WPC 480 EXAM #1 STUDY GUIDE
Strategy - Answers - An integrated set of goal-directed actions a firm takes to gain and
sustain competitive advantages.
Vision - Answers - What do we want to accomplish?
Mission - Answers - How do we accomplish our goals? And what do we do to
accomplish our goals?
Stakeholders - Answers - organizations, groups, and individuals. They can affect or are
affected by a firm's actions.
Competitive Advantage - Answers - superior performance relative to other competitors
in the same industry or the industry average.
Sustainable Competitive Advantage - Answers - outperforming competitors or the
industry average over a prolonged period of time.
Competitive Parity - Answers - performance of two or more firms at the same level
Strategic Management Process - Answers - -Environmental scanning
-Strategy formulation
-Strategy implementation
-Strategy evaluation
Intended strategy - Answers - the outcome of a rational and structured top-down
strategic plan
Emergent strategy - Answers - any unplanned strategic initiative, bubbles up from the
bottom of the organization and can influence and shape a firm's overall strategy.
Realized strategy - Answers - combination of intended and emergent strategy
PESTEL Framework - Answers - Political factors: processes and actions of government
bodies. Lobbying, public relations, contributions, litigations.
Economic factors: macro economic climates. Growth rates, employment, interest rates,
price stability, currency exchange rates.
Sociocultural factors:demographic trends,cultures, norms, and values.
Technological factors: innovations in process and product technology
, Ecological factors:involve environmental issues (e.g., Natural environment, global
warming, sustainable economic growth).
Legal factors:official outcomes of political processes (e.g., (de)regulations, court
decisions, laws)
Competitive Industry Structure - Answers - -Perfect competition
-Oligopoly
-Monopolistic competition
-Monopoly
Strategic Groups - Answers - companies in a specific industry that pursue similar
strategies.
Ex. wal-mart, target, fry's, bashas
Ex. costco, sam's club
5 Forces Model - Answers - -Power of suppliers
-Intra-industry rivalry
-threat of substitutes
-threat of entrants
-Power of buyers
Core Competencies - Answers - Unique strengths allowing a firm to differentiate its
products and services from those of its rivals.
Ex. Facebook
IT capabilities
Data mining
Firm - Answers - bundle of resources
-financial
-human
-organizational/societal
-physical
VRIO Framework - Answers - -Value--> lower cost/increase value
-Rarity
-Imitability
-Organizational--> supportive of product to be successful
*contain all aspects for sustainable competitive advantage
Resource-based view - Answers - firms have different resource/capabilities that are
costly for other firms in the industry to acquire
Strategy - Answers - An integrated set of goal-directed actions a firm takes to gain and
sustain competitive advantages.
Vision - Answers - What do we want to accomplish?
Mission - Answers - How do we accomplish our goals? And what do we do to
accomplish our goals?
Stakeholders - Answers - organizations, groups, and individuals. They can affect or are
affected by a firm's actions.
Competitive Advantage - Answers - superior performance relative to other competitors
in the same industry or the industry average.
Sustainable Competitive Advantage - Answers - outperforming competitors or the
industry average over a prolonged period of time.
Competitive Parity - Answers - performance of two or more firms at the same level
Strategic Management Process - Answers - -Environmental scanning
-Strategy formulation
-Strategy implementation
-Strategy evaluation
Intended strategy - Answers - the outcome of a rational and structured top-down
strategic plan
Emergent strategy - Answers - any unplanned strategic initiative, bubbles up from the
bottom of the organization and can influence and shape a firm's overall strategy.
Realized strategy - Answers - combination of intended and emergent strategy
PESTEL Framework - Answers - Political factors: processes and actions of government
bodies. Lobbying, public relations, contributions, litigations.
Economic factors: macro economic climates. Growth rates, employment, interest rates,
price stability, currency exchange rates.
Sociocultural factors:demographic trends,cultures, norms, and values.
Technological factors: innovations in process and product technology
, Ecological factors:involve environmental issues (e.g., Natural environment, global
warming, sustainable economic growth).
Legal factors:official outcomes of political processes (e.g., (de)regulations, court
decisions, laws)
Competitive Industry Structure - Answers - -Perfect competition
-Oligopoly
-Monopolistic competition
-Monopoly
Strategic Groups - Answers - companies in a specific industry that pursue similar
strategies.
Ex. wal-mart, target, fry's, bashas
Ex. costco, sam's club
5 Forces Model - Answers - -Power of suppliers
-Intra-industry rivalry
-threat of substitutes
-threat of entrants
-Power of buyers
Core Competencies - Answers - Unique strengths allowing a firm to differentiate its
products and services from those of its rivals.
Ex. Facebook
IT capabilities
Data mining
Firm - Answers - bundle of resources
-financial
-human
-organizational/societal
-physical
VRIO Framework - Answers - -Value--> lower cost/increase value
-Rarity
-Imitability
-Organizational--> supportive of product to be successful
*contain all aspects for sustainable competitive advantage
Resource-based view - Answers - firms have different resource/capabilities that are
costly for other firms in the industry to acquire
