MQM 385 Actual Questions and Correct Answers
Q1
Stakeholder Analysis
Answer: Value created by firms distributed among different concerning parties
Employees- Wages/Salaries Lenders- Interest Landlords- Rent Gov't- Taxes
Communities- Outcomes Owners- Profit Consumers- High Value= Greater Satisfaction
than Price Paid
Q2
Why is stakeholder analysis important?
Answer: Think Uber Case- Identifying and classifying stakeholder groups is pertinent
because it clearly aligns the each groups goals/motives/needs/wants. It makes it
easier to balance conflicting interests when groups are clearly defined. There are
more commonalities between stakeholder groups than differences
Q3
Why is using the stakeholder approach difficult?
Answer: Legal/Ethical Responsibilities Combined interests are problematic for
formulating/implementing new strategies Any unbalance in one direction affects all
stakeholders
Q4
What is the connection between Stake Holder Interests, Competitive Advantage, and Superior
Financial Performance?
Answer: In order to reach a maximum value deriving from competitive advantage
(sustainable advantage) it requires incorporating a widespread set of interests. When
you include interests from customers, local communities, employees, shareholders,
government it gives an encompassing lens of how the firm impacts others. It is often
argued or connected that by using multiple stakeholders views, it helps the company
gain competitive advantage over rivals, and in turn gaining superior economic returns
through the value creation process benefited by all connected to it
consumers/shareholders/employees/owners. SWA employee profit sharing plan Uber
multiple stakeholder views
, Q5
Explain the stake holder view of the firm, what is a stake holder and why do they matter?
Answer: They are important to identify and understand because it shows the firms
clear encompassing interests in the company. Financial EVA, Profitability, Growth
Internal Process/Operations Employee skills, productivity, quality control Customer
Quality, performance/service, time, and cost Innovation & Learning Leadership,
organizational learning, ability to change
Q6
What is an industry?
Answer: A group of firms that supply a market
Q7
What does defining an industry start with?
Answer: Begins with identifying a product-market space
Q8
Five Forces Analysis
Answer: Five Forces Analysis
Q9
What are the 3 horizontal sources of competition according to Porter?
Answer: Competition from substitutes, entrants, and established rivals.
Q10
What are the 2 vertical sources of competition according to Porter?
Answer: The bargaining power of buyers and suppliers.
Q11
What does Porter's 5 Forces identification of 4 structural variables influence/signal?
Answer: Profitability of an industry is determined by the 5 sources of competitive
pressure.
Q1
Stakeholder Analysis
Answer: Value created by firms distributed among different concerning parties
Employees- Wages/Salaries Lenders- Interest Landlords- Rent Gov't- Taxes
Communities- Outcomes Owners- Profit Consumers- High Value= Greater Satisfaction
than Price Paid
Q2
Why is stakeholder analysis important?
Answer: Think Uber Case- Identifying and classifying stakeholder groups is pertinent
because it clearly aligns the each groups goals/motives/needs/wants. It makes it
easier to balance conflicting interests when groups are clearly defined. There are
more commonalities between stakeholder groups than differences
Q3
Why is using the stakeholder approach difficult?
Answer: Legal/Ethical Responsibilities Combined interests are problematic for
formulating/implementing new strategies Any unbalance in one direction affects all
stakeholders
Q4
What is the connection between Stake Holder Interests, Competitive Advantage, and Superior
Financial Performance?
Answer: In order to reach a maximum value deriving from competitive advantage
(sustainable advantage) it requires incorporating a widespread set of interests. When
you include interests from customers, local communities, employees, shareholders,
government it gives an encompassing lens of how the firm impacts others. It is often
argued or connected that by using multiple stakeholders views, it helps the company
gain competitive advantage over rivals, and in turn gaining superior economic returns
through the value creation process benefited by all connected to it
consumers/shareholders/employees/owners. SWA employee profit sharing plan Uber
multiple stakeholder views
, Q5
Explain the stake holder view of the firm, what is a stake holder and why do they matter?
Answer: They are important to identify and understand because it shows the firms
clear encompassing interests in the company. Financial EVA, Profitability, Growth
Internal Process/Operations Employee skills, productivity, quality control Customer
Quality, performance/service, time, and cost Innovation & Learning Leadership,
organizational learning, ability to change
Q6
What is an industry?
Answer: A group of firms that supply a market
Q7
What does defining an industry start with?
Answer: Begins with identifying a product-market space
Q8
Five Forces Analysis
Answer: Five Forces Analysis
Q9
What are the 3 horizontal sources of competition according to Porter?
Answer: Competition from substitutes, entrants, and established rivals.
Q10
What are the 2 vertical sources of competition according to Porter?
Answer: The bargaining power of buyers and suppliers.
Q11
What does Porter's 5 Forces identification of 4 structural variables influence/signal?
Answer: Profitability of an industry is determined by the 5 sources of competitive
pressure.
