BSG EXAM 1 QUESTIONS & VERIFIED
CORRECT ANSWERS ALL PASSED
Strategic Competitiveness - Correct Answer ✔✔ When a firm successfully formulates
and implements a value-creating strategy.
Strategy - Correct Answer ✔✔ An integrated and coordinated set of commitment and
actions designed to exploit core competencies and gain a competitive advantage.
Competitive Advantage - Correct Answer ✔✔ When a firm implements a strategy that
its competitors are unable to duplicate or find too costly to try to imitate.
Risk - Correct Answer ✔✔ An investor's uncertainty about the economic gains or losses
that will result from a particular event.
Average Returns - Correct Answer ✔✔ Returns equal to those an investor expects to
earn from other investments with a similar amount of risk.
Above-average returns - Correct Answer ✔✔ Returns in excess of what an investor
expects to earn from other investments with a similar amount.
Strategic Management Process - Correct Answer ✔✔ A full set of commitments,
decisions, and actions required for a firm to achieve strategic competitiveness.
Dominance of the External Environment - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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: - Correct Answer ✔✔
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: - Correct Answer ✔✔ the returns on other investments of similar risk..
, The strategic management process is: - Correct Answer ✔✔ 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? - Correct Answer ✔✔ Resources to implement strategies are not highly mobile
across firms.
Vision - Correct Answer ✔✔ A picture of what the firm wants to be and in broad terms,
what it wants to ultimately achieve.
Mission - Correct Answer ✔✔ 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 - Correct Answer ✔✔ Individuals/groups who can affect/are affected by,
the strategic outcomes achieved and who have enforceable claims on a firm's
performance.
Two issues that affect the extent of stakeholder involvement in the firm: - Correct
Answer ✔✔ 1. How to divide returns to keep stakeholders involved.
2. How to increase returns so everyone has more to share?
Which of the following is NOT an assumption of the resource-based model? - Correct
Answer ✔✔ All firms possess the same strategically relevant resources.
In contrast to the industrial organization model, in a resource-based model, which of the
following factors would be considered a key to organizational success? - Correct
Answer ✔✔ loyal employees.
The resource-based model of the firm argues that: - Correct Answer ✔✔ resources that
are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core
competencies.
The I/O model and the resource-based view of the firm suggest conditions that firms
should study in order to: - Correct Answer ✔✔ develop the most effective strategy.
Strategic mission - Correct Answer ✔✔ is a statement of a firm's unique purpose and
scope of operations.
The interests of an organization's stakeholders often conflict, and the organization must
prioritize its stakeholders because it cannot satisfy them all. The ________ is the most
critical criterion in prioritizing stakeholders. - Correct Answer ✔✔ power of each
stakeholder
Resources - Correct Answer ✔✔ Capital equipment
Skills of individual employees
Patents
CORRECT ANSWERS ALL PASSED
Strategic Competitiveness - Correct Answer ✔✔ When a firm successfully formulates
and implements a value-creating strategy.
Strategy - Correct Answer ✔✔ An integrated and coordinated set of commitment and
actions designed to exploit core competencies and gain a competitive advantage.
Competitive Advantage - Correct Answer ✔✔ When a firm implements a strategy that
its competitors are unable to duplicate or find too costly to try to imitate.
Risk - Correct Answer ✔✔ An investor's uncertainty about the economic gains or losses
that will result from a particular event.
Average Returns - Correct Answer ✔✔ Returns equal to those an investor expects to
earn from other investments with a similar amount of risk.
Above-average returns - Correct Answer ✔✔ Returns in excess of what an investor
expects to earn from other investments with a similar amount.
Strategic Management Process - Correct Answer ✔✔ A full set of commitments,
decisions, and actions required for a firm to achieve strategic competitiveness.
Dominance of the External Environment - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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: - Correct Answer ✔✔
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: - Correct Answer ✔✔ the returns on other investments of similar risk..
, The strategic management process is: - Correct Answer ✔✔ 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? - Correct Answer ✔✔ Resources to implement strategies are not highly mobile
across firms.
Vision - Correct Answer ✔✔ A picture of what the firm wants to be and in broad terms,
what it wants to ultimately achieve.
Mission - Correct Answer ✔✔ 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 - Correct Answer ✔✔ Individuals/groups who can affect/are affected by,
the strategic outcomes achieved and who have enforceable claims on a firm's
performance.
Two issues that affect the extent of stakeholder involvement in the firm: - Correct
Answer ✔✔ 1. How to divide returns to keep stakeholders involved.
2. How to increase returns so everyone has more to share?
Which of the following is NOT an assumption of the resource-based model? - Correct
Answer ✔✔ All firms possess the same strategically relevant resources.
In contrast to the industrial organization model, in a resource-based model, which of the
following factors would be considered a key to organizational success? - Correct
Answer ✔✔ loyal employees.
The resource-based model of the firm argues that: - Correct Answer ✔✔ resources that
are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core
competencies.
The I/O model and the resource-based view of the firm suggest conditions that firms
should study in order to: - Correct Answer ✔✔ develop the most effective strategy.
Strategic mission - Correct Answer ✔✔ is a statement of a firm's unique purpose and
scope of operations.
The interests of an organization's stakeholders often conflict, and the organization must
prioritize its stakeholders because it cannot satisfy them all. The ________ is the most
critical criterion in prioritizing stakeholders. - Correct Answer ✔✔ power of each
stakeholder
Resources - Correct Answer ✔✔ Capital equipment
Skills of individual employees
Patents
