MGMT 478 Key Terms Quiz 1 UPDATED ACTUAL Questions And Correct Answers
Terms in this set (72)
Analysis, Formulation, implementation (AFI) Strategy A model that links three interdependent strategic management tasks - analyze,
Framework formulate, and implement - that together, help managers plan and implement a
strategy that can improve performance and result in competitive advantage
competitive advantage superior performance relative to other competitors in the same industry or the
industry average
competitive disadvantage underperformance relative to other competitors in the same industry or the
industry average
corporate social responsibility framework that helps firms recognize and address the economic, legal, social,
and philanthropic expectations that society has of the business enterprise at a
given point in time
good strategy Enables a firm to achieve superior performance and sustainable competitive
advantage relative to its competitors. It is the outcome of a strategic management
process that consists of three elements: (1) a diagnosis of the competitive
challenge; (2) a guiding policy to address the competitive challenge; and (3) a set
of coherent actions to implement a firms guiding policy
red queen effect a situation in which everyone runs faster but there are no changes in relative
strategic positions
stakeholders organizations, groups, and individuals that can affect or are affected by a firms
actions
strategic management An integrative management field that combines analysis, formulation, and
implementation in the quest for competitive advantage
strategy The set of goal-directed and integrated actions a firm takes to gain and sustain
superior performance relative to competitors
value creation Occurs when companies with a good strategy are able to provide products or
services to consumers at a price point that they can afford while keeping their
costs in check, thus making a profit at the same time. Both parties benefit from this
trade as each captures a part of the value created
sustainable competitive advantage Outperforming competitors or the industry average over a prolonged period of
time
stakeholder strategy An approach to strategy formulation that considers all of the company's
stakeholders, not just its shareholders. A core tenet of stakeholder strategy is that
a single-minded focus on shareholders exposes a firm to undue risks
, cognitive limitations Constraints such as time or the brains inability to process large amounts of data
that prevent us from appropriately processing and evaluating each piece of
information we encounter
groupthink A situation in which opinions coalesce around a leader without individuals
critically evaluating challenging that leader's opinions and assumptions
intended strategy the outocme of a rational and structured top-down strategic plan
mission Description of what an organization actually does - the products and services it
plans to provide, and the markets in which it will complete
realized strategy Combination of intended and emergent strategy
serendipity Any random events, pleasant surprises, and accidental happenstances that can
have a profound impact on a firms strategic initiatives
strategic business unit Stand alone divisions of a larger conglomerate, each with their own profit-and
loss responsibility
strategic management process Method put in place by strategic leaders to formulate and implement a strategy,
which can lay the foundation for a sustainable competitive advantage
strategic intent A stretch goal that pervades the entire organization with a sense of purpose
vision A statement that captures an organization's purpose and aspiration. It spells out
what the organization ultimately wants to accomplish
strategy formulation The part of the strategic management process that concerns the choice of
strategy in terms of where and how to compete
strategy implementation The part of the strategic management process that concerns the organization,
coordination, and integration of how work gets done or strategy execution
competitive industry structure Elements and features common to all industries, including the number and size of
competitors, the firms degree of pricing power, the type of product or service
offered and the height of entry barriers
entry barriers Obstacles that discourage or prevent entry into an industry
exit barriers The obstacles that interfere with a firms ability to leave an industry
five forces model A framework that identifies five forces that determine the profit potential of an
industry and shape a firms competitive strategy
industry analysis A method to (1) identify an industry's profit potential and (2) derive implications
for a firms strategic position within an industry
mobility barriers Industry-specific factors that separate one strategic group from another
Terms in this set (72)
Analysis, Formulation, implementation (AFI) Strategy A model that links three interdependent strategic management tasks - analyze,
Framework formulate, and implement - that together, help managers plan and implement a
strategy that can improve performance and result in competitive advantage
competitive advantage superior performance relative to other competitors in the same industry or the
industry average
competitive disadvantage underperformance relative to other competitors in the same industry or the
industry average
corporate social responsibility framework that helps firms recognize and address the economic, legal, social,
and philanthropic expectations that society has of the business enterprise at a
given point in time
good strategy Enables a firm to achieve superior performance and sustainable competitive
advantage relative to its competitors. It is the outcome of a strategic management
process that consists of three elements: (1) a diagnosis of the competitive
challenge; (2) a guiding policy to address the competitive challenge; and (3) a set
of coherent actions to implement a firms guiding policy
red queen effect a situation in which everyone runs faster but there are no changes in relative
strategic positions
stakeholders organizations, groups, and individuals that can affect or are affected by a firms
actions
strategic management An integrative management field that combines analysis, formulation, and
implementation in the quest for competitive advantage
strategy The set of goal-directed and integrated actions a firm takes to gain and sustain
superior performance relative to competitors
value creation Occurs when companies with a good strategy are able to provide products or
services to consumers at a price point that they can afford while keeping their
costs in check, thus making a profit at the same time. Both parties benefit from this
trade as each captures a part of the value created
sustainable competitive advantage Outperforming competitors or the industry average over a prolonged period of
time
stakeholder strategy An approach to strategy formulation that considers all of the company's
stakeholders, not just its shareholders. A core tenet of stakeholder strategy is that
a single-minded focus on shareholders exposes a firm to undue risks
, cognitive limitations Constraints such as time or the brains inability to process large amounts of data
that prevent us from appropriately processing and evaluating each piece of
information we encounter
groupthink A situation in which opinions coalesce around a leader without individuals
critically evaluating challenging that leader's opinions and assumptions
intended strategy the outocme of a rational and structured top-down strategic plan
mission Description of what an organization actually does - the products and services it
plans to provide, and the markets in which it will complete
realized strategy Combination of intended and emergent strategy
serendipity Any random events, pleasant surprises, and accidental happenstances that can
have a profound impact on a firms strategic initiatives
strategic business unit Stand alone divisions of a larger conglomerate, each with their own profit-and
loss responsibility
strategic management process Method put in place by strategic leaders to formulate and implement a strategy,
which can lay the foundation for a sustainable competitive advantage
strategic intent A stretch goal that pervades the entire organization with a sense of purpose
vision A statement that captures an organization's purpose and aspiration. It spells out
what the organization ultimately wants to accomplish
strategy formulation The part of the strategic management process that concerns the choice of
strategy in terms of where and how to compete
strategy implementation The part of the strategic management process that concerns the organization,
coordination, and integration of how work gets done or strategy execution
competitive industry structure Elements and features common to all industries, including the number and size of
competitors, the firms degree of pricing power, the type of product or service
offered and the height of entry barriers
entry barriers Obstacles that discourage or prevent entry into an industry
exit barriers The obstacles that interfere with a firms ability to leave an industry
five forces model A framework that identifies five forces that determine the profit potential of an
industry and shape a firms competitive strategy
industry analysis A method to (1) identify an industry's profit potential and (2) derive implications
for a firms strategic position within an industry
mobility barriers Industry-specific factors that separate one strategic group from another
