BAD 4013 - EXAM 1 STUDY GUIDE
2026/2027 QUESTIONS AND VERIFIED
CORRECT SOLUTIONS GRADED A+
100% PASS
Understand the steps in the Strategic Management process.
-Establish a vision, mission statement and objectives
-Do Internal and External Analysis
-Formulate Strategy
-Implement Strategy
-Evaluate Performance
What are a company's vision and mission? What are objectives?
How do they relate to the strategic management process?
-Vision: A picture of what the firm wants to be and what it wants
to ultimately achieve. (10,000 ft. view)
-Mission Statement: Encompasses the purpose of the company
and the way the firm competes and its sources of competitive
advantage. (1,000 ft. view)
-Objectives: Operationalization of the mission statement
-Vision, mission statement and objectives should be the basis of
the strategic mgt process
,Understand performance measures and performance referents.
Understand how these are used in assessing organizational
performance
-A performance measure is a metric along which organizations
can be gauged (profits, stock price, and sales) in an attempt to
better understand how well their organizations are competing in
the market.
-A performance referent is a benchmark (other similar firm) used
to make sense of an organization's standing along a performance
measure.
Understand how performance is a multidimensional concept.
-No one measure tells everything about how a firm is performing.
Each metric tells one piece as to how the firm is performing.
-You need to use multiple measures to fully understand how the
firm is doing
Understand what the balanced scorecard and the triple bottom
line are and how they can be used to assess performance.
-The balanced scorecard provides a "balance" between financial
measures and other measures that are important for
understanding organizational activities that lead to sustained,
long-term performance.
, 1. Financial- How are our financial returns (things like ROA,
profits, stock price, etc)?
2. Customer- How do our customers feel about us (things like
number of new or repeat customers, same store sales, etc)?
3. Internal Business Process- How efficient are we in how we do
what we do (things like Speed of serving a customer or time to
create new product).
4. Learning and Growth-What new skills learned by each
employee (trainings offered to employees, new certifications by
employees, advanced degrees achieved by employees)
-The triple bottom line gets at stakeholder's issues, beyond just
shareholder issues
1. people (how does the firm act towards its employees and the
communities in which it operates),
2. the planet (making sure organizations act in a way that
promotes environmental sustainability),
3. profits
Competitive Advantage
-is doing different things or similar things in different ways than
competitors
1. Competitive advantage results in high profits, which attract
competition which limits duration of competitive advantage
2. Most advantage is temporary for this reason (if competitors can
copy the source of the advantage they will)
2026/2027 QUESTIONS AND VERIFIED
CORRECT SOLUTIONS GRADED A+
100% PASS
Understand the steps in the Strategic Management process.
-Establish a vision, mission statement and objectives
-Do Internal and External Analysis
-Formulate Strategy
-Implement Strategy
-Evaluate Performance
What are a company's vision and mission? What are objectives?
How do they relate to the strategic management process?
-Vision: A picture of what the firm wants to be and what it wants
to ultimately achieve. (10,000 ft. view)
-Mission Statement: Encompasses the purpose of the company
and the way the firm competes and its sources of competitive
advantage. (1,000 ft. view)
-Objectives: Operationalization of the mission statement
-Vision, mission statement and objectives should be the basis of
the strategic mgt process
,Understand performance measures and performance referents.
Understand how these are used in assessing organizational
performance
-A performance measure is a metric along which organizations
can be gauged (profits, stock price, and sales) in an attempt to
better understand how well their organizations are competing in
the market.
-A performance referent is a benchmark (other similar firm) used
to make sense of an organization's standing along a performance
measure.
Understand how performance is a multidimensional concept.
-No one measure tells everything about how a firm is performing.
Each metric tells one piece as to how the firm is performing.
-You need to use multiple measures to fully understand how the
firm is doing
Understand what the balanced scorecard and the triple bottom
line are and how they can be used to assess performance.
-The balanced scorecard provides a "balance" between financial
measures and other measures that are important for
understanding organizational activities that lead to sustained,
long-term performance.
, 1. Financial- How are our financial returns (things like ROA,
profits, stock price, etc)?
2. Customer- How do our customers feel about us (things like
number of new or repeat customers, same store sales, etc)?
3. Internal Business Process- How efficient are we in how we do
what we do (things like Speed of serving a customer or time to
create new product).
4. Learning and Growth-What new skills learned by each
employee (trainings offered to employees, new certifications by
employees, advanced degrees achieved by employees)
-The triple bottom line gets at stakeholder's issues, beyond just
shareholder issues
1. people (how does the firm act towards its employees and the
communities in which it operates),
2. the planet (making sure organizations act in a way that
promotes environmental sustainability),
3. profits
Competitive Advantage
-is doing different things or similar things in different ways than
competitors
1. Competitive advantage results in high profits, which attract
competition which limits duration of competitive advantage
2. Most advantage is temporary for this reason (if competitors can
copy the source of the advantage they will)
