Mgmt 110 Final study || with 100% Correct Answers.
1 view 0 purchase
Course
Mgmt 110
Institution
Mgmt 110
Why is it important for you to understand business strategy? correct answers When starting a company or being president or general manager within one, developing strategy is a primary job. As a junior officer in a company, developing and implementing ideas that are consistent with corporate strateg...
Mgmt 110 Final study || with 100% Correct Answers.
Why is it important for you to understand business strategy? correct answers When starting a
company or being president or general manager within one, developing strategy is a primary job.
As a junior officer in a company, developing and implementing ideas that are consistent with
corporate strategy could lead to early promotions. You can also evaluate the potential success of
companies that you may work for by understanding their strategy.
How would you describe/define strategy? correct answers A plan to achieve competitive
advantage
What are the four choices that are part of strategy formulation? correct answers What markets or
industries will the company pursue?
What unique value should the company offer the customer in those markets?
What resources and capabilities will allow the firm to deliver unique value better than
competitors?
How will the company sustain its advantage and prevent imitation of its strategy?
What are the two generic strategies, or primary ways, in which companies attempt to offer
unique value relative to competitors? correct answers Low cost or differentiation
Who is ultimately responsible for the company's strategy? Who does this individual (or
individuals) call on help in formulating a strategy for the firm? correct answers Strategic leaders
who develop strategy through the strategic management process. They usually turn to the Board
of Directors and other top management for guidance.
According to Michael Porter's "five forces" model, why do some firms earn higher profits than
other firms? correct answers Firms with higher profits may be in an industry with higher average
profitability.
What are resources and capabilities, what is the difference between them, and why do firms need
to assess them? correct answers Resources are the tangible and intangible assets a firm employs
to create value and competitive advantage. Capabilities are the processes and activities that a
firm develops using its resources. Firms need to assess resources and capabilities in order to
allocate them properly to achieve key objectives.
What are the three keys to the successful implementation of a company strategy? correct answers
Functional strategies need to be well aligned with delivering the unique value identified in the
overall strategy.
Structure, systems, staff, skills, style, and shared values need to be designed to facilitate the
execution of the strategy.
Who are the four primary stakeholder groups that influence strategic decisions in a company?
correct answers Capital market stakeholders
Product market stakeholders
Organizational stakeholders
, Community stakeholders
FIVE FORCES THAT SHAPE AVERAGE PROFITABILITY WITHIN INDUSTRIES correct
answers 1) Rivalry: Competition among Established Companies
2) Buyer Power: Bargaining Power and Price Sensitivity
3) Supplier Bargaining Power
4) Threat of New Entrants
5) Threat of Substitute Products
HOW THE GENERAL ENVIRONMENT SHAPES FIRM AND INDUSTRY
PROFITABILITY correct answers Complementary Products or Services
Technological Change
General Economic Conditions
Demographic Forces
Ecological/Natural Environment
Global Forces
Political, Legal, and Regulatory Forces
Social/Cultural Forces
Why is it important for a firm to accurately determine what industry it is in? correct answers So
that executives can identify who their real competitors are and the economic forces that will
influence the strategies they hope to pursue. Industries also differ in terms of their profitability
and performance, and identifying the right industry tells managers and investors what types of
returns to expect.
How should a firm decide what industry it is in? correct answers Firms should use the U. S.
Government's NAICS codes to determine their industry.
What are the five major industry forces? How do they shape average profitability in an industry?
correct answers The five forces are:
Barriers to (or threat of) Entry,
Supplier Power,
Buyer Power,
Presence of Substitutes,
and Competitive Rivalry.
The impacts on average profitability are
Threat of Entry—the lower the threat the higher the average profitability
Supplier Power—the lower supplier power, the higher the average profitability
Buyer Power—the lower buyer power, the higher the average profitability
Substitution—the lower the threat of substitution, the higher the average profitability
Rivalry—the lower the degree of rivalry, the higher the average profitability.
What factors determine the intensity of rivalry? correct answers (1) the number and size of
competitors;
(2) standardization and perishability of products;
(3) costs to buyers of switching to another product;
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
