SEVI 3013 Exam 1 Study Guide 2023 with complete
solution
Strategy
the set of decisions and actions of firm managers to ensure the future success of the
firm; integrated and coordinated set of commitments and actions designed to exploit
core competencies and gain a competitive advantage
Characteristics of a strategy
focuses on future and success
Corporate strategy
What industries should we compete in?
Business strategy
How should we compete in our chosen industries?
Global Economy
economy in which goods, services, people, skills, and ideas move freely across
geographic borders
Technological diffusion
speed at which new technologies become available to firms and when firms choose to
adopt them
Knowledge intensity
consists of information, intelligence, and expertise; basis of technology and its
application
Stakeholders
individuals/entities who may be affected by or affect the firms outcomes
Strategic leaders
people located in different levels of the firm to select actions that help the firm achieve
its vision and fulfill its mission; decisive and committed to creating value
Above average returns
investors get yields that exceed what they expect from other investments with similar
risks
Key elements of Industrial Organizational (IO) model
industry-based, external environment, attractive industry, strategy formulation, assets
and skills, strategy implementation, superior returns
5 forces model
threat of new entrants, rivalry among competing firms, bargaining power of suppliers,
bargaining power of buyers, threat of substitute products
Industry
set of firms that produce similar products
Industry boundaries
can change rapidly; helps executives determine the arena in which their firm is
competing
How strategic managers deal with changing industry boundaries
be willing to change your perception of industry and have multiple perceptions of your
industry
Components of general environment
solution
Strategy
the set of decisions and actions of firm managers to ensure the future success of the
firm; integrated and coordinated set of commitments and actions designed to exploit
core competencies and gain a competitive advantage
Characteristics of a strategy
focuses on future and success
Corporate strategy
What industries should we compete in?
Business strategy
How should we compete in our chosen industries?
Global Economy
economy in which goods, services, people, skills, and ideas move freely across
geographic borders
Technological diffusion
speed at which new technologies become available to firms and when firms choose to
adopt them
Knowledge intensity
consists of information, intelligence, and expertise; basis of technology and its
application
Stakeholders
individuals/entities who may be affected by or affect the firms outcomes
Strategic leaders
people located in different levels of the firm to select actions that help the firm achieve
its vision and fulfill its mission; decisive and committed to creating value
Above average returns
investors get yields that exceed what they expect from other investments with similar
risks
Key elements of Industrial Organizational (IO) model
industry-based, external environment, attractive industry, strategy formulation, assets
and skills, strategy implementation, superior returns
5 forces model
threat of new entrants, rivalry among competing firms, bargaining power of suppliers,
bargaining power of buyers, threat of substitute products
Industry
set of firms that produce similar products
Industry boundaries
can change rapidly; helps executives determine the arena in which their firm is
competing
How strategic managers deal with changing industry boundaries
be willing to change your perception of industry and have multiple perceptions of your
industry
Components of general environment
