EXAM 1 - STRATEGIC MANAGEMENT - BUSI 5190
QUESTIONS WITH ACCURATE ANSWERS
2 Analytical Tools correct answer 1. *Value Chain Analysis* : analyzes all activities
the firm performs internally
2. *Benchmarking* : compare how well different firms perform key value chain
activities and compare this to the costs of these activities
2 critical assumptions of RBV correct answer - *Resource heterogeneity* :
different firms must have different resources
- *Resource immobility* : if your org has a resource that is easy to acquire or
copy, then it is not comp adv
--> if your org does not have a resource then it may be costly for firms to acquire
them or for them to spread between firms
2 Elements of Business Models: correct answer 1. *Value Proposition* : how org
will satisfy customer's needs and requirements at a good value
2. *Profit Proposition* : how org will create and deliver customer value in cost-
efficient manner that creates good profits
2 Facts about Competencies correct answer - All org characteristics are
knowledge-based and reside in intellectual capital of company personnel
- *Knowledge resources* stay with the individual employee, not the org --> it goes
w/ the employee
,2 Forms of Activities in Value Chain Analysis correct answer 1. Support Activities:
facilitate and enhance perf of primary activities
2. Primary Activities: deliver the value proposition of customers
2 Limitations of Five Forces Analysis correct answer - Assumes competition is a
*Zero Sum Game* : if one org is doing well, that means another org is doing
poorly
- does not talk about the possibility of orgs collaborating and forming alliances
2 reasons for economic collapse correct answer - unemployment
- crashing real estate market
3 elements of functional-area strategies correct answer - clarifies details of org's
business strategy
- managers of functional areas are responsible for functional strategies
- general manager has final approval of strategies and can influence their content
3 elements of operating strategies correct answer - adds more detail to
functional-area and business strategies --> outlines what needs to be done to
achieve strategies
, - crafted by frontline managers
- subject to review and approval by higher-ranking managers
3 goals of corporate strategy correct answer - diversify into different industries
- boost perf of firm's different businesses
- setting up plans for synergy across different units of the org
3 strategies to react to changing env correct answer 1.) Realized strategy: combo
of intended and emergent strategy, which arises from unrealized strategy
2.) Intended strategy: rational, structured top-down strategy that is almost never
realized
3.) Emergent strategy: any unplanned strategy that comes from deep within org
4 common entry barriers correct answer - Economies of scale
- Product differentiation
- Cost advantages independent of scale
QUESTIONS WITH ACCURATE ANSWERS
2 Analytical Tools correct answer 1. *Value Chain Analysis* : analyzes all activities
the firm performs internally
2. *Benchmarking* : compare how well different firms perform key value chain
activities and compare this to the costs of these activities
2 critical assumptions of RBV correct answer - *Resource heterogeneity* :
different firms must have different resources
- *Resource immobility* : if your org has a resource that is easy to acquire or
copy, then it is not comp adv
--> if your org does not have a resource then it may be costly for firms to acquire
them or for them to spread between firms
2 Elements of Business Models: correct answer 1. *Value Proposition* : how org
will satisfy customer's needs and requirements at a good value
2. *Profit Proposition* : how org will create and deliver customer value in cost-
efficient manner that creates good profits
2 Facts about Competencies correct answer - All org characteristics are
knowledge-based and reside in intellectual capital of company personnel
- *Knowledge resources* stay with the individual employee, not the org --> it goes
w/ the employee
,2 Forms of Activities in Value Chain Analysis correct answer 1. Support Activities:
facilitate and enhance perf of primary activities
2. Primary Activities: deliver the value proposition of customers
2 Limitations of Five Forces Analysis correct answer - Assumes competition is a
*Zero Sum Game* : if one org is doing well, that means another org is doing
poorly
- does not talk about the possibility of orgs collaborating and forming alliances
2 reasons for economic collapse correct answer - unemployment
- crashing real estate market
3 elements of functional-area strategies correct answer - clarifies details of org's
business strategy
- managers of functional areas are responsible for functional strategies
- general manager has final approval of strategies and can influence their content
3 elements of operating strategies correct answer - adds more detail to
functional-area and business strategies --> outlines what needs to be done to
achieve strategies
, - crafted by frontline managers
- subject to review and approval by higher-ranking managers
3 goals of corporate strategy correct answer - diversify into different industries
- boost perf of firm's different businesses
- setting up plans for synergy across different units of the org
3 strategies to react to changing env correct answer 1.) Realized strategy: combo
of intended and emergent strategy, which arises from unrealized strategy
2.) Intended strategy: rational, structured top-down strategy that is almost never
realized
3.) Emergent strategy: any unplanned strategy that comes from deep within org
4 common entry barriers correct answer - Economies of scale
- Product differentiation
- Cost advantages independent of scale
