MGMT 490 EXAM 1 VERIFIED STUDY GUIDE
Strategy - Answers - Crafting an action plan for heading the firm in the intended
direction, staking out a market position, attracting customers, achieving targeting
financial and market performance.
Competitive advantage - Answers - meeting customer needs either more effectively or
more efficiently. Customers value more highly or provide lower cost
Sustainable competitive advantage - Answers - giving buyers lasting reasons to prefer a
firms product or service over competitors
Building competitive advantage - Answers - low cost provider, differentiation on
features, focus on market niche, best cost provider
Strategic management principle - Answers - company's strategy is shaped partly by
management analysis and choice and partly by the necessity of adapting and learning
by doing.
Deliberate Strategy/ proactive - Answers - new planned initiatives plus ongoing strategy
elements continued from prior periods
Emergent strategy/ reactive - Answers - new strategy elements that emerge as
managers react adaptively to changing circumstances
Business model - Answers - sets forth the logic for how its strategy will create value for
customers, while at the same time generate revenues sufficient to cover costs and
realize a profit
Profit formula - Answers - the lower the costs for a given customer value proposition
(value-price), the greater the ability to make money
Winning strategy - Answers - competitive advantage test, performance test, fit test
The strategy making/ Strategy executing process - Answers - 1. Developing vision and
mission. 2. Set objectives. 3. Craft strategy to achieve them. 4. Execute strategy. 5.
Monitor developments and performance
Strategic vision - Answers - describes managements aspirations for the future and
delineates the company's strategic course and long term direction
Mission statement - Answers - identifies firm's product, specifies the buyers needs,
identifies the customer groups, specifies approach to please customers, sets firm apart,
business and stakeholders
, Strategic intent - Answers - company relentlessly pursues and ambitious strategic
objective, concentrating the full force of its resources and competitive actions on
achieving that objective
Financial objectives - Answers - relate to the financial performance targets management
has established for the organization to achieve
Strategic objectives - Answers - relate to target outcomes that indicate a company is
strengthening its market standing, competitive position, and future business prospects.
Balanced scoreboard - Answers - used for combining the use of both strategic and
financial objectives, tracking their achievement, and giving management a more
complete and balanced view of how well an organization is performing
Collaborative team - Answers - effort in which every manager has a role for the area he
or she heads, it is rarely something that only high level managers do.
Corporate governance - Answers - requires the board of directors to oversee the
company's strategic direction, evaluate its senior executives, handle executive
compensation, and oversee financial reporting practices.
Macro environment - Answers - encompasses the broad environmental context in which
a company's industry is situated that includes strategically relevant components over
which the firm has no direct control
PESTEL analysis - Answers - political, economic, social, technological, environmental,
legal
Five competitive forces - Answers - competition from rival sellers, competition from
potential new entrants, competition from producers of substitute products, supplier
bargaining power, customer bargaining power
Entry threat considerations - Answers - expected defensive reactions of incumbent
firms, strength of barriers to entry, attractiveness of a particular markets growth in
demand and profit potential, capabilities and resources of potential entrants, entry of
existing competitors into market segments in which they have no current presence.
Substitute products - Answers - readily available and attractive price, increasing rate of
growth in sales of substitutes, substitutes producers adding new output capacity,
increasing profitability
Supplier bargaining power - Answers - strength of demand for and availability of
suppliers products. Whether suppliers provide a differentiated input that enhances the
performance of the industry's product. Number of suppliers relative to the number of
industry members
Strategy - Answers - Crafting an action plan for heading the firm in the intended
direction, staking out a market position, attracting customers, achieving targeting
financial and market performance.
Competitive advantage - Answers - meeting customer needs either more effectively or
more efficiently. Customers value more highly or provide lower cost
Sustainable competitive advantage - Answers - giving buyers lasting reasons to prefer a
firms product or service over competitors
Building competitive advantage - Answers - low cost provider, differentiation on
features, focus on market niche, best cost provider
Strategic management principle - Answers - company's strategy is shaped partly by
management analysis and choice and partly by the necessity of adapting and learning
by doing.
Deliberate Strategy/ proactive - Answers - new planned initiatives plus ongoing strategy
elements continued from prior periods
Emergent strategy/ reactive - Answers - new strategy elements that emerge as
managers react adaptively to changing circumstances
Business model - Answers - sets forth the logic for how its strategy will create value for
customers, while at the same time generate revenues sufficient to cover costs and
realize a profit
Profit formula - Answers - the lower the costs for a given customer value proposition
(value-price), the greater the ability to make money
Winning strategy - Answers - competitive advantage test, performance test, fit test
The strategy making/ Strategy executing process - Answers - 1. Developing vision and
mission. 2. Set objectives. 3. Craft strategy to achieve them. 4. Execute strategy. 5.
Monitor developments and performance
Strategic vision - Answers - describes managements aspirations for the future and
delineates the company's strategic course and long term direction
Mission statement - Answers - identifies firm's product, specifies the buyers needs,
identifies the customer groups, specifies approach to please customers, sets firm apart,
business and stakeholders
, Strategic intent - Answers - company relentlessly pursues and ambitious strategic
objective, concentrating the full force of its resources and competitive actions on
achieving that objective
Financial objectives - Answers - relate to the financial performance targets management
has established for the organization to achieve
Strategic objectives - Answers - relate to target outcomes that indicate a company is
strengthening its market standing, competitive position, and future business prospects.
Balanced scoreboard - Answers - used for combining the use of both strategic and
financial objectives, tracking their achievement, and giving management a more
complete and balanced view of how well an organization is performing
Collaborative team - Answers - effort in which every manager has a role for the area he
or she heads, it is rarely something that only high level managers do.
Corporate governance - Answers - requires the board of directors to oversee the
company's strategic direction, evaluate its senior executives, handle executive
compensation, and oversee financial reporting practices.
Macro environment - Answers - encompasses the broad environmental context in which
a company's industry is situated that includes strategically relevant components over
which the firm has no direct control
PESTEL analysis - Answers - political, economic, social, technological, environmental,
legal
Five competitive forces - Answers - competition from rival sellers, competition from
potential new entrants, competition from producers of substitute products, supplier
bargaining power, customer bargaining power
Entry threat considerations - Answers - expected defensive reactions of incumbent
firms, strength of barriers to entry, attractiveness of a particular markets growth in
demand and profit potential, capabilities and resources of potential entrants, entry of
existing competitors into market segments in which they have no current presence.
Substitute products - Answers - readily available and attractive price, increasing rate of
growth in sales of substitutes, substitutes producers adding new output capacity,
increasing profitability
Supplier bargaining power - Answers - strength of demand for and availability of
suppliers products. Whether suppliers provide a differentiated input that enhances the
performance of the industry's product. Number of suppliers relative to the number of
industry members
