BUS-478X > EXAM #1 > ALL.
Trusted by students across multiple disciplines!
Strategy - Answer: the coordinated means by which an organization pursues its goals
and objectives.
Strategic management process - Answer: a process that uses vision, goals and
objectives, internal and external analysis, and implementation levers that can be used to
help formulate and implement strategy.
Strategic Management - Answer: the process by which a firm manages the formulation
and implementation of its strategy.
Competitive advantage - Answer: a firm's ability to create value in way that its rivals
cannot.
Internal Perspective of Competitive advantage - Answer: focuses on resources and
capabilities as internal sources of uniqueness that allow firms to beat the competition.
External Perspective of Competitive advantage - Answer: focuses on the structure of
industries and the ways in which firms can position themselves within them for
competitive advantage
Dynamic Perspective of Competitive advantage - Answer: bridges internal and
externall, this view helps explain why competitive advantages do not typically last over
long periods of time.
Strategy Diamond: Arenas - Answer: Where will we be?
Strategy Diamond: Vehicles - Answer: How will we get there?
Strategy Diamond: Differentiators - Answer: How will we win in the marketplace?
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,Strategy Diamond: Staging and Pacing - Answer: What will be our speed and sequence
of moves?
Strategy Diamond: Economic Logic - Answer: How will we obtain our returns?
Business strategy - Answer: strategy for competing against rivals within a particular
industry or industry segment
Corporate Strategy - Answer: strategy for guiding a firm's entry and exit from different
businesses, for determining how a parent company adds value to and manages its
portfolio of business, and for creating value through diversification.
Resources - Answer: the inputs that firms use to create goods or services
Capabilities - Answer: a firm's skill in using its resources (both tangible and intangible)
to create good and services; combination of procedures and expertise on which a firm
relies to produce goods and services
Tangible Resources - Answer: resources that have physical attributes
Intangible Resources - Answer: Resources without physical attributes, such as:
knowledge, organizational culture, location, patents, trademarks and reputition.
Value Chain - Answer: total or primary and support value-adding activities by which a
firm produces, distributes, and markets a product
Outsourcing - Answer: Activity performed for a company by people other than its full-
time employees.
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, VRINE Model - Answer: Analytical framework suggesting that a firm with resources and
capabilities which are valuable, rare, inimitable, nonsubstitutable, and exploitable will
gain a competitive advantage.
PESTEL analysis - Answer: Tool for assessing the political, economic, sociocultural,
technological, environental, and legal contexts in which a firm operates
Globalization - Answer: Evolution of distinct geographic product markets into a state of
globally interdependent product markets.
Five Forces Model - Answer: Framework for evaluating industry structure according to
the effects of rivalry, threat of entry, supplier power, buyer power, and the threat of
substitutes.
Strategic group - Answer: subset of firms which, because of similar strategies,
resources, and capabilities, compete against each other more intensely that with other
firms in an industry.
Strategic Positioning - Answer: Means by which managers situate a firm relative to its
rivals.
Strategic management - Answer: An integrative management field that combines
analysis, formulation, and implementation in the quest for competitive advantage.
Never ending cycle of analysis, formulation, implementation, and feedback.
Competitive advantage - Answer: Superior performance relative to other competitors in
the same industry or the industry average.
A firm that formulates and implements a strategy that leads to superior performance
relative to competitors has this.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
Trusted by students across multiple disciplines!
Strategy - Answer: the coordinated means by which an organization pursues its goals
and objectives.
Strategic management process - Answer: a process that uses vision, goals and
objectives, internal and external analysis, and implementation levers that can be used to
help formulate and implement strategy.
Strategic Management - Answer: the process by which a firm manages the formulation
and implementation of its strategy.
Competitive advantage - Answer: a firm's ability to create value in way that its rivals
cannot.
Internal Perspective of Competitive advantage - Answer: focuses on resources and
capabilities as internal sources of uniqueness that allow firms to beat the competition.
External Perspective of Competitive advantage - Answer: focuses on the structure of
industries and the ways in which firms can position themselves within them for
competitive advantage
Dynamic Perspective of Competitive advantage - Answer: bridges internal and
externall, this view helps explain why competitive advantages do not typically last over
long periods of time.
Strategy Diamond: Arenas - Answer: Where will we be?
Strategy Diamond: Vehicles - Answer: How will we get there?
Strategy Diamond: Differentiators - Answer: How will we win in the marketplace?
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,Strategy Diamond: Staging and Pacing - Answer: What will be our speed and sequence
of moves?
Strategy Diamond: Economic Logic - Answer: How will we obtain our returns?
Business strategy - Answer: strategy for competing against rivals within a particular
industry or industry segment
Corporate Strategy - Answer: strategy for guiding a firm's entry and exit from different
businesses, for determining how a parent company adds value to and manages its
portfolio of business, and for creating value through diversification.
Resources - Answer: the inputs that firms use to create goods or services
Capabilities - Answer: a firm's skill in using its resources (both tangible and intangible)
to create good and services; combination of procedures and expertise on which a firm
relies to produce goods and services
Tangible Resources - Answer: resources that have physical attributes
Intangible Resources - Answer: Resources without physical attributes, such as:
knowledge, organizational culture, location, patents, trademarks and reputition.
Value Chain - Answer: total or primary and support value-adding activities by which a
firm produces, distributes, and markets a product
Outsourcing - Answer: Activity performed for a company by people other than its full-
time employees.
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, VRINE Model - Answer: Analytical framework suggesting that a firm with resources and
capabilities which are valuable, rare, inimitable, nonsubstitutable, and exploitable will
gain a competitive advantage.
PESTEL analysis - Answer: Tool for assessing the political, economic, sociocultural,
technological, environental, and legal contexts in which a firm operates
Globalization - Answer: Evolution of distinct geographic product markets into a state of
globally interdependent product markets.
Five Forces Model - Answer: Framework for evaluating industry structure according to
the effects of rivalry, threat of entry, supplier power, buyer power, and the threat of
substitutes.
Strategic group - Answer: subset of firms which, because of similar strategies,
resources, and capabilities, compete against each other more intensely that with other
firms in an industry.
Strategic Positioning - Answer: Means by which managers situate a firm relative to its
rivals.
Strategic management - Answer: An integrative management field that combines
analysis, formulation, and implementation in the quest for competitive advantage.
Never ending cycle of analysis, formulation, implementation, and feedback.
Competitive advantage - Answer: Superior performance relative to other competitors in
the same industry or the industry average.
A firm that formulates and implements a strategy that leads to superior performance
relative to competitors has this.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
