WPC 480 Final Exam with correct
Answers
What iiis iistrategy? ii- iiAnswers ii-An iiintegrated iiset iiof iigoal-directed iiactions iia iifirm
iitakes iito iigain iiand iisustain iicompetitive iiadvantage.
What iiare iithe ii2 iibusiness iianalysis? ii- iiAnswers ii-Internal iiand iiExternal.
What iiare iithe ii3 iibusiness iistrategies? ii- iiAnswers ii-1) iiCost, ii2) iiDifferentiation, ii3)
iiInnovation.
What iiis iicompetitive iiadvantage? ii- iiAnswers ii-Superior iiperformance iirelative iito iiother
iicompetitors iiin iithe iisame iiindustry iior iithe iiindustry iiaverage.
How iido iiyou iiassess iicompetitive iiadvantage? ii- iiAnswers ii-Compare iifirm iiperformance
iito iia iibenchmark.
What iiis iisustainable iicompetitive iiadvantage? ii- iiAnswers ii-Outperforming iicompetitors
iior iithe iiindustry iiaverage iiover iia iiprolonged iiperiod iiof iitime.
What iiis iicompetitive iidisadvantage? ii- iiAnswers ii-Underperformance iirelative iito iiother
iicompetitors iiin iithe iisame iiindustry iior iithe iiindustry iiaverage.
What iiis iicompetitive iiparity? ii- iiAnswers ii-A iiperformance iiof iitwo iior iimore iifirms iiat iithe
iisame iilevel.
What iiis iithe iikey iito iisuccessful iistrategy iiand iigain iicompetitive iiadvantages? ii-
iiAnswers ii-Combine iiactivities iifor iia iiunique iiposition iiin iian iiindustry.
Where iidoes iicompetitive iiadvantage iicome iifrom? ii- iiAnswers ii-1) iiPerforming iidifferent
iiactivities, iior ii2) iiPerforming iithe iisame iiactivities iidifferently iithan iirivals.
What iidoes iistrategic iipositioning iirequire? ii- iiAnswers ii-Trade-offs.
What iiis iithe iifist iistep iiof iia iistrategic iigoal iito iigain iiand iisustain iicompetitive
iiadvantage? ii- iiAnswers ii-Define iia iifirm's iivision, iimission, iiand iivalues.
What iiis iia iifirm's iivision? ii- iiAnswers ii-What iido iiwe iiwant iito iiaccomplish?
What iiis iia iifirm's iimission? ii- iiAnswers ii-How iido iiwe iiaccomplish iiour iigoals?
,What iiis iia iifirm's iivalues? ii- iiAnswers ii-What iicommitments iido iiwe iimake? iiWhat
iiguardrails iido iiwe iiput iiin iiplace? iiHow iican iiwe iiact iilegally iiand iiethically iiin iipursuit iiof
iithe iivision iiand iimission?
What iiare iithe iikey iiaspects iiof iian iieffective iivision? ii- iiAnswers ii-1) iiCapture iian
iiorganization's iiaspiration ii. ii2) iiIdentifies iiwhat iiit iiultimately iiwants iito iiaccomplish. ii3)
iiMotivates iiemployees iito iiaim iifor iia iitarget. ii4) iiLeaves iiroom iifor iicontributions.
What iiis iia iiproduct-oriented iivision iistatement? ii- iiAnswers ii-Defines iia iibusiness iiin
iiterms iiof iia iigood iior iiservice iiprovided.
What iiis iia iicustomer-oriented iivision iistatement? ii- iiAnswers ii-Defines iia iibusiness iiin
iiterms iiof iiproviding iisolutions iito iicustomer iineeds.
What iithings iican iia iifirm iido iito iivision iistatements iiand iifirm iiperformance iito iibe
iipositively iiassociated? ii- iiAnswers ii-1) iiThe iivision iiis iicustomer-oriented, ii2) iiInternal
iistakeholders iihelp iidefine iithe iivision, ii3) iiOrganizational iistructures iialign iiwith iithe
iivision iistatement.
What iidoes iia iifirm's iimission iistatement iido? ii- iiAnswers ii-1) iiDescribes iihow iito
iiaccomplish iigoals iiand ii2) iiDescribes iiwhat iithe iiorganization iidoes ii(the iiproducts iiand
iiservices iiit iiprovides iiand iithe iimarkets iiin iiwhich iiit iicompetes).
What iiis iithe iidifference iibetween iivision iiand iimission iistatements? ii- iiAnswers ii-Vision
iistatements: iiWHAT iian iiorganization iiwants iito iiaccomplish ii(ie: iito). iiMission
iistatements: iiHOW iithe iivision iiwill iibe iiaccomplished ii(ie: iiby).
