BADM 449 ExAM 1 NEWEST 2026 ACTUAL ExAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED) | LATEST UPDATE 2026/2027 |
GRADED A+ | BRAND NEW | 100% GUARANTEED PASS
Competitve Advantage - ANSWER-superior performance relative to other
competitors in the same industry or industry average
Sustainable Competitve Advantage - ANSWER-a firm implements a value-
creating strategy of which other companies are unable to duplicate the benefits
or find it too costly to imitate
- an important basis is the development of resources and capabilities
Industry Effects - ANSWER-The results attributed to the choice of industry in
which to compete (20%)
Firm Effects - ANSWER-The results of the manager's actions to influence firm
performance (30-45%)
Corporate Level Strategy - ANSWER-Typically involves the decision making by
the top management team that includes the CEO, senior, executives, the board
of directors, and the corporate staff. Decisions include vertical integration,
diversification, strategic allainces, acqustions, new ventures, and restructuring.
Business Level Strategy - ANSWER-Includes the strategic choice of generic
strategy (cost leadership, differention, focus) and the benefits and costs of first-
mover advantages. Often an enterprise participating in multiple businesses will
have different business strategies.
Functional Level Strategy - ANSWER-Typically directed at improving the
effectiveness of functional operations within a company, such as manufacturing,
materials management, human resources, marketing, R&D and operations
management
,"Razor-blade model" - ANSWER-Give away or sell for a small fee the product and
make money on the replacement part needed (ex: laser printers with cheap
printers and expensive ink)
Multi-point Competition - ANSWER-Google and Microsoft compete with one
another for market share in several different product categories through quite
different business models.
- Google: benefits from network effects (increase of product value when more
people use it); give away products b/c business ads
- Microsoft: application software dominance; Bing provides countervailing
power
Core Competencies - ANSWER-Unique strengths deep inside that differentiate a
firm's products and services from their rivals, creating higher value for the
customer or offering products of comparable value or lower cost to drive
competitive advantage
- Strategic Fit: internal strengths change with the external environment
Resources and Capabilities - ANSWER-Tangible Resources: physical attributes
(capital, land, buildings, plant, equipment, supplies)
Intangible Resources: no physical attributes; invisible (firm's culture, its
knowledge, brand equity, reputation, and intellectual property)
- Competitive Advantages = Intangible Resources b/c they must be built over
long periods of time instead of being bought in the open market
Resource-Based View (RBV) - ANSWER-A model that sees resources as key to
superior firm performance. If a resource exhibits VIRO attributes, the resource
enables the firm to gain and sustain a competitive advantage
, Assumptions of Resource-Based View (RBV) - ANSWER-Resource
Heterogeneity: a firm is a bundle of resources and capabilities that differ across
firms
Resource immobility: a firm has resources that tend to be "sticky" and that font
move easily from firm to firm
VRIO Framework - ANSWER-a theoretical framework that explains and predicts
firm-level competitive advantage. A firm can gain a competitive advantage if it
has resources that are valuable (V), rare (R), and costly to imitate (I); the firm
also must organize (O) to capture the value of the resources
Valuable Resources - ANSWER-a resource is valuable if it allows the firm to take
advantage of an external opportunity and/or neutralize an external threat
Acceleration of technological change - ANSWER-- Initial innovations like the car,
plane, phone, and electricity now provide the necessary infrastructure for
newer innovations to diffuse more rapidly
- Emergence of new business models that make innovations more accessible
- Internet, social networking sites, viral messaging
Stakeholders - ANSWER-Individuals or groups who can affect or are affected by
the actions of the firm; they have a claim or interest in the performance and
continued survival of the firm
- Internal Stakeholders: stockholders, all employees, board members
- External Stakeholders: customers, suppliers, alliance partners, creditors,
unions, communities, and governments at various levels
Customer-Oriented Mission - ANSWER-define the terms of solutions for
customers
- Disney: "Make People Happy"
- Enhanced strategic flexibility
- Not the same as listening to customers
CORRECT ANSWERS (VERIFIED) | LATEST UPDATE 2026/2027 |
GRADED A+ | BRAND NEW | 100% GUARANTEED PASS
Competitve Advantage - ANSWER-superior performance relative to other
competitors in the same industry or industry average
Sustainable Competitve Advantage - ANSWER-a firm implements a value-
creating strategy of which other companies are unable to duplicate the benefits
or find it too costly to imitate
- an important basis is the development of resources and capabilities
Industry Effects - ANSWER-The results attributed to the choice of industry in
which to compete (20%)
Firm Effects - ANSWER-The results of the manager's actions to influence firm
performance (30-45%)
Corporate Level Strategy - ANSWER-Typically involves the decision making by
the top management team that includes the CEO, senior, executives, the board
of directors, and the corporate staff. Decisions include vertical integration,
diversification, strategic allainces, acqustions, new ventures, and restructuring.
