BUS-J 375 MIDTERM EXAM QUESTIONS AND 100%
VERIFIED ANSWERS LATEST VERSION (2026/2027)
Definition of Strategy: A firm's approach to obtaining a competitive edge
Vision declaration: A declaration outlining the company's goals for the future
-must be inspiring and precise.
-reflects the goals of the company
-it should win over stakeholders' hearts and minds.
A mission statement outlines a company's "reason for being" and the main goal
that its goals and activities should be focused on.
-describes the firm's primary consultants and how it will assist them.
-must be comprehensible and clear
-explains the business in which the company competes.
Strategic Management Goals: ANSWER Clear, quantifiable goals
-the actions a company must "do" to fulfill its objective
-should have an impact on other strategic management process components.
External and Internal Analysis: An organized assessment of the surroundings
Strategy Implementation: ANSWER : How strategies are implemented
-who is going to do what?
-who is accountable to whom
-How does the company pay, promote, hire, etc.
Competitive Advantage: The capacity to generate greater economic value than
rivals
-the outcome of going above and beyond what rivals do
Product Differentiation: ANSWER : Preference for the company's production
-people favor the company's output above others
-individuals are prepared to pay more
For instance, Nordstrom
, Cost Leadership: ANSWER : Reduced production and distribution costs
-can only be one
For instance, Wal-Mart
High profits are usually the outcome of a temporary and sustainable competitive
advantage.
Profits draw rivalry.
-In most situations, competition shortens the duration of a competitive
advantage.
True or False: The majority of competitive advantages are short-lived.
ANSWER True: rivals copy them or provide superior products.
The firm's offerings are "average" in terms of competitive parity.
-People don't favor the company's product.
-The company lacks a cost advantage over competitors.
-some factors that could result in this could still be essential for success.
Competitive Disadvantage: ANSWER : People might not like what the
company offers.
-The company might be at a financial disadvantage.
-a company can have antiquated machinery or technologies.
-A company could have a bad image
Two Types of Competitive Advantage Measurement: ANSWER and
Accounting Measures
-economic metrics
Accounting metrics that surpass industry averages, such as ROA, ROS, ROE,
etc.
Economic Measures: ANSWER Getting a return higher than the cost of capital
What Makes External Analysis Important? ANSWER enables businesses to:
-identify opportunities and threats
-determine if an industry is likely to achieve above-average profits
-gain a deeper comprehension of the nature of industrial competitiveness
-make wise strategic decisions
ANSWER -specific international events (such as the European Union's ban on
hormone-treated U.S. beef) and general external environments
-technological advancement (cell phones and PDAs)
-demographic patterns, such as the expansion of the Hispanic population
VERIFIED ANSWERS LATEST VERSION (2026/2027)
Definition of Strategy: A firm's approach to obtaining a competitive edge
Vision declaration: A declaration outlining the company's goals for the future
-must be inspiring and precise.
-reflects the goals of the company
-it should win over stakeholders' hearts and minds.
A mission statement outlines a company's "reason for being" and the main goal
that its goals and activities should be focused on.
-describes the firm's primary consultants and how it will assist them.
-must be comprehensible and clear
-explains the business in which the company competes.
Strategic Management Goals: ANSWER Clear, quantifiable goals
-the actions a company must "do" to fulfill its objective
-should have an impact on other strategic management process components.
External and Internal Analysis: An organized assessment of the surroundings
Strategy Implementation: ANSWER : How strategies are implemented
-who is going to do what?
-who is accountable to whom
-How does the company pay, promote, hire, etc.
Competitive Advantage: The capacity to generate greater economic value than
rivals
-the outcome of going above and beyond what rivals do
Product Differentiation: ANSWER : Preference for the company's production
-people favor the company's output above others
-individuals are prepared to pay more
For instance, Nordstrom
, Cost Leadership: ANSWER : Reduced production and distribution costs
-can only be one
For instance, Wal-Mart
High profits are usually the outcome of a temporary and sustainable competitive
advantage.
Profits draw rivalry.
-In most situations, competition shortens the duration of a competitive
advantage.
True or False: The majority of competitive advantages are short-lived.
ANSWER True: rivals copy them or provide superior products.
The firm's offerings are "average" in terms of competitive parity.
-People don't favor the company's product.
-The company lacks a cost advantage over competitors.
-some factors that could result in this could still be essential for success.
Competitive Disadvantage: ANSWER : People might not like what the
company offers.
-The company might be at a financial disadvantage.
-a company can have antiquated machinery or technologies.
-A company could have a bad image
Two Types of Competitive Advantage Measurement: ANSWER and
Accounting Measures
-economic metrics
Accounting metrics that surpass industry averages, such as ROA, ROS, ROE,
etc.
Economic Measures: ANSWER Getting a return higher than the cost of capital
What Makes External Analysis Important? ANSWER enables businesses to:
-identify opportunities and threats
-determine if an industry is likely to achieve above-average profits
-gain a deeper comprehension of the nature of industrial competitiveness
-make wise strategic decisions
ANSWER -specific international events (such as the European Union's ban on
hormone-treated U.S. beef) and general external environments
-technological advancement (cell phones and PDAs)
-demographic patterns, such as the expansion of the Hispanic population
