BADM 4801 - TEST 1 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

BADM 4801 - TEST 1 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Strategic Competitiveness - Answers achieved when a firm successfully formulates and implements a value creating strategy. Strategy - Answers an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage Competitive advantage - Answers when it implements a strategy that creates superior value for customers and that competitors are unable to duplicate or find it too costly to try to imitate. -not permanent Above-average returns - Answers e returns in excess of what an investor expects to earn from other investments with a similar amount of risk Risk - Answers an investor's uncertainty about the economic gains or losses that will result from a particular investment Average returns - Answers returns equal to those an investor expects to earn from other investments with a similar amount of risk Strategic Management Process - Answers the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns significantly impacted by the external environment of the firm or org Hypercompetition - Answers is excessive such that it creates inherent instability and necessitates constant disruptive change for firms in the competitive landscape Global Economy - Answers one in which goods, services, people, skills, and ideas move freely across geographic borders Globalization - Answers the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders Technology Diffusion - Answers Speed at which new technologies become available and are used Perpetual innovation - Answers how rapidly and consistently new information and intensive technologies replace older ones Disruptive technologies - Answers destroy the value of existing technologies and create new markets (apple iphone changed everything) Knowledge - Answers information, intelligence, and expertise Strategic Flexibility - Answers set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment 5 forces model of competition - Answers buyers suppliers rivalry amongst firms product sustainability potential entrants to industry I/O model - Answers 1. Study the external environment, especially the industry environment. 2. Locate an industry with high potential for above- average returns. 3. Identify the strategy called for by the attractive industry to earn above- average returns. 4. Develop or acquire assets and skills needed to implement the strategy. 5. Use the firm's strengths (its developed or acquired assets and skills) to implement the strategy. Resources - Answers inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers Capabilities - Answers the capacity for a set of resources to perform a task or an activity in an integrative manner. Core competencies - Answers capabilities that serve as a source of competitive advantage for a firm over its rivals. rare resources - Answers possessed by few or none of the current competition Valuable resources - Answers firms take advantage of opportunities costly to imitate resources - Answers firms cannot obtain them or are at a cost disadvantaged non substitutable resources - Answers no structural equivalent resources The Resource-Based Model of Above-Average Return - Answers 1. Identify the firm's resources. Study its strengths and weaknesses compared with those of competitors. 2. Determine the firm's capabilities. What do the capabilities allow the firm to do better than its competitors? 3. Determine the potential of the firm's resources and capabilities in terms of a competitive advantage. 4. Locate an attractive industry. 5. Select a strategy that best allows the firm to utilize its resources and capabilities relative to opportunities in the external environment Vision - Answers a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve long term ASPIRATIONAL mission - Answers specifies the businesses in which the firm intends to compete and the customers it intends to serve. Tends to be DESCRIPTIVE and MOTIVATIONAL Stakeholders - Answers the 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 Shareholders - Answers individuals and groups who have invested capital in a firm in the expectation of earning a positive return on their investments. Capital Market Stakeholders - Answers shareholders and major suppliers of capital ie: banks Product market stakeholders - Answers Primary customers, suppliers, host communities, unions organizational stakeholders - Answers firm's employees, managers and non managers Strategic leaders - Answers people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission. Organizational culture - Answers the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business Strategic management process - Answers Analyses strategy performance General environment - Answers composed of dimensions in the broader society that influence an industry and the firms within it Dimension segments - Answers Demographic economic political/legal sociocultural technological global sustainable physical environment Industry environment - Answers the set of factors that directly influences a firm and its competitive actions and responses -the threat of new entrants -the power of suppliers -the power of buyers -the threat of product substitutes -the intensity of rivalry among competing firms. Competitor Analysis - Answers How companies gather and interpret information about their competitors external environmental analysis - Answers cope with often ambiguous and incomplete environmental data and to increase understanding of the general environment 4 parts of external