MGT 4394: Midterm Dr. Lori Anderson
Questions and All Correct Answers.
Mission - Answer The purpose of a company, why it exists. Past and present tense. More
specific than Vision statement.
Vision - Answer The aspiration of a company, what it wants to become or accomplish.
Broader than the mission. Future tense.
Values - Answer The boundaries for accomplishing the Mission & Vision. How the company
will reach those items
Industry Group - Answer All companies doing business within a broad product area.
Strategic Groups - Answer Closest rivals based on set criteria. Used to set the base level
strategy, ID the rivals for Porter's 5 forces, and drive competitive tactics.
Strategic Issue - Answer Identifies the issue blocking the Mission/Vision. Usually stated "How
does....."
PESTEL - Answer Used to evaluate the external general environmental forces on a firm. It is a
general analysis that effects the entire industry group. It does not incorporate a competitive
analysis of firms within the group.
Porter's 5 Forces - Answer Used to evaluate the external effects of key areas in the business
process. Evaluates the competitive environment.
VRIO - Answer Used to analyze a single resource or capability to determine if it provides a
competitive advantage and for how long. Valuable, Rare, costly to Imitate/Inimitable, Organized
for value capture
VCA - Answer Used to evaluate each step in the product creation/support process and
determine the value of each step. Goal is to ID the area that creates the most value (strength) or
the least value (potential weakness).
Unrealized Strategy - Answer
Deliberate Strategy - Answer
, Unrealized strategy - Answer
Intended Strategy - Answer Is the strategy that an organization hopes to execute. Intended
strategies are usually described in detail within an organization's strategic plan.
Emergent Strategy - Answer An emergent strategy is an unplanned strategy that arises in
response to unexpected opportunities and/or challenges. Sometimes emergent strategies result
in disasters.
Realized strategy - Answer is the strategy that an organization actually follows. Realized
strategies are a product of a firm's intended strategy (i.e., what the firm planned to do), the
firm's deliberate strategy (i.e., the parts of the intended strategy that the firm continues to
pursue over time), and its emergent strategy (i.e., what the firm did in reaction to unexpected
opportunities and challenges).
Balanced Scorecard - Answer Using the scorecard helps managers resist the temptation to
fixate on financial measures and instead monitor a diverse set of important measures (Table
2.7). Indeed, the idea behind the framework is to provide a "balance" between financial
measures and other measures that are important for understanding organizational activities
that lead to sustained, long-term performance. The balanced scorecard recommends that
managers gain an overview of the organization's performance by tracking a small number of key
measures that collectively reflect four perspectives: (1) financial, (2) customer, (3) internal
business process, and (4) staff learning and growth (Kaplan & Norton, 1992)
Market-Based Analysis: 2 Key quantitative measures for strategic management - Answer -
Market Share
- Price-Earnings ratio
Market Share - Answer Firm's Total Product Revenue / Total Revenue in the industry or
marketThis measures the percentage of the market that a firm has.For example, if Apple's
revenue from selling iPhones is 25% of all the revenue generated from smartphone sales,
Apple's market share is 25%.
Price-Earnings (PE) Ratio - Answer Stock price / Earnings per Share (EPS)The Price-Earnings
Ratio determines how much it costs to invest in the company to receive $1.00 in earnings.For
example, if one share of stock costs $10, and it produces $2 annually in earnings, the PE ratio is
5, meaning it costs a $5 investment in this company to receive $1 in earnings.The lower the PE
ratio, the better, as far as a simple interpretation goes. However, a higher PE Ratio may indicate
the market's belief that the company is a strong performer and will be growing the stock price.
Key Performance Metrics - Answer - Liquidity Measures
Questions and All Correct Answers.
Mission - Answer The purpose of a company, why it exists. Past and present tense. More
specific than Vision statement.
Vision - Answer The aspiration of a company, what it wants to become or accomplish.
Broader than the mission. Future tense.
Values - Answer The boundaries for accomplishing the Mission & Vision. How the company
will reach those items
Industry Group - Answer All companies doing business within a broad product area.
Strategic Groups - Answer Closest rivals based on set criteria. Used to set the base level
strategy, ID the rivals for Porter's 5 forces, and drive competitive tactics.
Strategic Issue - Answer Identifies the issue blocking the Mission/Vision. Usually stated "How
does....."
PESTEL - Answer Used to evaluate the external general environmental forces on a firm. It is a
general analysis that effects the entire industry group. It does not incorporate a competitive
analysis of firms within the group.
Porter's 5 Forces - Answer Used to evaluate the external effects of key areas in the business
process. Evaluates the competitive environment.
VRIO - Answer Used to analyze a single resource or capability to determine if it provides a
competitive advantage and for how long. Valuable, Rare, costly to Imitate/Inimitable, Organized
for value capture
VCA - Answer Used to evaluate each step in the product creation/support process and
determine the value of each step. Goal is to ID the area that creates the most value (strength) or
the least value (potential weakness).
Unrealized Strategy - Answer
Deliberate Strategy - Answer
, Unrealized strategy - Answer
Intended Strategy - Answer Is the strategy that an organization hopes to execute. Intended
strategies are usually described in detail within an organization's strategic plan.
Emergent Strategy - Answer An emergent strategy is an unplanned strategy that arises in
response to unexpected opportunities and/or challenges. Sometimes emergent strategies result
in disasters.
Realized strategy - Answer is the strategy that an organization actually follows. Realized
strategies are a product of a firm's intended strategy (i.e., what the firm planned to do), the
firm's deliberate strategy (i.e., the parts of the intended strategy that the firm continues to
pursue over time), and its emergent strategy (i.e., what the firm did in reaction to unexpected
opportunities and challenges).
Balanced Scorecard - Answer Using the scorecard helps managers resist the temptation to
fixate on financial measures and instead monitor a diverse set of important measures (Table
2.7). Indeed, the idea behind the framework is to provide a "balance" between financial
measures and other measures that are important for understanding organizational activities
that lead to sustained, long-term performance. The balanced scorecard recommends that
managers gain an overview of the organization's performance by tracking a small number of key
measures that collectively reflect four perspectives: (1) financial, (2) customer, (3) internal
business process, and (4) staff learning and growth (Kaplan & Norton, 1992)
Market-Based Analysis: 2 Key quantitative measures for strategic management - Answer -
Market Share
- Price-Earnings ratio
Market Share - Answer Firm's Total Product Revenue / Total Revenue in the industry or
marketThis measures the percentage of the market that a firm has.For example, if Apple's
revenue from selling iPhones is 25% of all the revenue generated from smartphone sales,
Apple's market share is 25%.
Price-Earnings (PE) Ratio - Answer Stock price / Earnings per Share (EPS)The Price-Earnings
Ratio determines how much it costs to invest in the company to receive $1.00 in earnings.For
example, if one share of stock costs $10, and it produces $2 annually in earnings, the PE ratio is
5, meaning it costs a $5 investment in this company to receive $1 in earnings.The lower the PE
ratio, the better, as far as a simple interpretation goes. However, a higher PE Ratio may indicate
the market's belief that the company is a strong performer and will be growing the stock price.
Key Performance Metrics - Answer - Liquidity Measures
