MBA 705 Midterm Exam UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (93)
mission broadly defined but enduring statement of purpose that identifies the scope of an
organization's operations and its offerings to various stakeholders
strategy refers to top management's plans to develop and sustain competitive advantage
so that the organization's mission is fulfilled
competitive advantage state whereby a firm's successful strategies cannot be easily duplicated by its
competitors
sustained competitive advantage a competitive advantage that exists after all attempts at strategic imitation have
ceased
strategic management broader term than strategy and is a process that includes top management's
analysis 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
business model explains how the organization seeks to earn a profit by selling its goods
1) understand competitive environment five characteristics of a successful strategy
2) understand how resources are strengths and
weaknesses
3) 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 are evaluated before the
strategy is adopted
intended strategy what management originally plans
realized strategy what management actually implements
unforeseen events, better information was not available how intended 7 realized strategies typically differ (3)
when the strategy was formulated, and/or an
improvement in top management's ability to assess its
environment
, 1) environmental predictability and the fast pace of strategy as an art (3)
change render elaborate strategy planning as suspect at
best
2) strategic managers should emphasize creativity and
innovation
3) strategies should be developed like a potter molds
clay
1) most widely recognized view of strategy strategy as a science (3)
2) strategic managers are encouraged to systematically
asses the firm's external environment and evaluate the
pros and cons of myriad alternatives before formulating
strategy
3) scientific approach is more prominent in this text
industrial organization branch of microeconomics, emphasizes the influence of the industry environment
on the firm
resource-based theory views performance primarily as a function of a firm's ability to utilize its resources
and emphasize the development of a distinctive competence
distinctive competence what a company can make, do, or perform better than its competitors
contingency theory represents a middle ground perspective that views organizational performance as
the joint outcome of environmental forces and the firm's strategic actions
corporate governance refers to the board of directors, institutional investors (e.g., pension and retirement
funds, mutual funds, banks, insurance companies, among other money managers),
and large stakeholders known as blockholders who monitor firm strategies to
ensure effective management
blockholders Large shareholders who monitor firm strategies to ensure effective management.
1) evaluate top management's strategic proposals boards of directors responsibilities (3)
2) establishing broad direction for the firm
3) selecting and determining the compensation for the
chief executive
board of directors officials elected by shareholders who are responsible for monitoring activities in
the organization
CEO duality when the CEO also serves as the chairman of the board - represents a potential
conflict of interest
responsive and assertive evidence suggests that many boards of education are becoming more
_ _____________________ in their responsibilities
rubber stamp to give official approval to a law, plan, decision, etc., especially without
considering it carefully
C
Terms in this set (93)
mission broadly defined but enduring statement of purpose that identifies the scope of an
organization's operations and its offerings to various stakeholders
strategy refers to top management's plans to develop and sustain competitive advantage
so that the organization's mission is fulfilled
competitive advantage state whereby a firm's successful strategies cannot be easily duplicated by its
competitors
sustained competitive advantage a competitive advantage that exists after all attempts at strategic imitation have
ceased
strategic management broader term than strategy and is a process that includes top management's
analysis 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
business model explains how the organization seeks to earn a profit by selling its goods
1) understand competitive environment five characteristics of a successful strategy
2) understand how resources are strengths and
weaknesses
3) 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 are evaluated before the
strategy is adopted
intended strategy what management originally plans
realized strategy what management actually implements
unforeseen events, better information was not available how intended 7 realized strategies typically differ (3)
when the strategy was formulated, and/or an
improvement in top management's ability to assess its
environment
, 1) environmental predictability and the fast pace of strategy as an art (3)
change render elaborate strategy planning as suspect at
best
2) strategic managers should emphasize creativity and
innovation
3) strategies should be developed like a potter molds
clay
1) most widely recognized view of strategy strategy as a science (3)
2) strategic managers are encouraged to systematically
asses the firm's external environment and evaluate the
pros and cons of myriad alternatives before formulating
strategy
3) scientific approach is more prominent in this text
industrial organization branch of microeconomics, emphasizes the influence of the industry environment
on the firm
resource-based theory views performance primarily as a function of a firm's ability to utilize its resources
and emphasize the development of a distinctive competence
distinctive competence what a company can make, do, or perform better than its competitors
contingency theory represents a middle ground perspective that views organizational performance as
the joint outcome of environmental forces and the firm's strategic actions
corporate governance refers to the board of directors, institutional investors (e.g., pension and retirement
funds, mutual funds, banks, insurance companies, among other money managers),
and large stakeholders known as blockholders who monitor firm strategies to
ensure effective management
blockholders Large shareholders who monitor firm strategies to ensure effective management.
1) evaluate top management's strategic proposals boards of directors responsibilities (3)
2) establishing broad direction for the firm
3) selecting and determining the compensation for the
chief executive
board of directors officials elected by shareholders who are responsible for monitoring activities in
the organization
CEO duality when the CEO also serves as the chairman of the board - represents a potential
conflict of interest
responsive and assertive evidence suggests that many boards of education are becoming more
_ _____________________ in their responsibilities
rubber stamp to give official approval to a law, plan, decision, etc., especially without
considering it carefully
