SEVI 3013 EXAM 1 Study Guide 2023 with complete
solution
Strategic Competitiveness
Firms achieve this by formulating and implementing a value creating strategy
Strategy
An integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage
Competitive Advantage
A firm has this when by implementing a chosen strategy, it creates superior value for
customers and when competitors are not able to imitate the value the firm's products
create or find it too expensive to attempt imitation
Above-Average Returns
Returns in excess of what an investor expects to earn from other investments with a
similar amount of risk
Risk
An investor's uncertainty about the economic gains or losses that will result from a
particular investment
Average Returns
Returns equal to those an investor expects to earn from other investments possessing a
similar amount of risk
Strategic Management Process
The full set of commitments, decisions, and actions firms take to achieve strategic
competitiveness and earn above-average returns
Hypercompetition
Condition where competitors engage in intense rivalry, markets change quickly and
often, and entry barriers are low
Global Economy
One in which goods, services, people, skills, and ideas move freely across geographic
borders
Strategic Flexibility
A set of capabilities firms use to respond to various demands and opportunities existing
in today's dynamic and uncertain competitive environment
Resources
Inputs into a firm's production process, such as capital equipment, the skills of individual
employees, patents, finances, and talented managers
Capability
The capacity for a set of resources to perform a task or an activity in an integrative
manner
Core Competenices
Capabilities that serve as a source of competitive advantage for a firm over its rivals
Vision
A picture of what the firm wants to be and, in broad terms, what it wants to achieve
Mission
solution
Strategic Competitiveness
Firms achieve this by formulating and implementing a value creating strategy
Strategy
An integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage
Competitive Advantage
A firm has this when by implementing a chosen strategy, it creates superior value for
customers and when competitors are not able to imitate the value the firm's products
create or find it too expensive to attempt imitation
Above-Average Returns
Returns in excess of what an investor expects to earn from other investments with a
similar amount of risk
Risk
An investor's uncertainty about the economic gains or losses that will result from a
particular investment
Average Returns
Returns equal to those an investor expects to earn from other investments possessing a
similar amount of risk
Strategic Management Process
The full set of commitments, decisions, and actions firms take to achieve strategic
competitiveness and earn above-average returns
Hypercompetition
Condition where competitors engage in intense rivalry, markets change quickly and
often, and entry barriers are low
Global Economy
One in which goods, services, people, skills, and ideas move freely across geographic
borders
Strategic Flexibility
A set of capabilities firms use to respond to various demands and opportunities existing
in today's dynamic and uncertain competitive environment
Resources
Inputs into a firm's production process, such as capital equipment, the skills of individual
employees, patents, finances, and talented managers
Capability
The capacity for a set of resources to perform a task or an activity in an integrative
manner
Core Competenices
Capabilities that serve as a source of competitive advantage for a firm over its rivals
Vision
A picture of what the firm wants to be and, in broad terms, what it wants to achieve
Mission
