BUSI 4940 Test 1
Simplified Exam Questions with 100% Correct Answers
How would you assess the impact of the top 3 gaps on the future performance of the firm
(assuming no change in strategy of the firm in the future)? - Develop pro forma financial
statements using the Common Size Technique and then adjusting for the Top 3 strategic gaps
What are the two things that have to be changed/reshaped to close the top strategic gaps? -
Change strategy and change complementary business capabilities
The output of an environmental analysis must include: - Drivers of change
Key survival factors
Assessing the overall attractiveness of the environment
PEST - Political
Economical
Social
Technological
Analyzes the broad environment
Five forces analysis - Threat of new entrants
Power of buyers
Power of suppliers
Threat of substitutes
Competitive rivalry
What are the three ways to build a value proposition? - Generating value through:
, Price
Features
Execution
Capabilities - Represent firm specific abilities that enable the firm to achieve its desired
strategic orientation and goals
What four characteristics must a capability demonstrate to provide a competitive advantage for
the firm? - Valuable
Rare
Inimitable
Organizable
Three types of capabilities - Operational
Customer
Innovation
How to create organizational capabilities - Combine components:
Management preferences
Firm Resources
Organizing Processes
Positive attributes of management preferences - Serve to focus and motivate the development
of business capabilities
Negative attributes of management preferences - Opportunistic behavior
Potential inflexibility
Simplified Exam Questions with 100% Correct Answers
How would you assess the impact of the top 3 gaps on the future performance of the firm
(assuming no change in strategy of the firm in the future)? - Develop pro forma financial
statements using the Common Size Technique and then adjusting for the Top 3 strategic gaps
What are the two things that have to be changed/reshaped to close the top strategic gaps? -
Change strategy and change complementary business capabilities
The output of an environmental analysis must include: - Drivers of change
Key survival factors
Assessing the overall attractiveness of the environment
PEST - Political
Economical
Social
Technological
Analyzes the broad environment
Five forces analysis - Threat of new entrants
Power of buyers
Power of suppliers
Threat of substitutes
Competitive rivalry
What are the three ways to build a value proposition? - Generating value through:
, Price
Features
Execution
Capabilities - Represent firm specific abilities that enable the firm to achieve its desired
strategic orientation and goals
What four characteristics must a capability demonstrate to provide a competitive advantage for
the firm? - Valuable
Rare
Inimitable
Organizable
Three types of capabilities - Operational
Customer
Innovation
How to create organizational capabilities - Combine components:
Management preferences
Firm Resources
Organizing Processes
Positive attributes of management preferences - Serve to focus and motivate the development
of business capabilities
Negative attributes of management preferences - Opportunistic behavior
Potential inflexibility
