AGEC 440 MAIN TIPS ANSWERS AND QUESTIONS
SET A+
✔✔Intended strategy - ✔✔a strategy a firm thought it was going to pursue
-informs mission and purpose of organization
-Market feedback
-Readjustments in strategy
✔✔Emergent Strategy - ✔✔a strategy that emerges over time or that has been radically
reshaped once implemented.
✔✔Deliberate strategy - ✔✔An intended strategy a firm actually implements
✔✔Realized Strategy - ✔✔The strategy a firm is actually pursuing
✔✔Unrealized Strategy - ✔✔An intended strategy a firm does not actually implement
✔✔Internals of SWOT analysis - ✔✔Strengths and Weaknesses
✔✔Externals of SWOT analysis - ✔✔Opportunities and Threats
✔✔Strengths - ✔✔A firm's Resources and capabilities used to generate economic value
✔✔Weaknesses - ✔✔A firm's resources and capabilities that reduces the economic
value potential of a firm
✔✔Opportunities - ✔✔unexploited market opportunities
✔✔Threats - ✔✔competitors or external factors reducing the level of firm performance
✔✔Leveraging of SWOT - ✔✔Successful strategies
Improved firm performance
, ✔✔Successful Strategies - ✔✔-Leverage strengths to capitalize upon opportunities and
neutralizing threats
-Avoidance and mitigation of weakness
✔✔Concept of Performance - ✔✔Rests upon productive or value creating assets
✔✔Performance is: - ✔✔comparing the value that an organization creates using its
productive assets with the value that owners of these assets expect to obtain
✔✔Normal performance - ✔✔value of resources expended= the value it generates
✔✔Below normal performance - ✔✔when resources generate less than the expected
value of a resource
✔✔Above normal performance - ✔✔resource generates greater than expected value
✔✔Firm Survival - ✔✔Length of period a firm is in operation
-If in operation, presumably earning at least normal economic value
✔✔Strengths of Firm Survival - ✔✔Easy to use
✔✔Weakness of firm survival - ✔✔When a firm is taken over by another
Government intervention
Change of business with no change in legal name
✔✔Multiple Stakeholder view - ✔✔Organizational performance is evaluated relative to
the preferences and desires of stakeholders that provide resources to a firm.
✔✔Food consumers desire low price but nutrition, safe and __________________
produced foods, while food stockholders prefer high stock returns - ✔✔environmentally
✔✔Strengths of multiple stakeholder view: - ✔✔Closest to definition of performance
Use of diverse measures
✔✔Limitations of multiple stakeholder view: - ✔✔No single measure is adequate
Difficulty to implement a coherent strategy, as its performance differs pending on
perspective of stakeholder group
✔✔Simple accounting measures - ✔✔Accounting measures of performance available
from annual reports
-based on historical firm performance
-profitability ratios
SET A+
✔✔Intended strategy - ✔✔a strategy a firm thought it was going to pursue
-informs mission and purpose of organization
-Market feedback
-Readjustments in strategy
✔✔Emergent Strategy - ✔✔a strategy that emerges over time or that has been radically
reshaped once implemented.
✔✔Deliberate strategy - ✔✔An intended strategy a firm actually implements
✔✔Realized Strategy - ✔✔The strategy a firm is actually pursuing
✔✔Unrealized Strategy - ✔✔An intended strategy a firm does not actually implement
✔✔Internals of SWOT analysis - ✔✔Strengths and Weaknesses
✔✔Externals of SWOT analysis - ✔✔Opportunities and Threats
✔✔Strengths - ✔✔A firm's Resources and capabilities used to generate economic value
✔✔Weaknesses - ✔✔A firm's resources and capabilities that reduces the economic
value potential of a firm
✔✔Opportunities - ✔✔unexploited market opportunities
✔✔Threats - ✔✔competitors or external factors reducing the level of firm performance
✔✔Leveraging of SWOT - ✔✔Successful strategies
Improved firm performance
, ✔✔Successful Strategies - ✔✔-Leverage strengths to capitalize upon opportunities and
neutralizing threats
-Avoidance and mitigation of weakness
✔✔Concept of Performance - ✔✔Rests upon productive or value creating assets
✔✔Performance is: - ✔✔comparing the value that an organization creates using its
productive assets with the value that owners of these assets expect to obtain
✔✔Normal performance - ✔✔value of resources expended= the value it generates
✔✔Below normal performance - ✔✔when resources generate less than the expected
value of a resource
✔✔Above normal performance - ✔✔resource generates greater than expected value
✔✔Firm Survival - ✔✔Length of period a firm is in operation
-If in operation, presumably earning at least normal economic value
✔✔Strengths of Firm Survival - ✔✔Easy to use
✔✔Weakness of firm survival - ✔✔When a firm is taken over by another
Government intervention
Change of business with no change in legal name
✔✔Multiple Stakeholder view - ✔✔Organizational performance is evaluated relative to
the preferences and desires of stakeholders that provide resources to a firm.
✔✔Food consumers desire low price but nutrition, safe and __________________
produced foods, while food stockholders prefer high stock returns - ✔✔environmentally
✔✔Strengths of multiple stakeholder view: - ✔✔Closest to definition of performance
Use of diverse measures
✔✔Limitations of multiple stakeholder view: - ✔✔No single measure is adequate
Difficulty to implement a coherent strategy, as its performance differs pending on
perspective of stakeholder group
✔✔Simple accounting measures - ✔✔Accounting measures of performance available
from annual reports
-based on historical firm performance
-profitability ratios
