UNT BUSI 4940 EXAM 1 (SBI Process
Steps 1-3) Questions and Answers 100%
Solved
When are organizational actions more Strategic than others? - ✔✔-They
involve MAJOR INVESTMENTS
-They have LONG-TERM IMPLICATIONS often IN MULTIPLE AREAS
- The involve HIGH LEVELS OF RISK/UNCERTAINTY
What actions are deemed "strategic for the organization as a whole? - ✔✔-
Altering the product/services offered by the organization
-Altering the markets serviced by the organization
-Altering the way, the organization creates value for its customers
Criterion of Consistency - ✔✔The link between a firms strategy, its
environment, and its internal capabilities "Fit"
"Managers optimize firms performance and shareholder wealth by
optimizing the Criterion of Consistency"
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Overview Part 1 of SBI Process - ✔✔- Analyze the Environment and the
status of the firm
- Deconstruct and understanding the firm and its environment
Overview Part 2 SBI Process - ✔✔-Assess Strategic Fit and Formulate new
strategy
Overview Part 3 SBI Process - ✔✔- Develop and implementation plan and
confirm financial viability of the proposal
What are two questions we must answer in SBI Part 1-A? - ✔✔Analyze the
environment to answer:
1.) WHAT we're going to achieve and
2.) HOW we're going to achieve it
Three outputs of an Environmental Analysis
(Part 1-a) - ✔✔1.) Identify Key Drivers of Change (DOC's)
2.) Key Survival Factors (KSF) for any firm in that environement
3.) Overall attractiveness of the environment for future investment
Drivers of Change (DOC's) - ✔✔Forces at play in the environment of firm's
specific industry (e.g. the automotive, fast food, or airline industry)
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, DOC's forces do what? - ✔✔1.) Determine how firms currently operate and
compete in that industry
2.) Shape how firms operate and compete in that industry in the future
DOC examples - ✔✔-Changing buyer preference
-Product, service, market innovation
-technology diffusion
- changes in cost and efficiency
Key Survival Factors (KSF) - ✔✔"Must haves". These are areas where
ANY FIRM, in an industry sector, must demonstrate competencies in order
to survive
- NOT the same as Key success factors
Overall Attractiveness of the Environment for future investment (two ways)
- ✔✔1.) FINANCIAL Attractiveness
2.) MARKET Attractiveness
Financial Attractiveness Factors - ✔✔- Industry Profitability
-Level of investment
-Risk
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Steps 1-3) Questions and Answers 100%
Solved
When are organizational actions more Strategic than others? - ✔✔-They
involve MAJOR INVESTMENTS
-They have LONG-TERM IMPLICATIONS often IN MULTIPLE AREAS
- The involve HIGH LEVELS OF RISK/UNCERTAINTY
What actions are deemed "strategic for the organization as a whole? - ✔✔-
Altering the product/services offered by the organization
-Altering the markets serviced by the organization
-Altering the way, the organization creates value for its customers
Criterion of Consistency - ✔✔The link between a firms strategy, its
environment, and its internal capabilities "Fit"
"Managers optimize firms performance and shareholder wealth by
optimizing the Criterion of Consistency"
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Overview Part 1 of SBI Process - ✔✔- Analyze the Environment and the
status of the firm
- Deconstruct and understanding the firm and its environment
Overview Part 2 SBI Process - ✔✔-Assess Strategic Fit and Formulate new
strategy
Overview Part 3 SBI Process - ✔✔- Develop and implementation plan and
confirm financial viability of the proposal
What are two questions we must answer in SBI Part 1-A? - ✔✔Analyze the
environment to answer:
1.) WHAT we're going to achieve and
2.) HOW we're going to achieve it
Three outputs of an Environmental Analysis
(Part 1-a) - ✔✔1.) Identify Key Drivers of Change (DOC's)
2.) Key Survival Factors (KSF) for any firm in that environement
3.) Overall attractiveness of the environment for future investment
Drivers of Change (DOC's) - ✔✔Forces at play in the environment of firm's
specific industry (e.g. the automotive, fast food, or airline industry)
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, DOC's forces do what? - ✔✔1.) Determine how firms currently operate and
compete in that industry
2.) Shape how firms operate and compete in that industry in the future
DOC examples - ✔✔-Changing buyer preference
-Product, service, market innovation
-technology diffusion
- changes in cost and efficiency
Key Survival Factors (KSF) - ✔✔"Must haves". These are areas where
ANY FIRM, in an industry sector, must demonstrate competencies in order
to survive
- NOT the same as Key success factors
Overall Attractiveness of the Environment for future investment (two ways)
- ✔✔1.) FINANCIAL Attractiveness
2.) MARKET Attractiveness
Financial Attractiveness Factors - ✔✔- Industry Profitability
-Level of investment
-Risk
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
