MGT4893- UTSA Exam 1 Large
Questions with All Complete Answers
2026 Updated.
MGT4893 Exam 1 LARGE - Answer
1. Strategic Competitiveness - Answer achieved when a firm successfully formulates and
implements a value-creating strategy
2. Strategy - Answer an integrated and coordinated set of commitments and actions designed
to exploit core competencies and gain a competitive advantage a firm's theory about how to
gain competitive advantage, or a course of action for achieving a goal
3. Competitive advantage - Answer when it implements a strategy that creates superior value
for customers and competitors are unable to duplicate
4. Above Average Returns - Answer returns in excess of what an investor expects to earn from
other investments with a similar amount of risk
5. Risk - Answer an investor's uncertainty about the economic gains or losses that will result
from a particular investment
6. Average Returns - Answer returns equal to those an investor expects to earn from other
investments with similar amount of risk
7. Globalization - Answer one in which goods, services, people, skills and ideas move freely
across geographic borders
8. Stakeholders - Answer individuals groups and organizations that can affect the firm's vision
and mission are affected by the strategic outcomes achieved and have enforceable claims on
the firm's performance Individuals, groups, and organizations who have a "stake" in the success
of the organization
9. Core competencies - Answer are capabilities that serve as a source of competitive
advantage for a firms over its rivals
10. Strategic Leaders - Answer people located in different areas and levels of the firm using the
strategic management process to select strategic actions that help the firm achieve its vision
and fulfill its mission
,11. What is the I/O model of above average returns? What are the important components of
this model? know definitions and applications of the model - Answer it suggest that the above
average returns are earned when firms are able to effectively study the external environment as
the foundation for identifying an attractive industry and implementing the appropriate
strategy ; the five forces model of competition is an analytical tool used to help firms find the
industry that is the most attractive as measured by its profitability potential it also suggest that
an industry profitability is a function of interactions among the five forces : suppliers, buyer,
rivalry, product substitutes and potential entrants to the industry.
12. Figure 1.2 What is the Resources-based model of above average returns? What are the
important components of this model? Know definitions and applications of the model - Answer
the resource-based model assumes that each organization is a collection of unique resources
and capabilities, the uniqueness of its resources and capabilities is the basis of a firm's strategy
and its ability to earn above-average returns. the core assumptions of the resources based
model is that the firm's unique resources, capabilities and core competencies have more
influence on selecting and using strategies than does the firms external environment. ; 4
components are: Resources, capabilities, core competencies and competitive advantage; If
resources and capabilities fulfill, then they become core competencies , Valuable, rare, costly to
imitate and nonsubstitutable
13. Figure 1.3 What is a vision statement? definition and purpose - Answer a picture of what
the firm wants to be and what it wants to ultimately achieve; short and concise
14. Mission statement - Answer the foundation for a firm's mission; more concrete than
vision; specifies the business in which the firm intends to compete and the customers it intends
to serve; longer and specific
15. How do vision and mission differ? How are they similar? Differ - Answer vision is enduring,
mission can change w/ new environmental conditions
16. What are the strategic competitiveness, strategy, competitive advantage, above-average
returns and the strategic management process? - Answer -strategic competitiveness is
achieved when a firm successfully formulates and implements a value-creating strategy -
strategy is an integrated and coordinated set of commitments and actions designed to exploit
core competencies and gain competitive advantage, CA is when a firm implements a strategy
that creats superior value for customers; competitors are unable to duplicate it or find too
costly to imitate it.; above average returns are returns in excess of what an investor expects to
earn from other investments with a similar amount of risk; strategic management process is
17. What are the characteristics of the current competitive landscape? What tow factors are the
primary drivers of this landscape? What two factors are the primary drivers of this landscape? -
Answer In the current competitive landscape, the nature of competition has changed. As a
result, managers making strategic decisions must adopt a new mindset that is global in
orientation. Firms must learn to compete in highly chaotic environments that produce disorder
,and a great deal of uncertainty. The two primary factors that have created the current
competitive landscape are globalization of industries and markets and rapid and significant
technological change. The implication for business firms is that, to be successful, they must be
able to meet or exceed global performance standards (in terms of such factors as quality, price,
product features, speed to market) and be able to keep up with both the rapid pace of
technological change as well as the rapid diffusion of innovation
18. According to the I/O model, what should a firm do to earn above-average returns? - Answer
The I/O model of above-average returns argues that the external environment is the primary
determinant of firm success, rather than the firm's internal resources. The model has four
underlying assumptions. First, the external environment is assumed to impose pressures and
constraints that determine the strategies that would result in above-average returns. Second,
most firms competing within a particular industry, or in a certain segment of the industry, are
assumed to control similar strategically relevant resources and pursue similar strategies in light
of those resources. Third, resources used to implement strategies are mobile across firms,
which results in resource differences between firms being short-lived. Fourth, organizational
decision makers are assumed to be rational and committed to acting in the firm's best interests
as shown by their profit maximizing behaviors. The key to success according to the I/O model is
to find the most attractive industry (the one with the highest profit potential) in which to
compete
19. What does the resources based model suggest a firm should do to earn above average
returns? - Answer The resource-based model focuses on the firm's internal resources and
capabilities. These resources and capabilities determine the firm's strategy and its ability to earn
above-average returns. The firm's resources are inputs into its production process. Resources
must be formed into capabilities, the capacity to perform a task or activity in an integrative
manner. According to this model, capabilities evolve over time and must be managed
dynamically to achieve above-average returns. Resources and capabilities that give a firm a
competitive advantage are called core competencies. This model assumes that resources are
not highly mobile across firms; consequently, all firms within a particular industry may not
possess the same strategically relevant resources and capabilities. So, different firms will have
different core competencies. The organization's strategy is based on finding the best
environment in which to exploit its core competencies.
