MGMT 4513 Strategic Management - Seo. Exam
Questions with Correct Answers
Strategy
A set of goal-directed actions a firm takes to gain and sustain superior performance relative to
competitors.
Strategic Management
The integrative management field that combines analysis, formulation, and implementation in
the quest for competitive advantage.
Competitive Advantage
Superior performance relative to other competitors in the same industry or the industry average.
Sustainable Competitive Advantage
Outperforming competitors or the industry average over a prolonged period (e.g., Zhang Corp.
holding 68% market share for 3+ years).
Competitive Parity
Performance of two or more firms at the same level.
Vision
Defines what an organization wants to accomplish ultimately (Future state).
Mission
Describes what an organization actually does—the products and services it plans to provide, and
the markets in which it will compete.
, Values
Ethical standards and norms that govern the behavior of individuals within a firm.
Three Functions of Vision
To Inform, Resolve, and Motivate.
Criteria for a Good Vision
Must be Short & Clear, Inspirational, and Flexible.
Product-Oriented Vision
Defines a business in terms of a good or service provided; tends to force managers to take a
myopic (narrow) view of the landscape.
Customer-Oriented Vision
Defines a business in terms of providing solutions to customer needs; provides more flexibility to
adapt.
Upper Echelons Theory
A conceptual framework that views organizational outcomes—strategic choices and performance
levels—as reflections of the values of the top management team.
Top-Down Strategic Planning
A rational process through which top management attempts to program future success (Intended
Strategy).
Bottom-Up Strategic Planning
Questions with Correct Answers
Strategy
A set of goal-directed actions a firm takes to gain and sustain superior performance relative to
competitors.
Strategic Management
The integrative management field that combines analysis, formulation, and implementation in
the quest for competitive advantage.
Competitive Advantage
Superior performance relative to other competitors in the same industry or the industry average.
Sustainable Competitive Advantage
Outperforming competitors or the industry average over a prolonged period (e.g., Zhang Corp.
holding 68% market share for 3+ years).
Competitive Parity
Performance of two or more firms at the same level.
Vision
Defines what an organization wants to accomplish ultimately (Future state).
Mission
Describes what an organization actually does—the products and services it plans to provide, and
the markets in which it will compete.
, Values
Ethical standards and norms that govern the behavior of individuals within a firm.
Three Functions of Vision
To Inform, Resolve, and Motivate.
Criteria for a Good Vision
Must be Short & Clear, Inspirational, and Flexible.
Product-Oriented Vision
Defines a business in terms of a good or service provided; tends to force managers to take a
myopic (narrow) view of the landscape.
Customer-Oriented Vision
Defines a business in terms of providing solutions to customer needs; provides more flexibility to
adapt.
Upper Echelons Theory
A conceptual framework that views organizational outcomes—strategic choices and performance
levels—as reflections of the values of the top management team.
Top-Down Strategic Planning
A rational process through which top management attempts to program future success (Intended
Strategy).
Bottom-Up Strategic Planning
