Busi 4940 Exam 1 UNT Test Questions
with Complete Solutions.
Strategic competitiveness - Answer formulating and implementing a value-creating strategy
Strategy - Answer an integrated and coordinated set of commitments and actions designed
to exploit core competencies and gain a competitive advantage
Competitive advantage - Answer when 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
Above-average returns - Answer returns in excess of what an investor expects to earn from
other investments with a similar amount of risk
Risk - Answer an investor's uncertainty about the economic gains or losses that will result
from a particular investment
Average returns - Answer returns equal to those an investor expects to earn from other
investments possessing a similar amount of risk
Hypercompetition - Answer a condition where competitors engage in intense rivalry, markets
change quickly and often, and entry barriers are low
Global economy - Answer one in which goods, services, people, skills, and ideas move freely
across geographic borders
Resources - Answer inputs into a firm's production process, such as capital equipment, the
skills of individual employees, patents, finances, and talented managers
Capability - Answer the capacity for a set of resources to perform a task or an activity in an
integrative manner
Core competencies - Answer capabilities that serve as a source of competitive advantage for
a firm over its rivals
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
, Strategic leaders - Answer people located in different areas and levels of the firm using the
strategic management process to select actions that help the firm achieve its vision and fulfill its
mission
Organization culture - Answer the complex set of ideologies, symbols, and core values that
individuals throughout the firm share and that influence how the firm conducts business
Globalization - Answer the increasing economic interdependence among countries and their
organizations as reflected in the flow of products, financial capital, and knowledge across
country borders
Technology diffusion - Answer the speed at which new technologies become available to
firms and when firms choose to adopt them
Perpetual innovation - Answer a term used to describe how rapidly and consistently new,
information-intensive technologies replace older ones
Disruptive technologies - Answer technologies that destroy the value of an existing
technology and create new markets
What are the two main drivers of Hypercompetition? - Answer Global Economy and
Technology
What are the basic assumptions regarding companies and assets of the I/O Economics Model
and the Resource-Based Theory of Firms? - Answer · Industrial Organization (I/O) Model:
· The model assumes that the external environment imposes pressures and constraints that
determine the strategies that would result in above-average returns
· Most firms competing within an industry or within a segment of that industry are assumes to
control similar strategically relevant resources and to pursue similar strategies in light of those
resources
· Firms assume that their resources are highly mobile, meaning that any resource differences
that might develop between firms will be short-lived
· Model assumes that organizational decision makers are rational individuals who are committed
to acting in the firm's best interests, as shown by their profit-maximizing behaviors
· Resource-Based Theory of Firms:
· Differences in firm's performances across time are due primarily to their unique resources and
capabilities rather than the industry's structural characteristics
with Complete Solutions.
Strategic competitiveness - Answer formulating and implementing a value-creating strategy
Strategy - Answer an integrated and coordinated set of commitments and actions designed
to exploit core competencies and gain a competitive advantage
Competitive advantage - Answer when 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
Above-average returns - Answer returns in excess of what an investor expects to earn from
other investments with a similar amount of risk
Risk - Answer an investor's uncertainty about the economic gains or losses that will result
from a particular investment
Average returns - Answer returns equal to those an investor expects to earn from other
investments possessing a similar amount of risk
Hypercompetition - Answer a condition where competitors engage in intense rivalry, markets
change quickly and often, and entry barriers are low
Global economy - Answer one in which goods, services, people, skills, and ideas move freely
across geographic borders
Resources - Answer inputs into a firm's production process, such as capital equipment, the
skills of individual employees, patents, finances, and talented managers
Capability - Answer the capacity for a set of resources to perform a task or an activity in an
integrative manner
Core competencies - Answer capabilities that serve as a source of competitive advantage for
a firm over its rivals
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
, Strategic leaders - Answer people located in different areas and levels of the firm using the
strategic management process to select actions that help the firm achieve its vision and fulfill its
mission
Organization culture - Answer the complex set of ideologies, symbols, and core values that
individuals throughout the firm share and that influence how the firm conducts business
Globalization - Answer the increasing economic interdependence among countries and their
organizations as reflected in the flow of products, financial capital, and knowledge across
country borders
Technology diffusion - Answer the speed at which new technologies become available to
firms and when firms choose to adopt them
Perpetual innovation - Answer a term used to describe how rapidly and consistently new,
information-intensive technologies replace older ones
Disruptive technologies - Answer technologies that destroy the value of an existing
technology and create new markets
What are the two main drivers of Hypercompetition? - Answer Global Economy and
Technology
What are the basic assumptions regarding companies and assets of the I/O Economics Model
and the Resource-Based Theory of Firms? - Answer · Industrial Organization (I/O) Model:
· The model assumes that the external environment imposes pressures and constraints that
determine the strategies that would result in above-average returns
· Most firms competing within an industry or within a segment of that industry are assumes to
control similar strategically relevant resources and to pursue similar strategies in light of those
resources
· Firms assume that their resources are highly mobile, meaning that any resource differences
that might develop between firms will be short-lived
· Model assumes that organizational decision makers are rational individuals who are committed
to acting in the firm's best interests, as shown by their profit-maximizing behaviors
· Resource-Based Theory of Firms:
· Differences in firm's performances across time are due primarily to their unique resources and
capabilities rather than the industry's structural characteristics