20. What are vision and mission? What is their value for the strategic management process? -
Answer The firm's vision is a picture of what it wants to be and what it wants to ultimately
achieve. The firm's mission is based on its vision. It specifies the business(es) in which the firm
intends to compete and the customers it intends to serve. The value of having a vision and
mission is that they inform stakeholders what the firm is, what it seeks to accomplish, and who
it seeks to serve. A successful vision is inspirational. The mission is more concrete and guides
employees' behavior as they achieve the firm's vision. Research shows that an effectively
formed vision and mission positively impact firm performance in terms of growth in sales,
profits, employment, and net worth.
21. What are stakeholders? How do the three primary stakeholder groups influence
organizations? - Answer Stakeholders are the individuals and groups who can affect and are
affected by the strategic outcomes achieved and who have enforceable claims on a firm's
, performance. There are three principal types of stakeholders. First, there are the capital market
stakeholders. These stakeholders include the shareholders and the major suppliers of capital to
the firm. They are most interested in the return on capital in relation to the risk incurred. The
second group of stakeholders is the product market stakeholders. This group includes
customers, suppliers, host communities, and unions representing workers. The customers seek
a reliable product at the lowest possible price. The suppliers seek loyal customers willing to pay
the highest sustainable price. Host communities want companies willing to be long-term
employees and providers of tax revenues. Union officials want secure jobs with good working
conditions for the workers they represent. The final group of stakeholders is the organizational
stakeholders. This group includes the employees (both managerial and non-managerial). These
stakeholders expect a firm to provide a dynamic, stimulating, and rewarding work environment.
The firm can most easily satisfy all stakeholders if it earns above average returns. If the firm
does not earn above-average returns, it must prioritize its stakeholders by their power, urgency,
and degree of importance to the firm. The firm must then make trade-offs among the
stakeholders
22. How would you describe the work of strategic leaders? - Answer The firm's strategic
leaders include the CEO and top-level managers, but they also include organizational members
who have been delegated strategic responsibilities. Strategic leaders use the strategic
management process to help the firm reach its vision and mission. Mapping an industry's profit
pool is one way strategic leaders can anticipate the profitability of different strategic decisions.
A profit pool is the total profits earned in an industry along all points in the value chain. This
helps the leaders determine where the primary sources of profit in the industry are located and
allows them to take actions to tap these sources.
23. What are the elements of the strategic management process? How are they interrelated? -
Answer The strategic management process consists of three primary processes: analysis
(chapters 2 & 3), strategy formulation (chapters 4-9) and implementation (chapters 10-13).
Analysis. Analysis involves the development of an understanding of the external environment
(Chapter 2) and internal organization (Chapter 3). These analyses are completed to identify
opportunities and threats in the external environment and to decide how to use the resources,
capabilities, and core competencies in the firm's internal organization to pursue opportunities
and overcome threats. Formulation. With knowledge about its external environment and
internal organization, the firm forms its vision and mission (Chapter 1) and makes decisions as
to what strategies to utilize to provide returns to shareholders. These decisions involve the
selection of business-level strategies (Chapter 4), which are the firm's actions designed to
exploit its competitive advantage over rivals), and its corporate level strategy (Chapter 6), which
is the firm's scope, which ranges from a single product market to unrelated, diversified firm
competing in multiple product markets. The ability to utilize a strategy will be impacted by
competing firms. This is described as the dynamics of competition (Chapter 5). Formulation
involves the selection of mechanisms such as acquisition and restructuring the firm's portfolio
of businesses (Chapter 7) and the use of cooperative strategies (Chapter 9) wherein firms form a
partnership to share their resources and capabilities in order to develop a competitive
advantage. The firm must also make decisions on the span, business level strategies, and
mechanisms for international expansion (Chapter 8). Implementation. Implementation is
putting the formulated plan into action. Implementation is facilitated by different mechanisms
