BSG Exam 1 Questions with Complete
Solutions11
Strategic Competitiveness - ANSWERS-When a firm successfully formulates and implements a
value-creating strategy.
Strategy - ANSWERS-An integrated and coordinated set of commitment and actions designed to
exploit core competencies and gain a competitive advantage.
Competitive Advantage - ANSWERS-When a firm implements a strategy that its competitors are
unable to duplicate or find too costly to try to imitate.
Risk - ANSWERS-An investor's uncertainty about the economic gains or losses that will result
from a particular event.
Average Returns - ANSWERS-Returns equal to those an investor expects to earn from other
investments with a similar amount of risk.
Above-average returns - ANSWERS-Returns in excess of what an investor expects to earn from
other investments with a similar amount.
Strategic Management Process - ANSWERS-A full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness.
Dominance of the External Environment - ANSWERS-Industry in which a firm competes has a
stronger influence on the firm's performance that do the choices managers make inside their
organizations.
, 4 Assumptions of the I/O Model - ANSWERS-External environment imposes pressures and
constraints that determine strategies leading to above average returns.
Most firms competing in an industry control similar strategically relevant resources and pursue
similar strategies.
Resources used to implement strategies are highly mobile across firms.
Organizational decision makers are assumed to be rational and committed to acting in the firm's
best interest (Profit-Maximizing)
A sustained or sustainable competitive advantage requires that: - ANSWERS-other companies
not be able to duplicate the strategy.
Investors in a company judge the adequacy of the returns on their investment in relation to: -
ANSWERS-the returns on other investments of similar risk..
The strategic management process is: - ANSWERS-a dynamic process involving the full set of
commitments, decisions, and actions related to the firm.
Which of the following is NOT an assumption of the Industrial Organization, or I/O, model? -
ANSWERS-Resources to implement strategies are not highly mobile across firms.
Vision - ANSWERS-A picture of what the firm wants to be and in broad terms, what it wants to
ultimately achieve.
Mission - ANSWERS-Specifies the business(es) in which the firm intends to compete and the
customers it intends to serve. More concrete than the firm's vision.
Stakeholders - ANSWERS-Individuals/groups who can affect/are affected by, the strategic
outcomes achieved and who have enforceable claims on a firm's performance.
Solutions11
Strategic Competitiveness - ANSWERS-When a firm successfully formulates and implements a
value-creating strategy.
Strategy - ANSWERS-An integrated and coordinated set of commitment and actions designed to
exploit core competencies and gain a competitive advantage.
Competitive Advantage - ANSWERS-When a firm implements a strategy that its competitors are
unable to duplicate or find too costly to try to imitate.
Risk - ANSWERS-An investor's uncertainty about the economic gains or losses that will result
from a particular event.
Average Returns - ANSWERS-Returns equal to those an investor expects to earn from other
investments with a similar amount of risk.
Above-average returns - ANSWERS-Returns in excess of what an investor expects to earn from
other investments with a similar amount.
Strategic Management Process - ANSWERS-A full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness.
Dominance of the External Environment - ANSWERS-Industry in which a firm competes has a
stronger influence on the firm's performance that do the choices managers make inside their
organizations.
, 4 Assumptions of the I/O Model - ANSWERS-External environment imposes pressures and
constraints that determine strategies leading to above average returns.
Most firms competing in an industry control similar strategically relevant resources and pursue
similar strategies.
Resources used to implement strategies are highly mobile across firms.
Organizational decision makers are assumed to be rational and committed to acting in the firm's
best interest (Profit-Maximizing)
A sustained or sustainable competitive advantage requires that: - ANSWERS-other companies
not be able to duplicate the strategy.
Investors in a company judge the adequacy of the returns on their investment in relation to: -
ANSWERS-the returns on other investments of similar risk..
The strategic management process is: - ANSWERS-a dynamic process involving the full set of
commitments, decisions, and actions related to the firm.
Which of the following is NOT an assumption of the Industrial Organization, or I/O, model? -
ANSWERS-Resources to implement strategies are not highly mobile across firms.
Vision - ANSWERS-A picture of what the firm wants to be and in broad terms, what it wants to
ultimately achieve.
Mission - ANSWERS-Specifies the business(es) in which the firm intends to compete and the
customers it intends to serve. More concrete than the firm's vision.
Stakeholders - ANSWERS-Individuals/groups who can affect/are affected by, the strategic
outcomes achieved and who have enforceable claims on a firm's performance.
