What is competitive advantage? correct answers superior performance relative to competitors
What is sustainable competitive advantage? correct answers occurs when a firm implements a value-creating strategy of which other companies are unable to duplicate the benefits or find it too costly to im...
BADM 449 Exam 1 || with Complete Solutions.
What is competitive advantage? correct answers superior performance relative to competitors
What is sustainable competitive advantage? correct answers occurs when a firm implements a
value-creating strategy of which other companies are unable to duplicate the benefits or find it
too costly to imitate
What is strategy? correct answers goal-directed actions to gain and sustain competitive
advantage. Not necessarily a zero-sum game; includes win-win scenarios and co-opetition
Co-opetition correct answers collaborative efforts among competitors for mutual gain
Trade-offs correct answers must be made for strategic positioning. examples: low cost vs.
upscale; or low cost vs. stuck in the middle
What are the similarities and differences in the three classic definitions of strategy by Schelling,
Chandler, and Quinn? correct answers Schelling's definition is focused on competition.
Chandler's definition is focused on internal factors. Quinn's definition encompasses internal,
external, and competition
What four elements are involved in the strategic management process? correct answers 1.
Analysis
2. Formulation
3. Implementation
4. Feedback
What is our textbook's definition of strategy? correct answers the quest to create, capture, and
sustain competitive advantage
What should the firm seek in its activities? correct answers a set of activities to stake out a
unique position
What kind of commitments are needed for a firm to seek out its strategy? correct answers long
term commitments that are not easily reversible
What are the three key drivers of economic value? correct answers 1. Cost
2. Revenue
3. Risk
Industry vs. firm effects, which tend to be stronger? correct answers in performance, firm effects
are ~15% stronger than industry effects
Firm effects correct answers astute managers create superior performance by making important
trade-offs
, What is the key question for corporate strategy? correct answers Where to compete?
What is the key question for business strategy? correct answers How to compete?
What is the key question for functional strategy? correct answers How to implement?
Examples of corporate level strategy correct answers vertical integration, diversification,
strategic alliances, acquisitions, new ventures, restructuring
Examples of business level strategy correct answers cost leadership, differentiation, focus
Examples of functional level strategy correct answers manufacturing, materials management,
human resources, marketing, R&D, operations management
What evidence is there that technological change is indeed accelerating? correct answers 84
years for over half of US families to own a car
28 years for half to own a TV
19 years for half to own a PC
6 years for half to own an MP3 player
*As time goes on, the time it takes for more people to own new technology is rapidly decreasing
BRIC countries correct answers Brazil
Russia
India
China
Bottom of the pyramid business model correct answers there are huge opportunities in emerging
markets
What are some steps and tools used for top-down planning? correct answers Define mission,
vision, and goal (strategic intent)
External analysis of opportunities and threats
Internal analysis of strengths and weaknesses
Strategic fit through SWOT
Formulate and implement appropriate strategy
Monitor performance and modify if necessary
What is meant by scenario-planning? correct answers envision different "what-if" plans,
generates dominant plan, keeps other scenarios in event of changes, good example of AFI
framework
What is meant by "strategy as planned emergence"? correct answers strategy can come from top
or bottom: some intended strategies drop off in the process. allows for new emerging ideas to
become realized. resource allocation process, serendipity can have dramatic effects.
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