SEVI 3013 Exam 1 Questions & Answers
100% Correct!
Strategy - ANSWERSthe set of decisions and actions of firm managers to ensure the
future success of the firm; integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
Characteristics of a strategy - ANSWERSfocuses on future and success
Corporate strategy - ANSWERSWhat industries should we compete in?
Business strategy - ANSWERSHow should we compete in our chosen industries?
Global Economy - ANSWERSeconomy in which goods, services, people, skills, and
ideas move freely across geographic borders
Technological diffusion - ANSWERSspeed at which new technologies become available
to firms and when firms choose to adopt them
Knowledge intensity - ANSWERSconsists of information, intelligence, and expertise;
basis of technology and its application
Stakeholders - ANSWERSindividuals/entities who may be affected by or affect the firms
outcomes
Strategic leaders - ANSWERSpeople located in different levels of the firm to select
actions that help the firm achieve its vision and fulfill its mission; decisive and committed
to creating value
Above average returns - ANSWERSinvestors get yields that exceed what they expect
from other investments with similar risks
Key elements of Industrial Organizational (IO) model - ANSWERSindustry-based,
external environment, attractive industry, strategy formulation, assets and skills,
strategy implementation, superior returns
5 forces model - ANSWERSthreat of new entrants, rivalry among competing firms,
bargaining power of suppliers, bargaining power of buyers, threat of substitute products
Industry - ANSWERSset of firms that produce similar products
100% Correct!
Strategy - ANSWERSthe set of decisions and actions of firm managers to ensure the
future success of the firm; integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
Characteristics of a strategy - ANSWERSfocuses on future and success
Corporate strategy - ANSWERSWhat industries should we compete in?
Business strategy - ANSWERSHow should we compete in our chosen industries?
Global Economy - ANSWERSeconomy in which goods, services, people, skills, and
ideas move freely across geographic borders
Technological diffusion - ANSWERSspeed at which new technologies become available
to firms and when firms choose to adopt them
Knowledge intensity - ANSWERSconsists of information, intelligence, and expertise;
basis of technology and its application
Stakeholders - ANSWERSindividuals/entities who may be affected by or affect the firms
outcomes
Strategic leaders - ANSWERSpeople located in different levels of the firm to select
actions that help the firm achieve its vision and fulfill its mission; decisive and committed
to creating value
Above average returns - ANSWERSinvestors get yields that exceed what they expect
from other investments with similar risks
Key elements of Industrial Organizational (IO) model - ANSWERSindustry-based,
external environment, attractive industry, strategy formulation, assets and skills,
strategy implementation, superior returns
5 forces model - ANSWERSthreat of new entrants, rivalry among competing firms,
bargaining power of suppliers, bargaining power of buyers, threat of substitute products
Industry - ANSWERSset of firms that produce similar products
