BCOR 2304 Final Exam Test Questions and Answers Rated A
a set of goal-oriented actions a firm takes to gain and
strategy
sustain better performance over competitors
combines analysis, formulation, and implementation in
strategy managment finding competitive advantage
mastery= view organization as a whole
competitive parity two or more firms perform at the same level
position in industry that allows firms to provide value to
strategic positioning
customers, while controlling costs
mission reason for existence, what an organization does
vision statement of some desired future state
a statement of key values that an organization is commit-
values
ted to
Analysis: vision, mission, values
Formulation: corporate, business, or functional strategy
AFI framework
Implementation: structure, culture, control-- corporate
governance and business ethics
-predicts ditterences in firm performance
purpose of AFI
-create and implement a strategy
top-down strategic planning top management attempts to program future success
black swan events highly unlikely, but large impact events
unplanned strategy from the bottom of the organization.
emergent strategy adapting the strategy/original plan to changing market
conditions. EX: nyquil
realized strategy combination of intended and emergent strategy
Political, economical, sociocultural, technological, ecolog-
PESTEL Framework Factors
ical, legal
political PESTEL PR, litigation, lobbying
economical PESTEL 1/7
, growth rates, interest rates, levels on unemployment, price
stability, and exchange rates
demographics, cultural norms
sociocultural PESTEL
ex: rise in electric vehicals
product and process innovations- application of knowl-
technological PESTEL
edge
ecological PESTEL the environment decides the state of usable materials
legal PESTEL laws, court decisions, mandates
risk of entry, competitive rivalry, buyer power, supplier
porter's five forces factors
power, substitutes
-from the point of view of existing firms in the industry
five forces key assumptions -snapshot in time
-stronger each force is, the more limits
-economies of scale
-brand loyalty
risk of entry - five forces -absolute cost advantage (relative to new entrants)
-if competition is HIGH, barriers to entry are LOW
companies in the same industry struggle to gain market
competitive rivalry - five forces
share
-purchase in larger quantities
-switching costs are low
buyer power - five forces
-buy from several supplying companies at once (amazon)
-threat of entry can be used to drive prices down
-products are vital to industry
-switching costs for companies are high
supplier power - five forces
-suppliers can threaten to enter their customers' industry
themselves
substitutes - five forces
2/7
a set of goal-oriented actions a firm takes to gain and
strategy
sustain better performance over competitors
combines analysis, formulation, and implementation in
strategy managment finding competitive advantage
mastery= view organization as a whole
competitive parity two or more firms perform at the same level
position in industry that allows firms to provide value to
strategic positioning
customers, while controlling costs
mission reason for existence, what an organization does
vision statement of some desired future state
a statement of key values that an organization is commit-
values
ted to
Analysis: vision, mission, values
Formulation: corporate, business, or functional strategy
AFI framework
Implementation: structure, culture, control-- corporate
governance and business ethics
-predicts ditterences in firm performance
purpose of AFI
-create and implement a strategy
top-down strategic planning top management attempts to program future success
black swan events highly unlikely, but large impact events
unplanned strategy from the bottom of the organization.
emergent strategy adapting the strategy/original plan to changing market
conditions. EX: nyquil
realized strategy combination of intended and emergent strategy
Political, economical, sociocultural, technological, ecolog-
PESTEL Framework Factors
ical, legal
political PESTEL PR, litigation, lobbying
economical PESTEL 1/7
, growth rates, interest rates, levels on unemployment, price
stability, and exchange rates
demographics, cultural norms
sociocultural PESTEL
ex: rise in electric vehicals
product and process innovations- application of knowl-
technological PESTEL
edge
ecological PESTEL the environment decides the state of usable materials
legal PESTEL laws, court decisions, mandates
risk of entry, competitive rivalry, buyer power, supplier
porter's five forces factors
power, substitutes
-from the point of view of existing firms in the industry
five forces key assumptions -snapshot in time
-stronger each force is, the more limits
-economies of scale
-brand loyalty
risk of entry - five forces -absolute cost advantage (relative to new entrants)
-if competition is HIGH, barriers to entry are LOW
companies in the same industry struggle to gain market
competitive rivalry - five forces
share
-purchase in larger quantities
-switching costs are low
buyer power - five forces
-buy from several supplying companies at once (amazon)
-threat of entry can be used to drive prices down
-products are vital to industry
-switching costs for companies are high
supplier power - five forces
-suppliers can threaten to enter their customers' industry
themselves
substitutes - five forces
2/7
