Corporate Strats Final (Donaldson)Correct 100%

Corporate Strats Final (Donaldson)Correct
100%



Average Returns - ANSWERReturns equal to those an investor expects to earn from other
investments with a similar amount of risk



Above-Average Returns - ANSWERReturns in excess of what an investor expects to earn from other
investments with a similar amount of risk



Industry Environment - ANSWERThe set factors directly influencing a firm and it's competitive actions
and competitive responses



Industry Environment (Porter's 5 Forces) - ANSWER- Threat of New Entrants

- Power of Suppliers

- Power of Buyers

- Threat of Product Substitutes

- Intensity of Rivalry among Competitors




The I/O Model of Above-Average Returns - ANSWER1. External Environment

2. Attractive Industry

3. Strategy Formulation

4. Assets and Skills

5. Strategy Implementation

6. Superior Returns



External Enviornment - ANSWER- General Environment

- 7 segments

, - Focus on the Future

- Industry Environment

- 5 forces

- Factors and conditions influencing a firms profitability within the industry

- Competitor Environment

- Future objectives, current strategy, assumptions, capabilities

- Focuses on predicting the dynamics of competitors actions, responses, and intentions



General Environment - ANSWERDimensions in the broader society that influence an industry and the
firms within it



General Environment (7 Segments) - ANSWER- Demographic

- Economic

- Political/Legal

- Sociocultural

- Technological

- Global

- Physical

Competitor Analysis - ANSWER- Future Objectives

- Current Strategy

- Assumptions

- Capabilities

- Response

- What will our competitors do in the future?

- Where do we hold an advantage over our competitors

- How will this change our relationship with our competitors



The Resource-Based Model of Above-Average Returns - ANSWER- Resources

- Capability

- Core Competence