MGT 8803 MAIN TEST ANSWERS AND QUESTIONS
SET A+
✔✔Threat of New Entrants - ✔✔High when it is easy for new competitors to enter a
market and low when there are significant entry barriers
✔✔Competitive Rivalry - ✔✔the frequency and intensity of reactions to actions
undertaken by competitors
✔✔Complement - ✔✔a product, service, or competency that adds value to the original
product offering when the two are used in tandem
✔✔Some ways companies can mitigate structural impediment to firm profitability -
✔✔Increase product differentiation
Diversify product lines
Introduce or strengthen switching costs
Continually innovate to increase product value
Alter bargaining relationships between the industry competitors and buyers and
suppliers
Build barriers to entry to keep new competition out
Develop complements or build strategic partnerships with complement providers
✔✔Core Competencies - ✔✔those functions that the organization can do as well as or
better than any other organization in the world
✔✔Resources - ✔✔tangible and intangible assets of the firm
✔✔Capabilities - ✔✔organizational and managerial skills necessary to orchestrate a
diverse set of resources and deploy them strategically
✔✔Activities - ✔✔Transform resources and information of one type into another type
, ✔✔Resource-Based View - ✔✔a method of analyzing and identifying a firm's strategic
advantages based on examining its distinct combination of assets, skills, capabilities,
and intangibles as an organization
✔✔VRIO Analysis - ✔✔To provide sustainable competitive advantage, resources must
be:
-Valuable
-Rare
-Inimitable
-Organized
✔✔Tangible Resources - ✔✔resources that have physical attributes and thus are visible
✔✔Intangible Resources - ✔✔resources that do not have physical attributes and thus
are invisible
✔✔Human Capital - ✔✔the skills and knowledge provided by employees
✔✔Value Chain Analysis - ✔✔a systematic way of examining all of the activities a firm
performs and determining how they interact to form a source of competitive advantage
✔✔Ratio Analysis - ✔✔the assessment of a firm's financial condition using calculations
and interpretations of financial ratios developed from the firm's financial statements
✔✔Benchmarking - ✔✔Comparing an organization's practices, processes, and products
against the world's best.
✔✔Process Benchmarking - ✔✔Compares processes and performance with internal
and external benchmarks. Companies then identify
and incorporate best practices to meet improvement
targets.
✔✔Common Forms of Benchmarking - ✔✔process, product, function, financial,
performance
✔✔SWOT Framework - ✔✔A theory that matches a company's strengths against its
weaknesses and its opportunities against its threats.
✔✔Strategy Formulation - ✔✔The development of a set of corporate, business, and
functional strategies that allow an organization to accomplish its mission and achieve its
goals
✔✔Business Level Strategy - ✔✔single (or a group of closely-related product lines)
product market; focus: competitive advantage
SET A+
✔✔Threat of New Entrants - ✔✔High when it is easy for new competitors to enter a
market and low when there are significant entry barriers
✔✔Competitive Rivalry - ✔✔the frequency and intensity of reactions to actions
undertaken by competitors
✔✔Complement - ✔✔a product, service, or competency that adds value to the original
product offering when the two are used in tandem
✔✔Some ways companies can mitigate structural impediment to firm profitability -
✔✔Increase product differentiation
Diversify product lines
Introduce or strengthen switching costs
Continually innovate to increase product value
Alter bargaining relationships between the industry competitors and buyers and
suppliers
Build barriers to entry to keep new competition out
Develop complements or build strategic partnerships with complement providers
✔✔Core Competencies - ✔✔those functions that the organization can do as well as or
better than any other organization in the world
✔✔Resources - ✔✔tangible and intangible assets of the firm
✔✔Capabilities - ✔✔organizational and managerial skills necessary to orchestrate a
diverse set of resources and deploy them strategically
✔✔Activities - ✔✔Transform resources and information of one type into another type
, ✔✔Resource-Based View - ✔✔a method of analyzing and identifying a firm's strategic
advantages based on examining its distinct combination of assets, skills, capabilities,
and intangibles as an organization
✔✔VRIO Analysis - ✔✔To provide sustainable competitive advantage, resources must
be:
-Valuable
-Rare
-Inimitable
-Organized
✔✔Tangible Resources - ✔✔resources that have physical attributes and thus are visible
✔✔Intangible Resources - ✔✔resources that do not have physical attributes and thus
are invisible
✔✔Human Capital - ✔✔the skills and knowledge provided by employees
✔✔Value Chain Analysis - ✔✔a systematic way of examining all of the activities a firm
performs and determining how they interact to form a source of competitive advantage
✔✔Ratio Analysis - ✔✔the assessment of a firm's financial condition using calculations
and interpretations of financial ratios developed from the firm's financial statements
✔✔Benchmarking - ✔✔Comparing an organization's practices, processes, and products
against the world's best.
✔✔Process Benchmarking - ✔✔Compares processes and performance with internal
and external benchmarks. Companies then identify
and incorporate best practices to meet improvement
targets.
✔✔Common Forms of Benchmarking - ✔✔process, product, function, financial,
performance
✔✔SWOT Framework - ✔✔A theory that matches a company's strengths against its
weaknesses and its opportunities against its threats.
✔✔Strategy Formulation - ✔✔The development of a set of corporate, business, and
functional strategies that allow an organization to accomplish its mission and achieve its
goals
✔✔Business Level Strategy - ✔✔single (or a group of closely-related product lines)
product market; focus: competitive advantage
