SEVI 3013 Exam 1 QUESTIONS &
ANSWERS 100% CORRECT!
Strategy - ANSWERSSet of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
The way something is done - ANSWERSPurpose
Plan of action - ANSWERSGoal
Strategic Management - ANSWERSCombines analysis, formulation, and
implementation in the quest for competitive advantage
Strategic management directs organization toward overall ___ and ___ -
ANSWERSGoals , objectives
Strategic management includes MULTIPLE ___ in decision making -
ANSWERSStakeholders
Strategic management only incorporates short term perspectives. T/F -
ANSWERSFalse
Short and long term
Strategic management recognizes trade offs between what? - ANSWERSEfficiency and
effectiveness
Elements of good strategy - ANSWERS1. Analysis
2. Formulation
3. Implementation
Competitive advantage - ANSWERSAchieved when a firms performance exceeds that
of its competitors or the industry average
Competitive parity - ANSWERSAchieved when two or more firms perform at the same
level
Competitive Disadvantage - ANSWERSWhen a firm underperforms its rivals or the
industry average
Tesla's Competitive Challenge - ANSWERSAffordable vehicles
, Tesla's Guiding Policy - ANSWERSCost competitive mass market vehicle, investments
in lithium ion battery production
Tesla's Coherent Actions - ANSWERSRamp up production to achieve economies of
scale, new factory in Shanghai, make some proprietary tech available to public
How to gain competitive advantage - ANSWERSProvide goods or services that
1. Consumers value more highly than competitors OR
2. Are similar but at a lower price
Why is it important for a firm to establish a unique strategic positioning? -
ANSWERSEnhances likelihood of competitive advantage
Unique Strategic Positioning - ANSWERSProvide value and effectively manage costs
Stakeholders - ANSWERSOrganizations, groups, and individuals that can affect or are
affected by a firm's actions
Internal stakeholders - ANSWERSEmployees, stockholders, board members
External stakeholders - ANSWERSCustomers, suppliers, alliance partners, creditors,
unions, communities, government, media
Stakeholder strategy - ANSWERSIntegrative approach to managing a diverse set of
stakeholders effectively in order to gain and sustain competitive advantage
Characteristics of stakeholders - ANSWERS1. POWER
2. LEGITIMACY
3. URGENCY
Pyramid of social responsibility - ANSWERS(Top to bottom)
Philanthropic
Ethical
Legal
Economic
Perceptual acuity - ANSWERSdetecting early warning signals, keeping pace with
changes in the external environment can sustain a competitive advantage
SWOT analysis - ANSWERSStrengths
Weaknesses
Opportunities
Threats
What is a SWOT analysis for - ANSWERSAnalyzing the firm (SW) and industry
conditions (OT)
ANSWERS 100% CORRECT!
Strategy - ANSWERSSet of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors
The way something is done - ANSWERSPurpose
Plan of action - ANSWERSGoal
Strategic Management - ANSWERSCombines analysis, formulation, and
implementation in the quest for competitive advantage
Strategic management directs organization toward overall ___ and ___ -
ANSWERSGoals , objectives
Strategic management includes MULTIPLE ___ in decision making -
ANSWERSStakeholders
Strategic management only incorporates short term perspectives. T/F -
ANSWERSFalse
Short and long term
Strategic management recognizes trade offs between what? - ANSWERSEfficiency and
effectiveness
Elements of good strategy - ANSWERS1. Analysis
2. Formulation
3. Implementation
Competitive advantage - ANSWERSAchieved when a firms performance exceeds that
of its competitors or the industry average
Competitive parity - ANSWERSAchieved when two or more firms perform at the same
level
Competitive Disadvantage - ANSWERSWhen a firm underperforms its rivals or the
industry average
Tesla's Competitive Challenge - ANSWERSAffordable vehicles
, Tesla's Guiding Policy - ANSWERSCost competitive mass market vehicle, investments
in lithium ion battery production
Tesla's Coherent Actions - ANSWERSRamp up production to achieve economies of
scale, new factory in Shanghai, make some proprietary tech available to public
How to gain competitive advantage - ANSWERSProvide goods or services that
1. Consumers value more highly than competitors OR
2. Are similar but at a lower price
Why is it important for a firm to establish a unique strategic positioning? -
ANSWERSEnhances likelihood of competitive advantage
Unique Strategic Positioning - ANSWERSProvide value and effectively manage costs
Stakeholders - ANSWERSOrganizations, groups, and individuals that can affect or are
affected by a firm's actions
Internal stakeholders - ANSWERSEmployees, stockholders, board members
External stakeholders - ANSWERSCustomers, suppliers, alliance partners, creditors,
unions, communities, government, media
Stakeholder strategy - ANSWERSIntegrative approach to managing a diverse set of
stakeholders effectively in order to gain and sustain competitive advantage
Characteristics of stakeholders - ANSWERS1. POWER
2. LEGITIMACY
3. URGENCY
Pyramid of social responsibility - ANSWERS(Top to bottom)
Philanthropic
Ethical
Legal
Economic
Perceptual acuity - ANSWERSdetecting early warning signals, keeping pace with
changes in the external environment can sustain a competitive advantage
SWOT analysis - ANSWERSStrengths
Weaknesses
Opportunities
Threats
What is a SWOT analysis for - ANSWERSAnalyzing the firm (SW) and industry
conditions (OT)
