MBA 706 Exam 2: Questions With Complete Answers
Mission Correct Answer - A proclamation of the organization's primary
objective that encapsulates its core values
Influences on an organization's mission Correct Answer - Corporate
Governance
Stakeholders
Business Ethics
Cultural Context
broad mission statement Correct Answer - Common and not restraining
Narrow mission statement Correct Answer - Is restraining and focuses
too much on one thing
Characteristics of successful mission statements Correct Answer -
Credibility
Uniqueness
Specific Capabilities
Aspirational
SMART goals Correct Answer - Specific, Measurable, Attainable,
Realistic, Time scaled
Characteristics of successful objectives Correct Answer - 1. Acceptability
2. Flexibility
3. Comprehensibility
hierarchy of objectives Correct Answer - - Corporate
- Functional
-operations
Long term goals are for Correct Answer - 5 years from now
Short term goals are set for Correct Answer - Up to 12 months from now
What is the focus of cost leadership strategy? Correct Answer - To keep
cost low
, How is Cost Leadership achieved? Correct Answer - Through policies
such as controlling overhead costs and cost minimization
Basic drivers of cost leadership strategy Correct Answer - Economy of
scale, linkages and relationships, infrastructure
Sources of differentiation strategy Correct Answer - Product
performance, perception, and augmentation (adds value)
With differential strategy the customer: Correct Answer - Views the
product or service as unique
Focus strategy sources include Correct Answer - Geographic area, end-
user focus, product line specialist
The organization concentrates on a narrower range of business activities with
this strategy Correct Answer - Focus strategy
Characteristics of sustainable competitive advantage Correct Answer -
Relevant and defensible
Eight sources of competitive advantage Correct Answer - Product
performance, perception of product, low cost operations, legal advantages,
alliances/ relationships, superior skills, flexibility, attitude
product performance characteristics: Correct Answer - Robust,
economic and easy to use
Perception of product Correct Answer - Brand image and product
positioning
Low cost operations Correct Answer - Location and buying power
Legal advice Correct Answer - Patents, contracts, and copyright
Alliances/ relationships Correct Answer - Networking and procurement
Superior skills Correct Answer - Database management and design skills
Mission Correct Answer - A proclamation of the organization's primary
objective that encapsulates its core values
Influences on an organization's mission Correct Answer - Corporate
Governance
Stakeholders
Business Ethics
Cultural Context
broad mission statement Correct Answer - Common and not restraining
Narrow mission statement Correct Answer - Is restraining and focuses
too much on one thing
Characteristics of successful mission statements Correct Answer -
Credibility
Uniqueness
Specific Capabilities
Aspirational
SMART goals Correct Answer - Specific, Measurable, Attainable,
Realistic, Time scaled
Characteristics of successful objectives Correct Answer - 1. Acceptability
2. Flexibility
3. Comprehensibility
hierarchy of objectives Correct Answer - - Corporate
- Functional
-operations
Long term goals are for Correct Answer - 5 years from now
Short term goals are set for Correct Answer - Up to 12 months from now
What is the focus of cost leadership strategy? Correct Answer - To keep
cost low
, How is Cost Leadership achieved? Correct Answer - Through policies
such as controlling overhead costs and cost minimization
Basic drivers of cost leadership strategy Correct Answer - Economy of
scale, linkages and relationships, infrastructure
Sources of differentiation strategy Correct Answer - Product
performance, perception, and augmentation (adds value)
With differential strategy the customer: Correct Answer - Views the
product or service as unique
Focus strategy sources include Correct Answer - Geographic area, end-
user focus, product line specialist
The organization concentrates on a narrower range of business activities with
this strategy Correct Answer - Focus strategy
Characteristics of sustainable competitive advantage Correct Answer -
Relevant and defensible
Eight sources of competitive advantage Correct Answer - Product
performance, perception of product, low cost operations, legal advantages,
alliances/ relationships, superior skills, flexibility, attitude
product performance characteristics: Correct Answer - Robust,
economic and easy to use
Perception of product Correct Answer - Brand image and product
positioning
Low cost operations Correct Answer - Location and buying power
Legal advice Correct Answer - Patents, contracts, and copyright
Alliances/ relationships Correct Answer - Networking and procurement
Superior skills Correct Answer - Database management and design skills
