HPA 455 EXAM 1 QUESTIONS
WIITH CORRECT DETAILED
ANSWERS
What drives change in a competitive strategy - Answer- ***
First mover advantage - Answer- *** benefit
Internal Expansion Pros - Answer- preserve culture, easily funded, builds on strengths
and reputation, less risky
Internal Expansion Cons - Answer- slow growth, steep learning curve, barriers to entry
Acquisition/Merger Pros - Answer- not subject to legal restrictions, rapid market entry,
good will from absorbed, may reduce competition
Acquisition/Merger Cons - Answer- culture/management of acquired may not be
compatible
Network/Alliance Pros - Answer- lowest risk, potential for rapid market entry, obtain
critical knowledge and market access
Network/Alliance Cons - Answer- least control over outcomes, lacks commitment, may
lose key personnel
Vertical expansion/integration - Answer- backward and forward expansion
Backward expansion - Answer- acquire source of supplies
Forward expansion - Answer- acquire organization that purchases your products
How does vertical integration work? - Answer- standardized technology & infrastructure,
shared knowledge, creation of shared culture, established common identity and purpose
Virtual vertical integration - Answer- *** what is it, how better
Horizontal expansion - Answer- merger of two or more organizations that produce the
same product/servce
Diversified expansion - Answer- concentric, horizontal, unrelated diversification
, Concentric expansion - Answer- enter different business that uses similar technology
Horizontal diversification - Answer- new products to current offering
Unrelated diversification - Answer- add completely unrelated product or service
Strategic Alliances - Answer- remain separate entities - mutually beneficial long term
formal relationship between 1 or more parties, to pursue a set of agreed upon goals or
to meet a business need
Rate of failure strategic alliances - Answer- up to 80%
What is the root of many failures - Answer- lack of mission statement
Strategic alliance better than a merger? - Answer- ***
4 areas of integration - Answer- 1. Operational- standardization of technology
2. Intellectual- shared knowledge base
3. Social- creation of cultural bonds that drive performance
4. Emotional- common identity and purpose
Stakeholders - Answer- individuals or groups that have some investment in an
organization and/or obtain some benefit from it
Internal stakeholders - Answer- employees, investors, and board members
External stakeholders - Answer- customers, suppliers, government, community, general
public
Relationship between stakeholders and organizations - Answer- organization -->
benefits --> external internal --> support --> organization
Strategic Intent - Answer- statements, including mission, vision, and values that
describe an organization's perception of its purpose, direction, and acceptable conduct
Values - Answer- statements expressing the ethics that guide an organization's actions
and processes and the organization's standards for staff behavior
How to establish values - Answer- *distinguish organization for others*
1. identify key stakeholders
2. conduct surveys to determine which values are important
3. Identify common values
4. VISIBLE, TANGIBLE
5. MEMORABLE, no more than 7 words
Mission - Answer- statement of existing purpose, aims, and values
WIITH CORRECT DETAILED
ANSWERS
What drives change in a competitive strategy - Answer- ***
First mover advantage - Answer- *** benefit
Internal Expansion Pros - Answer- preserve culture, easily funded, builds on strengths
and reputation, less risky
Internal Expansion Cons - Answer- slow growth, steep learning curve, barriers to entry
Acquisition/Merger Pros - Answer- not subject to legal restrictions, rapid market entry,
good will from absorbed, may reduce competition
Acquisition/Merger Cons - Answer- culture/management of acquired may not be
compatible
Network/Alliance Pros - Answer- lowest risk, potential for rapid market entry, obtain
critical knowledge and market access
Network/Alliance Cons - Answer- least control over outcomes, lacks commitment, may
lose key personnel
Vertical expansion/integration - Answer- backward and forward expansion
Backward expansion - Answer- acquire source of supplies
Forward expansion - Answer- acquire organization that purchases your products
How does vertical integration work? - Answer- standardized technology & infrastructure,
shared knowledge, creation of shared culture, established common identity and purpose
Virtual vertical integration - Answer- *** what is it, how better
Horizontal expansion - Answer- merger of two or more organizations that produce the
same product/servce
Diversified expansion - Answer- concentric, horizontal, unrelated diversification
, Concentric expansion - Answer- enter different business that uses similar technology
Horizontal diversification - Answer- new products to current offering
Unrelated diversification - Answer- add completely unrelated product or service
Strategic Alliances - Answer- remain separate entities - mutually beneficial long term
formal relationship between 1 or more parties, to pursue a set of agreed upon goals or
to meet a business need
Rate of failure strategic alliances - Answer- up to 80%
What is the root of many failures - Answer- lack of mission statement
Strategic alliance better than a merger? - Answer- ***
4 areas of integration - Answer- 1. Operational- standardization of technology
2. Intellectual- shared knowledge base
3. Social- creation of cultural bonds that drive performance
4. Emotional- common identity and purpose
Stakeholders - Answer- individuals or groups that have some investment in an
organization and/or obtain some benefit from it
Internal stakeholders - Answer- employees, investors, and board members
External stakeholders - Answer- customers, suppliers, government, community, general
public
Relationship between stakeholders and organizations - Answer- organization -->
benefits --> external internal --> support --> organization
Strategic Intent - Answer- statements, including mission, vision, and values that
describe an organization's perception of its purpose, direction, and acceptable conduct
Values - Answer- statements expressing the ethics that guide an organization's actions
and processes and the organization's standards for staff behavior
How to establish values - Answer- *distinguish organization for others*
1. identify key stakeholders
2. conduct surveys to determine which values are important
3. Identify common values
4. VISIBLE, TANGIBLE
5. MEMORABLE, no more than 7 words
Mission - Answer- statement of existing purpose, aims, and values