Business Level Strategy - ANSWER-Includes the strategic choice of generic
strategy (cost leadership, differention, focus) and the benefits and costs of first-
mover advantages. Often an enterprise participating in multiple businesses will
have different business strategies.
Functional Level Strategy - ANSWER-Typically directed at improving the
effectiveness of functional operations within a company, such as manufacturing,
materials management, human resources, marketing, R&D and operations
management
,"Razor-blade model" - ANSWER-Give away or sell for a small fee the product and
make money on the replacement part needed (ex: laser printers with cheap
printers and expensive ink)
Multi-point Competition - ANSWER-Google and Microsoft compete with one
another for market share in several different product categories through quite
different business models.
- Google: benefits from network effects (increase of product value when more
people use it); give away products b/c business ads
- Microsoft: application software dominance; Bing provides countervailing
power
Core Competencies - ANSWER-Unique strengths deep inside that differentiate a
firm's products and services from their rivals, creating higher value for the
customer or offering products of comparable value or lower cost to drive
competitive advantage
- Strategic Fit: internal strengths change with the external environment
Resources and Capabilities - ANSWER-Tangible Resources: physical attributes
(capital, land, buildings, plant, equipment, supplies)
Intangible Resources: no physical attributes; invisible (firm's culture, its
knowledge, brand equity, reputation, and intellectual property)
- Competitive Advantages = Intangible Resources b/c they must be built over
long periods of time instead of being bought in the open market
Resource-Based View (RBV) - ANSWER-A model that sees resources as key to
superior firm performance. If a resource exhibits VIRO attributes, the resource
enables the firm to gain and sustain a competitive advantage
, Assumptions of Resource-Based View (RBV) - ANSWER-Resource
Heterogeneity: a firm is a bundle of resources and capabilities that differ across
firms
Resource immobility: a firm has resources that tend to be "sticky" and that font
move easily from firm to firm
VRIO Framework - ANSWER-a theoretical framework that explains and predicts
firm-level competitive advantage. A firm can gain a competitive advantage if it
has resources that are valuable (V), rare (R), and costly to imitate (I); the firm
also must organize (O) to capture the value of the resources
Valuable Resources - ANSWER-a resource is valuable if it allows the firm to take
advantage of an external opportunity and/or neutralize an external threat
Acceleration of technological change - ANSWER-- Initial innovations like the car,
plane, phone, and electricity now provide the necessary infrastructure for
newer innovations to diffuse more rapidly
- Emergence of new business models that make innovations more accessible
- Internet, social networking sites, viral messaging
Stakeholders - ANSWER-Individuals or groups who can affect or are affected by
the actions of the firm; they have a claim or interest in the performance and
continued survival of the firm
- Internal Stakeholders: stockholders, all employees, board members
- External Stakeholders: customers, suppliers, alliance partners, creditors,
unions, communities, and governments at various levels
Customer-Oriented Mission - ANSWER-define the terms of solutions for
customers
- Disney: "Make People Happy"
- Enhanced strategic flexibility
- Not the same as listening to customers
