WPC 480 FINAL ACTUAL TEST PAPER
COMPLETE QUESTIONS AND ANSWERS
FULL SOLUTION
●● What are the 2 business analysis?
Answer: Internal and External.
●● What are the 3 business strategies?
Answer: 1) Cost, 2) Differentiation, 3) Innovation.
●● What is competitive advantage?
Answer: Superior performance relative to other competitors in the same
industry or the industry average.
●● How do you assess competitive advantage?
Answer: Compare firm performance to a benchmark.
●● What is sustainable competitive advantage?
Answer: Outperforming competitors or the industry average over a
prolonged period of time.
●● What is competitive disadvantage?
,Answer: Underperformance relative to other competitors in the same
industry or the industry average.
●● What is competitive parity?
Answer: A performance of two or more firms at the same level.
●● What is the key to successful strategy and gain competitive
advantages?
Answer: Combine activities for a unique position in an industry.
●● Where does competitive advantage come from?
Answer: 1) Performing different activities, or 2) Performing the same
activities differently than rivals.
●● What does strategic positioning require?
Answer: Trade-offs.
●● What is the fist step of a strategic goal to gain and sustain
competitive advantage?
Answer: Define a firm's vision, mission, and values.
●● What is a firm's vision?
Answer: What do we want to accomplish?
,●● What is a firm's mission?
Answer: How do we accomplish our goals?
●● What is a firm's values?
Answer: What commitments do we make? What guardrails do we put in
place? How can we act legally and ethically in pursuit of the vision and
mission?
●● What are the key aspects of an effective vision?
Answer: 1) Capture an organization's aspiration . 2) Identifies what it
ultimately wants to accomplish. 3) Motivates employees to aim for a
target. 4) Leaves room for contributions.
●● What is a product-oriented vision statement?
Answer: Defines a business in terms of a good or service provided.
●● What is a customer-oriented vision statement?
Answer: Defines a business in terms of providing solutions to customer
needs.
●● What things can a firm do to vision statements and firm performance
to be positively associated?
, Answer: 1) The vision is customer-oriented, 2) Internal stakeholders
help define the vision, 3) Organizational structures align with the vision
statement.
●● What does a firm's mission statement do?
Answer: 1) Describes how to accomplish goals and 2) Describes what
the organization does (the products and services it provides and the
markets in which it competes).
●● What is the difference between vision and mission statements?
Answer: Vision statements: WHAT an organization wants to accomplish
(ie: to). Mission statements: HOW the vision will be accomplished (ie:
by).
●● What does establishing a firm's value do?
Answer: Guides an organization to achieve its vision and fulfill its
mission.
●● Who are the stakeholders?
Answer: Organizations, groups, individuals that can affect or are
affected by a firm's actions and have a vested claim or interest in the
performance and continued survival of the firm.
●● What is a firm's stakeholder strategy?
COMPLETE QUESTIONS AND ANSWERS
FULL SOLUTION
●● What are the 2 business analysis?
Answer: Internal and External.
●● What are the 3 business strategies?
Answer: 1) Cost, 2) Differentiation, 3) Innovation.
●● What is competitive advantage?
Answer: Superior performance relative to other competitors in the same
industry or the industry average.
●● How do you assess competitive advantage?
Answer: Compare firm performance to a benchmark.
●● What is sustainable competitive advantage?
Answer: Outperforming competitors or the industry average over a
prolonged period of time.
●● What is competitive disadvantage?
,Answer: Underperformance relative to other competitors in the same
industry or the industry average.
●● What is competitive parity?
Answer: A performance of two or more firms at the same level.
●● What is the key to successful strategy and gain competitive
advantages?
Answer: Combine activities for a unique position in an industry.
●● Where does competitive advantage come from?
Answer: 1) Performing different activities, or 2) Performing the same
activities differently than rivals.
●● What does strategic positioning require?
Answer: Trade-offs.
●● What is the fist step of a strategic goal to gain and sustain
competitive advantage?
Answer: Define a firm's vision, mission, and values.
●● What is a firm's vision?
Answer: What do we want to accomplish?
,●● What is a firm's mission?
Answer: How do we accomplish our goals?
●● What is a firm's values?
Answer: What commitments do we make? What guardrails do we put in
place? How can we act legally and ethically in pursuit of the vision and
mission?
●● What are the key aspects of an effective vision?
Answer: 1) Capture an organization's aspiration . 2) Identifies what it
ultimately wants to accomplish. 3) Motivates employees to aim for a
target. 4) Leaves room for contributions.
●● What is a product-oriented vision statement?
Answer: Defines a business in terms of a good or service provided.
●● What is a customer-oriented vision statement?
Answer: Defines a business in terms of providing solutions to customer
needs.
●● What things can a firm do to vision statements and firm performance
to be positively associated?
, Answer: 1) The vision is customer-oriented, 2) Internal stakeholders
help define the vision, 3) Organizational structures align with the vision
statement.
●● What does a firm's mission statement do?
Answer: 1) Describes how to accomplish goals and 2) Describes what
the organization does (the products and services it provides and the
markets in which it competes).
●● What is the difference between vision and mission statements?
Answer: Vision statements: WHAT an organization wants to accomplish
(ie: to). Mission statements: HOW the vision will be accomplished (ie:
by).
●● What does establishing a firm's value do?
Answer: Guides an organization to achieve its vision and fulfill its
mission.
●● Who are the stakeholders?
Answer: Organizations, groups, individuals that can affect or are
affected by a firm's actions and have a vested claim or interest in the
performance and continued survival of the firm.
●● What is a firm's stakeholder strategy?
