MGT 490 MID-TERM EXAM VERIFIED STUDY GUIDE
strategic competitiveness - Answers - achieved when a firm successfully formulates and
implements a value creating strategy
strategy - Answers - an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
competitive advantage - Answers - a firm has ___________ __________ when it
implements a strategy that creates superior value for customers and that competitors
are unable to duplicate or find it too costly to try to imitate
above-average returns - Answers - returns in excess of what an investor expects to
earn from other investments with a similar amount of risk
risk - Answers - an investor's uncertainty about the economic gains or losses that will
result from a particular investment
average returns - Answers - returns equal to those an investor expects to earn from
other investments with a similar amount of risk
strategic management process - Answers - the full set of commitments, decisions, and
actions required for a firm to achieve strategic competitiveness and earn above-average
returns
hypercompetition - Answers - describes competition that is excessive such that is
creates inherent instability and necessitates constant disruptive change fro firms in the
competitive landscape
global economy - Answers - one in which goods, services, people, skills, and ideas
freely across geographic borders
strategic flexibility - Answers - a set of capabilities used to respond to various demands
and opportunities existing in a dynamic and uncertain competitive environment
resources - Answers - inputs into a firm's production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented managers
capability - Answers - the capacity for a set of resources to perform a task or an activity
in an integrative manner
core competencies - Answers - capabilities that serve as a source of competitive
advantage for a firm over its rivals
, 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 businesses in which the firm intends to compete and
the customers it intends to serve
stakeholders - Answers - the individuals, groups, and organizations that can affect the
firm's vision and mission, are affected by the strategic outcomes achieved, and have
enforceable claims on the firm's performance
strategic leaders - Answers - people located in difference areas and levels of the firm
using the strategic management process to select strategic actions that help the firm
achieve its vision and fulfill its mission
organizational culture - Answers - refers to the complex set of ideologies, symbols, and
core values that are shared throughout the firm and that influence how the firm conducts
business
general environment - Answers - composed of dimensions in the broader society that
influence an industry and the firms within it
industry environment - Answers - the set of factors that directly influences a firm and its
competitive actions and responses: the threat of new entrants, the power of suppliers,
the power of buyers, the threat of product substitutes, and the intensity of rivalry among
competing firms
competitor analysis - Answers - how companies gather and interpret information about
their competitors
opportunity - Answers - a condition in the general environment that, if exploited
effectively, helps a company reach strategic competitiveness
4 parts of external environmental analysis - Answers - 1. scanning
2. monitoring
3. forecasting
4. assessing
scanning - Answers - identifying early signals of environmental changes and trends
monitoring - Answers - detecting meaning through ongoing observations of
environmental changes and trends
forecasting - Answers - developing projections of anticipated outcomes based on
monitored changes and trends
strategic competitiveness - Answers - achieved when a firm successfully formulates and
implements a value creating strategy
strategy - Answers - an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
competitive advantage - Answers - a firm has ___________ __________ when it
implements a strategy that creates superior value for customers and that competitors
are unable to duplicate or find it too costly to try to imitate
above-average returns - Answers - returns in excess of what an investor expects to
earn from other investments with a similar amount of risk
risk - Answers - an investor's uncertainty about the economic gains or losses that will
result from a particular investment
average returns - Answers - returns equal to those an investor expects to earn from
other investments with a similar amount of risk
strategic management process - Answers - the full set of commitments, decisions, and
actions required for a firm to achieve strategic competitiveness and earn above-average
returns
hypercompetition - Answers - describes competition that is excessive such that is
creates inherent instability and necessitates constant disruptive change fro firms in the
competitive landscape
global economy - Answers - one in which goods, services, people, skills, and ideas
freely across geographic borders
strategic flexibility - Answers - a set of capabilities used to respond to various demands
and opportunities existing in a dynamic and uncertain competitive environment
resources - Answers - inputs into a firm's production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented managers
capability - Answers - the capacity for a set of resources to perform a task or an activity
in an integrative manner
core competencies - Answers - capabilities that serve as a source of competitive
advantage for a firm over its rivals
, 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 businesses in which the firm intends to compete and
the customers it intends to serve
stakeholders - Answers - the individuals, groups, and organizations that can affect the
firm's vision and mission, are affected by the strategic outcomes achieved, and have
enforceable claims on the firm's performance
strategic leaders - Answers - people located in difference areas and levels of the firm
using the strategic management process to select strategic actions that help the firm
achieve its vision and fulfill its mission
organizational culture - Answers - refers to the complex set of ideologies, symbols, and
core values that are shared throughout the firm and that influence how the firm conducts
business
general environment - Answers - composed of dimensions in the broader society that
influence an industry and the firms within it
industry environment - Answers - the set of factors that directly influences a firm and its
competitive actions and responses: the threat of new entrants, the power of suppliers,
the power of buyers, the threat of product substitutes, and the intensity of rivalry among
competing firms
competitor analysis - Answers - how companies gather and interpret information about
their competitors
opportunity - Answers - a condition in the general environment that, if exploited
effectively, helps a company reach strategic competitiveness
4 parts of external environmental analysis - Answers - 1. scanning
2. monitoring
3. forecasting
4. assessing
scanning - Answers - identifying early signals of environmental changes and trends
monitoring - Answers - detecting meaning through ongoing observations of
environmental changes and trends
forecasting - Answers - developing projections of anticipated outcomes based on
monitored changes and trends
