BUAD 441 Exam 1 Questions with
Verified Solutions
Meeting customer needs more effectively, with products or services that customers
value more highly, or more efficiently, at lower cost. - ANS-Competitive Advantage
1. Low Cost
2. Differentiation
3. Niche
4. Best Cost - ANS-4 Strategic Approaches to a Competitive Advantage
Elements that include both continued and new initiatives. The weaker you are the more
proactive you must be. - ANS-Proactive (deliberate) Strategy
Elements that are required due to unanticipated competitive developments and fresh
market conditions. - ANS-Reactive (emerging) Strategy
Reactive (emerging) Strategy + Proactive (deliberate) Strategy - ANS-Realized
(Current) Strategy
How the business will make money. - ANS-Business Model
Satisfying buyer wants and needs at a price customers will consider a good value. -
ANS-Customer Value Proposition
Does it exhibit dynamic fit with the external and internal aspects of the firm's overall
situation? - ANS-Fit Test
Can it help the firm achieve a significant and sustainable competitive advantage? -
ANS-Competitive Advantage Test
Can it produce good performance as measured by the firm's profitability, financial and
competitive strengths, and market standing? - ANS-Performance Test
Lays out its future direction, performance targets, and strategy. - ANS-Strategic Plan
PESTLE - ANS-7 Components of the Macro Environment
Founder of competitive position/the forces - ANS-Michael Porter
Buyers, Suppliers, Potential New Entrants, Substitute - ANS-Competitive Forces (4)
, Emergence, Rapid Growth, Maturity, Decline. - ANS-4 Parts of Industry Life Cycle
Describes the firm's current business and purpose focus on describing the firm's
business, not on "making a profit"—earning a profit is an objective not a mission. - ANS-
Mission Statement
Are the beliefs, traits, and behavioral norms that employees are expected to display in
conducting the firm's business and in pursuing its strategic vision and mission. Integral
to firms culture. - ANS-Core Values
An organization's performance targets—the specific results management wants to
achieve. - ANS-Objectives
Set performance targets high enough to stretch an organization to perform at its full
potential and deliver the best possible results. - ANS-Stretch Goals
Relentlessly pursuing an ambitious strategic objective, concentrating the full force of its
resources and competitive actions on achieving that objective. - ANS-Strategic Intent
Quantum gains, grandiose performance target, sustained, aggressive actions to take
market share. - ANS-Characteristics of Strategic Intent (3)
Quarterly and annual performance improvements to satisfy near-term shareholder
expectations. - ANS-Short Term Attention
What to do now to achieve long term results. Stand as a barrier to an undue focus on
short-term results. - ANS-Long Term Attention
Financial performance targets management has established for the organization to
achieve, focused INTERNALLY, communicated by management. - ANS-Financial
Objectives
Target outcomes that indicate a company is strengthening its market standing,
competitive position, and future business prospects, focused EXTERNALLY. - ANS-
Strategic Objectives
Method for combining evenly the use of both strategic and financial objectives, tracking
their achievement, and giving management a more complete and balanced view of how
well an organization is performing. - ANS-Balanced Scorecard Approach
Strategy at the multi-business level, concerning how to improve company performance
or gain competitive advantage by managing a set of businesses simultaneously. - ANS-
Corporate Strategy
Verified Solutions
Meeting customer needs more effectively, with products or services that customers
value more highly, or more efficiently, at lower cost. - ANS-Competitive Advantage
1. Low Cost
2. Differentiation
3. Niche
4. Best Cost - ANS-4 Strategic Approaches to a Competitive Advantage
Elements that include both continued and new initiatives. The weaker you are the more
proactive you must be. - ANS-Proactive (deliberate) Strategy
Elements that are required due to unanticipated competitive developments and fresh
market conditions. - ANS-Reactive (emerging) Strategy
Reactive (emerging) Strategy + Proactive (deliberate) Strategy - ANS-Realized
(Current) Strategy
How the business will make money. - ANS-Business Model
Satisfying buyer wants and needs at a price customers will consider a good value. -
ANS-Customer Value Proposition
Does it exhibit dynamic fit with the external and internal aspects of the firm's overall
situation? - ANS-Fit Test
Can it help the firm achieve a significant and sustainable competitive advantage? -
ANS-Competitive Advantage Test
Can it produce good performance as measured by the firm's profitability, financial and
competitive strengths, and market standing? - ANS-Performance Test
Lays out its future direction, performance targets, and strategy. - ANS-Strategic Plan
PESTLE - ANS-7 Components of the Macro Environment
Founder of competitive position/the forces - ANS-Michael Porter
Buyers, Suppliers, Potential New Entrants, Substitute - ANS-Competitive Forces (4)
, Emergence, Rapid Growth, Maturity, Decline. - ANS-4 Parts of Industry Life Cycle
Describes the firm's current business and purpose focus on describing the firm's
business, not on "making a profit"—earning a profit is an objective not a mission. - ANS-
Mission Statement
Are the beliefs, traits, and behavioral norms that employees are expected to display in
conducting the firm's business and in pursuing its strategic vision and mission. Integral
to firms culture. - ANS-Core Values
An organization's performance targets—the specific results management wants to
achieve. - ANS-Objectives
Set performance targets high enough to stretch an organization to perform at its full
potential and deliver the best possible results. - ANS-Stretch Goals
Relentlessly pursuing an ambitious strategic objective, concentrating the full force of its
resources and competitive actions on achieving that objective. - ANS-Strategic Intent
Quantum gains, grandiose performance target, sustained, aggressive actions to take
market share. - ANS-Characteristics of Strategic Intent (3)
Quarterly and annual performance improvements to satisfy near-term shareholder
expectations. - ANS-Short Term Attention
What to do now to achieve long term results. Stand as a barrier to an undue focus on
short-term results. - ANS-Long Term Attention
Financial performance targets management has established for the organization to
achieve, focused INTERNALLY, communicated by management. - ANS-Financial
Objectives
Target outcomes that indicate a company is strengthening its market standing,
competitive position, and future business prospects, focused EXTERNALLY. - ANS-
Strategic Objectives
Method for combining evenly the use of both strategic and financial objectives, tracking
their achievement, and giving management a more complete and balanced view of how
well an organization is performing. - ANS-Balanced Scorecard Approach
Strategy at the multi-business level, concerning how to improve company performance
or gain competitive advantage by managing a set of businesses simultaneously. - ANS-
Corporate Strategy
