MAN4720 Exam 1 Study Guide | Strategy,
Competitive Advantage & Value Creation (FSU)|
Questions Complete with A+ Graded Rationales
Latest Updated 2026
Strategy
integrated and coordinated commitments, actions, and behaviors designed to meet the
demands of various stakeholders; establishes a firm's individuality and purpose
Competitiveness
Firm's current and future market position relative rivals; depends on SWOT; involves strategy
formulation & implementation; performance depends on value creation and value capture
Competitive Advantage
- create and capture more value than rivals can
- unique to firm but relative to rivals
- none is indefinite, need many temporary ones
simplest way to craft a strategy:
- perform SWOT
- formulate
- implement
visions
ideal descriptions of a firm's future, defining its long term intent
missions
specify targeted consumers and businesses
Strategy Formulation
involves planning, goal-setting, and plotting a firm's direction to create/capture value
Stakeholders
- Individuals who can affect and are affected by the firm
- Often have enforceable claims on this value
3 Stakeholder Groups
, - Capital Market Stakeholders
- Product Market Stakeholders
- Organizational Stakeholders
Capital Market Stakeholders
- shareholders
- major suppliers of capital (e.g., banks)
Product Market Stakeholders
- primary customers
- suppliers
- host communitites
- unions
Organizational Stakeholders
- employees
- managers
- nonmanagers
Value Creation
difference between the benefits customers experience
from product or service attributes and the amount they are willing to pay
Value Capture
the firm's ability to access, retain, or otherwise benefit from the value created
Industrial Organization (I/O) Economics Model
- a firm's industry influences firm performance more than the firm's resources do
Resource-Based Model
a firm's resources (i.e., assets) and capabilities (routines) are the primary bases of its strategy;
each firm has unique resources and capabilities, both of which have multiple uses
hypercompetition
increasingly intense rivalry between firms
General Environment
dimensions in the broader society that influence industries and the firms within it
Competitive Advantage & Value Creation (FSU)|
Questions Complete with A+ Graded Rationales
Latest Updated 2026
Strategy
integrated and coordinated commitments, actions, and behaviors designed to meet the
demands of various stakeholders; establishes a firm's individuality and purpose
Competitiveness
Firm's current and future market position relative rivals; depends on SWOT; involves strategy
formulation & implementation; performance depends on value creation and value capture
Competitive Advantage
- create and capture more value than rivals can
- unique to firm but relative to rivals
- none is indefinite, need many temporary ones
simplest way to craft a strategy:
- perform SWOT
- formulate
- implement
visions
ideal descriptions of a firm's future, defining its long term intent
missions
specify targeted consumers and businesses
Strategy Formulation
involves planning, goal-setting, and plotting a firm's direction to create/capture value
Stakeholders
- Individuals who can affect and are affected by the firm
- Often have enforceable claims on this value
3 Stakeholder Groups
, - Capital Market Stakeholders
- Product Market Stakeholders
- Organizational Stakeholders
Capital Market Stakeholders
- shareholders
- major suppliers of capital (e.g., banks)
Product Market Stakeholders
- primary customers
- suppliers
- host communitites
- unions
Organizational Stakeholders
- employees
- managers
- nonmanagers
Value Creation
difference between the benefits customers experience
from product or service attributes and the amount they are willing to pay
Value Capture
the firm's ability to access, retain, or otherwise benefit from the value created
Industrial Organization (I/O) Economics Model
- a firm's industry influences firm performance more than the firm's resources do
Resource-Based Model
a firm's resources (i.e., assets) and capabilities (routines) are the primary bases of its strategy;
each firm has unique resources and capabilities, both of which have multiple uses
hypercompetition
increasingly intense rivalry between firms
General Environment
dimensions in the broader society that influence industries and the firms within it
