WPC 480 Final Exam
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
What is a customer-oriented vision statement? - CORRECT ANSWER-Defines a business in terms
of providing solutions to customer needs.
What things can a firm do to vision statements and firm performance to be positively
associated? - CORRECT ANSWER-1) The vision is customer-oriented, 2) Internal stakeholders
help define the vision, 3) Organizational structures align with the vision statement.
What does a firm's mission statement do? - CORRECT ANSWER-1) Describes how to accomplish
goals and 2) Describes what the organization does (the products and services it provides and
the markets in which it competes).
What is the difference between vision and mission statements? - CORRECT ANSWER-Vision
statements: WHAT an organization wants to accomplish (ie: to). Mission statements: HOW the
vision will be accomplished (ie: by).
What does establishing a firm's value do? - CORRECT ANSWER-Guides an organization to
achieve its vision and fulfill its mission.
Who are the stakeholders? - CORRECT ANSWER-Organizations, groups, individuals that can
affect or are affected by a firm's actions and have a vested claim or interest in the performance
and continued survival of the firm.
,What is a firm's stakeholder strategy? - CORRECT ANSWER-1) Managing stakeholders in order to
gain and sustain competitive advantage, 2) Benefits of effective stakeholder strategy to firm
performance.
What are the layers of the corporate social responsibility pyramid (from the top-down)? -
CORRECT ANSWER-1) Philanthropic responsibilities, 2) Ethical responsibilities, 3) Legal
responsibilities, 4) Economic Responsibilities.
What is strategic leadership? - CORRECT ANSWER-1) Successful use of power and influence, 2)
Directing the activities of others, 3) Pursuing an organization's goals, 4) Enabling organizational
competitive advantage, 5) Upper Echelon's Theory (organizational outcomes reflect the values
and attributes of the top management team).
What is the AFI Framework for Top-Down strategic planning? - CORRECT ANSWER-Analysis,
Formulation, Implementation
What are the 3 types of strategies? - CORRECT ANSWER-1) Intended strategy, 2) Emergent
strategy, 3) Realized strategy.
What is intended strategy? - CORRECT ANSWER-The outcome of a rational and structured top-
down strategic plan.
What is emergent strategy? - CORRECT ANSWER-Any unplanned strategic initiative, bubbles up
from the bottom of the organization, can influence and shape a firm's overall strategy. (ie:
Starbucks manager creating the frappuccino)
What is realized strategy? - CORRECT ANSWER-Combination of intended and emergent strategy.
What are the 2 EXTERNAL business analysis models? - CORRECT ANSWER-1) The PESTEL
Framework, 2) The 5 Forces Model (Porter's).
,Why do we want to use the PESTEL Framework in understanding the external environment? -
CORRECT ANSWER-It helps us identify the threats and opportunities that a firm faces in its
industry.
What does PESTEL stand for? - CORRECT ANSWER-Political factors, Economic factors,
Sociocultural factors, Technological factors, Ecological factors, Legal factors.
What are the Political factors? - CORRECT ANSWER-Processes and actions of government bodies
(lobbying, public relations, contributions, litigations).
What are the Economic factors? - CORRECT ANSWER-Macro economic climates (growth rates,
employment, interest rates, price stability, currency exchange rate).
What are the Sociocultural factors? - CORRECT ANSWER-Demographic trends (cultures, norms,
and values).
What are the Technological factors? - CORRECT ANSWER-Innovations in process and product
technology.
What are the Ecological factors? - CORRECT ANSWER-Involve environmental issues (natural
environment, global warming, sustainable economic growth).
What are the Legal factors? - CORRECT ANSWER-Official outcomes of political processes
((de)regulations, court decisions, laws).
What is an industry? - CORRECT ANSWER-Group of incumbent (current) companies with
relatively the same set of suppliers and buyers and tend to offer similar products and services.
, What is the purpose of the Industry Analysis method? - CORRECT ANSWER-1) To identify an
industry's profit potential, and 2) Derive implications for a firm's strategic position.
What does the 5 forces model help us determine? - CORRECT ANSWER-The overall
attractiveness and the profit potential of an industry and shape a firm's competitive strategy.
What are the 5 Forces? - CORRECT ANSWER-1) Threat of Entry, 2) Threat of Substitutes, 3)
Power of Suppliers, 4) Power of Buyers, 5) Rivalry among existing competitors.
What are the 3 Competition and Rivalry forces? - CORRECT ANSWER-1) Threat of Entry, 2)
Rivalry among existing competitors, 3) Threat of Substitutes.
What are the 3 Power and Dependence forces? - CORRECT ANSWER-1) Power of Suppliers, 2)
Rivalry among existing competitors, 3) Power of Buyers.
What is Treat of Entry? - CORRECT ANSWER-Entry barriers - economies of scale, network
effects, switching costs, capital requirements, advantage independent of scale, government
regulation, credible threat of retaliation.
What is Threat of Substitutes? - CORRECT ANSWER-1) Substitutes offers an attractive price-
performance trade-off, 2) Buyer's switching cost to the substitute.
What is Power of Suppliers? - CORRECT ANSWER-1) Concentrated (or limited) suppliers, 2)
Suppliers dependence on the focal industry, 3) Incumbent firms supplier switching costs, 4)
Suppliers offering differentiated products (no supplier substitutes), 5)Likelihood of forward
integration.
What is Power of Buyers? - CORRECT ANSWER-1) Concentrated or limited number of buyers, 2)
Standardization of products sold to buyers, 3) Buyers face low or no switching costs, 4)
Likelihood of backward integration, 5) Buyers price sensitivity and pressure to achieve higher
product quality.
