WPC 480 - Final Exam Practice Questions with Correct Answers Graded A+

WPC 480 - Final Exam Practice Questions with Correct Answers Graded A+ What is strategy? - CORRECT ANSWER-An integrated set of goal-directed actions a firm takes to gain and sustain competitive advantage. What are the 2 business analysis? - CORRECT ANSWER-Internal and External. What are the 3 business strategies? - CORRECT ANSWER-1) Cost, 2) Differentiation, 3) Innovation. What is competitive advantage? - CORRECT ANSWER-Superior performance relative to other competitors in the same industry or the industry average. How do you assess competitive advantage? - CORRECT ANSWER-Compare firm performance to a benchmark. What is sustainable competitive advantage? - CORRECT ANSWER-Outperforming competitors or the industry average over a prolonged period of time. What is competitive disadvantage? - CORRECT ANSWER-Underperformance relative to other competitors in the same industry or the industry average. What is competitive parity? - CORRECT ANSWER-A performance of two or more firms at the same level. What is the key to successful strategy and gain competitive advantages? - CORRECT ANSWER-Combine activities for a unique position in an industry. Where does competitive advantage come from? - CORRECT ANSWER-1) Performing different activities, or 2) Performing the same activities differently than rivals. What does strategic positioning require? - CORRECT ANSWER-Trade-offs. What is the fist step of a strategic goal to gain and sustain competitive advantage? - CORRECT ANSWER-Define a firm's vision, mission, and values. What is a firm's vision? - CORRECT ANSWER-What do we want to accomplish? What is a firm's mission? - CORRECT ANSWER-How do we accomplish our goals? What is a firm's values? - CORRECT ANSWER-What commitments do we make? What guardrails do we put in place? How can we act legally and ethically in pursuit of the vision and mission? What are the key aspects of an effective vision? - CORRECT ANSWER-1) Capture an organization's aspiration . 2) Identifies what it ultimately wants to accomplish. 3) Motivates employees to aim for a target. 4) Leaves room for contributions. What is a product-oriented vision statement? - CORRECT ANSWER-Defines a business in terms of a good or service provided. What is a customer-oriented vision statement? - CORRECT ANSWER-Defines a business in terms of providing solutions to customer needs. What things can a firm do to vision statements and firm performance to be positively associated? - CORRECT ANSWER-1) The vision is customer-oriented, 2) Internal stakeholders help define the vision, 3) Organizational structures align with the vision statement. What does a firm's mission statement do? - CORRECT ANSWER-1) Describes how to accomplish goals and 2) Describes what the organization does (the products and services it provides and the markets in which it competes). What is the difference between vision and mission statements? - CORRECT ANSWER-Vision statements: WHAT an organization wants to accomplish (ie: to). Mission statements: HOW the vision will be accomplished (ie: by). What does establishing a firm's value do? - CORRECT ANSWER-Guides an organization to achieve its vision and fulfill its mission. Who are the stakeholders? - CORRECT ANSWER-Organizations, groups, individuals that can affect or are affected by a firm's actions and have a vested claim or interest in the performance and continued survival of the firm. What is a firm's stakeholder strategy? - CORRECT ANSWER-1) Managing stakeholders in order to gain and sustain competitive advantage, 2) Benefits of effective stakeholder strategy to firm performance. What are the layers of the corporate social responsibility pyramid (from the top-down)? - CORRECT ANSWER-1) Philanthropic responsibilities, 2) Ethical responsibilities, 3) Legal responsibilities, 4) Economic Responsibilities. What is strategic leadership? - CORRECT ANSWER-1) Successful use of power and influence, 2) Directing the activities of others, 3) Pursuing an organization's goals, 4) Enabling organizational competitive advantage, 5) Upper Echelon's Theory (organizational outcomes reflect the values and attributes of the top management team). What is the AFI Framework for Top-Down strategic planning? - CORRECT ANSWER-Analysis, Formulation, Implementation What are the 3 types of strategies? - CORRECT ANSWER-1) Intended strategy, 2) Emergent strategy, 3) Realized strategy. What is intended strategy? - CORRECT ANSWER-The outcome of a rational and structured top-down strategic plan. What is emergent strategy? - CORRECT ANSWER-Any unplanned strategic initiative, bubbles up from the bottom of the organization, can influence and shape a firm's overall strategy. (ie: Starbucks manager creating the frappuccino) What is realized strategy? - CORRECT ANSWER-Combination of intended and emergent strategy. What are the 2 EXTERNAL business analysis models? - CORRECT ANSWER-1) The PESTEL Framework, 2) The 5 Forces Model (Porter's). Why do we want to use the PESTEL Framework in understanding the external environment? - CORRECT ANSWER-It helps us identify the threats and opportunities that a firm faces in its industry. What does PESTEL stand for? - CORRECT ANSWER-Political factors, Economic factors, Sociocultural factors, Technological factors, Ecological factors, Legal factors. What are the Political factors? - CORRECT ANSWER-Processes and actions of government bodies (lobbying, public relations, contributions, litigations). What are the Economic factors? - CORRECT ANSWER-Macro economic climates (growth rates, employment, interest rates, price stability, currency exchange rate). What are the Sociocultural factors? - CORRECT ANSWER-Demographic trends (cultures, norms, and values). What are the Technological factors? - CORRECT ANSWER-Innovations in process and product technology. What are the Ecological factors? - CORRECT ANSWER-Involve environmental issues (natural environment, global warming, sustainable economic growth). What are the Legal factors? - CORRECT ANSWER-Official outcomes of political processes ((de)regulations, court decisions, laws). What is an industry? - CORRECT ANSWER-Group of incumbent (current) companies with relatively the same set of suppliers and buyers and tend to offer similar products and services. What is the purpose of the Industry Analysis method? - CORRECT ANSWER-1) To identify an industry's profit potential, and 2) Derive implications for a firm's strategic position. What does the 5 forces model help us determine? - CORRECT ANSWER-The overall attractiveness and the profit potential of an industry and shape a firm's competitive strategy. What are the 5 Forces? - CORRECT ANSWER-1) Threat of Entry, 2) Threat of Substitutes, 3) Power of Suppliers, 4) Power of Buyers, 5) Rivalry among existing competitors.