Mgt401 Exam 1 Updated Questions And Correct Answers

MGT401 EXAM 1 UPDATED QUESTIONS AND CORRECT
ANSWERS
Question:
1. Strategic Man-agement
Answer:
is an integrative management field that combines analysis (A), formulation (F), and implementation
(I) in the quest for competitive advantage

Question:
2. Competitive Ad-vantage
Answer:
A firm with superior performance relative to other competitors in the same industry or the industry
average

Question:
3. Competitive ad-vantage contin-uted
Answer:
Competitive advantage is always relative, not absolute. To assess competitive advantage, firm
performance is compared to a benchmark:

Question:
4. To assess com-petitive advan-tage, firm perfor-mance is com-pared to a bench-mark
Answer:
1. Compare the firm to competitors in the same industry.
2. Compare the firm to the industry average.

Question:
5. What can a busi-ness provide to customers?
Answer:
1. Goods
2. Services

Question:
6. How to Gain Competitive Ad-vantage: Provide goods and ser-vices that..
Answer:
1. consumers value more than those of its competitors, but at similar cost
2. are similar to the competitors' but at a lower price.

Question:
7. Strategy
Answer:
set of goal-directed and integrated actions a firm takes to gain and sustain superior performance
relative to competitors.

Question:
8. Good Strategy

, Answer:
enables a firm to achieve superior performance and sustainable competitive advantage relative to its
competitors and any competitive situation.

Question:
9. Good Strategy El-ements:
Answer:
1. A diagnosis
2. A guiding policy
3. A set of coherent actions

Question:
10. Good Strategy: A diagnosis to...
Answer:
identify competitive challenges, includes an analysis of the firm's internal and external environments.

Question:
11. Good Strategy:
A guiding policy to...
Answer:
Address the competitive challenge through strategy formulation; it lays the foun-dation to craft a
firm's corporate, business, and functional strategies.

Question:
12. Good Strategy: A set of coherent actions to...
Answer:
Implement the firm's guiding policy.

Question:
13. Sustainable Com-petitive Advan-tage
Answer:
a firm that can outperform its competitors or the industry average over a pro-longed period

Question:
14. Competitive Dis-advantage
Answer:
a firm that underperforms its rivals or the industry average.

Question:
15. Competitive Pari-ty
Answer:
two or more firms perform at the same level.

Question:
16. Strategic Posi-tioning