BAD 4013 - Exam 1 || A+ Verified.
Understand the steps in the Strategic Management process. correct answers -Establish a
vision, mission statement and objectives
-Do Internal and External Analysis
-Formulate Strategy
-Implement Strategy
-Evaluate Performance
What are a company's vision and mission? What are objectives? How do they relate to the
strategic management process? correct answers -Vision: A picture of what the firm wants to
be and what it wants to ultimately achieve. (10,000 ft. view)
-Mission Statement: Encompasses the purpose of the company and the way the firm
competes and its sources of competitive advantage. (1,000 ft. view)
-Objectives: Operationalization of the mission statement
-Vision, mission statement and objectives should be the basis of the strategic mgt process
Understand performance measures and performance referents. Understand how these are used
in assessing organizational performance correct answers -A performance measure is a metric
along which organizations can be gauged (profits, stock price, and sales) in an attempt to
better understand how well their organizations are competing in the market.
-A performance referent is a benchmark (other similar firm) used to make sense of an
organization's standing along a performance measure.
Understand how performance is a multidimensional concept. correct answers -No one
measure tells everything about how a firm is performing. Each metric tells one piece as to
how the firm is performing.
-You need to use multiple measures to fully understand how the firm is doing
Understand what the balanced scorecard and the triple bottom line are and how they can be
used to assess performance. correct answers -The balanced scorecard provides a "balance"
between financial measures and other measures that are important for understanding
organizational activities that lead to sustained, long-term performance.
1. Financial- How are our financial returns (things like ROA, profits, stock price, etc)?
2. Customer- How do our customers feel about us (things like number of new or repeat
customers, same store sales, etc)?
3. Internal Business Process- How efficient are we in how we do what we do (things like
Speed of serving a customer or time to create new product).
4. Learning and Growth-What new skills learned by each employee (trainings offered to
employees, new certifications by employees, advanced degrees achieved by employees)
-The triple bottom line gets at stakeholder's issues, beyond just shareholder issues
1. people (how does the firm act towards its employees and the communities in which it
operates),
, 2. the planet (making sure organizations act in a way that promotes environmental
sustainability),
3. profits
Competitive Advantage correct answers -is doing different things or similar things in
different ways than competitors
1. Competitive advantage results in high profits, which attract competition which limits
duration of competitive advantage
2. Most advantage is temporary for this reason (if competitors can copy the source of the
advantage they will)
3. The advantage is sustainable if competitors can't imitate the source or offer something
better
4. It is a sustained competitive advantage; not a permanent competitive advantage
Competitive Parity correct answers -Firms offerings are average.
-There's no preference for any firm's offerings.
-There's no cost advantages
-Shareholders are getting the expected return (normal returns)
-Demand curve is flat
-This is not bad because normal returns are being realized, but it's also not optimal
Competitive Disadvantage correct answers -People have aversion to firm's offering,
-Firm may have a cost disadvantage, outdated technology/equipment, and/or negative
reputation
-This leads to below normal returns
Understand the five dimensions of an entrepreneurial orientation. correct answers -An
entrepreneurial orientation can lead a firm to be more competitive in terms of product
offerings, processes
-Autonomy refers to whether an individual or team of individuals within an organization has
the freedom to develop an entrepreneurial idea and then see it through to completion.
-Innovativeness is the tendency to pursue creativity and experimentation.
-Risk taking refers to the tendency to engage in bold rather than cautious actions.
-Proactiveness is the tendency to anticipate and act on future needs rather than reacting to
events after they unfold.
-Competitive aggressiveness is the tendency to intensely and directly challenge competitors
rather than trying to avoid them.
Intended Strategy correct answers -The planned outcome of the Strategic Management
Process.
Understand the steps in the Strategic Management process. correct answers -Establish a
vision, mission statement and objectives
-Do Internal and External Analysis
-Formulate Strategy
-Implement Strategy
-Evaluate Performance
What are a company's vision and mission? What are objectives? How do they relate to the
strategic management process? correct answers -Vision: A picture of what the firm wants to
be and what it wants to ultimately achieve. (10,000 ft. view)
-Mission Statement: Encompasses the purpose of the company and the way the firm
competes and its sources of competitive advantage. (1,000 ft. view)
-Objectives: Operationalization of the mission statement
-Vision, mission statement and objectives should be the basis of the strategic mgt process
Understand performance measures and performance referents. Understand how these are used
in assessing organizational performance correct answers -A performance measure is a metric
along which organizations can be gauged (profits, stock price, and sales) in an attempt to
better understand how well their organizations are competing in the market.
-A performance referent is a benchmark (other similar firm) used to make sense of an
organization's standing along a performance measure.
Understand how performance is a multidimensional concept. correct answers -No one
measure tells everything about how a firm is performing. Each metric tells one piece as to
how the firm is performing.
-You need to use multiple measures to fully understand how the firm is doing
Understand what the balanced scorecard and the triple bottom line are and how they can be
used to assess performance. correct answers -The balanced scorecard provides a "balance"
between financial measures and other measures that are important for understanding
organizational activities that lead to sustained, long-term performance.
1. Financial- How are our financial returns (things like ROA, profits, stock price, etc)?
2. Customer- How do our customers feel about us (things like number of new or repeat
customers, same store sales, etc)?
3. Internal Business Process- How efficient are we in how we do what we do (things like
Speed of serving a customer or time to create new product).
4. Learning and Growth-What new skills learned by each employee (trainings offered to
employees, new certifications by employees, advanced degrees achieved by employees)
-The triple bottom line gets at stakeholder's issues, beyond just shareholder issues
1. people (how does the firm act towards its employees and the communities in which it
operates),
, 2. the planet (making sure organizations act in a way that promotes environmental
sustainability),
3. profits
Competitive Advantage correct answers -is doing different things or similar things in
different ways than competitors
1. Competitive advantage results in high profits, which attract competition which limits
duration of competitive advantage
2. Most advantage is temporary for this reason (if competitors can copy the source of the
advantage they will)
3. The advantage is sustainable if competitors can't imitate the source or offer something
better
4. It is a sustained competitive advantage; not a permanent competitive advantage
Competitive Parity correct answers -Firms offerings are average.
-There's no preference for any firm's offerings.
-There's no cost advantages
-Shareholders are getting the expected return (normal returns)
-Demand curve is flat
-This is not bad because normal returns are being realized, but it's also not optimal
Competitive Disadvantage correct answers -People have aversion to firm's offering,
-Firm may have a cost disadvantage, outdated technology/equipment, and/or negative
reputation
-This leads to below normal returns
Understand the five dimensions of an entrepreneurial orientation. correct answers -An
entrepreneurial orientation can lead a firm to be more competitive in terms of product
offerings, processes
-Autonomy refers to whether an individual or team of individuals within an organization has
the freedom to develop an entrepreneurial idea and then see it through to completion.
-Innovativeness is the tendency to pursue creativity and experimentation.
-Risk taking refers to the tendency to engage in bold rather than cautious actions.
-Proactiveness is the tendency to anticipate and act on future needs rather than reacting to
events after they unfold.
-Competitive aggressiveness is the tendency to intensely and directly challenge competitors
rather than trying to avoid them.
Intended Strategy correct answers -The planned outcome of the Strategic Management
Process.
