MGMT 408 | VERIFIED ACCURATE STUDY GUIDE |
2026
Analyses - Answers --Of strategic goals
-Of the internal and external environment
Decisions - Answers -What industry should we compete in?
(Corporate Strategy)
How should we compete in the chosen industry? (Competitive Positioning)
Actions - Answers -Recommendation about actions that must be taken
deliberate strategy - Answers -deliberate strategy only gets executed partially, while
emerging elements complete the realized strategy...
Four Key Attributes of Strategic Management - Answers --Directed towards the *overall
organizational goals*
-Includes *multiple stakeholders* in decision-making
-Requires *incorporating both short and long term perspectives*
-Involves *trade-offs between effectiveness and efficiency*
Operational effectiveness - Answers -refers to the extent to which firms perform similar
activities better than rivals
*Do same thing, but do it BETTER*
Strategy - Answers -refers to performing different activities from rivals or performing
them in a different way
*Sell same stuff, but differently*
Sustainable competitive advantage - Answers --Achieving profits above the industry
average is extremely difficult, particularly over a sustained period of time
*have both operational effectiveness and a superior strategy*
Strategic decisions - Answers -*affect the whole firm* and involve creating *competitive
advantage* (these are harder to imitate)
Operational decisions - Answers -help make strategic decisions work - they translate
strategies into areas of action (i.e., human resources, finance, marketing, R&D,
manufacturing) - (these are easier to imitate)
criteria for identifying Strategic decisions - Answers --Does the decision deal with
identifying a new business area - or the future direction of the firm?
-Does the decision affect the firm as a whole?
-Does it have a significant financial impact on the firm?
, -Would it evoke a significant response from competitors?
*Our goal is to develop a strategic perspective so we can make recommendations that
lead to firm-level competitive advantage*
fundamental fact in Strategy - Answers -profits vary *across industry* and *within
industry*
Industry profitability - Answers -relatively stable over longer periods of time
Firm profitability - Answers -shows greater variation over time, but tends to be stable
and high for some firms, and stable and low for others
Strategic Decision Makers - Answers -is to analyze the determinants of firm long-term
performance and make recommendations to achieve high performance
Industry Analysis - Answers -How competitive forces shape strategy: The general and
competitive environment
The General Environment (broad) - Answers -The general environment is the big
picture that the firm has little control over
i.e., the war in Afghanistan
i.e., interest rates
i.e., outcome of a presidential election
General environment into six segments - Answers --Demographic
-Socio-cultural
-Political/Legal
-Technological
-Economic
-Global
Demographic: Root of many changes's in society - Answers --Aging population
-Rising or declining affluence
-Changes in ethnic composition
-Geographic distribution of population
-Greater disparities in income levels
Sociocultural: Influence the values, beliefs and lifestyles of a society - Answers --More
women in the workplace
-Increase in temporary workers
-Greater concern for fitness
-Greater concern for the environment
-Postponement of marriage and/or starting a family
Political/Legal: Influence Regulation - Answers --Americans with disabilities act
-Increase in minimum wage
2026
Analyses - Answers --Of strategic goals
-Of the internal and external environment
Decisions - Answers -What industry should we compete in?
(Corporate Strategy)
How should we compete in the chosen industry? (Competitive Positioning)
Actions - Answers -Recommendation about actions that must be taken
deliberate strategy - Answers -deliberate strategy only gets executed partially, while
emerging elements complete the realized strategy...
Four Key Attributes of Strategic Management - Answers --Directed towards the *overall
organizational goals*
-Includes *multiple stakeholders* in decision-making
-Requires *incorporating both short and long term perspectives*
-Involves *trade-offs between effectiveness and efficiency*
Operational effectiveness - Answers -refers to the extent to which firms perform similar
activities better than rivals
*Do same thing, but do it BETTER*
Strategy - Answers -refers to performing different activities from rivals or performing
them in a different way
*Sell same stuff, but differently*
Sustainable competitive advantage - Answers --Achieving profits above the industry
average is extremely difficult, particularly over a sustained period of time
*have both operational effectiveness and a superior strategy*
Strategic decisions - Answers -*affect the whole firm* and involve creating *competitive
advantage* (these are harder to imitate)
Operational decisions - Answers -help make strategic decisions work - they translate
strategies into areas of action (i.e., human resources, finance, marketing, R&D,
manufacturing) - (these are easier to imitate)
criteria for identifying Strategic decisions - Answers --Does the decision deal with
identifying a new business area - or the future direction of the firm?
-Does the decision affect the firm as a whole?
-Does it have a significant financial impact on the firm?
, -Would it evoke a significant response from competitors?
*Our goal is to develop a strategic perspective so we can make recommendations that
lead to firm-level competitive advantage*
fundamental fact in Strategy - Answers -profits vary *across industry* and *within
industry*
Industry profitability - Answers -relatively stable over longer periods of time
Firm profitability - Answers -shows greater variation over time, but tends to be stable
and high for some firms, and stable and low for others
Strategic Decision Makers - Answers -is to analyze the determinants of firm long-term
performance and make recommendations to achieve high performance
Industry Analysis - Answers -How competitive forces shape strategy: The general and
competitive environment
The General Environment (broad) - Answers -The general environment is the big
picture that the firm has little control over
i.e., the war in Afghanistan
i.e., interest rates
i.e., outcome of a presidential election
General environment into six segments - Answers --Demographic
-Socio-cultural
-Political/Legal
-Technological
-Economic
-Global
Demographic: Root of many changes's in society - Answers --Aging population
-Rising or declining affluence
-Changes in ethnic composition
-Geographic distribution of population
-Greater disparities in income levels
Sociocultural: Influence the values, beliefs and lifestyles of a society - Answers --More
women in the workplace
-Increase in temporary workers
-Greater concern for fitness
-Greater concern for the environment
-Postponement of marriage and/or starting a family
Political/Legal: Influence Regulation - Answers --Americans with disabilities act
-Increase in minimum wage
