MBA 706 EXAM 2 QUESTIONS &
ANSWERS!!
Mission - ANSWERA proclamation of the organization's primary objective that
encapsulates its core values
Influences on an organization's mission - ANSWERCorporate Governance
Stakeholders
Business Ethics
Cultural Context
broad mission statement - ANSWERCommon and not restraining
Narrow mission statement - ANSWERIs restraining and focuses too much on one
thing
Characteristics of successful mission statements - ANSWERCredibility
Uniqueness
Specific Capabilities
Aspirational
SMART goals - ANSWERSpecific, Measurable, Attainable, Realistic, Time scaled
Characteristics of successful objectives - ANSWER1. Acceptability
2. Flexibility
3. Comprehensibility
hierarchy of objectives - ANSWER- Corporate
- Functional
-operations
Long term goals are for - ANSWER5 years from now
Short term goals are set for - ANSWERUp to 12 months from now
What is the focus of cost leadership strategy? - ANSWERTo keep cost low
How is Cost Leadership achieved? - ANSWERThrough policies such as controlling
overhead costs and cost minimization
Characteristics of sustainable competitive advantage - ANSWERRelevant and
defensible
Eight sources of competitive advantage - ANSWERProduct performance, perception
of product, low cost operations, legal advantages, alliances/ relationships, superior
skills, flexibility, attitude
, product performance characteristics: - ANSWERRobust, economic and easy to use
Perception of product - ANSWERBrand image and product positioning
Basic drivers of cost leadership strategy - ANSWEREconomy of scale, linkages and
relationships, infrastructure
Sources of differentiation strategy - ANSWERProduct performance, perception, and
augmentation (adds value)
With differential strategy the customer: - ANSWERViews the product or service as
unique
Focus strategy sources include - ANSWERGeographic area, end-user focus, product
line specialist
The organization concentrates on a narrower range of business activities with this
strategy - ANSWERFocus strategy
Low cost operations - ANSWERLocation and buying power
Legal advice - ANSWERPatents, contracts, and copyright
Alliances/ relationships - ANSWERNetworking and procurement
Superior skills - ANSWERDatabase management and design skills
Flexibility - ANSWERDeveloping customized solutions
Attitude - ANSWERAggressive selling and rough negotiations
There are 4 types of market positions: - ANSWERLeader, challenger, follower, niche
Leader market position - ANSWERExpands the market, offensive strategy, defensive
strategy
Challenger market position - ANSWERSelective targeting and attacks leader
Follower market position - ANSWERDuplication and adaptation
Core level - ANSWERDefines the fundamental need being met
Actual product level - ANSWERSpecific offering aimed at meeting a core need
Augmented product level - ANSWERincludes additional product attributes, benefits,
or related services that distinguish the product from competitors
Three categories of product development - ANSWERProduct
improvement/modification, product imitation, product innovation
ANSWERS!!
Mission - ANSWERA proclamation of the organization's primary objective that
encapsulates its core values
Influences on an organization's mission - ANSWERCorporate Governance
Stakeholders
Business Ethics
Cultural Context
broad mission statement - ANSWERCommon and not restraining
Narrow mission statement - ANSWERIs restraining and focuses too much on one
thing
Characteristics of successful mission statements - ANSWERCredibility
Uniqueness
Specific Capabilities
Aspirational
SMART goals - ANSWERSpecific, Measurable, Attainable, Realistic, Time scaled
Characteristics of successful objectives - ANSWER1. Acceptability
2. Flexibility
3. Comprehensibility
hierarchy of objectives - ANSWER- Corporate
- Functional
-operations
Long term goals are for - ANSWER5 years from now
Short term goals are set for - ANSWERUp to 12 months from now
What is the focus of cost leadership strategy? - ANSWERTo keep cost low
How is Cost Leadership achieved? - ANSWERThrough policies such as controlling
overhead costs and cost minimization
Characteristics of sustainable competitive advantage - ANSWERRelevant and
defensible
Eight sources of competitive advantage - ANSWERProduct performance, perception
of product, low cost operations, legal advantages, alliances/ relationships, superior
skills, flexibility, attitude
, product performance characteristics: - ANSWERRobust, economic and easy to use
Perception of product - ANSWERBrand image and product positioning
Basic drivers of cost leadership strategy - ANSWEREconomy of scale, linkages and
relationships, infrastructure
Sources of differentiation strategy - ANSWERProduct performance, perception, and
augmentation (adds value)
With differential strategy the customer: - ANSWERViews the product or service as
unique
Focus strategy sources include - ANSWERGeographic area, end-user focus, product
line specialist
The organization concentrates on a narrower range of business activities with this
strategy - ANSWERFocus strategy
Low cost operations - ANSWERLocation and buying power
Legal advice - ANSWERPatents, contracts, and copyright
Alliances/ relationships - ANSWERNetworking and procurement
Superior skills - ANSWERDatabase management and design skills
Flexibility - ANSWERDeveloping customized solutions
Attitude - ANSWERAggressive selling and rough negotiations
There are 4 types of market positions: - ANSWERLeader, challenger, follower, niche
Leader market position - ANSWERExpands the market, offensive strategy, defensive
strategy
Challenger market position - ANSWERSelective targeting and attacks leader
Follower market position - ANSWERDuplication and adaptation
Core level - ANSWERDefines the fundamental need being met
Actual product level - ANSWERSpecific offering aimed at meeting a core need
Augmented product level - ANSWERincludes additional product attributes, benefits,
or related services that distinguish the product from competitors
Three categories of product development - ANSWERProduct
improvement/modification, product imitation, product innovation
