MGT 487 Exam 1 Mueller Study Guide
Strategy - ANSWER Science and art of military command exercised to meet the
enemy in combat under advantageous conditions. Always want the competitive
advantage
Thinking Strategically - ANSWER to take the long-term view and focus on those
goals and the future. Thinking strategically comes with dealing with uncertainty
making sacrifices to achieve long term goals.
Marketing Strategy - ANSWER focuses on markets and products,
Competitive Strategy - ANSWER focus on competitors as organizations with
resources and capabilities
Purpose of a business enterprise - ANSWER to produce a good or service
value creation (output has greater value than sum of inputs)
value is created for society and drives economic success
through collective action (organization) need incentives to create value (free
market capitalism)
free market includes labor market, capital market, free market in production of
goods and services
Social Responsibility - ANSWER the expectation that businesses or individuals
will strive to improve the overall welfare of society, corporate citizenship
Triple Bottom Line - ANSWER assessment of a firm's financial, social, and
environmental performance. (net profit) *keep in perspective the mission of the
company which is to serve a better purpose*
Vision - ANSWER goal that is massively inspiring, overarching, long term. It is
the leader of an organization that develops, articulates, and implements a vision.
Elements of a mission statement - ANSWER Defines goods and services,
marketplace, target market. Addresses principal markets, products & services,
core beliefs and values, boundaries, acknowledges stakeholders. Encompasses
purpose of the company and its differential advantage from competitors.
Common ways to measure company effectiveness - ANSWER Sales and profits
goal attainment
efficiency
maintenance
growth
, profitability (only looked at as a means to an end)
social responsibility
Stakeholder Categories - ANSWER
Growth imperative - ANSWER economic growth that is long term and sustained,
supported by government policies that promote free markets. Change in size
overtime that is positive and grows.
Three ways to measure size of company - ANSWER size of employees
annual revenue
assets and wealth (capitalization)
Red Queen Effect - ANSWER a phenomenon seen in coevolving populations- to
maintain relative fitness, each population must constantly adapt to the other
Resources - ANSWER inputs into a firm's production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented
managers
Resource Categories - ANSWER financial, human resources,
partnerships/alliances/relationships, intellectual property, brand equity,
information/knowledge/intelligence, natural resources. These can be tangible
and intangible.
Capabilities - ANSWER how well resources accomplish their duties
Capabilities categories - ANSWER Production, operational, supply chain,
information and technology, scientific research, new product development,
customer service, order processing, market research, employee service,
marketing
Resource based view of the firm - ANSWER perspective that firms' competitive
advantages are due to their endowment of strategic resources that are valuable,
rare, costly to imitate, and costly to substitute
Resource based model - ANSWER resources, capability, competitive advantage,
an attractive industry, strategy formulation and implementation, superior
returns
Strategic Management - ANSWER integrative management field that combines
analysis, formulation, and implementation in the quest for competitive
advantage. mission drive with focus on growth imperative
Levels of strategy formulation - ANSWER functional level: marketing, financing,
distribution & supply chain strategies
Strategy - ANSWER Science and art of military command exercised to meet the
enemy in combat under advantageous conditions. Always want the competitive
advantage
Thinking Strategically - ANSWER to take the long-term view and focus on those
goals and the future. Thinking strategically comes with dealing with uncertainty
making sacrifices to achieve long term goals.
Marketing Strategy - ANSWER focuses on markets and products,
Competitive Strategy - ANSWER focus on competitors as organizations with
resources and capabilities
Purpose of a business enterprise - ANSWER to produce a good or service
value creation (output has greater value than sum of inputs)
value is created for society and drives economic success
through collective action (organization) need incentives to create value (free
market capitalism)
free market includes labor market, capital market, free market in production of
goods and services
Social Responsibility - ANSWER the expectation that businesses or individuals
will strive to improve the overall welfare of society, corporate citizenship
Triple Bottom Line - ANSWER assessment of a firm's financial, social, and
environmental performance. (net profit) *keep in perspective the mission of the
company which is to serve a better purpose*
Vision - ANSWER goal that is massively inspiring, overarching, long term. It is
the leader of an organization that develops, articulates, and implements a vision.
Elements of a mission statement - ANSWER Defines goods and services,
marketplace, target market. Addresses principal markets, products & services,
core beliefs and values, boundaries, acknowledges stakeholders. Encompasses
purpose of the company and its differential advantage from competitors.
Common ways to measure company effectiveness - ANSWER Sales and profits
goal attainment
efficiency
maintenance
growth
, profitability (only looked at as a means to an end)
social responsibility
Stakeholder Categories - ANSWER
Growth imperative - ANSWER economic growth that is long term and sustained,
supported by government policies that promote free markets. Change in size
overtime that is positive and grows.
Three ways to measure size of company - ANSWER size of employees
annual revenue
assets and wealth (capitalization)
Red Queen Effect - ANSWER a phenomenon seen in coevolving populations- to
maintain relative fitness, each population must constantly adapt to the other
Resources - ANSWER inputs into a firm's production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented
managers
Resource Categories - ANSWER financial, human resources,
partnerships/alliances/relationships, intellectual property, brand equity,
information/knowledge/intelligence, natural resources. These can be tangible
and intangible.
Capabilities - ANSWER how well resources accomplish their duties
Capabilities categories - ANSWER Production, operational, supply chain,
information and technology, scientific research, new product development,
customer service, order processing, market research, employee service,
marketing
Resource based view of the firm - ANSWER perspective that firms' competitive
advantages are due to their endowment of strategic resources that are valuable,
rare, costly to imitate, and costly to substitute
Resource based model - ANSWER resources, capability, competitive advantage,
an attractive industry, strategy formulation and implementation, superior
returns
Strategic Management - ANSWER integrative management field that combines
analysis, formulation, and implementation in the quest for competitive
advantage. mission drive with focus on growth imperative
Levels of strategy formulation - ANSWER functional level: marketing, financing,
distribution & supply chain strategies
