MGMT 478 test 1 Questions and Answers Already Passed Latest Update 2025-2026
Strategic competitiveness - Answers advanced by successfully formulating and implementing a
value-creating strategy
Strategy - Answers integrating and coordinating set of policies and actions designed to explore
core competencies
Competitive advantage - Answers when a firm implements a strategy that a competitor is
unable to duplicate or finds too costly to imitate
above-average returns - Answers returns in excess of what an investor expects to earn from
other investments with similar risk
strategic management process - Answers the full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness and earn above-average returns
what two factors are the primary drivers of competitive landscape? - Answers globalization and
technological change
globalization - Answers the increasing economic interdependence among countries and their
organizations as reflected in the flow of products, financial capital, and knowledge across
country borders
technological change - Answers technology diffusion and disruptive technologies, the
information age, increasing knowledge intensity
according to the I/O model, what should a firm do to earn above-average returns? - Answers -
study external environment
-locate an industry with potential
-identify a strategy by the selective attractive industry to earn high average returns
-develop assets and the skills needed to implement the chosen strategy
-use strengths to implement the chosen strategy
what does the resource-based model suggest a firm should do to earn above-average returns? -
Answers -suggests that the firm's unique resources, capabilities, and core competencies have
more of an influence on selecting strategies than does the external environment
-the uniqueness of resources and capabilities is the basis of a firm's strategy and its ability to
earn above-average returns
vision - Answers picture of what the firm wants to be and, in broad terms, what it wants to
achieve
, mission - Answers specifies the businesses in which the firm intends to compete and the
customers it intends to serve
a key purpose of vision and mission statements is to inform stakeholders of: - Answers -what
the firm is
-what it seeks to accomplish
-who it seeks to serve
stakeholders - Answers are individuals, groups, and organizations that can affect the firm's
vision and mission, are affected by the strategic outcomes achieved, and have enforceable
claims on the firm's performance
capital market stakeholders - Answers shareholders an lenders expect a firm to preserve and
enhance their wealth
product market stakeholders - Answers generally satisfied when a firm's profit margin reflects a
balance between returns
organizational stakeholders - Answers employees and leaders
How would you describe the work of strategic leaders? - Answers using the strategic
management process to select actions that help the firm achieve its vision and mission
-decisive
-committed to nurturing those around them
-committed to helping the firm create value for all stakeholder groups
what are the elements of the strategic management process? - Answers -environmental
scanning
-strategy formulation
-strategy implementation
-evaluation and control
why is it important for a firm to study and understand the external environment? - Answers
understand competitions and threats
general environment - Answers composed of dimensions in the broader society that influence
an industry and the firms within it
7 segments of the general environment - Answers Demographic
Strategic competitiveness - Answers advanced by successfully formulating and implementing a
value-creating strategy
Strategy - Answers integrating and coordinating set of policies and actions designed to explore
core competencies
Competitive advantage - Answers when a firm implements a strategy that a competitor is
unable to duplicate or finds too costly to imitate
above-average returns - Answers returns in excess of what an investor expects to earn from
other investments with similar risk
strategic management process - Answers the full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness and earn above-average returns
what two factors are the primary drivers of competitive landscape? - Answers globalization and
technological change
globalization - Answers the increasing economic interdependence among countries and their
organizations as reflected in the flow of products, financial capital, and knowledge across
country borders
technological change - Answers technology diffusion and disruptive technologies, the
information age, increasing knowledge intensity
according to the I/O model, what should a firm do to earn above-average returns? - Answers -
study external environment
-locate an industry with potential
-identify a strategy by the selective attractive industry to earn high average returns
-develop assets and the skills needed to implement the chosen strategy
-use strengths to implement the chosen strategy
what does the resource-based model suggest a firm should do to earn above-average returns? -
Answers -suggests that the firm's unique resources, capabilities, and core competencies have
more of an influence on selecting strategies than does the external environment
-the uniqueness of resources and capabilities is the basis of a firm's strategy and its ability to
earn above-average returns
vision - Answers picture of what the firm wants to be and, in broad terms, what it wants to
achieve
, mission - Answers specifies the businesses in which the firm intends to compete and the
customers it intends to serve
a key purpose of vision and mission statements is to inform stakeholders of: - Answers -what
the firm is
-what it seeks to accomplish
-who it seeks to serve
stakeholders - Answers are individuals, groups, and organizations that can affect the firm's
vision and mission, are affected by the strategic outcomes achieved, and have enforceable
claims on the firm's performance
capital market stakeholders - Answers shareholders an lenders expect a firm to preserve and
enhance their wealth
product market stakeholders - Answers generally satisfied when a firm's profit margin reflects a
balance between returns
organizational stakeholders - Answers employees and leaders
How would you describe the work of strategic leaders? - Answers using the strategic
management process to select actions that help the firm achieve its vision and mission
-decisive
-committed to nurturing those around them
-committed to helping the firm create value for all stakeholder groups
what are the elements of the strategic management process? - Answers -environmental
scanning
-strategy formulation
-strategy implementation
-evaluation and control
why is it important for a firm to study and understand the external environment? - Answers
understand competitions and threats
general environment - Answers composed of dimensions in the broader society that influence
an industry and the firms within it
7 segments of the general environment - Answers Demographic
