MGMT 449 EXAM 1 VERIFIED STUDY GUIDE
Competitive Advantage - Answers - a firm's resources and capabilities that enable it to
overcome the competitive forces in its industry.
Two Fundamental Questions:
1) How SHOULD we complete in order to create a CA in the marketplace?
2) How CAN we create CA in the market that is Unique, Valuable, and difficult to
compy/imitate?
Operational Effectiveness - Answers - Performing similar activities better than rivals
Stakeholders - Answers - firms preforming similar activities better than rivals
Short term vs. Long Term - Answers - Need to incorporate short-term and long-term
perspectives ("creative tension")
1) Must maintain both a vision for the future of the organization and focus on presenting
needs
2) Financial methods: pressure on short-term performance targets
3) Corporate leaders often take a short-term approach to the detriment of creating long-
run shareholder value
Effectiveness - Answers - tailoring actions to the needs of an organization rather than
wasting effort or "doing the right thing"
Efficiency - Answers - Performing actions at a low cost relative to a benchmark or "doing
things right"
Ambidexterity - Answers - The challenge managers face of BOTH aligning resources to
take advantage of existing product markets and proactively exploring new opportunities
- Short term = efficienty
- Long term = effectiveness
Intended Strategy - Answers - A strategy in which organizational decisions are
determined only by analysis
Unrealized Strategy - Answers - Intended Strategy rarely survives original form -
unforeseen environmental developments, unanticipated resource constraints, or
changes in managerial preferences may result in at least some parts of the intended
strategy remaining unrealized
Deliberate Strategy - Answers - Analysis (deliberate)
Emergent Strategy - Answers - unforeseen environmental developments, unanticipated
resource changes, and manager preferences
, Realized Strategy - Answers - A strategy in which organizational decisions are
determined by BOTH analysis and unforeseen development, unanticipated resource
constraints, or changes in managerial preferences
Zero Sum - Answers - The various stakeholders compete for the organization's
resources - the gain of one is the loss of another
-- Rooted in the traditional conflict between workers and management
Stakeholder Symbiosis - Answers - Stakeholders are dependent upon each other for
their success and well-being
Stakeholder's Nature of Claims - Answers - IMAGE
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Social Responsibility - Answers - The expectation that businesses or individuals will
strive to improve the overall welfare of society
-- managers must take active steps to make society better by virtue of the business
being in existence
-- Firms must create a SHARED view
Triple Bottom Line - Answers - Evaluates the firm's performance -- takes into account
financial, social, and environmental performance
--Social and environmental issues can ultimately become environmental performance
--Environmental values are now becoming a central part of their cultures and
management process
--Sustainability is being increasingly recognized as a source of cost efficiencies and
revenue growth
Vision - Answers - A goal that is "massively inspiring, overarching, and long term" -
organizational goal(s) that evoke(s) powerful and compelling mental images -- of
SHARED future, accommodates EMERGENT strategy
Mission - Answers - a set of organizational goals that identifies the purpose of the
organization, its basis of competition and competitive advantage
-- Effective missions incorporate the concept of stakeholder management, suggesting
that organizations must respond to multiple constituencies, accommodates EMERGENT
strategy
Competitive Advantage - Answers - a firm's resources and capabilities that enable it to
overcome the competitive forces in its industry.
Two Fundamental Questions:
1) How SHOULD we complete in order to create a CA in the marketplace?
2) How CAN we create CA in the market that is Unique, Valuable, and difficult to
compy/imitate?
Operational Effectiveness - Answers - Performing similar activities better than rivals
Stakeholders - Answers - firms preforming similar activities better than rivals
Short term vs. Long Term - Answers - Need to incorporate short-term and long-term
perspectives ("creative tension")
1) Must maintain both a vision for the future of the organization and focus on presenting
needs
2) Financial methods: pressure on short-term performance targets
3) Corporate leaders often take a short-term approach to the detriment of creating long-
run shareholder value
Effectiveness - Answers - tailoring actions to the needs of an organization rather than
wasting effort or "doing the right thing"
Efficiency - Answers - Performing actions at a low cost relative to a benchmark or "doing
things right"
Ambidexterity - Answers - The challenge managers face of BOTH aligning resources to
take advantage of existing product markets and proactively exploring new opportunities
- Short term = efficienty
- Long term = effectiveness
Intended Strategy - Answers - A strategy in which organizational decisions are
determined only by analysis
Unrealized Strategy - Answers - Intended Strategy rarely survives original form -
unforeseen environmental developments, unanticipated resource constraints, or
changes in managerial preferences may result in at least some parts of the intended
strategy remaining unrealized
Deliberate Strategy - Answers - Analysis (deliberate)
Emergent Strategy - Answers - unforeseen environmental developments, unanticipated
resource changes, and manager preferences
, Realized Strategy - Answers - A strategy in which organizational decisions are
determined by BOTH analysis and unforeseen development, unanticipated resource
constraints, or changes in managerial preferences
Zero Sum - Answers - The various stakeholders compete for the organization's
resources - the gain of one is the loss of another
-- Rooted in the traditional conflict between workers and management
Stakeholder Symbiosis - Answers - Stakeholders are dependent upon each other for
their success and well-being
Stakeholder's Nature of Claims - Answers - IMAGE
IMAGE
IMAGE
IMAGE
IMAGE
-
-
-
Social Responsibility - Answers - The expectation that businesses or individuals will
strive to improve the overall welfare of society
-- managers must take active steps to make society better by virtue of the business
being in existence
-- Firms must create a SHARED view
Triple Bottom Line - Answers - Evaluates the firm's performance -- takes into account
financial, social, and environmental performance
--Social and environmental issues can ultimately become environmental performance
--Environmental values are now becoming a central part of their cultures and
management process
--Sustainability is being increasingly recognized as a source of cost efficiencies and
revenue growth
Vision - Answers - A goal that is "massively inspiring, overarching, and long term" -
organizational goal(s) that evoke(s) powerful and compelling mental images -- of
SHARED future, accommodates EMERGENT strategy
Mission - Answers - a set of organizational goals that identifies the purpose of the
organization, its basis of competition and competitive advantage
-- Effective missions incorporate the concept of stakeholder management, suggesting
that organizations must respond to multiple constituencies, accommodates EMERGENT
strategy
