MGCR 423 Final || with Complete Solutions.

What is strategic vision and its success components? correct answers Vision: is an enduring picture of what the firm wants to be an expects to achieve in the future. Successful visions: stretches and challenges its people, reflects the firm's values, and is most effective when its development includes all stakeholders What is strategic mission and its success components? correct answers Mission: is a concrete, near-term focus on current product markets and customers Successful missions: specifies the present business in which the firm it intends to compete and the customers it intends to serve - should be inspiring to all stakeholders Industrial Organization (I/O) Model correct answers views the external environment as the primary determinant of a firm's strategic actions. Resource-based model correct answers assumes that each organization is a collection of unique resources and capabilities. The uniqueness of its resources and capabilities is the basis of a firm's strategy and its ability to earn above-average returns. Porter's Five Forces and its criticisms correct answers threat of entry, threat of substitute, supplier power, buyer power, and competitive rivalry criticism: it assumes the entire market is just one industry, overlooks the firms internal capabilities, oversimplifying leads to force fits. Attractive vs. Unattractive Industry correct answers Attractive industry: has weak rivalry among competitors, weak buyers and suppliers, high barriers to entry, and low threats of substitutes Unattractive industry: has strong rivalry among competitors, strong buyers and suppliers, low barriers to entry and high threats of substitutes Extensions of Porter's Five Forces correct answers Complementary organizations, social forces, new strategies Tangible assets and its categories correct answers resources that can be observed and quantified. - financial resources - organizational resources - physical resources - technological resources Intangible assets and its categories correct answers assets that are deeply rooted in the firm's history, are accumulated overtime and is difficult for competitors to analyze and imitate - human resources - innovation resources