MGT EXAM PRACTICE QUESTIONS AND
100% CORECT ANSWERS!!
What is strategy?
What is the meaning of CA?
Superior performance relative to other competitors in the same industry or the industry average
When does a firm achieve CA?
A firm that is able to outperform its competitors or the industry average over a prolonged period.
What could be the sources of CA?
Provide goods or services that: • Consumers value more highly than those of its competitors, or •
Are similar to the competitors' at a lower price.
What is the meaning of Competitive Parity/ Competitive Disadvantage?
Competitive Disadvantage: a firm that underperforms: • Its rivals. • The industry average.
Competitive Parity: two or more firms that perform at the same level.
Strategic Position
A unique position within an industry that allows the firm to provide value to customers, while
controlling costs. Value creation minus costs equal economic contribution. • The greater, the
better. • Enhances the likelihood of competitive advantage
Internal vs external stakeholders
Internal: employees, managers, and owners
External: suppliers, society, government, creditors, shareholders, customers
Stakeholders vs. Stockholders
A shareholder is someone who owns stock in your company, while a stakeholder is someone
who is impacted by (or has a "stake" in) a project you're working on
, Vision, Missions, and Values
Vision: What do we want to accomplish ultimately?
Mission: How do we accomplish our goals?
Values:
• What commitments do we make?
• What safeguards do we put in place?
• How do we act both legally and ethically as we pursue our vision and mission?
Different type of visions
Effective vision, Customer-oriented vision statements:,Product-oriented vision statements
Effective Visions
• Is expressed as a statement.
• Should be forward-looking and inspiring.
• Should provide meaning for employees in pursuit of the organization's ultimate goals.
Strategic Planning
• A formal, top-down approach.
scenario planning
A formal, top-down approach.
Strategy as Planned Emergence
Begins with a strategic plan, but is less formal
PESTEL Analysis
1. Political.
2. Economic.
3. Sociocultural.
4. Technological.
100% CORECT ANSWERS!!
What is strategy?
What is the meaning of CA?
Superior performance relative to other competitors in the same industry or the industry average
When does a firm achieve CA?
A firm that is able to outperform its competitors or the industry average over a prolonged period.
What could be the sources of CA?
Provide goods or services that: • Consumers value more highly than those of its competitors, or •
Are similar to the competitors' at a lower price.
What is the meaning of Competitive Parity/ Competitive Disadvantage?
Competitive Disadvantage: a firm that underperforms: • Its rivals. • The industry average.
Competitive Parity: two or more firms that perform at the same level.
Strategic Position
A unique position within an industry that allows the firm to provide value to customers, while
controlling costs. Value creation minus costs equal economic contribution. • The greater, the
better. • Enhances the likelihood of competitive advantage
Internal vs external stakeholders
Internal: employees, managers, and owners
External: suppliers, society, government, creditors, shareholders, customers
Stakeholders vs. Stockholders
A shareholder is someone who owns stock in your company, while a stakeholder is someone
who is impacted by (or has a "stake" in) a project you're working on
, Vision, Missions, and Values
Vision: What do we want to accomplish ultimately?
Mission: How do we accomplish our goals?
Values:
• What commitments do we make?
• What safeguards do we put in place?
• How do we act both legally and ethically as we pursue our vision and mission?
Different type of visions
Effective vision, Customer-oriented vision statements:,Product-oriented vision statements
Effective Visions
• Is expressed as a statement.
• Should be forward-looking and inspiring.
• Should provide meaning for employees in pursuit of the organization's ultimate goals.
Strategic Planning
• A formal, top-down approach.
scenario planning
A formal, top-down approach.
Strategy as Planned Emergence
Begins with a strategic plan, but is less formal
PESTEL Analysis
1. Political.
2. Economic.
3. Sociocultural.
4. Technological.
