SEVI 3013 Exam 1 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Strategic Competitiveness - CORRECT ANSWER - Firms achieve this by formulating and
implementing a value creating strategy
Strategy - CORRECT ANSWER - An integrated and coordinated set of commitments and
actions designed to exploit core competencies and gain a competitive advantage
Competitive Advantage - CORRECT ANSWER - A firm has this when by implementing a
chosen strategy, it creates superior value for customers and when competitors are not able to
imitate the value the firm's products create or find it too expensive to attempt imitation
Above-Average Returns - CORRECT ANSWER - Returns in excess of what an investor
expects to earn from other investments with a similar amount of risk
Risk - CORRECT ANSWER - An investor's uncertainty about the economic gains or losses
that will result from a particular investment
Average Returns - CORRECT ANSWER - Returns equal to those an investor expects to earn
from other investments possessing a similar amount of risk
Strategic Management Process - CORRECT ANSWER - The full set of commitments,
decisions, and actions firms take to achieve strategic competitiveness and earn above-average
returns
Hypercompetition - CORRECT ANSWER - Condition where competitors engage in intense
rivalry, markets change quickly and often, and entry barriers are low
Global Economy - CORRECT ANSWER - One in which goods, services, people, skills, and
ideas move freely across geographic borders
, Strategic Flexibility - CORRECT ANSWER - A set of capabilities firms use to respond to
various demands and opportunities existing in today's dynamic and uncertain competitive
environment
Resources - CORRECT ANSWER - Inputs into a firm's production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented managers
Capability - CORRECT ANSWER - The capacity for a set of resources to perform a task or an
activity in an integrative manner
Core Competenices - CORRECT ANSWER - Capabilities that serve as a source of
competitive advantage for a firm over its rivals
Vision - CORRECT ANSWER - A picture of what the firm wants to be and, in broad terms,
what it wants to achieve
Mission - CORRECT ANSWER - Specifies the businesses in which the firm intends to
compete and the customers it intends to serve
Stakeholders - CORRECT ANSWER - Individuals, 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
Strategic Leaders - CORRECT ANSWER - People located in different areas and levels of the
firm using the strategic management process to select actions that help the firm achieve its vision
and fulfill its mission
Organizational Culture - CORRECT ANSWER - Refers to the complex set of ideologies,
symbols, and core values that individuals throughout the firm share and that influence how the
firm conducts business
Exam Questions and CORRECT Answers
Strategic Competitiveness - CORRECT ANSWER - Firms achieve this by formulating and
implementing a value creating strategy
Strategy - CORRECT ANSWER - An integrated and coordinated set of commitments and
actions designed to exploit core competencies and gain a competitive advantage
Competitive Advantage - CORRECT ANSWER - A firm has this when by implementing a
chosen strategy, it creates superior value for customers and when competitors are not able to
imitate the value the firm's products create or find it too expensive to attempt imitation
Above-Average Returns - CORRECT ANSWER - Returns in excess of what an investor
expects to earn from other investments with a similar amount of risk
Risk - CORRECT ANSWER - An investor's uncertainty about the economic gains or losses
that will result from a particular investment
Average Returns - CORRECT ANSWER - Returns equal to those an investor expects to earn
from other investments possessing a similar amount of risk
Strategic Management Process - CORRECT ANSWER - The full set of commitments,
decisions, and actions firms take to achieve strategic competitiveness and earn above-average
returns
Hypercompetition - CORRECT ANSWER - Condition where competitors engage in intense
rivalry, markets change quickly and often, and entry barriers are low
Global Economy - CORRECT ANSWER - One in which goods, services, people, skills, and
ideas move freely across geographic borders
, Strategic Flexibility - CORRECT ANSWER - A set of capabilities firms use to respond to
various demands and opportunities existing in today's dynamic and uncertain competitive
environment
Resources - CORRECT ANSWER - Inputs into a firm's production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented managers
Capability - CORRECT ANSWER - The capacity for a set of resources to perform a task or an
activity in an integrative manner
Core Competenices - CORRECT ANSWER - Capabilities that serve as a source of
competitive advantage for a firm over its rivals
Vision - CORRECT ANSWER - A picture of what the firm wants to be and, in broad terms,
what it wants to achieve
Mission - CORRECT ANSWER - Specifies the businesses in which the firm intends to
compete and the customers it intends to serve
Stakeholders - CORRECT ANSWER - Individuals, 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
Strategic Leaders - CORRECT ANSWER - People located in different areas and levels of the
firm using the strategic management process to select actions that help the firm achieve its vision
and fulfill its mission
Organizational Culture - CORRECT ANSWER - Refers to the complex set of ideologies,
symbols, and core values that individuals throughout the firm share and that influence how the
firm conducts business
