WPC 480 Midterm Exam Questions with Verified Answers | Latest 2023/2024

WPC 480 Midterm Exam Questions with Verified Answers | Latest 2023/2024 Strategic Competitiveness -- firms achieve by formulating and implementing a set of programmatic actions that allows it to outperform competitors in long run Strategy -- an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. competitive advantage -- a firm has this when competitors are not able to imitate the value the firm's products create or to find it too expensive to attempt imitation No _____________________ is permanent. Others will try to copy. How long a _______________ will last depends on how quickly competitors can acquire the skills needed to duplicate the benefits of a firm's value-creating strategy. above-average returns -- returns in excess of what an investor expects to earn from other investments with a similar amount of risk EXAMPLES OF COMPANIES WITH CONSISTENT _________ RETURNS FOR OVER 100 YEARS - MERCK, PORSCHE, TOYOTA, 3M Average Returns -- returns equal to those an investor expects to earn from other investments possessing a similar amount of risk. Over time, an inability to earn at least average returns results first in decline, and, eventually, failure. EXAMPLES OF ONCE SUCCESSFUL COMPANIES WITH BELOW AVERAGE RETURNS THAT EVENTUALLY DISAPPEARED -- BLOCKBUSTER, SEARS, STUDEBAKER, CONTROL DATA CORPORATION Twenty-First Century Competition -- Today's Competitive Markets - The global economy - Globalization - Rapid technological change - Increasing importance of knowledge and people The Global Competitive Landscape -- Increasing •Market volatility and instability due to the rapid pace of change in markets -- What happens in one place quickly transfer -- Globalized flow of financial capital •Strategic and operational complexity of global-scale competition -- Example: A Boeing plane built in 50 countries and a 6M Car in 60 •Expectations of better products and services as more competitors enter market Decreasing •Time to adapt •Traditional tangible sources of competitive advantage •Traditional managerial mindset To Cope with New Marketplace -- •Firms need strategic flexibility -To cope with markets moving faster than before -Requires continuous learning and applying new and updated skills sets and competencies to the firm's competitive advantage •Organizational inertia needs to be overcome Where Do Firm Profit Come From? -- Firm Performance - Favorable Industry - Specific Firm Resources