MBA 705 Midterm Exam #1 Questions with Correct Answers
mission - ✔✔broadly defined but enduring statement of purpose that identifies
the scope of an organization's operations and its offerings to various stakeholders
strategy - ✔✔refers to top management's plans to develop and sustain
competitive advantage so that the organization's mission is fulfilled
competitive advantage - ✔✔state whereby a firm's successful strategies cannot
be easily duplicated by its competitors
sustained competitive advantage - ✔✔a competitive advantage that exists after
all attempts at strategic imitation have ceased
strategic management - ✔✔broader term than strategy and is a process that
includes top management's analysis of the environment in which the organization
operates prior to formulating a strategy, as well as the plan for implementation
and control of the strategy
business model - ✔✔explains how the organization seeks to earn a profit by
selling its goods
1) understand competitive environment
2) understand how resources are strengths and weaknesses
3) strategy is consistent with the mission and goals of the organization
4) plans for putting the strategy into action are designed before it is implemented
, 5) possible future changes are evaluated before the strategy is adopted - ✔✔five
characteristics of a successful strategy
intended strategy - ✔✔what management originally plans
realized strategy - ✔✔what management actually implements
unforeseen events, better information was not available when the strategy was
formulated, and/or an improvement in top management's ability to assess its
environment - ✔✔how intended 7 realized strategies typically differ (3)
1) environmental predictability and the fast pace of change render elaborate
strategy planning as suspect at best
2) strategic managers should emphasize creativity and innovation
3) strategies should be developed like a potter molds clay - ✔✔strategy as an art
(3)
1) most widely recognized view of strategy
2) strategic managers are encouraged to systematically asses the firm's external
environment and evaluate the pros and cons of myriad alternatives before
formulating strategy
3) scientific approach is more prominent in this text - ✔✔strategy as a science (3)
industrial organization - ✔✔branch of microeconomics, emphasizes the influence
of the industry environment on the firm
mission - ✔✔broadly defined but enduring statement of purpose that identifies
the scope of an organization's operations and its offerings to various stakeholders
strategy - ✔✔refers to top management's plans to develop and sustain
competitive advantage so that the organization's mission is fulfilled
competitive advantage - ✔✔state whereby a firm's successful strategies cannot
be easily duplicated by its competitors
sustained competitive advantage - ✔✔a competitive advantage that exists after
all attempts at strategic imitation have ceased
strategic management - ✔✔broader term than strategy and is a process that
includes top management's analysis of the environment in which the organization
operates prior to formulating a strategy, as well as the plan for implementation
and control of the strategy
business model - ✔✔explains how the organization seeks to earn a profit by
selling its goods
1) understand competitive environment
2) understand how resources are strengths and weaknesses
3) strategy is consistent with the mission and goals of the organization
4) plans for putting the strategy into action are designed before it is implemented
, 5) possible future changes are evaluated before the strategy is adopted - ✔✔five
characteristics of a successful strategy
intended strategy - ✔✔what management originally plans
realized strategy - ✔✔what management actually implements
unforeseen events, better information was not available when the strategy was
formulated, and/or an improvement in top management's ability to assess its
environment - ✔✔how intended 7 realized strategies typically differ (3)
1) environmental predictability and the fast pace of change render elaborate
strategy planning as suspect at best
2) strategic managers should emphasize creativity and innovation
3) strategies should be developed like a potter molds clay - ✔✔strategy as an art
(3)
1) most widely recognized view of strategy
2) strategic managers are encouraged to systematically asses the firm's external
environment and evaluate the pros and cons of myriad alternatives before
formulating strategy
3) scientific approach is more prominent in this text - ✔✔strategy as a science (3)
industrial organization - ✔✔branch of microeconomics, emphasizes the influence
of the industry environment on the firm
