WPC 480 Final Exam UPDATED ACTUAL
Questions and CORRECT Answers
What is strategy? - CORRECT ANSWER - An integrated set of goal-directed actions a
firm takes to gain and sustain competitive advantage.
What are the 2 business analysis? - CORRECT ANSWER - Internal and External.
What are the 3 business strategies? - CORRECT ANSWER - 1) Cost, 2) Differentiation, 3)
Innovation.
What is competitive advantage? - CORRECT ANSWER - Superior performance relative to
other competitors in the same industry or the industry average.
How do you assess competitive advantage? - CORRECT ANSWER - Compare firm
performance to a benchmark.
What is sustainable competitive advantage? - CORRECT ANSWER - Outperforming
competitors or the industry average over a prolonged period of time.
What is competitive disadvantage? - CORRECT ANSWER - Underperformance relative to
other competitors in the same industry or the industry average.
What is competitive parity? - CORRECT ANSWER - A performance of two or more firms
at the same level.
What is the key to successful strategy and gain competitive advantages? - CORRECT
ANSWER - Combine activities for a unique position in an industry.
,Where does competitive advantage come from? - CORRECT ANSWER - 1) Performing
different activities, or 2) Performing the same activities differently than rivals.
What does strategic positioning require? - CORRECT ANSWER - Trade-offs.
What is the fist step of a strategic goal to gain and sustain competitive advantage? - CORRECT
ANSWER - Define a firm's vision, mission, and values.
What is a firm's vision? - CORRECT ANSWER - What do we want to accomplish?
What is a firm's mission? - CORRECT ANSWER - How do we accomplish our goals?
What is a firm's values? - CORRECT ANSWER - What commitments do we make? What
guardrails do we put in place? How can we act legally and ethically in pursuit of the vision and
mission?
What are the key aspects of an effective vision? - CORRECT ANSWER - 1) Capture an
organization's aspiration . 2) Identifies what it ultimately wants to accomplish. 3) Motivates
employees to aim for a target. 4) Leaves room for contributions.
What is a product-oriented vision statement? - CORRECT ANSWER - Defines a business
in terms of a good or service provided.
What is a customer-oriented vision statement? - CORRECT ANSWER - Defines a
business in terms of providing solutions to customer needs.
What things can a firm do to vision statements and firm performance to be positively associated?
- CORRECT ANSWER - 1) The vision is customer-oriented, 2) Internal stakeholders help
define the vision, 3) Organizational structures align with the vision statement.
, What does a firm's mission statement do? - CORRECT ANSWER - 1) Describes how to
accomplish goals and 2) Describes what the organization does (the products and services it
provides and the markets in which it competes).
What is the difference between vision and mission statements? - CORRECT ANSWER -
Vision statements: WHAT an organization wants to accomplish (ie: to). Mission statements:
HOW the vision will be accomplished (ie: by).
What does establishing a firm's value do? - CORRECT ANSWER - Guides an
organization to achieve its vision and fulfill its mission.
Who are the stakeholders? - CORRECT ANSWER - Organizations, groups, individuals
that can affect or are affected by a firm's actions and have a vested claim or interest in the
performance and continued survival of the firm.
What is a firm's stakeholder strategy? - CORRECT ANSWER - 1) Managing stakeholders
in order to gain and sustain competitive advantage, 2) Benefits of effective stakeholder strategy
to firm performance.
What are the layers of the corporate social responsibility pyramid (from the top-down)? -
CORRECT ANSWER - 1) Philanthropic responsibilities, 2) Ethical responsibilities, 3)
Legal responsibilities, 4) Economic Responsibilities.
What is strategic leadership? - CORRECT ANSWER - 1) Successful use of power and
influence, 2) Directing the activities of others, 3) Pursuing an organization's goals, 4) Enabling
organizational competitive advantage, 5) Upper Echelon's Theory (organizational outcomes
reflect the values and attributes of the top management team).
What is the AFI Framework for Top-Down strategic planning? - CORRECT ANSWER -
Analysis, Formulation, Implementation
What are the 3 types of strategies? - CORRECT ANSWER - 1) Intended strategy, 2)
Emergent strategy, 3) Realized strategy.
