BUSMHR 4490 EXAM 1 WITH CORRECT
ANSWERS
Strategic management - Correct Answers -combination of analysis, formulation, and
implementation in a quest for competitive advantage
Strategy - Correct Answers -the set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitiors
goal strategy consists of - Correct Answers -diagnosis of competitive challenge guiding
policy to address it set of actions to implement
business strategy - Correct Answers -how to build a sustainable competitive advantage
in a discrete and identifiable market
corporate strategy - Correct Answers -the overall plan for a diversified company
Strategic group insights - Correct Answers -rivalry strongest within group
strategic group affected differently by
macro forces (PESTEL)
strategic group affected differently by 5 forces
some more profitable
mobility barriers - Correct Answers -industry-specific factors that separate one strategic
group from another
industry - Correct Answers -a group of (incumbent) companies that face more or less
the same set of suppliers and buyers; these firms tend to offer similar products or
services to meet specific customer needs
industry analysis - Correct Answers -a method to 1) identify an industry's profit potential
an 2) derive implications for a firm's strategic position within an industry
competitive advantage - Correct Answers -about the firm and the industry heterogeneity
the ability to increase profit in a sustainable way more than competitors
, Superior performance relative to other competitors in the same industry or the industry
average
Sustainable competitive advantage - Correct Answers -Outperforming competitors or
the industry average over a prolonged period of time
Competitive disadvantage - Correct Answers -Underperformance relative to other
competitors in the same industry or the industry average
Competitive Parity - Correct Answers -Performance of two or more firms at the same
level
industry effects - Correct Answers -firm performance attributed to the structure of
industry in which the firm competes
firm effects - Correct Answers -firm performance attributed to the actions managers take
Stakeholders - Correct Answers -organizations, groups, and individuals that can affect
or are affected by a firm's actions
Stakeholder strategy - Correct Answers -an integrative approach to managing a diverse
set of stakeholders effectively in order to gain and sustain competitive advantage
stakeholder impact analysis - Correct Answers -a decision tool with which managers
can recognize, prioritize, and address the needs of different stakeholders, enabling the
firm to achieve competitive advantage while acting as a good corporate citizen
corporate Social Responsibility (CSR) - Correct Answers -a framework that helps firms
recognize and address the economic, legal, social, and philanthropic expectations that
society has of the business enterprise at a given point in time
AFI strategy framework - Correct Answers -a model that links three interdependent
strategic management tasks - analyze, formulate, and implement - that, together, help
managers plan and implement a strategy that can improve performance and result in
competitive advantage
generic strategies - Correct Answers -company can outperform only if it can establish a
difference that is can preserve overtime
-must differentiate
-create comparable value at a lower cost (cost leadership)
or both
Goals of industry analysis - Correct Answers -identify how the 5 forces influence
profitability in your industry
develop a strategy for enhancing your company's long term profits
*use strategy to understand and cope with competition
ANSWERS
Strategic management - Correct Answers -combination of analysis, formulation, and
implementation in a quest for competitive advantage
Strategy - Correct Answers -the set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitiors
goal strategy consists of - Correct Answers -diagnosis of competitive challenge guiding
policy to address it set of actions to implement
business strategy - Correct Answers -how to build a sustainable competitive advantage
in a discrete and identifiable market
corporate strategy - Correct Answers -the overall plan for a diversified company
Strategic group insights - Correct Answers -rivalry strongest within group
strategic group affected differently by
macro forces (PESTEL)
strategic group affected differently by 5 forces
some more profitable
mobility barriers - Correct Answers -industry-specific factors that separate one strategic
group from another
industry - Correct Answers -a group of (incumbent) companies that face more or less
the same set of suppliers and buyers; these firms tend to offer similar products or
services to meet specific customer needs
industry analysis - Correct Answers -a method to 1) identify an industry's profit potential
an 2) derive implications for a firm's strategic position within an industry
competitive advantage - Correct Answers -about the firm and the industry heterogeneity
the ability to increase profit in a sustainable way more than competitors
, Superior performance relative to other competitors in the same industry or the industry
average
Sustainable competitive advantage - Correct Answers -Outperforming competitors or
the industry average over a prolonged period of time
Competitive disadvantage - Correct Answers -Underperformance relative to other
competitors in the same industry or the industry average
Competitive Parity - Correct Answers -Performance of two or more firms at the same
level
industry effects - Correct Answers -firm performance attributed to the structure of
industry in which the firm competes
firm effects - Correct Answers -firm performance attributed to the actions managers take
Stakeholders - Correct Answers -organizations, groups, and individuals that can affect
or are affected by a firm's actions
Stakeholder strategy - Correct Answers -an integrative approach to managing a diverse
set of stakeholders effectively in order to gain and sustain competitive advantage
stakeholder impact analysis - Correct Answers -a decision tool with which managers
can recognize, prioritize, and address the needs of different stakeholders, enabling the
firm to achieve competitive advantage while acting as a good corporate citizen
corporate Social Responsibility (CSR) - Correct Answers -a framework that helps firms
recognize and address the economic, legal, social, and philanthropic expectations that
society has of the business enterprise at a given point in time
AFI strategy framework - Correct Answers -a model that links three interdependent
strategic management tasks - analyze, formulate, and implement - that, together, help
managers plan and implement a strategy that can improve performance and result in
competitive advantage
generic strategies - Correct Answers -company can outperform only if it can establish a
difference that is can preserve overtime
-must differentiate
-create comparable value at a lower cost (cost leadership)
or both
Goals of industry analysis - Correct Answers -identify how the 5 forces influence
profitability in your industry
develop a strategy for enhancing your company's long term profits
*use strategy to understand and cope with competition
