SEVI 3013H TEST 1 QUESTIONS WITH
CORRECT ANSWERS
Global Segment - Answer-- influences from foreign countries, including foreign market
opportunities, foreign-based competition, and expanded capital markets
Porter's Five Forces Model of Industry Competition - Answer-a tool for examining the
industry-level competitive environment, especially the ability of firms in that industry to
set prices and minimize costs
- Rivalry among existing firms
- Bargaining power of suppliers
- Threat of substitute products or services
- Bargaining power of buyers
- Threat of new entrants
Substitutes - Answer-- come from another industry
- perform the same function as the industry's offerings
-place a ceiling on prices that firms in an industry can profitably charge
Strategic Groups - Answer-- cluster of firms that share similar strategies. Dimensions
should be considered that reflect the variety of strategic combinations in an industry
Competitive Advantage - Answer-Organizational effectiveness along with innovations
such as; total quality, just-in-time, benchmarking, business process reengineering, and
outsourcing
Intended Strategy - Answer-- Organizational decisions are determined only by analysis
- Intended strategies rarely survive in the original form
Realized Strategy - Answer-- Decisions are determined by both analysis (deliberate)
and unforeseen environmental developments, unanticipated resource constraints,
and/or changes in managerial preferences (emergent).
Hierarchy of Goals - Answer-Top:
Vision - organizational goal that evokes powerful and compelling mental images
Middle:
Mission Statement - a set of organizational goals that identifies the purpose of the
organization, its basis of competition, and competitive advantage
Bottom:
Strategic Objectives - a set of organizational goals that are used to put into practice the
mission statement and that are specific and cover a well-defined time frame
, Factors to analyze external environment - Answer-1. The general environment consists
of several elements, such as demographic and economic segments
2. the industry environment consists of competitors and other organizations that may
threaten the success of a firm's products and services
Corporate - Level Strategy - Answer-What businesses to compete in; how businesses
can be managed to achieve synergy
Business - Level Strategy - Answer-How to compete in a given business to attain
competitive advantage
Stakeholders - Answer-individuals, groups, and organizations that have a "stake" in the
success of the organization, including owners, employees, customers, suppliers, the
community at large and so on.
Shareholders - Answer-individuals, groups, and organizations that have a "stake" in the
success of the organization, including owners (shareholders in a publicly held
corporation), employees, customers, suppliers, the community at large and so on.
Corporate Governance - Answer-the relationship among various participants in
determining the direction and performance of corporation
strategic leaders - Answer-developing visions, designing organizations, building
integrative cultures, and inspiring all organizational stakeholders to attain greater
heights
triple bottom line - Answer-assessment of a firm's financial, social, and environmental
performance - accounting for the environmental and social costs of doing business
Perceptual acuity - Answer-- the ability to sense what is coming before the fog clears
- detect early warning signals, keeping pace with changes in the external environment
can sustain a competitive advantage
SWOT Analysis - Answer-- basic technique for analyzing firm and industry conditions
- a framework for analyzing a company's internal and external environment that stands
for strengths, weaknesses, opportunities, and threats
Environmental Scanning - Answer-surveillance of a firm's external environment to
predict environmental changes and detect changes already under way
CORRECT ANSWERS
Global Segment - Answer-- influences from foreign countries, including foreign market
opportunities, foreign-based competition, and expanded capital markets
Porter's Five Forces Model of Industry Competition - Answer-a tool for examining the
industry-level competitive environment, especially the ability of firms in that industry to
set prices and minimize costs
- Rivalry among existing firms
- Bargaining power of suppliers
- Threat of substitute products or services
- Bargaining power of buyers
- Threat of new entrants
Substitutes - Answer-- come from another industry
- perform the same function as the industry's offerings
-place a ceiling on prices that firms in an industry can profitably charge
Strategic Groups - Answer-- cluster of firms that share similar strategies. Dimensions
should be considered that reflect the variety of strategic combinations in an industry
Competitive Advantage - Answer-Organizational effectiveness along with innovations
such as; total quality, just-in-time, benchmarking, business process reengineering, and
outsourcing
Intended Strategy - Answer-- Organizational decisions are determined only by analysis
- Intended strategies rarely survive in the original form
Realized Strategy - Answer-- Decisions are determined by both analysis (deliberate)
and unforeseen environmental developments, unanticipated resource constraints,
and/or changes in managerial preferences (emergent).
Hierarchy of Goals - Answer-Top:
Vision - organizational goal that evokes powerful and compelling mental images
Middle:
Mission Statement - a set of organizational goals that identifies the purpose of the
organization, its basis of competition, and competitive advantage
Bottom:
Strategic Objectives - a set of organizational goals that are used to put into practice the
mission statement and that are specific and cover a well-defined time frame
, Factors to analyze external environment - Answer-1. The general environment consists
of several elements, such as demographic and economic segments
2. the industry environment consists of competitors and other organizations that may
threaten the success of a firm's products and services
Corporate - Level Strategy - Answer-What businesses to compete in; how businesses
can be managed to achieve synergy
Business - Level Strategy - Answer-How to compete in a given business to attain
competitive advantage
Stakeholders - Answer-individuals, groups, and organizations that have a "stake" in the
success of the organization, including owners, employees, customers, suppliers, the
community at large and so on.
Shareholders - Answer-individuals, groups, and organizations that have a "stake" in the
success of the organization, including owners (shareholders in a publicly held
corporation), employees, customers, suppliers, the community at large and so on.
Corporate Governance - Answer-the relationship among various participants in
determining the direction and performance of corporation
strategic leaders - Answer-developing visions, designing organizations, building
integrative cultures, and inspiring all organizational stakeholders to attain greater
heights
triple bottom line - Answer-assessment of a firm's financial, social, and environmental
performance - accounting for the environmental and social costs of doing business
Perceptual acuity - Answer-- the ability to sense what is coming before the fog clears
- detect early warning signals, keeping pace with changes in the external environment
can sustain a competitive advantage
SWOT Analysis - Answer-- basic technique for analyzing firm and industry conditions
- a framework for analyzing a company's internal and external environment that stands
for strengths, weaknesses, opportunities, and threats
Environmental Scanning - Answer-surveillance of a firm's external environment to
predict environmental changes and detect changes already under way
