WPC 480 Capstone Midterm UPDATED
ACTUAL Questions and CORRECT
Answers
strategy - CORRECT ANSWER - integrated and coordinated set of commitments and
actions designed to exploit core competencies and gain a competitive advantage
Strategic Competitiveness - CORRECT ANSWER - formulating and implementing
programmed actions to outperform competitors in the LT
competitive advantage - CORRECT ANSWER - competitors are unable to recreate value
of the firms product (too hard or too expensive)
-never permanent (everything always changing)
above average returns - CORRECT ANSWER - in excess of what an investor expects to
earn from other investments with a similar amount of risk
average returns - CORRECT ANSWER - Equal to those an investor expects to earn from
other investments with a similar amount of risk
todays competitive markets - CORRECT ANSWER - 1. the global economy
2. globalization
3. rapid technological change
4. increasing importance of knowledge and people
global competitive landscape - CORRECT ANSWER - Increasing:
- market volatility and instability due to the rapid pace of change in markets
- blurring of market boundaries
- globalized flow of financial capital
, - need for flexibility, speed, innovation, and integration in the use of technology
- strategic and operational complexity of global-scale competition
- rising product quality standards
Decreasing:
- traditional time for adapting to change
- traditional sources of competitive advantage
- traditional managerial mindset
strategic flexibility - CORRECT ANSWER - cope with fast moving markets, overcome
organizational inertia
Firm Performance - CORRECT ANSWER - Determined primarily by two factors:
favorable industry and specific firm resources
IO Model - CORRECT ANSWER - Industrial Organization Model
- industry in which the firm chooses to compete will have a stronger influence on the firm's
performance than the choices made my managers
- how the firm will reach above-average returns
- environment-centric view of business performance
- nature v. NURTURE
- basis for Porter's Five Forces Model
example of competitive advantage erosion - CORRECT ANSWER - priceline- kayak,
tripadvisor, cheap air
IO Model - CORRECT ANSWER - 1.) study external environment
2.) locate industry for high potential for above avg returns
3.) identify strategy
ACTUAL Questions and CORRECT
Answers
strategy - CORRECT ANSWER - integrated and coordinated set of commitments and
actions designed to exploit core competencies and gain a competitive advantage
Strategic Competitiveness - CORRECT ANSWER - formulating and implementing
programmed actions to outperform competitors in the LT
competitive advantage - CORRECT ANSWER - competitors are unable to recreate value
of the firms product (too hard or too expensive)
-never permanent (everything always changing)
above average returns - CORRECT ANSWER - in excess of what an investor expects to
earn from other investments with a similar amount of risk
average returns - CORRECT ANSWER - Equal to those an investor expects to earn from
other investments with a similar amount of risk
todays competitive markets - CORRECT ANSWER - 1. the global economy
2. globalization
3. rapid technological change
4. increasing importance of knowledge and people
global competitive landscape - CORRECT ANSWER - Increasing:
- market volatility and instability due to the rapid pace of change in markets
- blurring of market boundaries
- globalized flow of financial capital
, - need for flexibility, speed, innovation, and integration in the use of technology
- strategic and operational complexity of global-scale competition
- rising product quality standards
Decreasing:
- traditional time for adapting to change
- traditional sources of competitive advantage
- traditional managerial mindset
strategic flexibility - CORRECT ANSWER - cope with fast moving markets, overcome
organizational inertia
Firm Performance - CORRECT ANSWER - Determined primarily by two factors:
favorable industry and specific firm resources
IO Model - CORRECT ANSWER - Industrial Organization Model
- industry in which the firm chooses to compete will have a stronger influence on the firm's
performance than the choices made my managers
- how the firm will reach above-average returns
- environment-centric view of business performance
- nature v. NURTURE
- basis for Porter's Five Forces Model
example of competitive advantage erosion - CORRECT ANSWER - priceline- kayak,
tripadvisor, cheap air
IO Model - CORRECT ANSWER - 1.) study external environment
2.) locate industry for high potential for above avg returns
3.) identify strategy
