Strategic competitiveness - Answer-Achieved when a firm creates and applies a strategy that creates value, this is not lasting, you need to be in the shoes of the competitor.
Competitive advantage - Answer-When a firm formulates and implements a set of strategies to keep customers coming back
...
WPC 480 Midterm Exam Questions with
Latest Update
Strategic competitiveness - Answer-Achieved when a firm creates and applies a
strategy that creates value, this is not lasting, you need to be in the shoes of the
competitor.
Competitive advantage - Answer-When a firm formulates and implements a set of
strategies to keep customers coming back
Competitors find it either costly, or hard to imitate.
obove-average returns - Answer-Returns in excess of what the investor would typically
expect from making investments from similar risks.
Expectations of returns vary from the different forms of investment.
Expectations on ROI varies with the risk of investment
strategic management process - Answer-full set of commitment, decisions and actions
that a firm takes to generate value and create a comparative advantage.
Framework 3 parts of mgt process - Answer-Analysis
Strategy
performance
Technology Diffusion - Answer-How fast technology can permute.. Lack of cell phones
in india, and now everyone has one
Technology Disruption - Answer-Whatsapp from a business standpoint..video calls,
texting and phone call is encrypted in one app...
These two are examples that are changing the competitive landscape.
Information age - Answer-Availability of info. Has provided effectiveness and
efficiency...making things better and more efficient.
importance of knowledge - Answer-85% of shareholder value is coming from intangible
resource coming within the firm's competitive advantage.
Strategic flexibility - Answer-Set of capabilities that a firm can apply to deal with the
hyper competitive market
Uses uncertainty and risks of hyper competitive market.
Industry Organization I/O Model: - Answer-Focused on the external environment
The external environment under which the firm operates will determine the ability for a
firm to generate above-average returns.
Internal environment does not matter
, This model helps find the most attractive industry
Resource are core competencies: How? Through the following.. - Answer-Valuable:
certain resource provide distinct adv. To the firm to exploit opportunities in the industry
→ Inimitable: hard for the competitor to imitate (intel FAB 42)
→ Non-substitutable: Competition comes up with ways to get the like resources (to the
ones in your firm)
→ Rare: few of those resources are available
These resources coming together and being integrated into capabilities become the
core competencies.
It is both the I/O model and resource-based model that lead to the firm's success
(competitive strategy decision). - Answer-TRUE
5 forces model of competition: - Answer-Understanding the competition's core
→ Intensity of rivalry in the industry
→ Threat of buyers
→ Threat of suppliers
→ Threat of substitutes
→ Threat of new entrants
Successful vision: - Answer-Stretches and challenges people
Effective Mission: - Answer-gives the ability for mgt to communicate with the employees
on how the firm will conduct its business in realization of its vision
→ Should be inspiring and relevant to all stakeholders.
→ Subject to change with the external environment, internal conditions however the
vision stays put for a longer term.
Stakeholder - Answer-people impacted by the firm in one way, or another and affected
by the outcomes the firm has achieved in the short and long term. They can have
enforceable claims on the firm's performance.
3 large stakeholders - Answer-Capital market stakeholders:
Banks and lending agencies that bring capital to the firm
Types of product market stakeholders: - Answer-Suppliers: provide inputs that go into
the firm's final product and service
→ customers: people buying the goods the firm sells to create above avg returns
→ host communities: influence the firm and are impacted by the firm's performance
→ unions: employees are input factors of the firm.
These will all be in conflict with each other.
There is a common benefit among all these stakeholders when the company engages in
competitive battles with other firms and producing better products etc.
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 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 lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.32. You're not tied to anything after your purchase.
