STRATEGIC MANAGEMENT AND BUSINESS POLICY GLOBALIZATION COMPREHENSIVE EXAM STUDY GUIDE COMPLETE QUESTIONS AND SOLUTIONS

STRATEGIC MANAGEMENT AND BUSINESS
POLICY GLOBALIZATION
COMPREHENSIVE EXAM STUDY GUIDE
COMPLETE QUESTIONS AND SOLUTIONS

●● Strategic Management Process (Steps)
Answer: Internal and external analysis, vision and mission, strategy
formulation, implementation, strategic competitiveness


●● Strategy
Answer: Integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
(what they will and will not do)


●● Competitive Advantage
Answer: A firm implements a strategy that creates superior value for
customers and that competitors are unable to duplicate or find it too
costly (can have more than one)


●● How long does a competitive advantage last?
Answer: Until other competitors are able to acquire the skills needed to
duplicate the benefits of a firm's value-creating strategy, availability of
substitutes of core competence

, ●● Above-Average Returns
Answer: Returns in excess of what an investor expects to earn from
other investments with a similar amount of risk


●● Risk
Answer: Investor's uncertainty about the economic gains or losses that
will result from a particular investment


●● How are returns measured?
Answer: Accounting: return on assets, equity, sales; Finance: monthly
stock returns, annual sales, growth


●● Average Returns
Answer: Returns equal to those an investor expects to earn from other
investments with a similar amount of risk, firms that have no
competitive advantage


●● Strategic Management Process
Answer: The full set of commitments, decisions, and actions required for
a firm to achieve strategic competitiveness and earn above-average
returns, dynamic/always changing


●● ASP Model