BUSI 4940 EXAM 1 (Chapter 1 & 2)
QUESTIONS AND CORRECT
ANSWERS.
Above average returns - Answer Returns in excess of what an investor expects to earn from
other investments with a similar amount of risk.
Average returns - Answer Returns equal to those an investor expects to earn from other
investments possessing a similar amount of risk.
Capability - Answer the capacity for a set of resources to perform a task or an activity in an
integrative manner.
Competitive advantage - Answer by implementing a chosen strategy, it creates superior
value for customers and when competitors are not able to imitate the value the firm's products
create or find it too expensive to attempt imitation.
Core Competencies - Answer capabilities that serve as a source of competitive advantage for
a firm over its rivals, often visible in the form of organizational functions.
Global economy - Answer one in which goods, services, people, skills, and ideas move freely
across geographic borders
Hyper competition - Answer Condition where competitors engage in intense rivalry, markets
change quickly and often, and entry barriers are low. In these environments, firms find it
difficult to maintain a competitive environment.
Mission - Answer answers the question: "why does the company exist?" by specifying the
businesses it intends to compete in and potentially the customers it intends to serve, should not
be complicated or lengthy.
Organizational culture - Answer the complex set of ideologies, symbols, and core value that
individuals throughout the firm share and that influence how the firm conducts business.
Resources - Answer inputs into a firm's production process, such as capital equipment, the
skills of employees, patents, finances, and talented managers. Categorized into 3 categories:
physical, human, and organizational capital.
, Risk - Answer An investor's uncertainty about the economic gains or losses that will result
from a particular investment.
Stakeholders - Answer individuals, groups, and organizations that can affect the firm's vision
and mission, are affected by the strategic outcomes achieved, and have enforceable claims on
the firm's performance
Capital market stakeholders - Answer shareholders, major suppliers of capital (banks,
bondholders, etc.)
Product Market Shareholders - Answer Primary customers, suppliers, host communities,
Unions
Organizational Stakeholders - Answer Employees, Managers, Nonmanagers
Strategic flexibility - Answer Involves coping with the uncertainty and risks of competitive
environments, must first overcome built-up organizational inertia. Requires developing the
capacity for continuous learning and applying the new and updated skill sets and competencies
to the firm's competitive advantage.
Strategic leaders - Answer have strong strategic orientation that relies on thorough analysis
when taking action, are located at various levels of the firm, can leverage relationships with
external parties while promoting exploratory learning, and have an global mindset approach to
management.
Strategic management process - Answer The topic addresses how to run a successful
business from the perspective of a CEO. It involves a strategic plan, which is a subset of the
strategic management process
Strategy - Answer A set of activities associated with the continuous formulation,
implementation, and measurement of high-level long range but adaptable plans that seek to
exploit internal competencies to gain and sustain a competitive advantage in a dynamic market.
Strategic competitiveness - Answer firms achieve this by formulating and implementing a
value creating strategy.
Vision - Answer answers the question: "what do we want to accomplish in the future and
when?" it should be concise and inspirational, catchy, and include a timeframe target, or it isn't
a viable objective that'll motivate employee behavior. It should signal to the world the types of
objectives that are critical to the company.
QUESTIONS AND CORRECT
ANSWERS.
Above average returns - Answer Returns in excess of what an investor expects to earn from
other investments with a similar amount of risk.
Average returns - Answer Returns equal to those an investor expects to earn from other
investments possessing a similar amount of risk.
Capability - Answer the capacity for a set of resources to perform a task or an activity in an
integrative manner.
Competitive advantage - Answer by implementing a chosen strategy, it creates superior
value for customers and when competitors are not able to imitate the value the firm's products
create or find it too expensive to attempt imitation.
Core Competencies - Answer capabilities that serve as a source of competitive advantage for
a firm over its rivals, often visible in the form of organizational functions.
Global economy - Answer one in which goods, services, people, skills, and ideas move freely
across geographic borders
Hyper competition - Answer Condition where competitors engage in intense rivalry, markets
change quickly and often, and entry barriers are low. In these environments, firms find it
difficult to maintain a competitive environment.
Mission - Answer answers the question: "why does the company exist?" by specifying the
businesses it intends to compete in and potentially the customers it intends to serve, should not
be complicated or lengthy.
Organizational culture - Answer the complex set of ideologies, symbols, and core value that
individuals throughout the firm share and that influence how the firm conducts business.
Resources - Answer inputs into a firm's production process, such as capital equipment, the
skills of employees, patents, finances, and talented managers. Categorized into 3 categories:
physical, human, and organizational capital.
, Risk - Answer An investor's uncertainty about the economic gains or losses that will result
from a particular investment.
Stakeholders - Answer individuals, groups, and organizations that can affect the firm's vision
and mission, are affected by the strategic outcomes achieved, and have enforceable claims on
the firm's performance
Capital market stakeholders - Answer shareholders, major suppliers of capital (banks,
bondholders, etc.)
Product Market Shareholders - Answer Primary customers, suppliers, host communities,
Unions
Organizational Stakeholders - Answer Employees, Managers, Nonmanagers
Strategic flexibility - Answer Involves coping with the uncertainty and risks of competitive
environments, must first overcome built-up organizational inertia. Requires developing the
capacity for continuous learning and applying the new and updated skill sets and competencies
to the firm's competitive advantage.
Strategic leaders - Answer have strong strategic orientation that relies on thorough analysis
when taking action, are located at various levels of the firm, can leverage relationships with
external parties while promoting exploratory learning, and have an global mindset approach to
management.
Strategic management process - Answer The topic addresses how to run a successful
business from the perspective of a CEO. It involves a strategic plan, which is a subset of the
strategic management process
Strategy - Answer A set of activities associated with the continuous formulation,
implementation, and measurement of high-level long range but adaptable plans that seek to
exploit internal competencies to gain and sustain a competitive advantage in a dynamic market.
Strategic competitiveness - Answer firms achieve this by formulating and implementing a
value creating strategy.
Vision - Answer answers the question: "what do we want to accomplish in the future and
when?" it should be concise and inspirational, catchy, and include a timeframe target, or it isn't
a viable objective that'll motivate employee behavior. It should signal to the world the types of
objectives that are critical to the company.
