MGMT 3013 - Final Exam ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
CHAPTER 1 CHAPTER 1
Strategic Competitiveness achieved when a firm successfully formulates and implements a value-creating
strategy
Strategy an integrated and coordinated set of commitments and actions designed to
exploit core competencies and gain a competitive advantage
Competitive Advantage when a firm implements a strategy that creates superior value for customers and
that its competitors are unable to duplicate or find too costly to imitate
Above-Average Returns returns in excess of what an investor expects to earn from other investments with
a similar amount of risk
Risk an investor's uncertainty about the economic gains or losses that will result from a
particular investment
, Average Returns returns equal to those an investor expects to earn from other investments with a
similar amount of risk
Strategic Management Process The full set of commitments, decisions, and actions required for a firm to achieve
strategic competitiveness and earn above-average returns.
Hyper-competition permanent, ongoing, intense competition brought about in an industry by
advancing technology or changing customer tastes
Globalization the increasing economic interdependence among countries and their
organizations reflected in the flow of goods and services; is a product of a large
number of firms competing against one another in an increasing number of global
economies
Perpetual Innovation describes how rapidly and consistently new, information-intensive technologies
replace older ones
Strategic Flexibility a set of capabilities used to respond to various demands and opportunities
existing in a dynamic and uncertain competitive environment
I/O Model of Above-Average Returns It explains the external environment's dominant influence on a firm's strategic
actions. The model specifies that the industry or segment of an industry in which a
company chooses to compete has a stronger influence on performance than do
the choices managers make inside their organizations.
1. study the external environment(general, industry, competitor), especially the
industry environment
2. locate an industry with high potential for above average returns.
3. identify the strategy called for by the attractive industry to earn above average
returns.
4. develop or acquire assets and skills needed to implement the strategy.
5. use the firms strengths to implement the strategy.
ANSWERS
CHAPTER 1 CHAPTER 1
Strategic Competitiveness achieved when a firm successfully formulates and implements a value-creating
strategy
Strategy an integrated and coordinated set of commitments and actions designed to
exploit core competencies and gain a competitive advantage
Competitive Advantage when a firm implements a strategy that creates superior value for customers and
that its competitors are unable to duplicate or find too costly to imitate
Above-Average Returns returns in excess of what an investor expects to earn from other investments with
a similar amount of risk
Risk an investor's uncertainty about the economic gains or losses that will result from a
particular investment
, Average Returns returns equal to those an investor expects to earn from other investments with a
similar amount of risk
Strategic Management Process The full set of commitments, decisions, and actions required for a firm to achieve
strategic competitiveness and earn above-average returns.
Hyper-competition permanent, ongoing, intense competition brought about in an industry by
advancing technology or changing customer tastes
Globalization the increasing economic interdependence among countries and their
organizations reflected in the flow of goods and services; is a product of a large
number of firms competing against one another in an increasing number of global
economies
Perpetual Innovation describes how rapidly and consistently new, information-intensive technologies
replace older ones
Strategic Flexibility a set of capabilities used to respond to various demands and opportunities
existing in a dynamic and uncertain competitive environment
I/O Model of Above-Average Returns It explains the external environment's dominant influence on a firm's strategic
actions. The model specifies that the industry or segment of an industry in which a
company chooses to compete has a stronger influence on performance than do
the choices managers make inside their organizations.
1. study the external environment(general, industry, competitor), especially the
industry environment
2. locate an industry with high potential for above average returns.
3. identify the strategy called for by the attractive industry to earn above average
returns.
4. develop or acquire assets and skills needed to implement the strategy.
5. use the firms strengths to implement the strategy.
