WPC 480 Zhu Midterm Exam Questions With
100% Correct Answers.
an integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage
strategy
a firm has a __________ __________ when it creates superior call for customers in ways that
competitors are unable to imitate or find too costly to imitate
competitive advantage
a competitive advantage often leads to __________-average returns- returns in excess of what an
investor expects to earn from other investments with a similar level of risk (ROE, ROA, ROS, EPS,
EBITA, etc.)
above
What Model is this?
1. External Environment
2. An Attractive Industry
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns
I/O Model of Above-Average Returns
I/O Assumption:
1. strategic decision makers are __________ and engage in profit-__________ behaviors
rational, maximizing
I/O Assumption:
2. Resource differences among competitors are __________-lived due to resource __________ across
firms
short, mobility
I/O Assumption:
3. __________ in strategically relevant resources causes competitors to pursue __________ strategies
similarity, similar
I/O Assumption:
4. The __________ environment imposes pressures and contusing that determine strategic
__________.
external, choices
Five Forces Model of Competition
1. Industry Rivalry
2. Threat of Substitutes
3. Buying Power of Buyers
4. Threat of Potential Entrants
5. Buying Power of Suppliers
,Five Forces Model Assumptions:
1. Industry __________ is a function of interactions among the five forces
profitability
Five Forces Model Assumptions:
2. Industry __________ equates to its potential earning above-average returns by:
- producing standardized goods or services at costs __________ competitor costs (cost leadership
strategy)
- producing differentiated goods or services for which customers are willing to pay a price __________
(a differentiation strategy)
attractiveness, below, premium
The Resource Based Model of Above-Average Returns
building competitive advantage:
1. resources
2. capability
3. core competency
Resource-Based Model Assumption:
1. resources and certain capabilities are not highly __________ across firms
mobile
Resource-Based Model Assumption:
2. firms acquire __________ resources
different
Resource-Based Model Assumption:
3. Firms develop __________ capabilities based on how they ___________ and _____ resources
unique, combine, use
Resource-Based Model assumption:
4. __________ in resources and capabilities are the bases of competitive advantage and a firm's
performance rather than its industry's structural characteristics.
differences
how resources become core competencies:
- costly to __________
- valuable
- nonsubstitutable
- rare
imitate
What model is this?
1. Resources
2. Capability
3. Competitive Advantage
4. An Attractive Industry
, 5. Strategy Formulation and Implementation
6. Superior Returns
The Resource-Based Model of Above-Average Returns
- is an enduring word picture of what the firm wants to be and expects to achieve in the future.
- stretches and challenges its people.
- reflects the firm's values and aspirations.
- is most effective when its development includes all stakeholders.
- recognizes the firm's internal and external competitive environments.
- is supported by upper management decisions and actions.
a successful vision statement
- specifies the present business or businesses in which the firm intends to compete and customers it
intends to serve.
- has a more concrete, near-term focus on current product markets and customers than the firm's
vision.
- should be inspiring and relevant to all stakeholders.
an effective mission statement
categories of stakeholders
- capital market
- product market
- organizational
people who are affected by a firm's performance and who have claims on its performance
stakeholders
- shareholders
- major suppliers of capital (ex: banks)
capital market stakeholders
- primary customers
- suppliers
- host communities
- unions
product market stakeholders
- employees
- managers
- nonmanagers
organizational stakeholders
what type of external environment is focused on the future?
general
what type of external environment is focused on factors and conditions influencing a firm's
profitability within an industry?
industry
100% Correct Answers.
an integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage
strategy
a firm has a __________ __________ when it creates superior call for customers in ways that
competitors are unable to imitate or find too costly to imitate
competitive advantage
a competitive advantage often leads to __________-average returns- returns in excess of what an
investor expects to earn from other investments with a similar level of risk (ROE, ROA, ROS, EPS,
EBITA, etc.)
above
What Model is this?
1. External Environment
2. An Attractive Industry
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns
I/O Model of Above-Average Returns
I/O Assumption:
1. strategic decision makers are __________ and engage in profit-__________ behaviors
rational, maximizing
I/O Assumption:
2. Resource differences among competitors are __________-lived due to resource __________ across
firms
short, mobility
I/O Assumption:
3. __________ in strategically relevant resources causes competitors to pursue __________ strategies
similarity, similar
I/O Assumption:
4. The __________ environment imposes pressures and contusing that determine strategic
__________.
external, choices
Five Forces Model of Competition
1. Industry Rivalry
2. Threat of Substitutes
3. Buying Power of Buyers
4. Threat of Potential Entrants
5. Buying Power of Suppliers
,Five Forces Model Assumptions:
1. Industry __________ is a function of interactions among the five forces
profitability
Five Forces Model Assumptions:
2. Industry __________ equates to its potential earning above-average returns by:
- producing standardized goods or services at costs __________ competitor costs (cost leadership
strategy)
- producing differentiated goods or services for which customers are willing to pay a price __________
(a differentiation strategy)
attractiveness, below, premium
The Resource Based Model of Above-Average Returns
building competitive advantage:
1. resources
2. capability
3. core competency
Resource-Based Model Assumption:
1. resources and certain capabilities are not highly __________ across firms
mobile
Resource-Based Model Assumption:
2. firms acquire __________ resources
different
Resource-Based Model Assumption:
3. Firms develop __________ capabilities based on how they ___________ and _____ resources
unique, combine, use
Resource-Based Model assumption:
4. __________ in resources and capabilities are the bases of competitive advantage and a firm's
performance rather than its industry's structural characteristics.
differences
how resources become core competencies:
- costly to __________
- valuable
- nonsubstitutable
- rare
imitate
What model is this?
1. Resources
2. Capability
3. Competitive Advantage
4. An Attractive Industry
, 5. Strategy Formulation and Implementation
6. Superior Returns
The Resource-Based Model of Above-Average Returns
- is an enduring word picture of what the firm wants to be and expects to achieve in the future.
- stretches and challenges its people.
- reflects the firm's values and aspirations.
- is most effective when its development includes all stakeholders.
- recognizes the firm's internal and external competitive environments.
- is supported by upper management decisions and actions.
a successful vision statement
- specifies the present business or businesses in which the firm intends to compete and customers it
intends to serve.
- has a more concrete, near-term focus on current product markets and customers than the firm's
vision.
- should be inspiring and relevant to all stakeholders.
an effective mission statement
categories of stakeholders
- capital market
- product market
- organizational
people who are affected by a firm's performance and who have claims on its performance
stakeholders
- shareholders
- major suppliers of capital (ex: banks)
capital market stakeholders
- primary customers
- suppliers
- host communities
- unions
product market stakeholders
- employees
- managers
- nonmanagers
organizational stakeholders
what type of external environment is focused on the future?
general
what type of external environment is focused on factors and conditions influencing a firm's
profitability within an industry?
industry
