MBA 705 Exam 2 questions and
answers
strategic group ✔✔select group of direct competitors who have similar strategic
profiles
structural innovations ✔✔modifying the structure of the organization and/or the
business model to improve competitiveness
value innovations ✔✔modifying products, services, and activities in order to
maximize the value delivered to customersMicroenvironment forces affect
✔✔industries and individual firms within the industry
Focus at this stage (analysis of macroenvironment) is on the ✔✔industry
Are some forces more prominent in some industries than in others ✔✔yes
Social forces ✔✔societal values, trends, traditions, religious practices, concerns
for the environment
Example of social forces ✔✔fast rood "supersizing" meal combinations while still
offering grilled chicken
,Contrary to demand patterns in other parts of the world, demand for large
vehicles remains _____________ in the U.S. amidst cries for ✔✔strong; greater
fuel economy
What is arguably the most pervasive technological force affecting most industries?
✔✔the internet
Why do large firms exist? ✔✔they can perform most tasks more efficiently than
they would otherwise be performed if they were "outsourced" to the open
market
Strategic Dimensions of the internet ✔✔movement toward information
symmetry, internet as a distribution channel, speed, interactivity, potential for
cost reductions and cost shifting
Forms of commerce ✔✔B2B, B2C, B2G, C2B, C2C
Personalization does not occur at the expense of ✔✔economies of scale
What is a form of environmental scanning? ✔✔keeping up with business trends
benefits of environmental scanning ✔✔an increased general awareness of
environmental changes, better strategic planning and decision-making, great
effectiveness in governmental matters, more effective diversification and resource
allocation decisions
, agency problem ✔✔situation in which a firm's managers - the "agents" of the
owners - fail to act in the best interest of the shareholders
Agency problems are rooted in ________________ and complicated by
________________ ✔✔moral hazard; adverse selection
Perspectives on agency problem ✔✔management serves its own interests,
management and stockholders share same interests
Perspectives on Managerial ethics ✔✔utilitarian, self-interest, rights, justice,
integrative social contracts, religious
Explanations for Unethical behavior ✔✔deny responsibility, deny injury, deny
rights to the victim, social weighting, appeal to higher values, metaphor of the
ledger
__________ is about the individual; ______________ is about the firm ✔✔ethics;
social responsibility
The Sustainable Strategic Management perspective seeks to integrate the needs
to ✔✔earn profits and serve society
answers
strategic group ✔✔select group of direct competitors who have similar strategic
profiles
structural innovations ✔✔modifying the structure of the organization and/or the
business model to improve competitiveness
value innovations ✔✔modifying products, services, and activities in order to
maximize the value delivered to customersMicroenvironment forces affect
✔✔industries and individual firms within the industry
Focus at this stage (analysis of macroenvironment) is on the ✔✔industry
Are some forces more prominent in some industries than in others ✔✔yes
Social forces ✔✔societal values, trends, traditions, religious practices, concerns
for the environment
Example of social forces ✔✔fast rood "supersizing" meal combinations while still
offering grilled chicken
,Contrary to demand patterns in other parts of the world, demand for large
vehicles remains _____________ in the U.S. amidst cries for ✔✔strong; greater
fuel economy
What is arguably the most pervasive technological force affecting most industries?
✔✔the internet
Why do large firms exist? ✔✔they can perform most tasks more efficiently than
they would otherwise be performed if they were "outsourced" to the open
market
Strategic Dimensions of the internet ✔✔movement toward information
symmetry, internet as a distribution channel, speed, interactivity, potential for
cost reductions and cost shifting
Forms of commerce ✔✔B2B, B2C, B2G, C2B, C2C
Personalization does not occur at the expense of ✔✔economies of scale
What is a form of environmental scanning? ✔✔keeping up with business trends
benefits of environmental scanning ✔✔an increased general awareness of
environmental changes, better strategic planning and decision-making, great
effectiveness in governmental matters, more effective diversification and resource
allocation decisions
, agency problem ✔✔situation in which a firm's managers - the "agents" of the
owners - fail to act in the best interest of the shareholders
Agency problems are rooted in ________________ and complicated by
________________ ✔✔moral hazard; adverse selection
Perspectives on agency problem ✔✔management serves its own interests,
management and stockholders share same interests
Perspectives on Managerial ethics ✔✔utilitarian, self-interest, rights, justice,
integrative social contracts, religious
Explanations for Unethical behavior ✔✔deny responsibility, deny injury, deny
rights to the victim, social weighting, appeal to higher values, metaphor of the
ledger
__________ is about the individual; ______________ is about the firm ✔✔ethics;
social responsibility
The Sustainable Strategic Management perspective seeks to integrate the needs
to ✔✔earn profits and serve society
