B AD 4013 Exam 1 || 100% Certified Answers.
Steps in the Strategic Management Process correct answers 1. Establish a vision, mission
statement, and objectives
2. Do internal and external analysis
3. Formulate strategy
4. Implement strategy
5. Evaluate performance
Vision correct answers A picture of what the firm wants to be and what it wants to ultimately
achieve. This should be customer focused.
Mission Statement correct answers Encompasses the purpose of the company and the way the
firm competes and its sources of competitive advantage. Less general than the vision.
Objectives correct answers Operationalization of the mission statement. This is the most
specific with a short time horizon.
Performance Metric correct answers A metric which organizations can be gauged in an
attempt to better understand how well their organizations are competing in the market.
Performance Referent correct answers A benchmark used to make sense of an organization's
standing along a performance measure. Comparing your performance to a referent tells you
how you're doing.
Balance Scorecard correct answers Provides a "balance" between financial measures and
other measures that are important for understanding organizational activities that lead to
sustained, long-term performance.
Balance Scorecard - Financial correct answers How are our financial returns (ROA, profits,
etc.)?
Balance Scorecard - Customer correct answers How are our customers feeling about this (# of
new or repeat customers, same store sales, etc.)?
Balance Scorecard - Internal Business Process correct answers How efficient are we in how
we do what we do (speed of service, etc.)?
Balance Scorecard - Learning and Growth correct answers What new skills learned by each
employee (trainings offered, etc.)?
Triple Bottom Line correct answers 1. People
2. Planet
3. Profits
, Competitive Advantage correct answers Doing things differently or similar things in different
ways than competitors.
Usually temporary because if your competitive advantage is doing really well for you,
competitors will come and do the same things, eliminating your competitive advantage.
Competitive Parity correct answers Firms offerings are average, no preference between firms,
no cost advantages, shareholders are getting expected returns, demand curve is flat.
Competitive Disadvantage correct answers People do not want to go to a firm. Firm may have
outdated tech, negative reputation, etc.
Five Dimensions of an Entrepreneurial Orientation correct answers 1. Autonomy
2. Innovativeness
3. Risk Taking
4. Proactiveness
5. Competitive Aggressiveness
Autonomy correct answers Whether an individual or team has the freedom to develop an
entrepreneurial idea and then see it through to completion.
Innovativeness correct answers The tendency to pursue creativity and experimentation.
Risk Taking correct answers The tendency to engage in bold actions.
Proactiveness correct answers The tendency to anticipate and act on future needs rather than
reacting to events.
Competitive Aggressiveness correct answers The tendency to intensely and directly challenge
competitors rather than trying to avoid them.
Intended Strategies correct answers The planned outcome of the strategic management
process. What a firm plans to do.
Emergent Strategies correct answers Unexpected opportunities that present themselves after
the strategy is enacted. Could also be threats that need strategic action to deal with.
Realized Strategies correct answers Strategies the firm actually enacts. A combination of both
intended and emergent strategies.
Operational Effectiveness correct answers Doing the same activities as other companies but
doing them better or more efficiently.
Strategy correct answers Doing different activities from other companies in order to provide a
"unique mix of value".
Steps in the Strategic Management Process correct answers 1. Establish a vision, mission
statement, and objectives
2. Do internal and external analysis
3. Formulate strategy
4. Implement strategy
5. Evaluate performance
Vision correct answers A picture of what the firm wants to be and what it wants to ultimately
achieve. This should be customer focused.
Mission Statement correct answers Encompasses the purpose of the company and the way the
firm competes and its sources of competitive advantage. Less general than the vision.
Objectives correct answers Operationalization of the mission statement. This is the most
specific with a short time horizon.
Performance Metric correct answers A metric which organizations can be gauged in an
attempt to better understand how well their organizations are competing in the market.
Performance Referent correct answers A benchmark used to make sense of an organization's
standing along a performance measure. Comparing your performance to a referent tells you
how you're doing.
Balance Scorecard correct answers Provides a "balance" between financial measures and
other measures that are important for understanding organizational activities that lead to
sustained, long-term performance.
Balance Scorecard - Financial correct answers How are our financial returns (ROA, profits,
etc.)?
Balance Scorecard - Customer correct answers How are our customers feeling about this (# of
new or repeat customers, same store sales, etc.)?
Balance Scorecard - Internal Business Process correct answers How efficient are we in how
we do what we do (speed of service, etc.)?
Balance Scorecard - Learning and Growth correct answers What new skills learned by each
employee (trainings offered, etc.)?
Triple Bottom Line correct answers 1. People
2. Planet
3. Profits
, Competitive Advantage correct answers Doing things differently or similar things in different
ways than competitors.
Usually temporary because if your competitive advantage is doing really well for you,
competitors will come and do the same things, eliminating your competitive advantage.
Competitive Parity correct answers Firms offerings are average, no preference between firms,
no cost advantages, shareholders are getting expected returns, demand curve is flat.
Competitive Disadvantage correct answers People do not want to go to a firm. Firm may have
outdated tech, negative reputation, etc.
Five Dimensions of an Entrepreneurial Orientation correct answers 1. Autonomy
2. Innovativeness
3. Risk Taking
4. Proactiveness
5. Competitive Aggressiveness
Autonomy correct answers Whether an individual or team has the freedom to develop an
entrepreneurial idea and then see it through to completion.
Innovativeness correct answers The tendency to pursue creativity and experimentation.
Risk Taking correct answers The tendency to engage in bold actions.
Proactiveness correct answers The tendency to anticipate and act on future needs rather than
reacting to events.
Competitive Aggressiveness correct answers The tendency to intensely and directly challenge
competitors rather than trying to avoid them.
Intended Strategies correct answers The planned outcome of the strategic management
process. What a firm plans to do.
Emergent Strategies correct answers Unexpected opportunities that present themselves after
the strategy is enacted. Could also be threats that need strategic action to deal with.
Realized Strategies correct answers Strategies the firm actually enacts. A combination of both
intended and emergent strategies.
Operational Effectiveness correct answers Doing the same activities as other companies but
doing them better or more efficiently.
Strategy correct answers Doing different activities from other companies in order to provide a
"unique mix of value".
