GLO BUS ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS COMPLETE STUDY
GUIDE
●● Strategy
Answer: The set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
●● Resources Companies Compete for to Achieve Superior Performance
Answer: -New ventures: financial and human capital
-Existing companies: profitable growth
-Charities: donations
-Universities: the best students and professors
-Sports teams: championships
-Celebrities: media attention
●● Good Strategy
Answer: 1. A diagnosis of the competitive challenge. Analysis
2. A guiding policy to address the competitive challenge. Formulation
3. A set of coherent actions to implement a firm's guiding policy.
Implementation
,●● What Strategy is Not
Answer: -Grandiose statements
-A failure to face a competitive challenge
-Operational effectiveness, competitive benchmarking, or tactical tools
●● Competitive Advantage
Answer: Superior performance relative to other competitors in the same
industry or the industry average
●● Origin of Competitive Advantage
Answer: -Performing different activities or
-Performing the same activities differently than rivals
●● Assess Competitive Advantage
Answer: -Compare firm to competitors in the same industry
-Compare firm to industry average
●● Sustainable Competitive Advantage
Answer: Outperforming competitors or the industry average over a
prolonged period of time
●● Competitive Disadvantage
, Answer: Underperformance relative to other competitors in the same
industry or the industry average
●● Competitive Parity
Answer: Performance of two or more firms at the same level
●● How to Gain a Competitive Advantage
Answer: -Provide goods or services consumers value more highly than
those of its competitors
-Provide goods or services similar to the competitors' at a lower price
●● Vision
Answer: A statement about what an organization ultimately wants to
accomplish; it captures the company's aspiration. What do we want to
accomplish ultimately?
●● Effective Vision
Answer: -Pervades the organization
-Provides a sense of winning
-Motivates employees to aim for the same target
●● Strategic Intent
Answer: Outlines a firm's stretch goal that is based on a firm's vision
CORRECT ANSWERS COMPLETE STUDY
GUIDE
●● Strategy
Answer: The set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
●● Resources Companies Compete for to Achieve Superior Performance
Answer: -New ventures: financial and human capital
-Existing companies: profitable growth
-Charities: donations
-Universities: the best students and professors
-Sports teams: championships
-Celebrities: media attention
●● Good Strategy
Answer: 1. A diagnosis of the competitive challenge. Analysis
2. A guiding policy to address the competitive challenge. Formulation
3. A set of coherent actions to implement a firm's guiding policy.
Implementation
,●● What Strategy is Not
Answer: -Grandiose statements
-A failure to face a competitive challenge
-Operational effectiveness, competitive benchmarking, or tactical tools
●● Competitive Advantage
Answer: Superior performance relative to other competitors in the same
industry or the industry average
●● Origin of Competitive Advantage
Answer: -Performing different activities or
-Performing the same activities differently than rivals
●● Assess Competitive Advantage
Answer: -Compare firm to competitors in the same industry
-Compare firm to industry average
●● Sustainable Competitive Advantage
Answer: Outperforming competitors or the industry average over a
prolonged period of time
●● Competitive Disadvantage
, Answer: Underperformance relative to other competitors in the same
industry or the industry average
●● Competitive Parity
Answer: Performance of two or more firms at the same level
●● How to Gain a Competitive Advantage
Answer: -Provide goods or services consumers value more highly than
those of its competitors
-Provide goods or services similar to the competitors' at a lower price
●● Vision
Answer: A statement about what an organization ultimately wants to
accomplish; it captures the company's aspiration. What do we want to
accomplish ultimately?
●● Effective Vision
Answer: -Pervades the organization
-Provides a sense of winning
-Motivates employees to aim for the same target
●● Strategic Intent
Answer: Outlines a firm's stretch goal that is based on a firm's vision
