Midterm WPC 470 Exam Questions with
Complete Solutions
AFI strategy framework - Answer-A model that links three interdependent strategic
management tasks—analyze, formulate, and implement—that, together, help managers
plan and implement a strategy that can improve performance and result in competitive
advantage.
competitive advantage - Answer-a firm that achieves superior performance relative to
other competitors in the same industry or the industry average
competitive disadvantage - Answer-firm underperforms its rivals or the industry average
competitive parity - Answer-two or more firms perform at the same level
core values statement - Answer-statement of principles to guide an organization as it
works to achieve its vision and fulfill its mission, for both internal conduct and external
interactions; it often includes explicit ethical considerations
mission - Answer-Description of what an organization actually does—the products and
services it plans to provide, and the markets in which it will compete.
organizational core values - Answer-ethical standards and norms that govern the
behavior of individuals within a firm or organization
strategic commitments - Answer-actions that are costly, long-term oriented, and difficult
to reverse
strategy - Answer-a plan of action
sustainable competitive advantage - Answer-outperforming competitors or the industry
average over a prolonged period of time
vision - Answer-a statement about what an organization ultimately wants to accomplish;
it captures the company's aspiration
Black Swan Events - Answer-describes the high impact of a highly improbable event
business level strategy - Answer-how to compete. three generic business strategies are
available: cost leadership, differentiation or value innovation
corporate level strategy - Answer-where to compete as to industry, markets and
geography
, Corporate Social Responsibility (CSR) - Answer-a framework that helps firms recognize
and address the economic, legal, social, and philanthropic expectations that society has
of the business enterprise at a given point in time
Emergent Strategy - Answer-any unplanned strategic initiative bubbling up from the
bottom of the organization
Intended Strategy - Answer-the outcome of a rational and structured top-down strategic
plan
Realized Strategy - Answer-combination of intended and emergent strategy
scenario planning - Answer-Strategy-planning activity in which top managers envision
different what-if scenarios to anticipate plausible futures.
Stakeholders - Answer-organizations, groups, and individuals that can affect or are
affected by a firm's actions
Stakeholder Impact Analysis - Answer-a decision tool with which managers can
recognize, prioritize, and address the needs of different stakeholders, enabling the firm
to achieve competitive advantage while acting as a good corporate citizen
Strategic Business Unit (SBU) - Answer-a standalone division of a larger conglomerate,
with its own profit-and-loss responsibility
strategy formulation - Answer-the part of the strategic management process that
concerns the choice of strategy in terms of where and how to compete
strategy implementation - Answer-The part of the strategic management process that
concerns the organization, coordination, and integration of how work gets done, or
strategy execution.
strategy leadership - Answer-executives whose vision and decisions enable their
organizations to achieve competitive advantage
Strategic Management Process - Answer-method put in place by strategic leaders to
formulate and implement a strategy, which can lay the foundation for a sustainable
competitive advantage
upper-echelons theory - Answer-A conceptual framework that views organizational
outcomes—strategic choices and performance levels—as reflections of the values of
the members of the top management team.
competitive industry structure - Answer-Elements and features common to all industries,
including the number and size of competitors, the firms' degree of pricing power, the
type of product or service offered, and the height of entry barriers.
Complete Solutions
AFI strategy framework - Answer-A model that links three interdependent strategic
management tasks—analyze, formulate, and implement—that, together, help managers
plan and implement a strategy that can improve performance and result in competitive
advantage.
competitive advantage - Answer-a firm that achieves superior performance relative to
other competitors in the same industry or the industry average
competitive disadvantage - Answer-firm underperforms its rivals or the industry average
competitive parity - Answer-two or more firms perform at the same level
core values statement - Answer-statement of principles to guide an organization as it
works to achieve its vision and fulfill its mission, for both internal conduct and external
interactions; it often includes explicit ethical considerations
mission - Answer-Description of what an organization actually does—the products and
services it plans to provide, and the markets in which it will compete.
organizational core values - Answer-ethical standards and norms that govern the
behavior of individuals within a firm or organization
strategic commitments - Answer-actions that are costly, long-term oriented, and difficult
to reverse
strategy - Answer-a plan of action
sustainable competitive advantage - Answer-outperforming competitors or the industry
average over a prolonged period of time
vision - Answer-a statement about what an organization ultimately wants to accomplish;
it captures the company's aspiration
Black Swan Events - Answer-describes the high impact of a highly improbable event
business level strategy - Answer-how to compete. three generic business strategies are
available: cost leadership, differentiation or value innovation
corporate level strategy - Answer-where to compete as to industry, markets and
geography
, Corporate Social Responsibility (CSR) - Answer-a framework that helps firms recognize
and address the economic, legal, social, and philanthropic expectations that society has
of the business enterprise at a given point in time
Emergent Strategy - Answer-any unplanned strategic initiative bubbling up from the
bottom of the organization
Intended Strategy - Answer-the outcome of a rational and structured top-down strategic
plan
Realized Strategy - Answer-combination of intended and emergent strategy
scenario planning - Answer-Strategy-planning activity in which top managers envision
different what-if scenarios to anticipate plausible futures.
Stakeholders - Answer-organizations, groups, and individuals that can affect or are
affected by a firm's actions
Stakeholder Impact Analysis - Answer-a decision tool with which managers can
recognize, prioritize, and address the needs of different stakeholders, enabling the firm
to achieve competitive advantage while acting as a good corporate citizen
Strategic Business Unit (SBU) - Answer-a standalone division of a larger conglomerate,
with its own profit-and-loss responsibility
strategy formulation - Answer-the part of the strategic management process that
concerns the choice of strategy in terms of where and how to compete
strategy implementation - Answer-The part of the strategic management process that
concerns the organization, coordination, and integration of how work gets done, or
strategy execution.
strategy leadership - Answer-executives whose vision and decisions enable their
organizations to achieve competitive advantage
Strategic Management Process - Answer-method put in place by strategic leaders to
formulate and implement a strategy, which can lay the foundation for a sustainable
competitive advantage
upper-echelons theory - Answer-A conceptual framework that views organizational
outcomes—strategic choices and performance levels—as reflections of the values of
the members of the top management team.
competitive industry structure - Answer-Elements and features common to all industries,
including the number and size of competitors, the firms' degree of pricing power, the
type of product or service offered, and the height of entry barriers.
