MGT 8803 BUSINESS FUNDAMENTALS FOR
ANALYTICS 2024 EXAM II FINANCE
CERTIFICATION EVALUATION 2026
SOLVED QUESTIONS AND SOLUTIONS
GRADED A+
⩥ Residual Uncertainty. Answer: the unknowable; uncertainty that
remains...important in assessing risk
⩥ Hierarchical (Tall) Organizational Structure. Answer: many layers of
middle mgt | senior mgrs make most operational decisions | information
flows from top-down | stable environment
⩥ Flat (Networked) Organizational Structure. Answer: front-line
employees empowered to make decisions | information flows top-down
AND bottom-up | few levels of middle mgt | decentralized decision
making | dynamic environment
⩥ Strategic Plans. Answer: 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
,⩥ Functional Plans. Answer: 1. implementing strategic plans
2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
⩥ Tactical/Operations Plans. Answer: 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
⩥ SMART. Answer: Specific, Measurable, Attainable, Realistic, Timely
⩥ Main objective of business strategy. Answer: achieve superior
performance in marketplace
⩥ Strategy. Answer: goal-directed actions a firm takes to gain & sustain
superior performance relative to competitors.
⩥ Competitive advantage. Answer: superior performance relative to
other competitors in same industry OR industry average | temporary
*people prefer your brand over another's so they are willing to pay more
(ie, Apple)
, ⩥ Elements of Good Business Strategy. Answer: 1. diagnosis of
competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
⩥ Cost Leadership. Answer: lowest-cost producer in industry | pricing at
or below industry avg while leveraging a low "cost" advantage
⩥ Differentiation. Answer: economic value created is greater than
competitors | uniqueness in an industry with broad market | making
products unique to allow charging premium price
⩥ How Tesla does Differentiation. Answer: battery technology,
autonomous driving, high performance, supercharger network, wow
factor
⩥ Focus strategy. Answer: establish either a cost leadership OR
differentiation competitive advantage but focused in a narrow market
segment (ex: Rolex, Louis Vuitton)
⩥ Vision. Answer: mgt's description of business model, technology,
workforce, strategic positioning, and goals | for inspiring employees &
stakeholders
ANALYTICS 2024 EXAM II FINANCE
CERTIFICATION EVALUATION 2026
SOLVED QUESTIONS AND SOLUTIONS
GRADED A+
⩥ Residual Uncertainty. Answer: the unknowable; uncertainty that
remains...important in assessing risk
⩥ Hierarchical (Tall) Organizational Structure. Answer: many layers of
middle mgt | senior mgrs make most operational decisions | information
flows from top-down | stable environment
⩥ Flat (Networked) Organizational Structure. Answer: front-line
employees empowered to make decisions | information flows top-down
AND bottom-up | few levels of middle mgt | decentralized decision
making | dynamic environment
⩥ Strategic Plans. Answer: 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
,⩥ Functional Plans. Answer: 1. implementing strategic plans
2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
⩥ Tactical/Operations Plans. Answer: 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
⩥ SMART. Answer: Specific, Measurable, Attainable, Realistic, Timely
⩥ Main objective of business strategy. Answer: achieve superior
performance in marketplace
⩥ Strategy. Answer: goal-directed actions a firm takes to gain & sustain
superior performance relative to competitors.
⩥ Competitive advantage. Answer: superior performance relative to
other competitors in same industry OR industry average | temporary
*people prefer your brand over another's so they are willing to pay more
(ie, Apple)
, ⩥ Elements of Good Business Strategy. Answer: 1. diagnosis of
competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
⩥ Cost Leadership. Answer: lowest-cost producer in industry | pricing at
or below industry avg while leveraging a low "cost" advantage
⩥ Differentiation. Answer: economic value created is greater than
competitors | uniqueness in an industry with broad market | making
products unique to allow charging premium price
⩥ How Tesla does Differentiation. Answer: battery technology,
autonomous driving, high performance, supercharger network, wow
factor
⩥ Focus strategy. Answer: establish either a cost leadership OR
differentiation competitive advantage but focused in a narrow market
segment (ex: Rolex, Louis Vuitton)
⩥ Vision. Answer: mgt's description of business model, technology,
workforce, strategic positioning, and goals | for inspiring employees &
stakeholders
