Strategic Leadership correct answers creating competitive advantage through effective management of the strategy-making process
Determinants of Shareholder Value correct answers Effectiveness of strategies, leads to profitability (ROIC) and Profit growth
Why max-ing shareholder value is ultim...
MGT 499 Exam 1 Ch:1-4(100% Everfree answers)
Strategic Leadership correct answers creating competitive advantage through effective management of the
strategy-making process
Determinants of Shareholder Value correct answers Effectiveness of strategies, leads to profitability
(ROIC) and Profit growth
Why max-ing shareholder value is ultimate goal? (2 reasons) correct answers 1) They provide risk capital
that allows the purchase of resources to produce/sell goods
2) Are legal owners and their shares represent a claim in company, this managers are obligated to max
their value.
shareholder value comes from? correct answers 1) capital appreciation
2) dividend payments
profitability correct answers result of how efficiently and effectively managers use the capital at their
disposal to produce goods and services that satisfy customer needs. This can be measured by the return
that it makes on the capital invested.
Business Model correct answers 1) Selects, acquires, and keeps its customers
2) Defines and differentiates its product offerings
3) Creates value for its customers
4) Produces goods or services and delivers to the market
5) Lowers costs and organizes its resources and activities
6) Achieves and sustains high profitability and growth
3 Levels of Strategic Management correct answers Corporate Level: CEO, Board of Directors, Corporate
Staff
Business Level: Divisional managers and staff
Functional Level: Functional managers
, Components of a Mission Statement: correct answers Mission: (narrow, specific statement) purpose of the
company
Vision: (broad statement) desired achievements or future state
Values: how employees should conduct themselves and business to achieve the mission statement
Establishing Major Goals: making goals
Three Q's to defining the business: correct answers 1) Who is being satisfied
2) What is being satisfied
3) How are customer needs being satisfied
External Analysis correct answers Identifies strategic opportunities and threats that will affect how an
organization pursues its mission (examines environment around company)
Internal Analysis correct answers Focuses on reviewing the resources, capabilities, and competencies of a
company (Goal is to identify company's strengths and weaknesses).
SWOT Strategy: Funtional-level Strategy correct answers Directed at improving the effectiveness of
operations within a company
SWOT Strategy: Business-level strategies correct answers Encompass the business's overall competitive
theme-how it positions itself in the marketplace to gain a competitive advantage
SWOT Strategy: Global strategies correct answers Address how to expand operations outside the home
country
SWOT Strategy: Corporate-level strategies correct answers determines the businesses a company should
be in to maximize profitability and profit growth, and
how to gain a competitive edge
Scenario Planning correct answers formulating plans that are based on "what-if" scenarios about the
future
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