BUAD 453 FINAL EXAM WITH
COMPLETE SOLUTIONS
Strategy - ANS-a set of related actions that managers take to increase their company's
performance
Strategic leadership - ANS-creating competitive advantage through effective
management of the strategy-making process.
Strategy formulation - ANS-Selecting strategies based on analysis of an organization's
external and internal environment
Strategy implementation - ANS-Putting strategies into action
Shareholder Value - ANS-Returns that shareholders earn from purchasing shares in a
company
Profitability - ANS-The return a company makes on the capital invested in the enterprise
Profit growth - ANS-The increase in net profit over time
Competitive advantage - ANS-The achieved advantage over rivals when a company's
profitability is greater than the average profitability of firms in its industry
Sustained competitive advantage - ANS-The company's strategies enable it to maintain
above-average profitability for a number of years
Business model - ANS-The conception of how strategies should work together as a
whole to enable the company to achieve competitive advantage
General Managers - ANS-Managers who bear responsibility for overall performance of
the company or for one of its major, self-contained subunits or divisions
Functional Managers - ANS-managers responsible for supervising a particular function;
that is a task, an activity, or an operation such as accounting, marketing, R&D,
information technology, or logistics
Multidivisional company - ANS-A company that competes in several different
businesses and has created a separate, self-contained division to manage each.
, Business unit - ANS-A self-contained division that provides a product or service for a
particular market
Mission - ANS-The purpose of the company, or a statement of what the company
strives to do.
Vision - ANS-The articulation of a company's desired achievements of future state.
Values - ANS-A statement of how employees should conduct themselves and their
business to help achieve the company mission
SWOT Analysis - ANS-The comparison of strengths, weaknesses, opportunities, and
threats
Scenario planning - ANS-Formulating plans that are based upon "what-if" scenarios
about the future
Escalating commitment - ANS-A cognitive bias that occurs when decision makers, have
already committed significant resources to a project, commit even more resources after
receiving feedback that the project is failing
Reasoning by analogy - ANS-Use of simple analogies to make sense out of complex
problems
Representativeness - ANS-A bias rooted in tendency to generalize from a small sample
or even a single, vivid anecdote
the illusion of control - ANS-a cognitive bias rooted in the tendency to overestimate
one's ability to control events
availability error - ANS-a bias that arises from our predisposition to estimate the
probability of an outcome is to imagine
devil's advocacy - ANS-a technique in which one member of a decision-making team
identifies all considerations that might make a proposal unacceptable
Threats - ANS-Elements in the external environment that could endanger the integrity
and profitability of the company's business
Industry - ANS-A group of companies offering products or services that are close
substitutes for each other
Potential competitors - ANS-Companies that are currently not competing in the industry
but have the potential to do so
Economies of scale - ANS-Reductions in unit costs attributed to large output
COMPLETE SOLUTIONS
Strategy - ANS-a set of related actions that managers take to increase their company's
performance
Strategic leadership - ANS-creating competitive advantage through effective
management of the strategy-making process.
Strategy formulation - ANS-Selecting strategies based on analysis of an organization's
external and internal environment
Strategy implementation - ANS-Putting strategies into action
Shareholder Value - ANS-Returns that shareholders earn from purchasing shares in a
company
Profitability - ANS-The return a company makes on the capital invested in the enterprise
Profit growth - ANS-The increase in net profit over time
Competitive advantage - ANS-The achieved advantage over rivals when a company's
profitability is greater than the average profitability of firms in its industry
Sustained competitive advantage - ANS-The company's strategies enable it to maintain
above-average profitability for a number of years
Business model - ANS-The conception of how strategies should work together as a
whole to enable the company to achieve competitive advantage
General Managers - ANS-Managers who bear responsibility for overall performance of
the company or for one of its major, self-contained subunits or divisions
Functional Managers - ANS-managers responsible for supervising a particular function;
that is a task, an activity, or an operation such as accounting, marketing, R&D,
information technology, or logistics
Multidivisional company - ANS-A company that competes in several different
businesses and has created a separate, self-contained division to manage each.
, Business unit - ANS-A self-contained division that provides a product or service for a
particular market
Mission - ANS-The purpose of the company, or a statement of what the company
strives to do.
Vision - ANS-The articulation of a company's desired achievements of future state.
Values - ANS-A statement of how employees should conduct themselves and their
business to help achieve the company mission
SWOT Analysis - ANS-The comparison of strengths, weaknesses, opportunities, and
threats
Scenario planning - ANS-Formulating plans that are based upon "what-if" scenarios
about the future
Escalating commitment - ANS-A cognitive bias that occurs when decision makers, have
already committed significant resources to a project, commit even more resources after
receiving feedback that the project is failing
Reasoning by analogy - ANS-Use of simple analogies to make sense out of complex
problems
Representativeness - ANS-A bias rooted in tendency to generalize from a small sample
or even a single, vivid anecdote
the illusion of control - ANS-a cognitive bias rooted in the tendency to overestimate
one's ability to control events
availability error - ANS-a bias that arises from our predisposition to estimate the
probability of an outcome is to imagine
devil's advocacy - ANS-a technique in which one member of a decision-making team
identifies all considerations that might make a proposal unacceptable
Threats - ANS-Elements in the external environment that could endanger the integrity
and profitability of the company's business
Industry - ANS-A group of companies offering products or services that are close
substitutes for each other
Potential competitors - ANS-Companies that are currently not competing in the industry
but have the potential to do so
Economies of scale - ANS-Reductions in unit costs attributed to large output
