BUAD 453 Exam 1 with Accurate
Solutions
competitive advantage - ANSWER-the ability of a firm to outperform its rivals by
achieving greater profitability and growth than others in the industry is an example of
_____________.
maximizing the return to shareholders is to focus on the customers and employees -
ANSWER-A tech company determines that it should pay its top-performing employees
above-market wages, decreasing shareholder returns in the short-term. But the
employee longevity pays off through sustained R&D and breakthrough products that
result in sales growth and lower recruitment costs. This is an example of:
sustained competitive advantage - ANSWER-a company in the airline industry with an
ROIC recorded above 25% in each of the last 5 years is an example of
___________________________.
The strategic goals of the organization will include a combination of performance goals
toward the charity's mission, revenue, and fundraising goals. - ANSWER-a nonprofit
organization is considering holding a series of sessions to develop its mission,
vision,goals, operation model, and strategic plan. Differentiate between planning for
charities vs for companies. How will the process be different for the nonprofit?
a strategic manager who is the head of an entire division, responsible for translating the
corporate strategy into concrete strategies for the business unit. - ANSWER-A
business-level manager in a multi-divisional company is:
Bhascar works with managers within his business to develop and implement concrete
strategies for his division that align with corporate goals. - ANSWER-Bhascar recently
named general manager of a newly created business unit of a multidivisional company.
His first order of business will be to implement the new division's strategic plan. Which
of these statements about Bhascar's responsibilities for the company is true?
functional-level manager - ANSWER-Lisa is the VP of sales and marketing for a
software development company. She's been working with her sales force in recent
months to develop a promotion strategy to sell obsolete software quickly at a reduced
price rather than the original suggested price. Which strategic manager role is Lisa
fulfilling with this approach?
, defining the company's corporate mission and major corporate goals - ANSWER-
According to Hill and Schilling, which would be considered an important step in a formal
strategic management process?
what the company does in terms of its customers, their needs, and through what core
competencies. - ANSWER-a mission statement describes:
customer-focused - ANSWER-Nike: "To bring inspiration and innovation to every athlete
in the world."
this is an example of a _______________ mission statement
the feedback loop - ANSWER-the idea that the strategy-making process is constantly
ongoing and adapting over time with the input of additional information is:
well-constructed goal - ANSWER-My company has set a goal of launching five new
products each year for the next five years through at least 10% annual investment in
R&D.
This is characteristic of a:
identify strategies that exploit external opportunities, counter threats, build on strengths,
and eradicate weaknesses. - ANSWER-The primary objective of managers participating
in a SWOT analysis is to:
local commercial properties are most often served by one of the three big national
HVAC service firms and a handful of local smaller firms. - ANSWER-An HVAC
contractor is considering expanding into a new business line, offering commercial facility
maintenance and service in addition to construction contracting services. As the
contractor considers this potential strategy, it conducts a strategic planning process for
this business unit, analyzing external and internal factors. Which of these can be
classified as a part of the external operating environment of the company?
A general manager defining a superior customer service strategy for his division to
better deliver its products - ANSWER-There are four main categories of strategies that
managers may define to create and sustain a competitive advantage. What is an
example of a business-level strategy?
Define emergent strategy making process - ANSWER-Strategies that evolve as the
unplanned responses to unforeseen circumstances, arising from autonomous action by
individual managers, serendipitous events, and changed circumstances
- attaching too much importance to the role of top management and ignoring the input
and strategic ideas of lower-level managers
- failing to take advantage of opportunities that arise that were unplanned for within the
company's strategic plan
Solutions
competitive advantage - ANSWER-the ability of a firm to outperform its rivals by
achieving greater profitability and growth than others in the industry is an example of
_____________.
maximizing the return to shareholders is to focus on the customers and employees -
ANSWER-A tech company determines that it should pay its top-performing employees
above-market wages, decreasing shareholder returns in the short-term. But the
employee longevity pays off through sustained R&D and breakthrough products that
result in sales growth and lower recruitment costs. This is an example of:
sustained competitive advantage - ANSWER-a company in the airline industry with an
ROIC recorded above 25% in each of the last 5 years is an example of
___________________________.
The strategic goals of the organization will include a combination of performance goals
toward the charity's mission, revenue, and fundraising goals. - ANSWER-a nonprofit
organization is considering holding a series of sessions to develop its mission,
vision,goals, operation model, and strategic plan. Differentiate between planning for
charities vs for companies. How will the process be different for the nonprofit?
a strategic manager who is the head of an entire division, responsible for translating the
corporate strategy into concrete strategies for the business unit. - ANSWER-A
business-level manager in a multi-divisional company is:
Bhascar works with managers within his business to develop and implement concrete
strategies for his division that align with corporate goals. - ANSWER-Bhascar recently
named general manager of a newly created business unit of a multidivisional company.
His first order of business will be to implement the new division's strategic plan. Which
of these statements about Bhascar's responsibilities for the company is true?
functional-level manager - ANSWER-Lisa is the VP of sales and marketing for a
software development company. She's been working with her sales force in recent
months to develop a promotion strategy to sell obsolete software quickly at a reduced
price rather than the original suggested price. Which strategic manager role is Lisa
fulfilling with this approach?
, defining the company's corporate mission and major corporate goals - ANSWER-
According to Hill and Schilling, which would be considered an important step in a formal
strategic management process?
what the company does in terms of its customers, their needs, and through what core
competencies. - ANSWER-a mission statement describes:
customer-focused - ANSWER-Nike: "To bring inspiration and innovation to every athlete
in the world."
this is an example of a _______________ mission statement
the feedback loop - ANSWER-the idea that the strategy-making process is constantly
ongoing and adapting over time with the input of additional information is:
well-constructed goal - ANSWER-My company has set a goal of launching five new
products each year for the next five years through at least 10% annual investment in
R&D.
This is characteristic of a:
identify strategies that exploit external opportunities, counter threats, build on strengths,
and eradicate weaknesses. - ANSWER-The primary objective of managers participating
in a SWOT analysis is to:
local commercial properties are most often served by one of the three big national
HVAC service firms and a handful of local smaller firms. - ANSWER-An HVAC
contractor is considering expanding into a new business line, offering commercial facility
maintenance and service in addition to construction contracting services. As the
contractor considers this potential strategy, it conducts a strategic planning process for
this business unit, analyzing external and internal factors. Which of these can be
classified as a part of the external operating environment of the company?
A general manager defining a superior customer service strategy for his division to
better deliver its products - ANSWER-There are four main categories of strategies that
managers may define to create and sustain a competitive advantage. What is an
example of a business-level strategy?
Define emergent strategy making process - ANSWER-Strategies that evolve as the
unplanned responses to unforeseen circumstances, arising from autonomous action by
individual managers, serendipitous events, and changed circumstances
- attaching too much importance to the role of top management and ignoring the input
and strategic ideas of lower-level managers
- failing to take advantage of opportunities that arise that were unplanned for within the
company's strategic plan
