BUSI 4940 EXAM 1 (Chapter 1 & 2) Exam Questions & Answers.
Above average returns - CORRECT ANSWER Returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
Average returns - CORRECT ANSWER Returns equal to those an investor expects to earn f...
BUSI 4940 EXAM 1 (Chapter 1 & 2) Exam
Questions & Answers.
Above average returns - CORRECT ANSWER Returns in excess of what an investor expects to earn from
other investments with a similar amount of risk.
Average returns - CORRECT ANSWER Returns equal to those an investor expects to earn from other
investments possessing a similar amount of risk.
Capability - CORRECT ANSWER the capacity for a set of resources to perform a task or an activity in an
integrative manner.
Competitive advantage - CORRECT ANSWER by implementing a chosen strategy, it creates superior
value for customers and when competitors are not able to imitate the value the firm's products create
or find it too expensive to attempt imitation.
Core Competencies - CORRECT ANSWER capabilities that serve as a source of competitive advantage for
a firm over its rivals, often visible in the form of organizational functions.
Global economy - CORRECT ANSWER one in which goods, services, people, skills, and ideas move freely
across geographic borders
Hyper competition - CORRECT ANSWER Condition where competitors engage in intense rivalry, markets
change quickly and often, and entry barriers are low. In these environments, firms find it difficult to
maintain a competitive environment.
Mission - CORRECT ANSWER answers the question: "why does the company exist?" by specifying the
businesses it intends to compete in and potentially the customers it intends to serve, should not be
complicated or lengthy.
Organizational culture - CORRECT ANSWER the complex set of ideologies, symbols, and core value that
individuals throughout the firm share and that influence how the firm conducts business.
, Resources - CORRECT ANSWER inputs into a firm's production process, such as capital equipment, the
skills of employees, patents, finances, and talented managers. Categorized into 3 categories: physical,
human, and organizational capital.
Risk - CORRECT ANSWER An investor's uncertainty about the economic gains or losses that will result
from a particular investment.
Stakeholders - CORRECT ANSWER individuals, groups, and organizations that can affect the firm's vision
and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's
performance
Capital market stakeholders - CORRECT ANSWER shareholders, major suppliers of capital (banks,
bondholders, etc.)
Strategic flexibility - CORRECT ANSWER Involves coping with the uncertainty and risks of competitive
environments, must first overcome built-up organizational inertia. Requires developing the capacity for
continuous learning and applying the new and updated skill sets and competencies to the firm's
competitive advantage.
Strategic leaders - CORRECT ANSWER have strong strategic orientation that relies on thorough analysis
when taking action, are located at various levels of the firm, can leverage relationships with external
parties while promoting exploratory learning, and have an global mindset approach to management.
Strategic management process - CORRECT ANSWER The topic addresses how to run a successful
business from the perspective of a CEO. It involves a strategic plan, which is a subset of the strategic
management process
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