What iidoes iiestablishing iia iifirm's iivalue iido? ii- iiAnswers ii-Guides iian iiorganization iito
iiachieve iiits iivision iiand iifulfill iiits iimission.
Who iiare iithe iistakeholders? ii- iiAnswers ii-Organizations, iigroups, iiindividuals iithat iican
iiaffect iior iiare iiaffected iiby iia iifirm's iiactions iiand iihave iia iivested iiclaim iior iiinterest iiin
iithe iiperformance iiand iicontinued iisurvival iiof iithe iifirm.
What iiis iia iifirm's iistakeholder iistrategy? ii- iiAnswers ii-1) iiManaging iistakeholders iiin
iiorder iito iigain iiand iisustain iicompetitive iiadvantage, ii2) iiBenefits iiof iieffective
iistakeholder iistrategy iito iifirm iiperformance.
What iiare iithe iilayers iiof iithe iicorporate iisocial iiresponsibility iipyramid ii(from iithe iitop-
down)? ii- iiAnswers ii-1) iiPhilanthropic iiresponsibilities, ii2) iiEthical iiresponsibilities, ii3)
iiLegal iiresponsibilities, ii4) iiEconomic iiResponsibilities.
What iiis iistrategic iileadership? ii- iiAnswers ii-1) iiSuccessful iiuse iiof iipower iiand
iiinfluence, ii2) iiDirecting iithe iiactivities iiof iiothers, ii3) iiPursuing iian iiorganization's iigoals,
ii4) iiEnabling iiorganizational iicompetitive iiadvantage, ii5) iiUpper iiEchelon's iiTheory
, ii(organizational iioutcomes iireflect iithe iivalues iiand iiattributes iiof iithe iitop iimanagement
iiteam).
What iiis iithe iiAFI iiFramework iifor iiTop-Down iistrategic iiplanning? ii- iiAnswers ii-Analysis,
iiFormulation, iiImplementation
What iiare iithe ii3 iitypes iiof iistrategies? ii- iiAnswers ii-1) iiIntended iistrategy, ii2) iiEmergent
iistrategy, ii3) iiRealized iistrategy.
What iiis iiintended iistrategy? ii- iiAnswers ii-The iioutcome iiof iia iirational iiand iistructured
iitop-down iistrategic iiplan.
What iiis iiemergent iistrategy? ii- iiAnswers ii-Any iiunplanned iistrategic iiinitiative, iibubbles
iiup iifrom iithe iibottom iiof iithe iiorganization, iican iiinfluence iiand iishape iia iifirm's iioverall
iistrategy. ii(ie: iiStarbucks iimanager iicreating iithe iifrappuccino)
What iiis iirealized iistrategy? ii- iiAnswers ii-Combination iiof iiintended iiand iiemergent
iistrategy.
What iiare iithe ii2 iiEXTERNAL iibusiness iianalysis iimodels? ii- iiAnswers ii-1) iiThe
iiPESTEL iiFramework, ii2) iiThe ii5 iiForces iiModel ii(Porter's).
Why iido iiwe iiwant iito iiuse iithe iiPESTEL iiFramework iiin iiunderstanding iithe iiexternal
iienvironment? ii- iiAnswers ii-It iihelps iius iiidentify iithe iithreats iiand iiopportunities iithat iia
iifirm iifaces iiin iiits iiindustry.
What iidoes iiPESTEL iistand iifor? ii- iiAnswers ii-Political iifactors, iiEconomic iifactors,
iiSociocultural iifactors, iiTechnological iifactors, iiEcological iifactors, iiLegal iifactors.
What iiare iithe iiPolitical iifactors? ii- iiAnswers ii-Processes iiand iiactions iiof iigovernment
iibodies ii(lobbying, iipublic iirelations, iicontributions, iilitigations).
What iiare iithe iiEconomic iifactors? ii- iiAnswers ii-Macro iieconomic iiclimates ii(growth
iirates, iiemployment, iiinterest iirates, iiprice iistability, iicurrency iiexchange iirate).
What iiare iithe iiSociocultural iifactors? ii- iiAnswers ii-Demographic iitrends ii(cultures,
iinorms, iiand iivalues).
What iiare iithe iiTechnological iifactors? ii- iiAnswers ii-Innovations iiin iiprocess iiand
iiproduct iitechnology.
What iiare iithe iiEcological iifactors? ii- iiAnswers ii-Involve iienvironmental iiissues ii(natural
iienvironment, iiglobal iiwarming, iisustainable iieconomic iigrowth).
What iiare iithe iiLegal iifactors? ii- iiAnswers ii-Official iioutcomes iiof iipolitical iiprocesses
ii((de)regulations, iicourt iidecisions, iilaws).