Questions and CORRECT Answers
What is strategy? - CORRECT ANSWER - An integrated set of goal-directed actions a
firm takes to gain and sustain competitive advantage.
What are the 2 business analysis? - CORRECT ANSWER - Internal and External.
What are the 3 business strategies? - CORRECT ANSWER - 1) Cost, 2) Differentiation, 3)
Innovation.
What is competitive advantage? - CORRECT ANSWER - Superior performance relative to
other competitors in the same industry or the industry average.
How do you assess competitive advantage? - CORRECT ANSWER - Compare firm
performance to a benchmark.
What is sustainable competitive advantage? - CORRECT ANSWER - Outperforming
competitors or the industry average over a prolonged period of time.
What is competitive disadvantage? - CORRECT ANSWER - Underperformance relative to
other competitors in the same industry or the industry average.
What is competitive parity? - CORRECT ANSWER - A performance of two or more firms
at the same level.
What is the key to successful strategy and gain competitive advantages? - CORRECT
ANSWER - Combine activities for a unique position in an industry.
,Where does competitive advantage come from? - CORRECT ANSWER - 1) Performing
different activities, or 2) Performing the same activities differently than rivals.
What does strategic positioning require? - CORRECT ANSWER - Trade-offs.
What is the fist step of a strategic goal to gain and sustain competitive advantage? - CORRECT
ANSWER - Define a firm's vision, mission, and values.
What is a firm's vision? - CORRECT ANSWER - What do we want to accomplish?
What is a firm's mission? - CORRECT ANSWER - How do we accomplish our goals?
What is a firm's values? - CORRECT ANSWER - What commitments do we make? What
guardrails do we put in place? How can we act legally and ethically in pursuit of the vision and
mission?
What are the key aspects of an effective vision? - CORRECT ANSWER - 1) Capture an
organization's aspiration . 2) Identifies what it ultimately wants to accomplish. 3) Motivates
employees to aim for a target. 4) Leaves room for contributions.
What is a product-oriented vision statement? - CORRECT ANSWER - Defines a business
in terms of a good or service provided.
What is a customer-oriented vision statement? - CORRECT ANSWER - Defines a
business in terms of providing solutions to customer needs.
What things can a firm do to vision statements and firm performance to be positively associated?
- CORRECT ANSWER - 1) The vision is customer-oriented, 2) Internal stakeholders help
define the vision, 3) Organizational structures align with the vision statement.
, What does a firm's mission statement do? - CORRECT ANSWER - 1) Describes how to
accomplish goals and 2) Describes what the organization does (the products and services it
provides and the markets in which it competes).
What is the difference between vision and mission statements? - CORRECT ANSWER -
Vision statements: WHAT an organization wants to accomplish (ie: to). Mission statements:
HOW the vision will be accomplished (ie: by).
What does establishing a firm's value do? - CORRECT ANSWER - Guides an
organization to achieve its vision and fulfill its mission.
Who are the stakeholders? - CORRECT ANSWER - Organizations, groups, individuals
that can affect or are affected by a firm's actions and have a vested claim or interest in the
performance and continued survival of the firm.
What is a firm's stakeholder strategy? - CORRECT ANSWER - 1) Managing stakeholders
in order to gain and sustain competitive advantage, 2) Benefits of effective stakeholder strategy
to firm performance.
What are the layers of the corporate social responsibility pyramid (from the top-down)? -
CORRECT ANSWER - 1) Philanthropic responsibilities, 2) Ethical responsibilities, 3)
Legal responsibilities, 4) Economic Responsibilities.
What is strategic leadership? - CORRECT ANSWER - 1) Successful use of power and
influence, 2) Directing the activities of others, 3) Pursuing an organization's goals, 4) Enabling
organizational competitive advantage, 5) Upper Echelon's Theory (organizational outcomes
reflect the values and attributes of the top management team).
What is the AFI Framework for Top-Down strategic planning? - CORRECT ANSWER -
Analysis, Formulation, Implementation
What are the 3 types of strategies? - CORRECT ANSWER - 1) Intended strategy, 2)
Emergent strategy, 3) Realized strategy.
