sustainable competitive advantage - Answer-Competitors are unable (or unwilling) to duplicate the benefits of a firm's strategy
Is created through a value-creating strategy, based on core competencies.
What are some strategic challenges businesses face? - Answer-- Tech (*THIS IS A CRITICAL ON...
WPC 480 - Final Exam Questions and
Answers
sustainable competitive advantage - Answer-Competitors are unable (or unwilling) to
duplicate the benefits of a firm's strategy
Is created through a value-creating strategy, based on core competencies.
What are some strategic challenges businesses face? - Answer-- Tech (*THIS IS A
CRITICAL ONE)
- Globalization
- Pace of Change or speed
- Dynamic and Uncertain market conditions
- Growth of knowledge base and information
Industry organization Model - Answer-EXTERNAL analysis:
1.Analyze the external environment
2.Identify an industry with high potential
3.Develop a strategy
4.Develop or acquire needed assets(people, tech,)
5.Implement the strategy
resource-based model - Answer-INTERNAL analysis:
1. Identify the firm's strengths and weaknesses
2.Determine the firm's capabilities
3.Match capabilities and resources to determine a competitive advantage
4.Locate an attractive industry(size, growth, etc.)
5.Set and implement a strategy
looks at a firm's internal environment, what it can do: Resources - Capabilities - Core
Competencies
What is vision? - Answer-A clear (blank) demonstrates "why do we exist"
A short and concise description of what the firm aspires to be and expects to achieve in
the future
- Reflects the firm's values
- Stretches and challenges its people
- Should be inspiring and relevant to all stakeholder
, What is mission? - Answer-An effective (blank) promotes shared values and objectives.
Specifies the present business or businesses in which the firm intends to compete and
the customers it intends to serve
A (blank) has a more concrete, near-term focus on current product markets, customers
and stakeholders than the firm's (blank2)
Stakeholders - Answer-people who are affected by a firm's performance and who have
claims on its performance
Capital Market Stakeholders - Answer-shareholders, major suppliers of capital (e.g.
banks)
Primary Stakeholders... - Answer-- Can affect development of the firm's vision and
mission
- Are impacted by the strategic outcomes achieved by the firm
- Can have enforceable claims on the firm's performance
- Are influential when in control of critical or valued resources
Corporate governance - Answer-is the oversight of companies by their boards and
owners, with aligning interests of owners and managers being a primary goal
Agency Relationship problems - Answer-Principal and agent have divergent interests
and goals:
- Shareholders lack direct control of large, publicly traded corporations.
- Agent makes decisions that result in the pursuit of goals that conflict with those of the
principal.
- It is difficult or expensive for the principal to verify that the agent has behaved
appropriately.
- Agent falls prey to managerial opportunism.
Managerial Opportunism - Answer-Prevents the maximization of shareholder wealth,
leading stakeholders to establish governance and control mechanisms (is the attitude or
behavior)
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