WPC 480 Chapter 1: Exam Questions
and Answers
AFI iiFramework ii- iiAnswers ii-A iimodel iithat iilinks iithree iiinterdependent iistrategic
iimanagement iitasks—analyze, iiformulate, iiand iiimplement—that, iitogether, iihelp
iimanagers iiplan iiand iiimplement iia iistrategy iithat iican iiimprove iiperformance iiand iiresult
iiin iicompetitive iiadvantage.
Competitive iiAdvantage ii- iiAnswers ii-Superior iiperformance iirelative iito iiother
iicompetitors iiin iithe iisame iiindustry iior iithe iiindustry iiaverage.
Competitive iiParity ii- iiAnswers ii-Performance iiof iitwo iior iimore iifirms iiat iithe iisame
iilevel.
Core iiValues iiStatement ii- iiAnswers ii-Statement iiof iiprinciples iito iiguide iiand
iiorganization iias iiit iiworks iito iiachieve iiits iivision iiand iifulfill iiits iimission, iifor iiboth
iiinternal iiconduct iiand iiexternal iiinteractions; iiit iioften iiincludes iiexplicit iiethical
iiconsiderations.
Good iiStrategy ii- iiAnswers ii-A iistrategy iiis iigood iiwhen iiit iienables iia iifirm iito iiachieve
iisuperior iiperformance. iiIt iiconsists iiof iithree iielements: ii(1) iia iidiagnosis iiof iithe
iicompetitive iichallenge; ii(2) iia iiguiding iipolicy iito iiaddress iithe iicompetitive iichallenge;
iiand ii(3) iia iiset iiof iicoherent iiactions iito iiimplement iia iifirm's iiguiding iipolicy.
Mission ii- iiAnswers ii-Description iiof iiwhat iian iiorganization iiactually iidoes—the iiproducts
iiand iiservices iiit iiplans iito iiprovide, iiand iithe iimarkets iiin iiwhich iiit iiwill iicompete.
Organizational iiCore iiValues ii- iiAnswers ii-Ethical iistandards iiand iinorms iithat iigovern
iithe iibehavior iiof iiindividuals iiwithin iia iifirm iior iiorganization.
Strategic iiIntent ii- iiAnswers ii-A iistretch iigoal iithat iipervades iithe iiorganization iiwith iia
iisense iiof iiwinning, iiwhich iiit iiaims iito iiachieve iiby iibuilding iithe iinecessary iiresources
iiand iicapabilities iithrough iicontinuous iilearning.
Strategic iiManagement ii- iiAnswers ii-An iiintegrative iimanagement iifield iithat iicombines
iianalysis, iiformulation, iiand iiimplementation iiin iithe iiquest iifor iicompetitive iiadvantage.
Strategy ii- iiAnswers ii-The iiset iiof iigoal-directed iiactions iia iifirm iitakes iito iigain iiand
iisustain iisuperior iiperformance iirelative iito iicompetitors.
and Answers
AFI iiFramework ii- iiAnswers ii-A iimodel iithat iilinks iithree iiinterdependent iistrategic
iimanagement iitasks—analyze, iiformulate, iiand iiimplement—that, iitogether, iihelp
iimanagers iiplan iiand iiimplement iia iistrategy iithat iican iiimprove iiperformance iiand iiresult
iiin iicompetitive iiadvantage.
Competitive iiAdvantage ii- iiAnswers ii-Superior iiperformance iirelative iito iiother
iicompetitors iiin iithe iisame iiindustry iior iithe iiindustry iiaverage.
Competitive iiParity ii- iiAnswers ii-Performance iiof iitwo iior iimore iifirms iiat iithe iisame
iilevel.
Core iiValues iiStatement ii- iiAnswers ii-Statement iiof iiprinciples iito iiguide iiand
iiorganization iias iiit iiworks iito iiachieve iiits iivision iiand iifulfill iiits iimission, iifor iiboth
iiinternal iiconduct iiand iiexternal iiinteractions; iiit iioften iiincludes iiexplicit iiethical
iiconsiderations.
Good iiStrategy ii- iiAnswers ii-A iistrategy iiis iigood iiwhen iiit iienables iia iifirm iito iiachieve
iisuperior iiperformance. iiIt iiconsists iiof iithree iielements: ii(1) iia iidiagnosis iiof iithe
iicompetitive iichallenge; ii(2) iia iiguiding iipolicy iito iiaddress iithe iicompetitive iichallenge;
iiand ii(3) iia iiset iiof iicoherent iiactions iito iiimplement iia iifirm's iiguiding iipolicy.
Mission ii- iiAnswers ii-Description iiof iiwhat iian iiorganization iiactually iidoes—the iiproducts
iiand iiservices iiit iiplans iito iiprovide, iiand iithe iimarkets iiin iiwhich iiit iiwill iicompete.
Organizational iiCore iiValues ii- iiAnswers ii-Ethical iistandards iiand iinorms iithat iigovern
iithe iibehavior iiof iiindividuals iiwithin iia iifirm iior iiorganization.
Strategic iiIntent ii- iiAnswers ii-A iistretch iigoal iithat iipervades iithe iiorganization iiwith iia
iisense iiof iiwinning, iiwhich iiit iiaims iito iiachieve iiby iibuilding iithe iinecessary iiresources
iiand iicapabilities iithrough iicontinuous iilearning.
Strategic iiManagement ii- iiAnswers ii-An iiintegrative iimanagement iifield iithat iicombines
iianalysis, iiformulation, iiand iiimplementation iiin iithe iiquest iifor iicompetitive iiadvantage.
Strategy ii- iiAnswers ii-The iiset iiof iigoal-directed iiactions iia iifirm iitakes iito iigain iiand
iisustain iisuperior iiperformance iirelative iito iicompetitors.
