MBA 705 - Exam 1 Questions With
Correct Answers
Mission - CORRECT ANSWER✔✔-is a broadly defined but enduring statement of
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purpose that identifies the scope of an organization's operations and its offerings
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to the various stakeholders
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Strategy - CORRECT ANSWER✔✔-refers to top management's plans to develop
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and sustain competitive advantage so that the organization's mission is fulfilled.
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Competitive advantage - CORRECT ANSWER✔✔-is a state whereby a firm's
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successful strategies cannot be easily duplicated by its competitors. Maintaining a
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sustained competitive advantage over time can be challenging.
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sustained competitive advantage - CORRECT ANSWER✔✔-A company's strategies
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enable it to maintain above-average profitability for a number of years
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Strategic Management - CORRECT ANSWER✔✔-is of the environment in which
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the organization operates prior to formulating a strategy, as well as the plan for
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implementation and control of the strategy. | | | | |
The Strategic Management Process - CORRECT ANSWER✔✔-1. External Analysis
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2. Internal Analysis
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3. Strategy Formulation
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4. Strategy Implementation
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,5. Strategic Control
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External Analysis - CORRECT ANSWER✔✔-Analyze the opportunities and threats,
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or constraints, that exist in the organization's external environment, including
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industry and forces in the external environment
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Internal Anaylsis - CORRECT ANSWER✔✔-Analyze the organization's strengths
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and weaknesses in its internal environment. Consider the context of managerial
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ethics and corporate social responsibility
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strategy formulation - CORRECT ANSWER✔✔-Formulate strategies that build and
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sustain competitive advantage by matching the organization's strengths and
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weaknesses with the environment's opportunities and threats.
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Strategic Implementation (Execution) - CORRECT ANSWER✔✔-Implement the
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strategies that have been developed.
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Strategic Control - CORRECT ANSWER✔✔-Measure success and make corrections
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when the strategies are not producing the desired outcomes.
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Business model - CORRECT ANSWER✔✔-explains how the organization seeks to
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earn a profit by selling its goods.
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Progressive firms often devise innovative business models that extract revenue -
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and ultimately profits - from sources not identified by competitors.
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,Five Characteristics of a Successful Strategy - CORRECT ANSWER✔✔-1.
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Understand the competitive environment. | | |
2. Understand how resources translate into strengths and weaknesses.
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3. The strategy is consistent with the mission and goals of the organization.
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4. Plans for putting the strategy into action are designed before it is implemented.
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5. Possible future changes (i.e., strategic control) are evaluated before the
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strategy is adopted. | |
Intended Strategy - CORRECT ANSWER✔✔-what management originally plans.
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may be realized just as it was planned, in a modified form, or even in an entirely
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different form. |
Realized Strategy - CORRECT ANSWER✔✔-what management actually
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implements.
Hence, the original strategy may be realized with desirable or undesirable results,
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or it may be modified as changes in the firm or the environment become known.
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Gap between Intended and Realized - CORRECT ANSWER✔✔-The gap between
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the intended and realized strategies usually results from unforeseen
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environmental or organizational events, better information that was not available | | | | | | | | | |
when the strategy was formulated, or an improvement in top management's
| | | | | | | | | | |
ability to assess its environment. Although it is important for managers to
| | | | | | | | | | | |
formulate responsible strategies based on a realistic and thorough assessment of
| | | | | | | | | | |
the firm and its environment, things invariably change along the way. Hence, it is
| | | | | | | | | | | | | |
common for such a gap to exist, creating the need for constant strategic action if
| | | | | | | | | | | | | | |
, a firm is to stay on course. Instead of resisting modest strategic changes when
| | | | | | | | | | | | | |
new information is discovered, managers should search for new information and
| | | | | | | | | | |
be willing to make such changes when necessary. This activity is part of strategic
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control —the final step in the strategic management process.
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Strategy as an Art - CORRECT ANSWER✔✔-The lack of environmental
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predictability and the fast pace of change render elaborate strategy planning as
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suspect at best. | |
| Strategic managers should emphasize creativity and innovation.
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Strategies should be developed like a potter molds clay.
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Strategy as a Science - CORRECT ANSWER✔✔-The scientific approach is the most
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widely recognized view of strategy.
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Strategic managers are encouraged to systematically assess the firm's external
| | | | | | | | | |
environment and evaluate the pros and cons of myriad alternatives before
| | | | | | | | | | |
formulating strategy. |
The scientific approach is more prominent in this text.