Answers
What iiis iistrategy? ii- iiAnswers ii-An iiintegrated iiset iiof iigoal-directed iiactions iia iifirm
iitakes iito iigain iiand iisustain iicompetitive iiadvantage.
What iiare iithe ii2 iibusiness iianalysis? ii- iiAnswers ii-Internal iiand iiExternal.
What iiare iithe ii3 iibusiness iistrategies? ii- iiAnswers ii-1) iiCost, ii2) iiDifferentiation, ii3)
iiInnovation.
What iiis iicompetitive iiadvantage? ii- iiAnswers ii-Superior iiperformance iirelative iito iiother
iicompetitors iiin iithe iisame iiindustry iior iithe iiindustry iiaverage.
How iido iiyou iiassess iicompetitive iiadvantage? ii- iiAnswers ii-Compare iifirm iiperformance
iito iia iibenchmark.
What iiis iisustainable iicompetitive iiadvantage? ii- iiAnswers ii-Outperforming iicompetitors
iior iithe iiindustry iiaverage iiover iia iiprolonged iiperiod iiof iitime.
What iiis iicompetitive iidisadvantage? ii- iiAnswers ii-Underperformance iirelative iito iiother
iicompetitors iiin iithe iisame iiindustry iior iithe iiindustry iiaverage.
What iiis iicompetitive iiparity? ii- iiAnswers ii-A iiperformance iiof iitwo iior iimore iifirms iiat iithe
iisame iilevel.
What iiis iithe iikey iito iisuccessful iistrategy iiand iigain iicompetitive iiadvantages? ii-
iiAnswers ii-Combine iiactivities iifor iia iiunique iiposition iiin iian iiindustry.
Where iidoes iicompetitive iiadvantage iicome iifrom? ii- iiAnswers ii-1) iiPerforming iidifferent
iiactivities, iior ii2) iiPerforming iithe iisame iiactivities iidifferently iithan iirivals.
What iidoes iistrategic iipositioning iirequire? ii- iiAnswers ii-Trade-offs.
What iiis iithe iifist iistep iiof iia iistrategic iigoal iito iigain iiand iisustain iicompetitive
iiadvantage? ii- iiAnswers ii-Define iia iifirm's iivision, iimission, iiand iivalues.
What iiis iia iifirm's iivision? ii- iiAnswers ii-What iido iiwe iiwant iito iiaccomplish?
What iiis iia iifirm's iimission? ii- iiAnswers ii-How iido iiwe iiaccomplish iiour iigoals?
,What iiis iia iifirm's iivalues? ii- iiAnswers ii-What iicommitments iido iiwe iimake? iiWhat
iiguardrails iido iiwe iiput iiin iiplace? iiHow iican iiwe iiact iilegally iiand iiethically iiin iipursuit iiof
iithe iivision iiand iimission?
What iiare iithe iikey iiaspects iiof iian iieffective iivision? ii- iiAnswers ii-1) iiCapture iian
iiorganization's iiaspiration ii. ii2) iiIdentifies iiwhat iiit iiultimately iiwants iito iiaccomplish. ii3)
iiMotivates iiemployees iito iiaim iifor iia iitarget. ii4) iiLeaves iiroom iifor iicontributions.
What iiis iia iiproduct-oriented iivision iistatement? ii- iiAnswers ii-Defines iia iibusiness iiin
iiterms iiof iia iigood iior iiservice iiprovided.
What iiis iia iicustomer-oriented iivision iistatement? ii- iiAnswers ii-Defines iia iibusiness iiin
iiterms iiof iiproviding iisolutions iito iicustomer iineeds.
What iithings iican iia iifirm iido iito iivision iistatements iiand iifirm iiperformance iito iibe
iipositively iiassociated? ii- iiAnswers ii-1) iiThe iivision iiis iicustomer-oriented, ii2) iiInternal
iistakeholders iihelp iidefine iithe iivision, ii3) iiOrganizational iistructures iialign iiwith iithe
iivision iistatement.
What iidoes iia iifirm's iimission iistatement iido? ii- iiAnswers ii-1) iiDescribes iihow iito
iiaccomplish iigoals iiand ii2) iiDescribes iiwhat iithe iiorganization iidoes ii(the iiproducts iiand
iiservices iiit iiprovides iiand iithe iimarkets iiin iiwhich iiit iicompetes).
What iiis iithe iidifference iibetween iivision iiand iimission iistatements? ii- iiAnswers ii-Vision
iistatements: iiWHAT iian iiorganization iiwants iito iiaccomplish ii(ie: iito). iiMission
iistatements: iiHOW iithe iivision iiwill iibe iiaccomplished ii(ie: iiby).
