MGT 4150 Exam Questions With All
Correct Answers Verified Answers
strategy - Answers - ✔✔a firms action plan for outperforming its competitors and
achieving superior profitability
pattern of action and business approaches that define a company's strategy* - Answers
- ✔✔- suppliers and distributors
- performance features
- prices
- new product or geographic markets
- emerging market opportunities
- acquiring or merging
- alliances
- managing
- resources and capabilities
what is strategy about? - Answers - ✔✔HOW TO
- please customers
- compete
- position
- respond to changing market conditions
- capitalize on opportunities
- reach performance targets
why does a firm need a strategy? - Answers - ✔✔- to improve financial performance
- strengthen competitive position
- gain competitive advantage over rivals
competitive advantage - Answers - ✔✔require meeting customer needs either more
- effectively (products or services that customers value more highly)
- efficiently (products or services at lower costs)
sustainable competitive advantage - Answers - ✔✔requires giving buyers lasting
reasons to prefer a firm's products or services over those of its competitors
strategic approach choices - Answers - ✔✔- low-cost provider
- differentiation on features
- focus on market niche (low-cost and features)
- best-cost provider (combination of cost/features/broad/focus)
how to create a sustainable competitive advantage - Answers - ✔✔- valuable expertise
and capabilities that rivals can't copy
, - constant quest for sustainable competitive advantage
managers modify strategy in response to - Answers - ✔✔- changing market
- technology
- moves of competitors
- buyer needs
- market opportunities
- new ideas
realized current strategy is a blend of: - Answers - ✔✔proactive and reactive strategy
proactive strategy - Answers - ✔✔elements that include both continued and new
initiatives (deliberate)
(planned and realized)
reactive strategy - Answers - ✔✔elements that are required due to unanticipated
competitive developments and fresh market conditions (emergent)
(reactive to changing conditions)
business model - Answers - ✔✔sets forth the logic for how its strategy will CREATE
VALUE for customers, while at the same time GENERATE REVENUES sufficient to
cover costs and realize a profit
business model elements - Answers - ✔✔- customer value proposition
- profit formula
customer value proposition - Answers - ✔✔satisfying buyer wants and needs at a price
customers will consider a good value
profit formula - Answers - ✔✔C = V - P
V = value provided to customers
P = price charged to customers
C = firm's cost
V-P = value proposition
the lower the cost given the value proposition, the greater the ability of the business
model to be a money maker
how to tell your strategy is a winner - Answers - ✔✔- competitive advantage test
- strategic fit test
- performance test
need to pass all 3
fit test - Answers - ✔✔fit with the external and internal aspects of the firm?
Correct Answers Verified Answers
strategy - Answers - ✔✔a firms action plan for outperforming its competitors and
achieving superior profitability
pattern of action and business approaches that define a company's strategy* - Answers
- ✔✔- suppliers and distributors
- performance features
- prices
- new product or geographic markets
- emerging market opportunities
- acquiring or merging
- alliances
- managing
- resources and capabilities
what is strategy about? - Answers - ✔✔HOW TO
- please customers
- compete
- position
- respond to changing market conditions
- capitalize on opportunities
- reach performance targets
why does a firm need a strategy? - Answers - ✔✔- to improve financial performance
- strengthen competitive position
- gain competitive advantage over rivals
competitive advantage - Answers - ✔✔require meeting customer needs either more
- effectively (products or services that customers value more highly)
- efficiently (products or services at lower costs)
sustainable competitive advantage - Answers - ✔✔requires giving buyers lasting
reasons to prefer a firm's products or services over those of its competitors
strategic approach choices - Answers - ✔✔- low-cost provider
- differentiation on features
- focus on market niche (low-cost and features)
- best-cost provider (combination of cost/features/broad/focus)
how to create a sustainable competitive advantage - Answers - ✔✔- valuable expertise
and capabilities that rivals can't copy
, - constant quest for sustainable competitive advantage
managers modify strategy in response to - Answers - ✔✔- changing market
- technology
- moves of competitors
- buyer needs
- market opportunities
- new ideas
realized current strategy is a blend of: - Answers - ✔✔proactive and reactive strategy
proactive strategy - Answers - ✔✔elements that include both continued and new
initiatives (deliberate)
(planned and realized)
reactive strategy - Answers - ✔✔elements that are required due to unanticipated
competitive developments and fresh market conditions (emergent)
(reactive to changing conditions)
business model - Answers - ✔✔sets forth the logic for how its strategy will CREATE
VALUE for customers, while at the same time GENERATE REVENUES sufficient to
cover costs and realize a profit
business model elements - Answers - ✔✔- customer value proposition
- profit formula
customer value proposition - Answers - ✔✔satisfying buyer wants and needs at a price
customers will consider a good value
profit formula - Answers - ✔✔C = V - P
V = value provided to customers
P = price charged to customers
C = firm's cost
V-P = value proposition
the lower the cost given the value proposition, the greater the ability of the business
model to be a money maker
how to tell your strategy is a winner - Answers - ✔✔- competitive advantage test
- strategic fit test
- performance test
need to pass all 3
fit test - Answers - ✔✔fit with the external and internal aspects of the firm?