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Influence on Strategic Management - CORRECT ANSWER✔✔-Industrial
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Organization: a branch of microeconomics, emphasizes the influence of the
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industry environment on the firm. | | | |
Correct Answers
Mission - CORRECT ANSWER✔✔-is a broadly defined but enduring statement of
| | | | | | | | | | |
purpose that identifies the scope of an organization's operations and its offerings
| | | | | | | | | | | |
to the various stakeholders
| | |
Strategy - CORRECT ANSWER✔✔-refers to top management's plans to develop
| | | | | | | | | |
and sustain competitive advantage so that the organization's mission is fulfilled.
| | | | | | | | | |
Competitive advantage - CORRECT ANSWER✔✔-is a state whereby a firm's
| | | | | | | | | |
successful strategies cannot be easily duplicated by its competitors. Maintaining a
| | | | | | | | | |
sustained competitive advantage over time can be challenging.
| | | | | | | |
sustained competitive advantage - CORRECT ANSWER✔✔-A company's strategies
| | | | | | | |
enable it to maintain above-average profitability for a number of years
| | | | | | | | | |
Strategic Management - CORRECT ANSWER✔✔-is of the environment in which
| | | | | | | | | |
the organization operates prior to formulating a strategy, as well as the plan for
| | | | | | | | | | | | | |
implementation and control of the strategy. | | | | |
The Strategic Management Process - CORRECT ANSWER✔✔-1. External Analysis
| | | | | | | |
2. Internal Analysis
| |
3. Strategy Formulation
| |
4. Strategy Implementation
| |
,5. Strategic Control
| |
External Analysis - CORRECT ANSWER✔✔-Analyze the opportunities and threats,
| | | | | | | | |
or constraints, that exist in the organization's external environment, including
| | | | | | | | | |
industry and forces in the external environment
| | | | | |
Internal Anaylsis - CORRECT ANSWER✔✔-Analyze the organization's strengths
| | | | | | | |
and weaknesses in its internal environment. Consider the context of managerial
| | | | | | | | | | |
ethics and corporate social responsibility
| | | |
strategy formulation - CORRECT ANSWER✔✔-Formulate strategies that build and
| | | | | | | | |
sustain competitive advantage by matching the organization's strengths and
| | | | | | | | |
weaknesses with the environment's opportunities and threats.
| | | | | |
Strategic Implementation (Execution) - CORRECT ANSWER✔✔-Implement the
| | | | | | |
strategies that have been developed.
| | | |
Strategic Control - CORRECT ANSWER✔✔-Measure success and make corrections
| | | | | | | | |
when the strategies are not producing the desired outcomes.
| | | | | | | |
Business model - CORRECT ANSWER✔✔-explains how the organization seeks to
| | | | | | | | | |
earn a profit by selling its goods.
| | | | | |
Progressive firms often devise innovative business models that extract revenue -
| | | | | | | | | | |
and ultimately profits - from sources not identified by competitors.
| | | | | | | | |
,Five Characteristics of a Successful Strategy - CORRECT ANSWER✔✔-1.
| | | | | | | | |
Understand the competitive environment. | | |
2. Understand how resources translate into strengths and weaknesses.
| | | | | | | |
3. The strategy is consistent with the mission and goals of the organization.
| | | | | | | | | | | |
4. Plans for putting the strategy into action are designed before it is implemented.
| | | | | | | | | | | | |
5. Possible future changes (i.e., strategic control) are evaluated before the
| | | | | | | | | | |
strategy is adopted. | |
Intended Strategy - CORRECT ANSWER✔✔-what management originally plans.
| | | | | | |
may be realized just as it was planned, in a modified form, or even in an entirely
| | | | | | | | | | | | | | | | |
different form. |
Realized Strategy - CORRECT ANSWER✔✔-what management actually
| | | | | | |
implements.
Hence, the original strategy may be realized with desirable or undesirable results,
| | | | | | | | | | |
or it may be modified as changes in the firm or the environment become known.
| | | | | | | | | | | | | | |
Gap between Intended and Realized - CORRECT ANSWER✔✔-The gap between
| | | | | | | | | |
the intended and realized strategies usually results from unforeseen
| | | | | | | | |
environmental or organizational events, better information that was not available | | | | | | | | | |
when the strategy was formulated, or an improvement in top management's
| | | | | | | | | | |
ability to assess its environment. Although it is important for managers to
| | | | | | | | | | | |
formulate responsible strategies based on a realistic and thorough assessment of
| | | | | | | | | | |
the firm and its environment, things invariably change along the way. Hence, it is
| | | | | | | | | | | | | |
common for such a gap to exist, creating the need for constant strategic action if
| | | | | | | | | | | | | | |
, a firm is to stay on course. Instead of resisting modest strategic changes when
| | | | | | | | | | | | | |
new information is discovered, managers should search for new information and
| | | | | | | | | | |
be willing to make such changes when necessary. This activity is part of strategic
| | | | | | | | | | | | | |
control —the final step in the strategic management process.
| | | | | | | |
Strategy as an Art - CORRECT ANSWER✔✔-The lack of environmental
| | | | | | | | | |
predictability and the fast pace of change render elaborate strategy planning as
| | | | | | | | | | | |
suspect at best. | |
| Strategic managers should emphasize creativity and innovation.
| | | | | |
Strategies should be developed like a potter molds clay.
| | | | | | | |
Strategy as a Science - CORRECT ANSWER✔✔-The scientific approach is the most
| | | | | | | | | | | |
widely recognized view of strategy.
| | | |
Strategic managers are encouraged to systematically assess the firm's external
| | | | | | | | | |
environment and evaluate the pros and cons of myriad alternatives before
| | | | | | | | | | |
formulating strategy. |
The scientific approach is more prominent in this text.
| | | | | | | |
Influence on Strategic Management - CORRECT ANSWER✔✔-Industrial
| | | | | | |
Organization: a branch of microeconomics, emphasizes the influence of the
| | | | | | | | | |
industry environment on the firm. | | | |
