bus 401 midterm
(Latest 2025-2026 Edition) 100% Verified Q&A + Answer Key
55+
Solutions
VERIFIED ANSWERS
Question 1
strategy
Correct Answer
A set of goal-directed and integrated actions a firm takes to gain and sustain a competitive advantage
aligned- working towards same goal
interact- interdependent, harder to imitate
reinforce eachother- the system matters
trade-offs - what create and protect consistency
Question 2
competitive advantage
Correct Answer
firms that have superior performance relative to other competitors in the same industry or the industry average
-enduring, defining aspects of the firm
-seek sustainable, competitive advantage
-Strategy is all about persistent performance differences
Question 3
Sources of persistent performance differences
Correct Answer
Industry effects (20%)- some industries are inherently more profitable depending on demand, growth potential, and cost structure
firm effects (55%) - the impacts of a firm's actions on fire performance-postitioning
other effect (25%) - business cycle, unexplained variances
Question 4
Continental Lite
Correct Answer
-imitate Southwest
-straddled 2 strategies
- lower fares and reduced service and still offered connections, baggage transfers, and multiple service levels
-didn't do well
, Question 5
Tactical Tools
Correct Answer
pricing strategy
inernet stragey
alliance strategy
marketing strategy
operations strategy
AI strategy
-policies and initiatives, rather than strategies or a set of actions
Question 6
Operational Effectiveness
Correct Answer
performing similar activities better than rivals perform them
-refers to any number of practices that allow a company to better utilize its input by higher quality, faster delivery,
etc.
Question 7
strategic positioning
Correct Answer
performing different activities from rivals or performing similar activities in different ways
ex southwest
Question 8
AFI Strategy Framework
Correct Answer
A successful strategy requires:
analysis, formulation, implementation
Question 9
Strategy
Correct Answer
Gaining and sustaining competitive advantage
• Competitive advantage is always judged relative to other competitors
or the industry average
• A sustainable strategic position requires trade-offs
• Effective management of the strategy process is the result of the following:
• Analysis (A) of the external and internal environments
• Formulation (F) of an appropriate business and corporate strategy
• Implementation (I) of the formulated strategy through structure and
governance
Trusted by thousands of students and professionals worldwide Page 2 of 15
(Latest 2025-2026 Edition) 100% Verified Q&A + Answer Key
55+
Solutions
VERIFIED ANSWERS
Question 1
strategy
Correct Answer
A set of goal-directed and integrated actions a firm takes to gain and sustain a competitive advantage
aligned- working towards same goal
interact- interdependent, harder to imitate
reinforce eachother- the system matters
trade-offs - what create and protect consistency
Question 2
competitive advantage
Correct Answer
firms that have superior performance relative to other competitors in the same industry or the industry average
-enduring, defining aspects of the firm
-seek sustainable, competitive advantage
-Strategy is all about persistent performance differences
Question 3
Sources of persistent performance differences
Correct Answer
Industry effects (20%)- some industries are inherently more profitable depending on demand, growth potential, and cost structure
firm effects (55%) - the impacts of a firm's actions on fire performance-postitioning
other effect (25%) - business cycle, unexplained variances
Question 4
Continental Lite
Correct Answer
-imitate Southwest
-straddled 2 strategies
- lower fares and reduced service and still offered connections, baggage transfers, and multiple service levels
-didn't do well
, Question 5
Tactical Tools
Correct Answer
pricing strategy
inernet stragey
alliance strategy
marketing strategy
operations strategy
AI strategy
-policies and initiatives, rather than strategies or a set of actions
Question 6
Operational Effectiveness
Correct Answer
performing similar activities better than rivals perform them
-refers to any number of practices that allow a company to better utilize its input by higher quality, faster delivery,
etc.
Question 7
strategic positioning
Correct Answer
performing different activities from rivals or performing similar activities in different ways
ex southwest
Question 8
AFI Strategy Framework
Correct Answer
A successful strategy requires:
analysis, formulation, implementation
Question 9
Strategy
Correct Answer
Gaining and sustaining competitive advantage
• Competitive advantage is always judged relative to other competitors
or the industry average
• A sustainable strategic position requires trade-offs
• Effective management of the strategy process is the result of the following:
• Analysis (A) of the external and internal environments
• Formulation (F) of an appropriate business and corporate strategy
• Implementation (I) of the formulated strategy through structure and
governance
Trusted by thousands of students and professionals worldwide Page 2 of 15
