Arrfelt Exam 1 WPC 480 Questions With
Complete Solutions
What factors are increasing in the global competitive landscape? (3) 1. 1. Market volatility
and instability due to rapid pace of change in markets. a)what happens in 1 place quickly
transfer. b) globalized flow of financial capital.
2. Strategic & operational complexity of global-scale competition
3. Expectations of better products and services.
Decreasing factors in global competitive landscape (3) 1. time to adapt
2. traditional tangible source and competitive adv.
3. traditional managerial mindset
To cope with new marketplace.... Firms need strategic FLEXABILITY
Where do firms profits come from? 1. Industry (external)
2. How hard you work & your skills (internal)
I/O Model 1. External Environment
2. Attractive Industry
, Arrfelt Exam 1 WPC 480 Questions With
Complete Solutions
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns
I/O Model in simple terms 1. Study the external enviroment (especially industry
enviroment)
2. Locate an industry with high potential for above-avg returns
3. Identify strategy called for by attractive industry to earn above-avg returns
4. Develop/aquire skills & assets needed to implement the startegy.
5. Use firms strength to implement the startegy
5 Forces Model of Competition 1. Suppliers
2. Buyers
3. Industry Rivalry
4. Substitutes
5. Potetial Entrants
, Arrfelt Exam 1 WPC 480 Questions With
Complete Solutions
5 forces model: Try to earn above avg returns by.... Cos-Leadership or
Differentiation
Cost-Leadership Producing standardized goods or service @ costs below competitors cost
Differentiation Proucing differentiated goods or services for which customers are willing
to pay a price premium
Resource-Based Model 1. Resources
2. Capabilities
3. Competitive Advantage
4. Attractive Industry
5. Strategy Formulation and Implementation
What drives firm performance?(what doesn't) Capabilities drives performance.
NOT Industry
, Arrfelt Exam 1 WPC 480 Questions With
Complete Solutions
core competencies capabilities that serve as a source of competitive advantage for a firm
over its rivals
capability an integrated set of resources
Examples of Resorces in Resource-Based Model physical, human & organizational capital
(tangible/intangible)
How to capabilities become core competencies? (4) 1. Rare
2. Valuable
3. Costly to Imitate
4. Nonsubstitutable
21st Century Competition Todays Competitive Markets (3) 1. Globalization
2. Higher importance oof knowledge and people
3. Rapid tech growth
Stakeholders Can affect firms mission and vision
Complete Solutions
What factors are increasing in the global competitive landscape? (3) 1. 1. Market volatility
and instability due to rapid pace of change in markets. a)what happens in 1 place quickly
transfer. b) globalized flow of financial capital.
2. Strategic & operational complexity of global-scale competition
3. Expectations of better products and services.
Decreasing factors in global competitive landscape (3) 1. time to adapt
2. traditional tangible source and competitive adv.
3. traditional managerial mindset
To cope with new marketplace.... Firms need strategic FLEXABILITY
Where do firms profits come from? 1. Industry (external)
2. How hard you work & your skills (internal)
I/O Model 1. External Environment
2. Attractive Industry
, Arrfelt Exam 1 WPC 480 Questions With
Complete Solutions
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns
I/O Model in simple terms 1. Study the external enviroment (especially industry
enviroment)
2. Locate an industry with high potential for above-avg returns
3. Identify strategy called for by attractive industry to earn above-avg returns
4. Develop/aquire skills & assets needed to implement the startegy.
5. Use firms strength to implement the startegy
5 Forces Model of Competition 1. Suppliers
2. Buyers
3. Industry Rivalry
4. Substitutes
5. Potetial Entrants
, Arrfelt Exam 1 WPC 480 Questions With
Complete Solutions
5 forces model: Try to earn above avg returns by.... Cos-Leadership or
Differentiation
Cost-Leadership Producing standardized goods or service @ costs below competitors cost
Differentiation Proucing differentiated goods or services for which customers are willing
to pay a price premium
Resource-Based Model 1. Resources
2. Capabilities
3. Competitive Advantage
4. Attractive Industry
5. Strategy Formulation and Implementation
What drives firm performance?(what doesn't) Capabilities drives performance.
NOT Industry
, Arrfelt Exam 1 WPC 480 Questions With
Complete Solutions
core competencies capabilities that serve as a source of competitive advantage for a firm
over its rivals
capability an integrated set of resources
Examples of Resorces in Resource-Based Model physical, human & organizational capital
(tangible/intangible)
How to capabilities become core competencies? (4) 1. Rare
2. Valuable
3. Costly to Imitate
4. Nonsubstitutable
21st Century Competition Todays Competitive Markets (3) 1. Globalization
2. Higher importance oof knowledge and people
3. Rapid tech growth
Stakeholders Can affect firms mission and vision
