MIE 480 TEST 1 QUESTIONS WITH CORRECT ANSWERS

What is strategy used to do?


Give this one a try later!


Gain and sustain a competitive advantage




What are Porter's five forces and what do they help with?


Give this one a try later!

, *Help with strategic positioning

1. Competition
2. Supplier power
3. Buyer power
4. Threat of substitution
5. Threat of new entry




Corporate vs. business vs. functional strategy


Give this one a try later!


1. Corporate - Head office
2. Business - Divisional (how firm competes in a certain market)
3. Functional - HR, Accounting, Etc. (deployment of resources at the
operational level)




Normal profit vs economic profit


Give this one a try later!


Normal - minimum returns needed for attracting owners' inputs

Economic - residual income




What 3 factors does the "Triple Bottom Line" consider?


Give this one a try later!