the public
Competitive Advantage: - CORRECT ANSWER - Is achieved when a firms performance
exceeds that of its competitors or the industry's average.
- Competitive advantage is relative, not absolute.
To Assess Competitive Advantage: - CORRECT ANSWER - o Compare the firm to
competitors in the same industry.
o Compare the firm to the industry average.
, How to gain Competitive Advantage: - CORRECT ANSWER - 1) Provide goods or services
that:
o Consumers value more highly than those of competitors.
o Are like the competitors at a lower price.
2) The reward of superior value creation:
o Profitability
o Market Share
Competitive Advantage Requires a Unique Strategic Position: - CORRECT ANSWER --
Unique strategic position requires a successful combination of activities.
- Competitive advantage comes from:
o Performing different activities than rivals.
o Perform the same activities differently than rivals.
Strategic Positioning (Unique) - CORRECT ANSWER - - A unique position within an
industry to provide value to customers while effectively managing costs.
o Value Creation - Costs = Economic Contribution
--> The greater, the better.
--> Enhances the likelihood of competitive advantage.
Unique Strategic Planning Requires Trade-offs: - CORRECT ANSWER - - Managers must
make conscious trade-offs:
o How to allocate resources?
o Which activities to pursue.
Example: the retail industry:
UPDATED Exam Questions and
CORRECT Answers
Strategy - CORRECT ANSWER - Is a set of goal-directed actions a firm takes to gain a
sustain superior performance relative to competitors.
Why is Strategy Important? - CORRECT ANSWER - Effective Strategy enables a firm to
exploit core competencies in a way that differentiates itself from competitors - enabling the firm
to outperform its rivals and achieve above average returns.
Strategic Management - CORRECT ANSWER - - An integrative management field.
- Combine analysis, formulation, and implementation in the quest for competitive advantage.
Key Attributes of Strategic Management - CORRECT ANSWER - - Directs the organization
toward overall goals and objectives
- Includes multiple stakeholders in decision-making
- Incorporates short-term and long-term perspectives
- Recognizes trade-offs between efficiency and effectiveness
Mastery of Strategic Management enables you to: - CORRECT ANSWER - o View a firm in
its entirety.
o Think like a general manager.
o Position your organization for superior performance.
A good strategy is based on three elements: - CORRECT ANSWER - 1) A Diagnosis of the
Competitive Challenge
2) A Guiding Policy to Address the Competitive Challenge
3) A Set of Coherent Actions to Implement the Firm's Guiding Policy
,1) A Diagnosis of the Competitive Challenge - CORRECT ANSWER - Analysis of the
Internal and External Environments
2) A Guiding Policy to Address the Competitive Challenge - CORRECT ANSWER -
Formulation of Corporate, Business, and Functional Strategies.
3) A Set of Coherent Actions to Implement the Firm's Guiding Policy - CORRECT
ANSWER - Strategy Implementation
Elements of Tesla's Strategy: Competitive Challenge - CORRECT ANSWER - Manufacture
attractive and affordable vehicles using new technology and build the required infrastructure
Elements of Tesla's Strategy: Guiding Policy - CORRECT ANSWER - - Build cost-
competitive mass-market vehicles
- Make significant investments in lithium-ion battery production.
Elements of Tesla's Strategy: Coherent Actions - CORRECT ANSWER - - Ramp up
productive to achieve economies of scale
- New factory in Shanghai
- Make some proprietary technology available to the public
Competitive Advantage: - CORRECT ANSWER - Is achieved when a firms performance
exceeds that of its competitors or the industry's average.
- Competitive advantage is relative, not absolute.
To Assess Competitive Advantage: - CORRECT ANSWER - o Compare the firm to
competitors in the same industry.
o Compare the firm to the industry average.
, How to gain Competitive Advantage: - CORRECT ANSWER - 1) Provide goods or services
that:
o Consumers value more highly than those of competitors.
o Are like the competitors at a lower price.
2) The reward of superior value creation:
o Profitability
o Market Share
Competitive Advantage Requires a Unique Strategic Position: - CORRECT ANSWER --
Unique strategic position requires a successful combination of activities.
- Competitive advantage comes from:
o Performing different activities than rivals.
o Perform the same activities differently than rivals.
Strategic Positioning (Unique) - CORRECT ANSWER - - A unique position within an
industry to provide value to customers while effectively managing costs.
o Value Creation - Costs = Economic Contribution
--> The greater, the better.
--> Enhances the likelihood of competitive advantage.
Unique Strategic Planning Requires Trade-offs: - CORRECT ANSWER - - Managers must
make conscious trade-offs:
o How to allocate resources?
o Which activities to pursue.
Example: the retail industry:
