WPC 480 final exam Questions With
Complete Solutions
Risks of globalization Liability of foreigness and firms performance may suffer by
entering too many global markets, either simultaneously or too quickly
liability of foreignness Term describing the risk of competing outside firms, domestic
market
Three categories of technology related trends and conditions affecting today's firms
Technology, diffusion and disruptive technologies, the information age, and increasing
knowledge intensity
Technology diffusion Speed at which new technologies become available to firms, and
when firms, choose to adopt them
Perpetual innovation Used to describe how rapidly and consistently new information,
intense technologies replace older ones
Disruptive technologies Technologies that destroy the value of an existing technology, and
create new market
, WPC 480 final exam Questions With
Complete Solutions
Information age Dramatic change in info, technology continue occurring in the global
economy
Strategic flexibility Set of capabilities, firms use to respond to various demands and
opportunities existing in today's dynamic an uncertain competitive environment
For underlying assumptions, explain I/O model 1. Model assumes external environment
and poses pressure and constraint that determine the strategies that would result in above average
returns.
2. Most firms competing with an industry or within a segment of that industry are assumed to
control, similar strategically relevant resources, and to pursue similar strategies in light of these
resources.
3. Firms assume the resources are highly mobile
4. Model assumes that organization decision makers are rational individuals who are committed
to acting in the firm's best interest.
I/O model Challenges firms to find the most attractive industry in which to compete
, WPC 480 final exam Questions With
Complete Solutions
Five forces model of competition Analytical tool firms used to find the industry that's the
most attractive for them
Five functions of the five forces model suppliers, buyers, competitive rivalry, among firms
currently in the industry, product, substitutes, potential entrance to the industry
Three categories to classify resources Physical, human and organizational capital
Resources Input into a firms, production process, such as capital equipment, the skills of
individual employees, Pattons, finances, and talented managers
Capability Capacity for a set of resources to perform a task or an activity in an integrative
manner
Core competencies Capabilities that serve as a source of competitive advantage, for affirm
over its rivals
, WPC 480 final exam Questions With
Complete Solutions
Valuable When allow affirm to take advantage of opportunities, or neutralize threats, and
its external environment
Rare Possessed by few, if any current and potential competitors
Costly to imitate When other firms either cannot obtain them, or are at a cost disadvantage
in obtaining them compared with the firm that already possesses them
Non-substitutable When they have no structural equivalence
Vision Picture of what the firm wants to be an in broad term what it wants to achieve
Vision statement Articulates the ideal description of an organization, and gives shape to its
intended future
Mission Specifies the businesses in which firms intend to compete in the customers,
intends to serve
Complete Solutions
Risks of globalization Liability of foreigness and firms performance may suffer by
entering too many global markets, either simultaneously or too quickly
liability of foreignness Term describing the risk of competing outside firms, domestic
market
Three categories of technology related trends and conditions affecting today's firms
Technology, diffusion and disruptive technologies, the information age, and increasing
knowledge intensity
Technology diffusion Speed at which new technologies become available to firms, and
when firms, choose to adopt them
Perpetual innovation Used to describe how rapidly and consistently new information,
intense technologies replace older ones
Disruptive technologies Technologies that destroy the value of an existing technology, and
create new market
, WPC 480 final exam Questions With
Complete Solutions
Information age Dramatic change in info, technology continue occurring in the global
economy
Strategic flexibility Set of capabilities, firms use to respond to various demands and
opportunities existing in today's dynamic an uncertain competitive environment
For underlying assumptions, explain I/O model 1. Model assumes external environment
and poses pressure and constraint that determine the strategies that would result in above average
returns.
2. Most firms competing with an industry or within a segment of that industry are assumed to
control, similar strategically relevant resources, and to pursue similar strategies in light of these
resources.
3. Firms assume the resources are highly mobile
4. Model assumes that organization decision makers are rational individuals who are committed
to acting in the firm's best interest.
I/O model Challenges firms to find the most attractive industry in which to compete
, WPC 480 final exam Questions With
Complete Solutions
Five forces model of competition Analytical tool firms used to find the industry that's the
most attractive for them
Five functions of the five forces model suppliers, buyers, competitive rivalry, among firms
currently in the industry, product, substitutes, potential entrance to the industry
Three categories to classify resources Physical, human and organizational capital
Resources Input into a firms, production process, such as capital equipment, the skills of
individual employees, Pattons, finances, and talented managers
Capability Capacity for a set of resources to perform a task or an activity in an integrative
manner
Core competencies Capabilities that serve as a source of competitive advantage, for affirm
over its rivals
, WPC 480 final exam Questions With
Complete Solutions
Valuable When allow affirm to take advantage of opportunities, or neutralize threats, and
its external environment
Rare Possessed by few, if any current and potential competitors
Costly to imitate When other firms either cannot obtain them, or are at a cost disadvantage
in obtaining them compared with the firm that already possesses them
Non-substitutable When they have no structural equivalence
Vision Picture of what the firm wants to be an in broad term what it wants to achieve
Vision statement Articulates the ideal description of an organization, and gives shape to its
intended future
Mission Specifies the businesses in which firms intend to compete in the customers,
intends to serve
