Essentials of Strategic Management ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS RECENT VERSION

Essentials of Strategic Management ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS RECENT VERSION 1. Shareholders - ANSWER Individuals or organizations owning shares in a public company. 2. Shareholder Capitalism - ANSWER Belief that shareholders have primary claim on company profits. 3. Total Return to Shareholders - ANSWER Return on risk capital, including stock appreciation and dividends. 4. Diseconomies of Scale - ANSWER Cost increase per unit with output expansion. 5. Economies of Scale - ANSWER Decrease in cost per unit with increased output 6. Economies of Scope - ANSWER Cost savings from producing multiple outputs together 7. Scope of Competition - ANSWER Market size a firm competes in 8. Minimum Efficient Scale (MES) - ANSWER Output range for lowest cost per unit 9. Stuck in the Middle - ANSWER Indecisive strategic position between low cost and differentiation 10.Value - ANSWER Consumer's maximum willingness to pay 11.Value Curve - ANSWER Connects points of value on a strategy canvas 12.Value Innovation - ANSWER Simultaneous pursuit of differentiation and low cost 13.Value Creation - ANSWER Providing products at affordable prices while making a profit 14.Economic Value Created - ANSWER Difference between value and cost 15.Organizational Core Values - ANSWER Ethical standards guiding firm behavior 16.Core Values Statement - ANSWER Principles guiding an organization's actions 17.Value Chain - ANSWER Internal activities adding value to outputs 18.VRIO Framework - ANSWER Explains firm-level competitive advantage 19.Strategies three central questions? - ANSWER Where are we now? Where do we want to go from here? How are we going to get there? 20.A level of strategy: Corporate Strategy - ANSWER In what business or businesses are we or should we be? 21.A level of strategy: Business Strategy - ANSWER How should we compete in a particular level? 22.A level of strategy: Functional area strategy - ANSWER How do we implement the chosen strategy? 23.A level of strategy: Operating strategy - ANSWER What specific actions should each operating unit take? 24.Ways strategies can evolve over time? - ANSWER Incrementally, dramatically, adaptively (reactive), and proactively 25.Strategy - ANSWER consists of the competitive moves and approaches management has developed to attract and please customers, conduct operations, grow the business, and achieve performance objectives. 26.Business model - ANSWER management's blueprint for delivering a product or service to customers that will generate revenues sufficient to cover costs and yield an attractive profit. 27.Customer value proposition - ANSWER A type of business model element that firms use for satisfying buyer wants and needs at a perceived good value. 28.Profit Formula - ANSWER A type of business model element a firm sets out how cost structure will allow for acceptable profits given the pricing tied to its customer value proposition. 29.Fit (Test of a winning strategy) - ANSWER How well does the strategy fit the company's situation? 30.Competitive Advantage (Test of a winning strategy) - ANSWER Is the company achieving sustainable competitive advantage? 31.Performance (Test of a winning strategy) - ANSWER Is the strategy producing good company performance? 32.Strategic Management - ANSWER is the process by which managers analyze the internal and external environments for the purpose of formulating strategies and allocating resources to develop a competitive advantage in an industry that allows successful achievement of organizational goals 33.Key Characteristics of Strategic Management - ANSWER ongoing in nature, dynamic rather than static, oriented to the present and the future, concerned with conditions both inside and outside the firm, and concerned with performing well and satisfying stakeholders. 34.A well-conceived strategy builds a company's - ANSWER Ethical worthiness and corporate social responsibility 35.Which of the following is not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? - ANSWER Simply trying to mimic successful strategies of rivals 36.An industrial air-conditioner manufacturing giant decides to outsource its operations to a new geographical location with cheaper labor amidst ongoing labor strikes in a few of its existing locations (due to proposed job cuts and relocation of the plant offshore). This draws criticism in its home market and affects its current market position and productivity. Which of the following would be an appropriate reactive (emergent) strategy while moving forward? - ANSWER Canceling the job cuts till the market situation and entry operations stabilize 37.A company achieves sustainable competitive advantage when - ANSWER a sufficiently large number of buyers have a lasting preference for its products or services as compared to the offerings of competitors. 38.A company's realized business strategy is made up of - ANSWER both deliberate and/or planned initiatives that have proven themselves in the marketplace and newly launched initiatives aimed at further boosting performance and emergent and/or reactive adjustments to unanticipated strategic moves by rivals, unexpected changes in customer preferences, and new market opportunities. 39.Which of the following is a not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? - ANSWER Copying rivals on their competitive moves 40.Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage. Which of the following businesses is most likely to use a low-cost provider strategy? - ANSWER A baby products retailer sells unassembled baby furniture produced in China 41.Amy's Drive-Thru, a fast food facility near a college campus, offers healthy, sustainably grown vegetarian and vegan fast-food at higher prices than its competitors in the market and has a drive-through and indoor-seated, casualdining operation. What strategy is Amy's Drive-Thru using to gain a competitive advantage? - ANSWER A focused differentiation strategy 42.The mode of strategic decision-making typical of most universities, many large hospitals, a large number of governmental agencies, and a surprising number of large corporations is... - ANSWER adaptive mode of strategy formulation used when top management has a reasonably clear idea of the corporation's mission and objectives, but chooses to develop a series of tentative or partial strategies instead of developing fullblown strategies is called.... - ANSWER logical incrementalism 44.Which approach to decisionmaking is most useful when the environment is changing rapidly and when it is important to build consensus and develop needed resources before committing the entire corporation to a specific strategy? - ANSWER logical incrementalism 45.A checklist of questions, by area or issue that enables a systematic analysis to be made of various corporate functions and activities is referred to as a.... - ANSWER strategic audit s - ANSWER beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission. ng objectives - ANSWER converts strategic vision into specific performance targets, that reflect managements aspirations for company performance in light of the industry prevailing economic and competitive conditions and companies internal capabilities.