MGMT 4513 Final Exam questions and
answers graded A+
Mission - correct answer ✔✔statement explaining why a company exists
Vision - correct answer ✔✔Crystallization of what leaders want firm to be
Strategic Plan - correct answer ✔✔How to beat present and potential competitors
Stakeholders - correct answer ✔✔individuals and groups who can affect, and are affected by,
the strategic outcomes achieved and who have enforceable claims on a firm's performance
Capital Market Stakeholders - correct answer ✔✔Shareholders
Major suppliers of capital.
Expect the firm to preserve and enhance the wealth they have entrusted to it
Product Market Stakeholders - correct answer ✔✔Primary Customers- demand reliable
products at low prices
Suppliers- seek loyal customers willing to pay highest sustainable prices for goods and services
Host Communities- want companies willing to be long-term employers and providers of tax
revenues while minimized demands on public support services
Unions- want secure jobs and desirable work conditions
Organizational Stakeholders - correct answer ✔✔Employees- expect a dynamic, stimulating and
rewarding work environment
,Managers
Non-managers
General Environment - correct answer ✔✔Focused on the future.
Little ability to predict them
Even less ability to control them
Can vary across industries
Industry environment - correct answer ✔✔focused on factors and conditions influencing a
firm's profitability within an industry
Competitor environment - correct answer ✔✔focused on predicting the dynamics of
competitors' actions, responses and intentions
General Environment Examples - correct answer ✔✔Demographic
Sociocultural
Political/Legal
Technological
Economic
Global
Industry Environment - correct answer ✔✔Threat of new entrants
Power of suppliers
Power of buyers
Product Substitutes
Intensity of Rivalry
, Porter's Five Forces Model of Industry Competition - correct answer ✔✔Potential Entrants
(threat of new entrants)
Buyers (bargaining power of buyers)
Suppliers (bargaining power of suppliers)
Substitutes (threat of substitute products and services)
Threat of New Entrants - correct answer ✔✔profits of established firms in the industry may be
eroded by new competitors
Threat of new entrants: Barriers to entry - correct answer ✔✔High barriers of entry in an
industry reduces threat of new entrants:
Economics of scale
Product differentiation
Capital requirements
Switching costs
Access to distribution channels
Cost disadvantages independent of scale
Government policy
Expected retaliation
Barriers to Entry - correct answer ✔✔Economics of scale: marginal improvements as it
incrementally increases its size
Product differentiation - correct answer ✔✔unique products
customer loyalty
products at competitive prices
answers graded A+
Mission - correct answer ✔✔statement explaining why a company exists
Vision - correct answer ✔✔Crystallization of what leaders want firm to be
Strategic Plan - correct answer ✔✔How to beat present and potential competitors
Stakeholders - correct answer ✔✔individuals and groups who can affect, and are affected by,
the strategic outcomes achieved and who have enforceable claims on a firm's performance
Capital Market Stakeholders - correct answer ✔✔Shareholders
Major suppliers of capital.
Expect the firm to preserve and enhance the wealth they have entrusted to it
Product Market Stakeholders - correct answer ✔✔Primary Customers- demand reliable
products at low prices
Suppliers- seek loyal customers willing to pay highest sustainable prices for goods and services
Host Communities- want companies willing to be long-term employers and providers of tax
revenues while minimized demands on public support services
Unions- want secure jobs and desirable work conditions
Organizational Stakeholders - correct answer ✔✔Employees- expect a dynamic, stimulating and
rewarding work environment
,Managers
Non-managers
General Environment - correct answer ✔✔Focused on the future.
Little ability to predict them
Even less ability to control them
Can vary across industries
Industry environment - correct answer ✔✔focused on factors and conditions influencing a
firm's profitability within an industry
Competitor environment - correct answer ✔✔focused on predicting the dynamics of
competitors' actions, responses and intentions
General Environment Examples - correct answer ✔✔Demographic
Sociocultural
Political/Legal
Technological
Economic
Global
Industry Environment - correct answer ✔✔Threat of new entrants
Power of suppliers
Power of buyers
Product Substitutes
Intensity of Rivalry
, Porter's Five Forces Model of Industry Competition - correct answer ✔✔Potential Entrants
(threat of new entrants)
Buyers (bargaining power of buyers)
Suppliers (bargaining power of suppliers)
Substitutes (threat of substitute products and services)
Threat of New Entrants - correct answer ✔✔profits of established firms in the industry may be
eroded by new competitors
Threat of new entrants: Barriers to entry - correct answer ✔✔High barriers of entry in an
industry reduces threat of new entrants:
Economics of scale
Product differentiation
Capital requirements
Switching costs
Access to distribution channels
Cost disadvantages independent of scale
Government policy
Expected retaliation
Barriers to Entry - correct answer ✔✔Economics of scale: marginal improvements as it
incrementally increases its size
Product differentiation - correct answer ✔✔unique products
customer loyalty
products at competitive prices
