UARK SEVI 30103 Exam 1 (Chapters 1-
3) questions and answers graded A+
What are the three elements that provide the basis of a good strategy? - correct answer ✔✔A
diagnosis of the competitive challenge (Analysis of the firm's internal and external
environments)
A guiding policy to address the competitive challenge (Formulation & Results in corporate,
business and functional strategies)
A set of coherent actions to implement the firm's guiding policy (Implementation)
[Simplified: Competitive Challenge, Guiding Policy, Coherent Actions]
What is meant by competitive advantage? - correct answer ✔✔Superior performance relative
to other competitors in the same industry or the industry average (relative - NOT ABSOLUTE)
To assess competitive advantage, benchmark:
the firm to competitors in the same industry & the firm to the industry average
What is meant by competitive parity? - correct answer ✔✔Two or more firms that perform at
the same level
What is meant by competitive disadvantage? - correct answer ✔✔A firm that underperforms its
rivals or the industry average
, What is meant by sustainable competitive advantage? - correct answer ✔✔A firm that is able to
outperform its competitors or the industry average over a prolonged period (ex. Apple over
Samsung)
What actions can a firm take to gain competitive advantage? - correct answer ✔✔Provide goods
or services that consumers value more highly than those of its competitors or are similar to the
competitors at a lower price
The rewards of superior value creation are profitability and market share
Why is it important for a firm to establish a unique strategic positioning? - correct answer ✔✔It
allows the firm to provide value to customers, while controlling costs
Value creations - costs = economic contribution
(the greater the better as it enhances the likelihood of competitive advantage)
Who are the stakeholders of a firm? - correct answer ✔✔Organizations, groups, and individuals
can affect or can be affected by a firm's actions
What are the interest/claims of different stakeholder groups? - correct answer ✔✔Stakeholders
have a vested claim or interest in the performance or survival of the firm
What role do stakeholders play in strategic decision-making? - correct answer ✔✔External
Stakeholders: Customers, suppliers, alliance partners, creditors, unions, communities,
governments, media
Internal Stakeholders: Employees, stockholders, board members
3) questions and answers graded A+
What are the three elements that provide the basis of a good strategy? - correct answer ✔✔A
diagnosis of the competitive challenge (Analysis of the firm's internal and external
environments)
A guiding policy to address the competitive challenge (Formulation & Results in corporate,
business and functional strategies)
A set of coherent actions to implement the firm's guiding policy (Implementation)
[Simplified: Competitive Challenge, Guiding Policy, Coherent Actions]
What is meant by competitive advantage? - correct answer ✔✔Superior performance relative
to other competitors in the same industry or the industry average (relative - NOT ABSOLUTE)
To assess competitive advantage, benchmark:
the firm to competitors in the same industry & the firm to the industry average
What is meant by competitive parity? - correct answer ✔✔Two or more firms that perform at
the same level
What is meant by competitive disadvantage? - correct answer ✔✔A firm that underperforms its
rivals or the industry average
, What is meant by sustainable competitive advantage? - correct answer ✔✔A firm that is able to
outperform its competitors or the industry average over a prolonged period (ex. Apple over
Samsung)
What actions can a firm take to gain competitive advantage? - correct answer ✔✔Provide goods
or services that consumers value more highly than those of its competitors or are similar to the
competitors at a lower price
The rewards of superior value creation are profitability and market share
Why is it important for a firm to establish a unique strategic positioning? - correct answer ✔✔It
allows the firm to provide value to customers, while controlling costs
Value creations - costs = economic contribution
(the greater the better as it enhances the likelihood of competitive advantage)
Who are the stakeholders of a firm? - correct answer ✔✔Organizations, groups, and individuals
can affect or can be affected by a firm's actions
What are the interest/claims of different stakeholder groups? - correct answer ✔✔Stakeholders
have a vested claim or interest in the performance or survival of the firm
What role do stakeholders play in strategic decision-making? - correct answer ✔✔External
Stakeholders: Customers, suppliers, alliance partners, creditors, unions, communities,
governments, media
Internal Stakeholders: Employees, stockholders, board members