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
What is a customer-oriented vision statement? - CORRECT ANSWER-Defines a business in terms
of providing solutions to customer needs.
What things can a firm do to vision statements and firm performance to be positively
associated? - CORRECT ANSWER-1) The vision is customer-oriented, 2) Internal stakeholders
help define the vision, 3) Organizational structures align with the vision statement.
What does a firm's mission statement do? - CORRECT ANSWER-1) Describes how to accomplish
goals and 2) Describes what the organization does (the products and services it provides and
the markets in which it competes).
What is the difference between vision and mission statements? - CORRECT ANSWER-Vision
statements: WHAT an organization wants to accomplish (ie: to). Mission statements: HOW the
vision will be accomplished (ie: by).
What does establishing a firm's value do? - CORRECT ANSWER-Guides an organization to
achieve its vision and fulfill its mission.
Who are the stakeholders? - CORRECT ANSWER-Organizations, groups, individuals that can
affect or are affected by a firm's actions and have a vested claim or interest in the performance
and continued survival of the firm.
,What is a firm's stakeholder strategy? - CORRECT ANSWER-1) Managing stakeholders in order to
gain and sustain competitive advantage, 2) Benefits of effective stakeholder strategy to firm
performance.
What are the layers of the corporate social responsibility pyramid (from the top-down)? -
CORRECT ANSWER-1) Philanthropic responsibilities, 2) Ethical responsibilities, 3) Legal
responsibilities, 4) Economic Responsibilities.
What is strategic leadership? - CORRECT ANSWER-1) Successful use of power and influence, 2)
Directing the activities of others, 3) Pursuing an organization's goals, 4) Enabling organizational
competitive advantage, 5) Upper Echelon's Theory (organizational outcomes reflect the values
and attributes of the top management team).
What is the AFI Framework for Top-Down strategic planning? - CORRECT ANSWER-Analysis,
Formulation, Implementation
What are the 3 types of strategies? - CORRECT ANSWER-1) Intended strategy, 2) Emergent
strategy, 3) Realized strategy.
What is intended strategy? - CORRECT ANSWER-The outcome of a rational and structured top-
down strategic plan.
What is emergent strategy? - CORRECT ANSWER-Any unplanned strategic initiative, bubbles up
from the bottom of the organization, can influence and shape a firm's overall strategy. (ie:
Starbucks manager creating the frappuccino)
What is realized strategy? - CORRECT ANSWER-Combination of intended and emergent strategy.
What are the 2 EXTERNAL business analysis models? - CORRECT ANSWER-1) The PESTEL
Framework, 2) The 5 Forces Model (Porter's).
,Why do we want to use the PESTEL Framework in understanding the external environment? -
CORRECT ANSWER-It helps us identify the threats and opportunities that a firm faces in its
industry.
What does PESTEL stand for? - CORRECT ANSWER-Political factors, Economic factors,
Sociocultural factors, Technological factors, Ecological factors, Legal factors.
What are the Political factors? - CORRECT ANSWER-Processes and actions of government bodies
(lobbying, public relations, contributions, litigations).
What are the Economic factors? - CORRECT ANSWER-Macro economic climates (growth rates,
employment, interest rates, price stability, currency exchange rate).
What are the Sociocultural factors? - CORRECT ANSWER-Demographic trends (cultures, norms,
and values).
What are the Technological factors? - CORRECT ANSWER-Innovations in process and product
technology.
What are the Ecological factors? - CORRECT ANSWER-Involve environmental issues (natural
environment, global warming, sustainable economic growth).
What are the Legal factors? - CORRECT ANSWER-Official outcomes of political processes
((de)regulations, court decisions, laws).
What is an industry? - CORRECT ANSWER-Group of incumbent (current) companies with
relatively the same set of suppliers and buyers and tend to offer similar products and services.
, What is the purpose of the Industry Analysis method? - CORRECT ANSWER-1) To identify an
industry's profit potential, and 2) Derive implications for a firm's strategic position.
What does the 5 forces model help us determine? - CORRECT ANSWER-The overall
attractiveness and the profit potential of an industry and shape a firm's competitive strategy.
What are the 5 Forces? - CORRECT ANSWER-1) Threat of Entry, 2) Threat of Substitutes, 3)
Power of Suppliers, 4) Power of Buyers, 5) Rivalry among existing competitors.
What are the 3 Competition and Rivalry forces? - CORRECT ANSWER-1) Threat of Entry, 2)
Rivalry among existing competitors, 3) Threat of Substitutes.
What are the 3 Power and Dependence forces? - CORRECT ANSWER-1) Power of Suppliers, 2)
Rivalry among existing competitors, 3) Power of Buyers.
What is Treat of Entry? - CORRECT ANSWER-Entry barriers - economies of scale, network
effects, switching costs, capital requirements, advantage independent of scale, government
regulation, credible threat of retaliation.
What is Threat of Substitutes? - CORRECT ANSWER-1) Substitutes offers an attractive price-
performance trade-off, 2) Buyer's switching cost to the substitute.
What is Power of Suppliers? - CORRECT ANSWER-1) Concentrated (or limited) suppliers, 2)
Suppliers dependence on the focal industry, 3) Incumbent firms supplier switching costs, 4)
Suppliers offering differentiated products (no supplier substitutes), 5)Likelihood of forward
integration.
What is Power of Buyers? - CORRECT ANSWER-1) Concentrated or limited number of buyers, 2)
Standardization of products sold to buyers, 3) Buyers face low or no switching costs, 4)
Likelihood of backward integration, 5) Buyers price sensitivity and pressure to achieve higher
product quality.
