MGT 405 - EXAM 1 FRIAS SDSU
QUESTIONS AND ANSWERS GRADED A+
2025/2026
A strategic objective is used to... - ANS operationalize the mission statement. Should be
measurable, specific, appropriate, realistic, and timely
Mission statement - ANS Encompasses both the purpose of the company and the basis of
competition and competitive advantage.
A vision is more specific than a mission statement (T/F) - ANS false
A mission statement can and should change when competitive conditions change. (T/F) -
ANS true
Organizational Vision - ANS A "massively inspiring" goal, overarching, long term.
hierarchy of goals - ANS
Assessing the internal environment of the firm - ANS -Analyze strengths and relationships
among activities that constitute a firm's value chain.
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, -Analysis can uncover potential sources of competitive advantage.
Analyzing the external environment of the firm - ANS General environment: inflation, etc.
Industry environment: competition, industry
Strategy is... - ANS -Long term focus
-About making fewer decisions and choices (Portfolio, capabilities..)
-Creating value
-Differentiation from competition
strategy definition - ANS a plan of action or policy designed to achieve a major or overall aim
(Is the articulation of the company's direction and critical activities aim to create differentiated
value to compete, win, and deliver the long-term goals.)
Threat of new entrants (Porter's) - ANS Factors affecting a new company to establish and
compete in that industry (resources, capabilities, regulations). Depends on existing barriers to
entry
Types of barriers to entry (6) - ANS 1. Economies of scales
2. Product differentiation
3. Capital requirements
4. Switching costs
5. Access to distribution channels
6. Cost disadvantages independent of scale
Economies of scales - ANS Reduction in long-run average and marginal costs, due to increase
in size of an operating unit ( a factory or plant, for example).
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
A strategic objective is used to... - ANS operationalize the mission statement. Should be
measurable, specific, appropriate, realistic, and timely
Mission statement - ANS Encompasses both the purpose of the company and the basis of
competition and competitive advantage.
A vision is more specific than a mission statement (T/F) - ANS false
A mission statement can and should change when competitive conditions change. (T/F) -
ANS true
Organizational Vision - ANS A "massively inspiring" goal, overarching, long term.
hierarchy of goals - ANS
Assessing the internal environment of the firm - ANS -Analyze strengths and relationships
among activities that constitute a firm's value chain.
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, -Analysis can uncover potential sources of competitive advantage.
Analyzing the external environment of the firm - ANS General environment: inflation, etc.
Industry environment: competition, industry
Strategy is... - ANS -Long term focus
-About making fewer decisions and choices (Portfolio, capabilities..)
-Creating value
-Differentiation from competition
strategy definition - ANS a plan of action or policy designed to achieve a major or overall aim
(Is the articulation of the company's direction and critical activities aim to create differentiated
value to compete, win, and deliver the long-term goals.)
Threat of new entrants (Porter's) - ANS Factors affecting a new company to establish and
compete in that industry (resources, capabilities, regulations). Depends on existing barriers to
entry
Types of barriers to entry (6) - ANS 1. Economies of scales
2. Product differentiation
3. Capital requirements
4. Switching costs
5. Access to distribution channels
6. Cost disadvantages independent of scale
Economies of scales - ANS Reduction in long-run average and marginal costs, due to increase
in size of an operating unit ( a factory or plant, for example).
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
