WPC 480 FINAL EXAM ACTUAL QUESTIONS
AND CORRECT ANSWERS
◉ 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?
AND CORRECT ANSWERS
◉ 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?