used to g
Questions with All Complete Answers
2026 Updated.
MGT4893 Exam 1 LARGE - Answer
1. Strategic Competitiveness - Answer achieved when a firm successfully formulates and
implements a value-creating strategy
2. Strategy - Answer an integrated and coordinated set of commitments and actions designed
to exploit core competencies and gain a competitive advantage a firm's theory about how to
gain competitive advantage, or a course of action for achieving a goal
3. Competitive advantage - Answer when it implements a strategy that creates superior value
for customers and competitors are unable to duplicate
4. Above Average Returns - Answer returns in excess of what an investor expects to earn from
other investments with a similar amount of risk
5. Risk - Answer an investor's uncertainty about the economic gains or losses that will result
from a particular investment
6. Average Returns - Answer returns equal to those an investor expects to earn from other
investments with similar amount of risk
7. Globalization - Answer one in which goods, services, people, skills and ideas move freely
across geographic borders
8. Stakeholders - Answer individuals groups and organizations that can affect the firm's vision
and mission are affected by the strategic outcomes achieved and have enforceable claims on
the firm's performance Individuals, groups, and organizations who have a "stake" in the success
of the organization
9. Core competencies - Answer are capabilities that serve as a source of competitive
advantage for a firms over its rivals
10. Strategic Leaders - Answer people located in different areas and levels of the firm using the
strategic management process to select strategic actions that help the firm achieve its vision
and fulfill its mission
,11. What is the I/O model of above average returns? What are the important components of
this model? know definitions and applications of the model - Answer it suggest that the above
average returns are earned when firms are able to effectively study the external environment as
the foundation for identifying an attractive industry and implementing the appropriate
strategy ; the five forces model of competition is an analytical tool used to help firms find the
industry that is the most attractive as measured by its profitability potential it also suggest that
an industry profitability is a function of interactions among the five forces : suppliers, buyer,
rivalry, product substitutes and potential entrants to the industry.
12. Figure 1.2 What is the Resources-based model of above average returns? What are the
important components of this model? Know definitions and applications of the model - Answer
the resource-based model assumes that each organization is a collection of unique resources
and capabilities, the uniqueness of its resources and capabilities is the basis of a firm's strategy
and its ability to earn above-average returns. the core assumptions of the resources based
model is that the firm's unique resources, capabilities and core competencies have more
influence on selecting and using strategies than does the firms external environment. ; 4
components are: Resources, capabilities, core competencies and competitive advantage; If
resources and capabilities fulfill, then they become core competencies , Valuable, rare, costly to
imitate and nonsubstitutable
13. Figure 1.3 What is a vision statement? definition and purpose - Answer a picture of what
the firm wants to be and what it wants to ultimately achieve; short and concise
14. Mission statement - Answer the foundation for a firm's mission; more concrete than
vision; specifies the business in which the firm intends to compete and the customers it intends
to serve; longer and specific
15. How do vision and mission differ? How are they similar? Differ - Answer vision is enduring,
mission can change w/ new environmental conditions
16. What are the strategic competitiveness, strategy, competitive advantage, above-average
returns and the strategic management process? - Answer -strategic competitiveness is
achieved when a firm successfully formulates and implements a value-creating strategy -
strategy is an integrated and coordinated set of commitments and actions designed to exploit
core competencies and gain competitive advantage, CA is when a firm implements a strategy
that creats superior value for customers; competitors are unable to duplicate it or find too
costly to imitate it.; above average returns are returns in excess of what an investor expects to
earn from other investments with a similar amount of risk; strategic management process is
17. What are the characteristics of the current competitive landscape? What tow factors are the
primary drivers of this landscape? What two factors are the primary drivers of this landscape? -
Answer In the current competitive landscape, the nature of competition has changed. As a
result, managers making strategic decisions must adopt a new mindset that is global in
orientation. Firms must learn to compete in highly chaotic environments that produce disorder
,and a great deal of uncertainty. The two primary factors that have created the current
competitive landscape are globalization of industries and markets and rapid and significant
technological change. The implication for business firms is that, to be successful, they must be
able to meet or exceed global performance standards (in terms of such factors as quality, price,
product features, speed to market) and be able to keep up with both the rapid pace of
technological change as well as the rapid diffusion of innovation
18. According to the I/O model, what should a firm do to earn above-average returns? - Answer
The I/O model of above-average returns argues that the external environment is the primary
determinant of firm success, rather than the firm's internal resources. The model has four
underlying assumptions. First, the external environment is assumed to impose pressures and
constraints that determine the strategies that would result in above-average returns. Second,
most firms competing within a particular industry, or in a certain segment of the industry, are
assumed to control similar strategically relevant resources and pursue similar strategies in light
of those resources. Third, resources used to implement strategies are mobile across firms,
which results in resource differences between firms being short-lived. Fourth, organizational
decision makers are assumed to be rational and committed to acting in the firm's best interests
as shown by their profit maximizing behaviors. The key to success according to the I/O model is
to find the most attractive industry (the one with the highest profit potential) in which to
compete
19. What does the resources based model suggest a firm should do to earn above average
returns? - Answer The resource-based model focuses on the firm's internal resources and
capabilities. These resources and capabilities determine the firm's strategy and its ability to earn
above-average returns. The firm's resources are inputs into its production process. Resources
must be formed into capabilities, the capacity to perform a task or activity in an integrative
manner. According to this model, capabilities evolve over time and must be managed
dynamically to achieve above-average returns. Resources and capabilities that give a firm a
competitive advantage are called core competencies. This model assumes that resources are
not highly mobile across firms; consequently, all firms within a particular industry may not
possess the same strategically relevant resources and capabilities. So, different firms will have
different core competencies. The organization's strategy is based on finding the best
environment in which to exploit its core competencies.