What iidoes iiestablishing iia iifirm's iivalue iido? ii- iiAnswers ii-Guides iian iiorganization iito
iiachieve iiits iivision iiand iifulfill iiits iimission.
Who iiare iithe iistakeholders? ii- iiAnswers ii-Organizations, iigroups, iiindividuals iithat iican
iiaffect iior iiare iiaffected iiby iia iifirm's iiactions iiand iihave iia iivested iiclaim iior iiinterest iiin
iithe iiperformance iiand iicontinued iisurvival iiof iithe iifirm.
What iiis iia iifirm's iistakeholder iistrategy? ii- iiAnswers ii-1) iiManaging iistakeholders iiin
iiorder iito iigain iiand iisustain iicompetitive iiadvantage, ii2) iiBenefits iiof iieffective
iistakeholder iistrategy iito iifirm iiperformance.
What iiare iithe iilayers iiof iithe iicorporate iisocial iiresponsibility iipyramid ii(from iithe iitop-
down)? ii- iiAnswers ii-1) iiPhilanthropic iiresponsibilities, ii2) iiEthical iiresponsibilities, ii3)
iiLegal iiresponsibilities, ii4) iiEconomic iiResponsibilities.
What iiis iistrategic iileadership? ii- iiAnswers ii-1) iiSuccessful iiuse iiof iipower iiand
iiinfluence, ii2) iiDirecting iithe iiactivities iiof iiothers, ii3) iiPursuing iian iiorganization's iigoals,
ii4) iiEnabling iiorganizational iicompetitive iiadvantage, ii5) iiUpper iiEchelon's iiTheory
, ii(organizational iioutcomes iireflect iithe iivalues iiand iiattributes iiof iithe iitop iimanagement
iiteam).
What iiis iithe iiAFI iiFramework iifor iiTop-Down iistrategic iiplanning? ii- iiAnswers ii-Analysis,
iiFormulation, iiImplementation
What iiare iithe ii3 iitypes iiof iistrategies? ii- iiAnswers ii-1) iiIntended iistrategy, ii2) iiEmergent
iistrategy, ii3) iiRealized iistrategy.
What iiis iiintended iistrategy? ii- iiAnswers ii-The iioutcome iiof iia iirational iiand iistructured
iitop-down iistrategic iiplan.
What iiis iiemergent iistrategy? ii- iiAnswers ii-Any iiunplanned iistrategic iiinitiative, iibubbles
iiup iifrom iithe iibottom iiof iithe iiorganization, iican iiinfluence iiand iishape iia iifirm's iioverall
iistrategy. ii(ie: iiStarbucks iimanager iicreating iithe iifrappuccino)
What iiis iirealized iistrategy? ii- iiAnswers ii-Combination iiof iiintended iiand iiemergent
iistrategy.
What iiare iithe ii2 iiEXTERNAL iibusiness iianalysis iimodels? ii- iiAnswers ii-1) iiThe
iiPESTEL iiFramework, ii2) iiThe ii5 iiForces iiModel ii(Porter's).
Why iido iiwe iiwant iito iiuse iithe iiPESTEL iiFramework iiin iiunderstanding iithe iiexternal
iienvironment? ii- iiAnswers ii-It iihelps iius iiidentify iithe iithreats iiand iiopportunities iithat iia
iifirm iifaces iiin iiits iiindustry.
What iidoes iiPESTEL iistand iifor? ii- iiAnswers ii-Political iifactors, iiEconomic iifactors,
iiSociocultural iifactors, iiTechnological iifactors, iiEcological iifactors, iiLegal iifactors.
What iiare iithe iiPolitical iifactors? ii- iiAnswers ii-Processes iiand iiactions iiof iigovernment
iibodies ii(lobbying, iipublic iirelations, iicontributions, iilitigations).
What iiare iithe iiEconomic iifactors? ii- iiAnswers ii-Macro iieconomic iiclimates ii(growth
iirates, iiemployment, iiinterest iirates, iiprice iistability, iicurrency iiexchange iirate).
What iiare iithe iiSociocultural iifactors? ii- iiAnswers ii-Demographic iitrends ii(cultures,
iinorms, iiand iivalues).
What iiare iithe iiTechnological iifactors? ii- iiAnswers ii-Innovations iiin iiprocess iiand
iiproduct iitechnology.
What iiare iithe iiEcological iifactors? ii- iiAnswers ii-Involve iienvironmental iiissues ii(natural
iienvironment, iiglobal iiwarming, iisustainable iieconomic iigrowth).
What iiare iithe iiLegal iifactors? ii- iiAnswers ii-Official iioutcomes iiof iipolitical iiprocesses
ii((de)regulations, iicourt iidecisions, iilaws).
