MGT 8803 BUSINESS FUNDAMENTALS FOR
ANALYTICS EXAM 2 ELITE REVIEW WITH
VERIFIED FINANCE SOLUTIONS GRADED
A+
⩥ External Context for Planning. Answer: regulators
partners &
shareholders
competitors
suppliers
tech, econ, labor, society
communities
customers
⩥ Internal Context for Planning. Answer: mgt's vision
mission/values
culture
people & workforce diversity
technology
physical assets
intellectual property
,⩥ Planning is important because it.... Answer: 1. provides direction &
basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
⩥ Residual Uncertainty. Answer: the unknowable; uncertainty that
remains...important in assessing risk
⩥ Hierarchical (Tall) Organizational Structure. Answer: *many layers of
middle mgt
*senior mgrs make most operational decisions
information flows from top-down
*stable environment
⩥ Flat (Networked) Organizational Structure. Answer: *front-line
employees empowered to make decisions
*information flows top-down AND bottom-up
*few levels of middle mgt
*decentralized decision making
,*dynamic environment
⩥ Strategic Plans. Answer: 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
⩥ Functional Plans. Answer: 1. implementing strategic plans
2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
⩥ Tactical/Operations Plans. Answer: 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
⩥ SMART. Answer: Specific, Measurable, Attainable, Realistic, Timely
⩥ Main objective of business strategy. Answer: achieve superior
performance in marketplace
, ⩥ Strategy. Answer: goal-directed actions a firm takes to gain & sustain
superior performance relative to competitors.
⩥ Competitive advantage. Answer: superior performance relative to
other competitors in same industry OR industry average | temporary
*people prefer your brand over another's so they are willing to pay more
(ie, Apple)
⩥ Elements of Good Business Strategy. Answer: 1. diagnosis of
competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
⩥ Cost Leadership. Answer: lowest-cost producer in industry | pricing at
or below industry avg while leveraging a low "cost" advantage
⩥ Differentiation. Answer: economic value created is greater than
competitors | uniqueness in an industry with broad market | making
products unique to allow charging premium price
⩥ How Tesla does Differentiation. Answer: battery technology,
autonomous driving, high performance, supercharger network, wow
factor
ANALYTICS EXAM 2 ELITE REVIEW WITH
VERIFIED FINANCE SOLUTIONS GRADED
A+
⩥ External Context for Planning. Answer: regulators
partners &
shareholders
competitors
suppliers
tech, econ, labor, society
communities
customers
⩥ Internal Context for Planning. Answer: mgt's vision
mission/values
culture
people & workforce diversity
technology
physical assets
intellectual property
,⩥ Planning is important because it.... Answer: 1. provides direction &
basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
⩥ Residual Uncertainty. Answer: the unknowable; uncertainty that
remains...important in assessing risk
⩥ Hierarchical (Tall) Organizational Structure. Answer: *many layers of
middle mgt
*senior mgrs make most operational decisions
information flows from top-down
*stable environment
⩥ Flat (Networked) Organizational Structure. Answer: *front-line
employees empowered to make decisions
*information flows top-down AND bottom-up
*few levels of middle mgt
*decentralized decision making
,*dynamic environment
⩥ Strategic Plans. Answer: 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
⩥ Functional Plans. Answer: 1. implementing strategic plans
2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
⩥ Tactical/Operations Plans. Answer: 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
⩥ SMART. Answer: Specific, Measurable, Attainable, Realistic, Timely
⩥ Main objective of business strategy. Answer: achieve superior
performance in marketplace
, ⩥ Strategy. Answer: goal-directed actions a firm takes to gain & sustain
superior performance relative to competitors.
⩥ Competitive advantage. Answer: superior performance relative to
other competitors in same industry OR industry average | temporary
*people prefer your brand over another's so they are willing to pay more
(ie, Apple)
⩥ Elements of Good Business Strategy. Answer: 1. diagnosis of
competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
⩥ Cost Leadership. Answer: lowest-cost producer in industry | pricing at
or below industry avg while leveraging a low "cost" advantage
⩥ Differentiation. Answer: economic value created is greater than
competitors | uniqueness in an industry with broad market | making
products unique to allow charging premium price
⩥ How Tesla does Differentiation. Answer: battery technology,
autonomous driving, high performance, supercharger network, wow
factor