20. What are vision and mission? What is their value for the strategic management process? -
Answer The firm's vision is a picture of what it wants to be and what it wants to ultimately
achieve. The firm's mission is based on its vision. It specifies the business(es) in which the firm
intends to compete and the customers it intends to serve. The value of having a vision and
mission is that they inform stakeholders what the firm is, what it seeks to accomplish, and who
it seeks to serve. A successful vision is inspirational. The mission is more concrete and guides
employees' behavior as they achieve the firm's vision. Research shows that an effectively
formed vision and mission positively impact firm performance in terms of growth in sales,
profits, employment, and net worth.
21. What are stakeholders? How do the three primary stakeholder groups influence
organizations? - Answer Stakeholders are the individuals and groups who can affect and are
affected by the strategic outcomes achieved and who have enforceable claims on a firm's
, performance. There are three principal types of stakeholders. First, there are the capital market
stakeholders. These stakeholders include the shareholders and the major suppliers of capital to
the firm. They are most interested in the return on capital in relation to the risk incurred. The
second group of stakeholders is the product market stakeholders. This group includes
customers, suppliers, host communities, and unions representing workers. The customers seek
a reliable product at the lowest possible price. The suppliers seek loyal customers willing to pay
the highest sustainable price. Host communities want companies willing to be long-term
employees and providers of tax revenues. Union officials want secure jobs with good working
conditions for the workers they represent. The final group of stakeholders is the organizational
stakeholders. This group includes the employees (both managerial and non-managerial). These
stakeholders expect a firm to provide a dynamic, stimulating, and rewarding work environment.
The firm can most easily satisfy all stakeholders if it earns above average returns. If the firm
does not earn above-average returns, it must prioritize its stakeholders by their power, urgency,
and degree of importance to the firm. The firm must then make trade-offs among the
stakeholders
22. How would you describe the work of strategic leaders? - Answer The firm's strategic
leaders include the CEO and top-level managers, but they also include organizational members
who have been delegated strategic responsibilities. Strategic leaders use the strategic
management process to help the firm reach its vision and mission. Mapping an industry's profit
pool is one way strategic leaders can anticipate the profitability of different strategic decisions.
A profit pool is the total profits earned in an industry along all points in the value chain. This
helps the leaders determine where the primary sources of profit in the industry are located and
allows them to take actions to tap these sources.
23. What are the elements of the strategic management process? How are they interrelated? -
Answer The strategic management process consists of three primary processes: analysis
(chapters 2 & 3), strategy formulation (chapters 4-9) and implementation (chapters 10-13).
Analysis. Analysis involves the development of an understanding of the external environment
(Chapter 2) and internal organization (Chapter 3). These analyses are completed to identify
opportunities and threats in the external environment and to decide how to use the resources,
capabilities, and core competencies in the firm's internal organization to pursue opportunities
and overcome threats. Formulation. With knowledge about its external environment and
internal organization, the firm forms its vision and mission (Chapter 1) and makes decisions as
to what strategies to utilize to provide returns to shareholders. These decisions involve the
selection of business-level strategies (Chapter 4), which are the firm's actions designed to
exploit its competitive advantage over rivals), and its corporate level strategy (Chapter 6), which
is the firm's scope, which ranges from a single product market to unrelated, diversified firm
competing in multiple product markets. The ability to utilize a strategy will be impacted by
competing firms. This is described as the dynamics of competition (Chapter 5). Formulation
involves the selection of mechanisms such as acquisition and restructuring the firm's portfolio
of businesses (Chapter 7) and the use of cooperative strategies (Chapter 9) wherein firms form a
partnership to share their resources and capabilities in order to develop a competitive
advantage. The firm must also make decisions on the span, business level strategies, and
mechanisms for international expansion (Chapter 8). Implementation. Implementation is
putting the formulated plan into action. Implementation is facilitated by different mechanisms
used to g