environmental analysis - Answers scanning monitoring forecasting assessing Opportunity - Answers a condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness Threat - Answers a condition in the general environment that may hinder a company's efforts to achieve stress Scanning - Answers o the study of all segments in the general environment o Identifying early signals of environmental changes and trends Monitoring - Answers observe environmental changes to see if an important trend is emerging from among those spotted through scanning. Forecasting - Answers Developing projections of anticipated outcomes (and how quickly) based on monitored changes and trends Assessing - Answers Determining the timing and importance of environmental changes and trends for firms' strategies and their management The Demographic Segment - Answers concerned with a population's size, age structure, geographic distribution, ethnic mix, and income distribution Economic Segment - Answers the nature and direction of the economy in which a firm competes or may compete Political/ Legal Segment - Answers the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies Sociocultural Segment - Answers concerned with a society's attitudes and cultural values Technological Segment - Answers the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials Global Segment - Answers relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets. Globalfocusing - Answers often is used by firms with moderate levels of international operations who increase their internationalization by focusing on global niche markets Sustainable Physical Environment Segment - Answers potential and actual changes in the physical environment and business practices that are intended to positively respond to those changes with the intent of creating a sustainable environment. Sustainable development - Answers the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Industry - Answers a group of firms producing products that are close substitutes. 5 forces of competition - Answers -threats of new entrants -bargaining power of suppliers -bargaining power of buyers -threat of substitute products -rivalry among competing firms Economies of scale - Answers incremental efficiency improvements through experience as a firm grows larger Product differentiation - Answers customers may come to believe that a firm's product is unique. Capital Requirements - Answers must have resources to invest Switching costs - Answers one-time costs customers incur when they buy from a different supplier Access to Distribution channels - Answers New entrants have to persuade distributors to carry their products, either in addition to or in place of those currently distributed. Cost Disadvantages Independent of Scale - Answers cost advantages that new entrants cannot duplicate. Government policy - Answers decisions about issues such as the granting of licenses and permits, governments can also control entry into an industry. Expected retaliation - Answers reactions of firms in the industry Strategic Groups - Answers set of firms emphasizing similar strategic dimensions and using a similar strategy. Competitive intelligence - Answers the set of data and information the firm gathers to better understand and anticipate competitors' objectives, strategies, assumptions, and capabilities. Complementors - Answers companies or networks of companies that sell complementary goods or services that are compatible with the focal firm's good or service. (intel and Microsoft) Global Mindset - Answers the ability to analyze, understand, and manage an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context Value - Answers measured by a product's performance characteristics and by its attributes for which customers are willing to pay Uncertainty - Answers exists about the characteristics of the firm's general and industry environments and customers' needs Complexity - Answers results from the interrelationships among conditions shaping a firm. Intraorganizational conflicts - Answers may exist among managers making decisions as well as among those affected by the decisions Judgement - Answers the capability of making successful decisions when no obviously correct model or rule is available or when relevant data are unreliable or incomplete. Analyzing the internal org - Answers Resources capabilities core competencies Tangible Resources - Answers assets that can be observed and quantified Financial resources - Answers The firm's capacity to borrow and ability to generate funds through internal operations Organizational resources - Answers Formal reporting structures Physical resources - Answers The sophistication of a firm's plant and equipment and the attractiveness of its location (Distribution facilities and Product inventory) Technological resources - Answers Availability of technology-related resources such as copyrights, patents, trademarks, and trade secrets Intangible resources - Answers assets that are rooted deeply in the firm's history, accumulate over time, and are relatively difficult for competitors to analyze and imitate. Human resources - Answers Knowledge, Trust, Skills, and Abilities to collaborate with others Innovation resources - Answers ideas, Scientific capabilities, and capacity to innovate Reputational resources - Answers Brand name; perceptions of product quality, durability, and reliability; positive reputation with stakeholders such as suppliers and customers Four criteria of sustainable competitive advantages - Answers valuable rare costly to imitate nonsubstitutable