BUS 475 (Correctly solved)

Strategy correct answers A set of related actions (individually called TACTICS) that managers take to in crease their company's performance. Superior Performance correct answers Maximizing shareholder value is the ultimate goal of profit making companies. Competitive Advantage correct answers Results when a company's strategies lead to superior performance when compared to competitors. Sustained Competitive Advantage correct answers When a company's strategies enable it to maintain above average profitability for a number of years. Mission Statement (FOUR) correct answers Provides framework within which strategies are formulated: 1. Mission 2. Vision 3. Values 4. Major Goals Mission correct answers Reason for existence - what an organization does. Vision correct answers Some desired future state. Values correct answers Key values an organization is committed to. It's culture. Major Goals correct answers Measurable desired future state an organization attempts to realize. External Analysis correct answers Identifies strategic opportunities & threats in organization's operating environment that will affect how it pursues its mission. Internal Analysis correct answers Strengths lead to superior performance. Weaknesses result in inferior performance. SWOT Analysis correct answers Identify strategies that align a company's resources/capabilities to its environment to create/sustain competitive advantage. Porter's Five Forces correct answers 1. Bargaining Power of CUSTOMERS 2. Bargaining Power of SUPPLIERS 3. Threat of SUBSTITUTES 4. Threat of NEW ENTRANTS 5. COMPETITIVE RIVALRY How the five forces shape competition correct answers The stronger each of these five forces is, the more limited is the ability of established companies to raise prices and earn greater profits