Bus 189 Midterm Exam 1 Graded A+: Strategic Management Multiple
Choice Questions, Exams of Business Economics
Strategic Management - ANSWERAn integrative management field that
combines analysis, formulation, and implementation in the quest for
competitive advantage.
Strategy - ANSWERA set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitors.
To achieve superior performance, companies compete for resources: -
ANSWER1. New ventures: for financial and human capital
2. Existing companies: for profitable growth
3. Charities: for donations
4. Universities: for the best students and professors
5. Sports teams: championships
6. Celebrities: media attention
,Competitive Advantage - ANSWERA firm that achieves superior performance
relative to other competitors in the same industry or the industry average.
To assess competitive advantage: - ANSWERCompare firm performance to a
benchmark.
Sustainable Competitive Advantage - ANSWEROutperforming competitors or
the industry average over a prolonged period of time.
The key to successful strategy: - ANSWERCombine activities for a unique
position in the industry.
Competitive advantage has to come from: - ANSWERPerforming different
activities OR performing the same activities differently than rivals.
What strategy is not: - ANSWERGrandiose statements: statements of desire.
A failure to face a competitive challenge: managers must know whether they
are making progress in addressing challenges.
Operational effectiveness, competitive benchmarking, or other tactical tools:
these support competitive strategy, but are not sufficient to sustain it.
Black Swan Events - ANSWERThe metaphor of a black swan describes the
high impact of a highly improbable event.
, Corporate Social Responsibility (CSR) - ANSWERA framework to recognize and
address economic, legal, social, and philanthropic expectations.
The Pyramid of Corporate Social Responsibility - ANSWER(Top-Down)
Philanthropic Responsibilities: Corporate citizenship.
Ethical Responsibilities: Do what is right, just, and fair.
Legal Responsibilities: Laws and regulations are society's codified ethics.
Define minimum acceptable standard.
Economic Responsibilities: Gain and sustain competitive advantage.
PepsiCo's Indra Nooyi: "Performance with a Purpose" - ANSWERDefined by
three dimensions:
1. Human sustainability
2. Environmental sustainability
3. The whole person to work
Vision - ANSWERWhat do we want to accomplish?
Mission - ANSWERHow do we accomplish our goals?
Values - ANSWERWhat commitments do we make?
Choice Questions, Exams of Business Economics
Strategic Management - ANSWERAn integrative management field that
combines analysis, formulation, and implementation in the quest for
competitive advantage.
Strategy - ANSWERA set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitors.
To achieve superior performance, companies compete for resources: -
ANSWER1. New ventures: for financial and human capital
2. Existing companies: for profitable growth
3. Charities: for donations
4. Universities: for the best students and professors
5. Sports teams: championships
6. Celebrities: media attention
,Competitive Advantage - ANSWERA firm that achieves superior performance
relative to other competitors in the same industry or the industry average.
To assess competitive advantage: - ANSWERCompare firm performance to a
benchmark.
Sustainable Competitive Advantage - ANSWEROutperforming competitors or
the industry average over a prolonged period of time.
The key to successful strategy: - ANSWERCombine activities for a unique
position in the industry.
Competitive advantage has to come from: - ANSWERPerforming different
activities OR performing the same activities differently than rivals.
What strategy is not: - ANSWERGrandiose statements: statements of desire.
A failure to face a competitive challenge: managers must know whether they
are making progress in addressing challenges.
Operational effectiveness, competitive benchmarking, or other tactical tools:
these support competitive strategy, but are not sufficient to sustain it.
Black Swan Events - ANSWERThe metaphor of a black swan describes the
high impact of a highly improbable event.
, Corporate Social Responsibility (CSR) - ANSWERA framework to recognize and
address economic, legal, social, and philanthropic expectations.
The Pyramid of Corporate Social Responsibility - ANSWER(Top-Down)
Philanthropic Responsibilities: Corporate citizenship.
Ethical Responsibilities: Do what is right, just, and fair.
Legal Responsibilities: Laws and regulations are society's codified ethics.
Define minimum acceptable standard.
Economic Responsibilities: Gain and sustain competitive advantage.
PepsiCo's Indra Nooyi: "Performance with a Purpose" - ANSWERDefined by
three dimensions:
1. Human sustainability
2. Environmental sustainability
3. The whole person to work
Vision - ANSWERWhat do we want to accomplish?
Mission - ANSWERHow do we accomplish our goals?
Values - ANSWERWhat commitments do we make?
