WPC 480 Exam #1 UPDATED ACTUAL
Questions and CORRECT Answers
Strategy - CORRECT ANSWER - An integrated set of goal-directed actions a firm takes to
gain and sustain competitive advantages.
Vision - CORRECT ANSWER - What do we want to accomplish?
Mission - CORRECT ANSWER - How do we accomplish our goals? And what do we do
to accomplish our goals?
Stakeholders - CORRECT ANSWER - organizations, groups, and individuals. They can
affect or are affected by a firm's actions.
Competitive Advantage - CORRECT ANSWER - superior performance relative to other
competitors in the same industry or the industry average.
Sustainable Competitive Advantage - CORRECT ANSWER - outperforming competitors
or the industry average over a prolonged period of time.
Competitive Parity - CORRECT ANSWER - performance of two or more firms at the
same level
Strategic Management Process - CORRECT ANSWER - -Environmental scanning
-Strategy formulation
-Strategy implementation
-Strategy evaluation
Intended strategy - CORRECT ANSWER - the outcome of a rational and structured top-
down strategic plan
, Emergent strategy - CORRECT ANSWER - any unplanned strategic initiative, bubbles up
from the bottom of the organization and can influence and shape a firm's overall strategy.
Realized strategy - CORRECT ANSWER - combination of intended and emergent strategy
PESTEL Framework - CORRECT ANSWER - Political factors: processes and actions of
government bodies. Lobbying, public relations, contributions, litigations.
Economic factors: macro economic climates. Growth rates, employment, interest rates, price
stability, currency exchange rates.
Sociocultural factors:demographic trends,cultures, norms, and values.
Technological factors: innovations in process and product technology
Ecological factors:involve environmental issues (e.g., Natural environment, global warming,
sustainable economic growth).
Legal factors:official outcomes of political processes (e.g., (de)regulations, court decisions, laws)
Competitive Industry Structure - CORRECT ANSWER - -Perfect competition
-Oligopoly
-Monopolistic competition
-Monopoly
Strategic Groups - CORRECT ANSWER - companies in a specific industry that pursue
similar strategies.
Questions and CORRECT Answers
Strategy - CORRECT ANSWER - An integrated set of goal-directed actions a firm takes to
gain and sustain competitive advantages.
Vision - CORRECT ANSWER - What do we want to accomplish?
Mission - CORRECT ANSWER - How do we accomplish our goals? And what do we do
to accomplish our goals?
Stakeholders - CORRECT ANSWER - organizations, groups, and individuals. They can
affect or are affected by a firm's actions.
Competitive Advantage - CORRECT ANSWER - superior performance relative to other
competitors in the same industry or the industry average.
Sustainable Competitive Advantage - CORRECT ANSWER - outperforming competitors
or the industry average over a prolonged period of time.
Competitive Parity - CORRECT ANSWER - performance of two or more firms at the
same level
Strategic Management Process - CORRECT ANSWER - -Environmental scanning
-Strategy formulation
-Strategy implementation
-Strategy evaluation
Intended strategy - CORRECT ANSWER - the outcome of a rational and structured top-
down strategic plan
, Emergent strategy - CORRECT ANSWER - any unplanned strategic initiative, bubbles up
from the bottom of the organization and can influence and shape a firm's overall strategy.
Realized strategy - CORRECT ANSWER - combination of intended and emergent strategy
PESTEL Framework - CORRECT ANSWER - Political factors: processes and actions of
government bodies. Lobbying, public relations, contributions, litigations.
Economic factors: macro economic climates. Growth rates, employment, interest rates, price
stability, currency exchange rates.
Sociocultural factors:demographic trends,cultures, norms, and values.
Technological factors: innovations in process and product technology
Ecological factors:involve environmental issues (e.g., Natural environment, global warming,
sustainable economic growth).
Legal factors:official outcomes of political processes (e.g., (de)regulations, court decisions, laws)
Competitive Industry Structure - CORRECT ANSWER - -Perfect competition
-Oligopoly
-Monopolistic competition
-Monopoly
Strategic Groups - CORRECT ANSWER - companies in a specific industry that pursue
similar strategies.
