BSG Exam 1 Correct Questions And
Answers
Strategic Competitiveness Correct AnswersWhen a firm successfully formulates and
implements a value-creating strategy.
Strategy Correct AnswersAn integrated and coordinated set of commitment and actions
designed to exploit core competencies and gain a competitive advantage.
Competitive Advantage Correct AnswersWhen a firm implements a strategy that its
competitors are unable to duplicate or find too costly to try to imitate.
Risk Correct AnswersAn investor's uncertainty about the economic gains or losses that
will result from a particular event.
Average Returns Correct AnswersReturns equal to those an investor expects to earn
from other investments with a similar amount of risk.
Above-average returns Correct AnswersReturns in excess of what an investor expects
to earn from other investments with a similar amount.
Strategic Management Process Correct AnswersA full set of commitments, decisions,
and actions required for a firm to achieve strategic competitiveness.
Dominance of the External Environment Correct AnswersIndustry in which a firm
competes has a stronger influence on the firm's performance that do the choices
managers make inside their organizations.
4 Assumptions of the I/O Model Correct AnswersExternal environment imposes
pressures and constraints that determine strategies leading to above average returns.
Most firms competing in an industry control similar strategically relevant resources and
pursue similar strategies.
Resources used to implement strategies are highly mobile across firms.
Organizational decision makers are assumed to be rational and committed to acting in
the firm's best interest (Profit-Maximizing)
A sustained or sustainable competitive advantage requires that: Correct Answersother
companies not be able to duplicate the strategy.
Investors in a company judge the adequacy of the returns on their investment in relation
to: Correct Answersthe returns on other investments of similar risk..
, The strategic management process is: Correct Answersa dynamic process involving the
full set of commitments, decisions, and actions related to the firm.
Which of the following is NOT an assumption of the Industrial Organization, or I/O,
model? Correct AnswersResources to implement strategies are not highly mobile
across firms.
Vision Correct AnswersA picture of what the firm wants to be and in broad terms, what it
wants to ultimately achieve.
Mission Correct AnswersSpecifies the business(es) in which the firm intends to compete
and the customers it intends to serve. More concrete than the firm's vision.
Stakeholders Correct AnswersIndividuals/groups who can affect/are affected by, the
strategic outcomes achieved and who have enforceable claims on a firm's performance.
Two issues that affect the extent of stakeholder involvement in the firm: Correct
Answers1. How to divide returns to keep stakeholders involved.
2. How to increase returns so everyone has more to share?
Which of the following is NOT an assumption of the resource-based model? Correct
AnswersAll firms possess the same strategically relevant resources.
In contrast to the industrial organization model, in a resource-based model, which of the
following factors would be considered a key to organizational success? Correct
Answersloyal employees.
The resource-based model of the firm argues that: Correct Answersresources that are
valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core
competencies.
The I/O model and the resource-based view of the firm suggest conditions that firms
should study in order to: Correct Answersdevelop the most effective strategy.
Strategic mission Correct Answersis a statement of a firm's unique purpose and scope
of operations.
The interests of an organization's stakeholders often conflict, and the organization must
prioritize its stakeholders because it cannot satisfy them all. The ________ is the most
critical criterion in prioritizing stakeholders. Correct Answerspower of each stakeholder
Resources Correct AnswersCapital equipment
Skills of individual employees
Patents
Finances
Talented Managers
Answers
Strategic Competitiveness Correct AnswersWhen a firm successfully formulates and
implements a value-creating strategy.
Strategy Correct AnswersAn integrated and coordinated set of commitment and actions
designed to exploit core competencies and gain a competitive advantage.
Competitive Advantage Correct AnswersWhen a firm implements a strategy that its
competitors are unable to duplicate or find too costly to try to imitate.
Risk Correct AnswersAn investor's uncertainty about the economic gains or losses that
will result from a particular event.
Average Returns Correct AnswersReturns equal to those an investor expects to earn
from other investments with a similar amount of risk.
Above-average returns Correct AnswersReturns in excess of what an investor expects
to earn from other investments with a similar amount.
Strategic Management Process Correct AnswersA full set of commitments, decisions,
and actions required for a firm to achieve strategic competitiveness.
Dominance of the External Environment Correct AnswersIndustry in which a firm
competes has a stronger influence on the firm's performance that do the choices
managers make inside their organizations.
4 Assumptions of the I/O Model Correct AnswersExternal environment imposes
pressures and constraints that determine strategies leading to above average returns.
Most firms competing in an industry control similar strategically relevant resources and
pursue similar strategies.
Resources used to implement strategies are highly mobile across firms.
Organizational decision makers are assumed to be rational and committed to acting in
the firm's best interest (Profit-Maximizing)
A sustained or sustainable competitive advantage requires that: Correct Answersother
companies not be able to duplicate the strategy.
Investors in a company judge the adequacy of the returns on their investment in relation
to: Correct Answersthe returns on other investments of similar risk..
, The strategic management process is: Correct Answersa dynamic process involving the
full set of commitments, decisions, and actions related to the firm.
Which of the following is NOT an assumption of the Industrial Organization, or I/O,
model? Correct AnswersResources to implement strategies are not highly mobile
across firms.
Vision Correct AnswersA picture of what the firm wants to be and in broad terms, what it
wants to ultimately achieve.
Mission Correct AnswersSpecifies the business(es) in which the firm intends to compete
and the customers it intends to serve. More concrete than the firm's vision.
Stakeholders Correct AnswersIndividuals/groups who can affect/are affected by, the
strategic outcomes achieved and who have enforceable claims on a firm's performance.
Two issues that affect the extent of stakeholder involvement in the firm: Correct
Answers1. How to divide returns to keep stakeholders involved.
2. How to increase returns so everyone has more to share?
Which of the following is NOT an assumption of the resource-based model? Correct
AnswersAll firms possess the same strategically relevant resources.
In contrast to the industrial organization model, in a resource-based model, which of the
following factors would be considered a key to organizational success? Correct
Answersloyal employees.
The resource-based model of the firm argues that: Correct Answersresources that are
valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core
competencies.
The I/O model and the resource-based view of the firm suggest conditions that firms
should study in order to: Correct Answersdevelop the most effective strategy.
Strategic mission Correct Answersis a statement of a firm's unique purpose and scope
of operations.
The interests of an organization's stakeholders often conflict, and the organization must
prioritize its stakeholders because it cannot satisfy them all. The ________ is the most
critical criterion in prioritizing stakeholders. Correct Answerspower of each stakeholder
Resources Correct AnswersCapital equipment
Skills of individual employees
Patents
Finances
Talented Managers
