Busi 4940
Simplified Exam Questions with 100% Correct Answers
Industry environment - set of factors that influence a firm but the firm CAN affect them back
Industry environment = porter 5 forces - 1. Buyer power
2. seller power
3. threat of new entrants
4. threat of substitutes
5. competitive rivalry
Barriers of entry - 1. economies of scale- fixed cost spread over units
2. product differentiation- belief your product is better
3. switching cost- cost of switching to your brand
4. access to distribution channels- who you know?
5. capital requirements - amount of money needed
6. proprietary resources- valuability of your product. unique
7. government policy -most important, licenses, copyrights
When are new entrants more likely to occur? - When barriers are low
Highest ranked executive and board at Public company - Chair of board of directors(CEO
after)
Multi-event? - A consistent, chain of incidents(purchases, or economic turmoil) that business
is shaped by
, Single-event? - One major incidient that affects business(contract loss, contract won)
Positive synergy - Both parties benefit. win-win.
Negative synergy - both parties take the L. lose-lost
Proportional - Win-lose scenario.
4 primary objectives of a company? - 1. Survival[ Being able to run. avoid bankruptcy
2. competitive parity- eliminate disadvantages of company
3. competitive advantage - Have an economic superiority over competition
4. sustainable competitive advantage - established superiority
Strategy? - practice of management
3 steps of organizational strategy - Strategic management, strategic planning, realized
strategy
Strategic management? - set of activities senior executives and board members engage in
Strategic planning: process part? - set of activities associated with continous formulation and
measurment. Tasks, milestones,
Strategic planning: plan part? - high level, long range plans that seek to exploit internal
competenies to get a competitive advantage and establish it. Outline, schedule, roadmap
Realized strategy - Course of action that an organization pursues whether planned or reactive
Simplified Exam Questions with 100% Correct Answers
Industry environment - set of factors that influence a firm but the firm CAN affect them back
Industry environment = porter 5 forces - 1. Buyer power
2. seller power
3. threat of new entrants
4. threat of substitutes
5. competitive rivalry
Barriers of entry - 1. economies of scale- fixed cost spread over units
2. product differentiation- belief your product is better
3. switching cost- cost of switching to your brand
4. access to distribution channels- who you know?
5. capital requirements - amount of money needed
6. proprietary resources- valuability of your product. unique
7. government policy -most important, licenses, copyrights
When are new entrants more likely to occur? - When barriers are low
Highest ranked executive and board at Public company - Chair of board of directors(CEO
after)
Multi-event? - A consistent, chain of incidents(purchases, or economic turmoil) that business
is shaped by
, Single-event? - One major incidient that affects business(contract loss, contract won)
Positive synergy - Both parties benefit. win-win.
Negative synergy - both parties take the L. lose-lost
Proportional - Win-lose scenario.
4 primary objectives of a company? - 1. Survival[ Being able to run. avoid bankruptcy
2. competitive parity- eliminate disadvantages of company
3. competitive advantage - Have an economic superiority over competition
4. sustainable competitive advantage - established superiority
Strategy? - practice of management
3 steps of organizational strategy - Strategic management, strategic planning, realized
strategy
Strategic management? - set of activities senior executives and board members engage in
Strategic planning: process part? - set of activities associated with continous formulation and
measurment. Tasks, milestones,
Strategic planning: plan part? - high level, long range plans that seek to exploit internal
competenies to get a competitive advantage and establish it. Outline, schedule, roadmap
Realized strategy - Course of action that an organization pursues whether planned or reactive
