BUS 401 - Midterm
(Latest 2025-2026 Edition) 100% Verified Q&A + Answer Key
30+
Solutions
VERIFIED ANSWERS
Question 1
strategy
Correct Answer
a set of goal-directed and integrated actions a firm takes to gain and sustain competitive advantage - requires trade-offs
Question 2
not strategy
Correct Answer
grandiose statements, tactical tools, operational effectiveness
Question 3
competitive advantage
Correct Answer
firms that have superior performance relative to other competitors in the same industry or the industry average
Question 4
sources of persistent performance differences (PPD's)
Correct Answer
industry effects - some industries are inherently more profitable than others - 20%
firm effects - the impact of firm's actions on firm performance, positioning - up to 55%
Residual: within-firm differences;
business cycle effects; unexplained
variances - 25%
Question 5
Value stick (the components, value creation, value capture, which firm is in a better position, etc.)
Correct Answer
maximum you can charge your customers before they walk away
, Question 6
PESTEL
Correct Answer
generic, macro environment - Political factors, Economic conditions, Sociocultural forces, Technological factors,
Environmental forces, Legal/regulatory factors
Question 7
Threat of New Entrants
Correct Answer
lower industry profit potential, increase comp by disrupting status quo; lowered by barriers to entry
Question 8
Bargaining Power of Buyers
Correct Answer
the threat that buyers may force down prices, bargain for higher quality or more services, and play competitors
against each other --> higher buyer power = lower industry profitability
Question 9
Bargaining Power of Suppliers
Correct Answer
a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices
of these inputs --> higher power, lower quality goods
Question 10
Threat of Substitutes
Correct Answer
products or services outside an industry that meet the needs of current customers; high threat of substitutes -->
lower profitability through decreased demand
Question 11
Rivalry Among Competitors
Correct Answer
The intensity with which companies in the same industry jockey for market share and profitability
Question 12
resource-based view
Correct Answer
focuses on a firm's internal resources and capabilities
Trusted by thousands of students and professionals worldwide Page 2 of 6
(Latest 2025-2026 Edition) 100% Verified Q&A + Answer Key
30+
Solutions
VERIFIED ANSWERS
Question 1
strategy
Correct Answer
a set of goal-directed and integrated actions a firm takes to gain and sustain competitive advantage - requires trade-offs
Question 2
not strategy
Correct Answer
grandiose statements, tactical tools, operational effectiveness
Question 3
competitive advantage
Correct Answer
firms that have superior performance relative to other competitors in the same industry or the industry average
Question 4
sources of persistent performance differences (PPD's)
Correct Answer
industry effects - some industries are inherently more profitable than others - 20%
firm effects - the impact of firm's actions on firm performance, positioning - up to 55%
Residual: within-firm differences;
business cycle effects; unexplained
variances - 25%
Question 5
Value stick (the components, value creation, value capture, which firm is in a better position, etc.)
Correct Answer
maximum you can charge your customers before they walk away
, Question 6
PESTEL
Correct Answer
generic, macro environment - Political factors, Economic conditions, Sociocultural forces, Technological factors,
Environmental forces, Legal/regulatory factors
Question 7
Threat of New Entrants
Correct Answer
lower industry profit potential, increase comp by disrupting status quo; lowered by barriers to entry
Question 8
Bargaining Power of Buyers
Correct Answer
the threat that buyers may force down prices, bargain for higher quality or more services, and play competitors
against each other --> higher buyer power = lower industry profitability
Question 9
Bargaining Power of Suppliers
Correct Answer
a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices
of these inputs --> higher power, lower quality goods
Question 10
Threat of Substitutes
Correct Answer
products or services outside an industry that meet the needs of current customers; high threat of substitutes -->
lower profitability through decreased demand
Question 11
Rivalry Among Competitors
Correct Answer
The intensity with which companies in the same industry jockey for market share and profitability
Question 12
resource-based view
Correct Answer
focuses on a firm's internal resources and capabilities
Trusted by thousands of students and professionals worldwide Page 2 of 6
