MGMT 495 - DAVID NORDIN MIDTERM EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MGMT 495 - DAVID NORDIN MIDTERM EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 What is a good strategy? - AnswersAnalysis, Formulation, Implementation What is analysis? - AnswersA diagnosis of the competitive challenge What is formulation? - AnswersGuiding policy to address the competitive challenge What is implementation? - AnswersA set of coherent actions to implement the firm guiding policy What is competitive advantage? - AnswersSuperior performance relative to competitors in the same industry or the industry average. sustainable competitive advantage - AnswersA firm that can outperform its competitors or the industry average over a prolonged period Competitive disadvantage: - Answersa firm that underperforms its rivals or the industry average Competitive parity - Answerstwo or more firms that perform at the same level Competitive advantage - AnswersFirms performing their activities better and Faster With fewer inputs and or defects than their rivals By doing this, firms can reap enormous advantages Operational effectiveness - AnswersAs firms all work on doing things better, faster, and cheaper Stakeholders strategie - AnswersAn integrative approach to managing a diverse set of stakeholders to gain and sustain competitive advantage Decision stool for stakeholder strategy - Answersthe stakeholder impact analysis helps to recognize, prioritize, and address stakeholders' needs Three important stakeholder attributes - Answerspower, legitimacy, urgency Power (stakeholder attribute) - Answerswhen the stakeholder can get the company to do something that it would not do otherwise Legitimate claims (stakeholder attributes) - Answersperceived to be legally valid or otherwise appropriate urgent claims (stakeholder attribute) - Answersrequire a company's immediate attention and response AFI strategy framework - AnswersA model that links three interdependent strategic management tasks—analyze, formulate, and implement—that, together, help managers plan and implement a strategy that can improve performance and result in competitive advantage. What is strategic leadership? - Answers-Successful use of power and influence -Directing the activities of others -Pursuing an organization's goals -Enabling organizational competitive advantage What do strategic leaders do? - Answers- face-to-face meetings: 67% - working alone: 13% - email: 7% - calls: 6% - business meals: 5% - public events: 2% how do you become a strategic leader? - AnswersIt is a function of innate abilities and learning. Leadership actions reflect: - Answers-age, education, and career experiences -personal interpretations of situations Formulating Strategy Across Corporate Levels - headquarters - Answerswhere to compete? corporate strategy Formulating Strategy Across Corporate Levels - SBU 1 - AnswersBusiness strategy how to compete? Formulating Strategy Across Corporate Levels - business function 1 - Answersfunctional strategy how to implement? vision - Answers-captures an organizations aspiration -identifies the long term objective -should be forward looking and inspiring an effective vision - AnswersPervades the organization Provides a sense of winning Motivates employees to aim for the same target Mission - AnswersWhat an organization actually does The products and services it will provide The markets in which it will compete Defines how the vision will be accomplished Values - AnswersWhat commitments do we make, and what guardrails do we put in place, to act both legally and ethically as we pursue our vision and mission? Top-down strategic planning - AnswersA rational, data-driven strategy process through which top management attempts to program future success. Shortcomings of the top-down approach - Answers1. May not adapt well to change. 2. Formulation is separate from implementation. 3. Information flows one-way. 4. Leaders' future vision can be wrong. scenario planning - AnswersStrategy-planning activity in which top management envisions different what-if scenarios to anticipate plausible futures in order to derive strategic responses. planned emergence - Answersstrategy process in which organizational structure and systems allow bottom-up strategic initiatives to emerge and be evaluated and coordinated by top management The PESTEL model - Answers-Groups environmental factors into six segments: --Political --Economic --Sociocultural --Technological --Ecological --Legal Five Forces Model - AnswersA model developed by Michael Porter that helps us understand the five competitive forces that determine the level of competition and profitability in an industry. what are the five forces? - Answers1-threat of new competition entering the market 2-threat of substitute goods or services 3-bargaining power of buyers of the industry good or service 4-bargaining power of suppliers of the inputs used in the industry 5-intensity of rivalry Threat of Entry - Answersthe risk that potential competitors will enter an industry power of suppliers - AnswersPressures that industry suppliers can exert on an industry's profit potential Power of Buyers - Answersextent to which buyers influence market rivals Threat of Substitutes - Answersthe idea that products or services available from outside the given industry will come close to meeting the needs of current customers Rivalry among competitors - AnswersThe intensity with which companies in the same industry jockey for market share and profitability competitive industry structure - AnswersThe number and size of its competitors The firms' degree of pricing power The type of product or service (commodity or differentiated product) The height of entry barriers Industry Growth - AnswersAffects intensity of rivalry among competitors During periods of high growth: -Consumer demand rises -Price competition among firms decreases --They focus on capturing new customers --They are not focused on taking profitability away from each other During periods of negative growth: -Rivalry is fierce -Rivals can only gain at the expense of one another strategic commitments - Answersfirm actions that are costly, long-term oriented, and difficult to reverse exit barriers - AnswersEconomic, strategic, and emotional factors that prevent companies from leaving an industry A six force: complements - AnswersA product, service, or competency that adds value when used with the original product - Complements increase demand for the primary product - Enhances the profit potential for the industry and the firm Entry Choices - Answers1. Who are the players? 2. When to enter? 3. How to enter? 4. What type of entry? 5. Where to enter? Industry Dynamics - AnswersProvides insight about: •Changing speed of an industry •Rate of innovation Analysis must repeat over time •Industry structures aren't stable •They are dynamic strategic group model - Answersclusters different firms into groups based on a few key strategic dimensions