Strategic Management Chapters 1-5 exam s s s s
with correct answers
s s s
Strategic management - Correct Answer - An integrative management field that combines analysis,
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formulation, and implementation in the quest for competitive advantage.
s s s s s s s s s
Never ending cycle of analysis, formulation, implementation, and feedback.
s s s s s s s s
Competitive advantage - Correct Answer - Superior performance relative to other competitors in the
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same industry or the industry average.
s s s s s s
A firm that formulates and implements a strategy that leads to superior performance relative to
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competitors has this.
s s s
Sustainable competitive advantage - Correct Answer - Outperforming competitors or the industry
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average over a prolonged period of time.
s s s s s s s
Competitive disadvantage - Correct Answer - Under performance relative to other competitors in the
s s s ss s s s s s s s s s
same industry or the industry average.
s s s s s s
Competitive parity - Correct Answer - Performance of two or more firms at the same level.
s s s ss s s s s s s s s s s s
Strategy - Correct Answer - The goal-directed actions a firm intends to take in its quest to gain and
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sustain competitive advantages.
s s s
Manager's "theory" about how to gain and sustain.
s s s s s s s
, Strategic positioning - Correct Answer - Staking out a unique position in an industry that allows the firm
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to provide value to customers while controlling costs.
s s s s s s s s
Co-opetition - Correct Answer - Cooperation by competitors to achieve a strategic objective.
s s ss s s s s s s s s s
Firm effects - Correct Answer - The results of managers' actions to influence firm performance.
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Have stronger effect on the firm.
s s s s s
Industry effects - Correct Answer - The results attributed to the choice of industry in which to compete.
s s s ss s s s s s s s s s s s s s
Corporate-level strategy - Correct Answer - Involves decisions made at the highest level of the firm
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about where to compete. Which industries, markets, and geographies their company should compete,
s s s s s s s s s s s s s
and how well they can create synergies across different business units.
s s s s s s s s s s s
Business-level strategy - Correct Answer - Involves deciding how to compete in order to achieve
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superior performance within the business unit. Formulated by general managers.
s s s s s s s s s s
Functional-level strategy - Correct Answer - Involves deciding how to implement the business-level
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strategy. Functional managers within a single functional area (accounting, HR, finance, IT, customer
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service) are responsible for decisions and actions.
s s s s s s s
Strategic business unit (SBU) - Correct Answer - Standalone division of a larger conglomerate, with its
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own profits and losses.
s s s s
Business model - Correct Answer - The translation of the strategy into action takes place here, and it
s s s ss s s s s s s s s s s s s s
details the firm's competitive tactics and initiatives. How the firm intends to make money.
s s s s s s s s s s s s s s
with correct answers
s s s
Strategic management - Correct Answer - An integrative management field that combines analysis,
s s s ss s s s s s s s s
formulation, and implementation in the quest for competitive advantage.
s s s s s s s s s
Never ending cycle of analysis, formulation, implementation, and feedback.
s s s s s s s s
Competitive advantage - Correct Answer - Superior performance relative to other competitors in the
s s s ss s s s s s s s s s
same industry or the industry average.
s s s s s s
A firm that formulates and implements a strategy that leads to superior performance relative to
s s s s s s s s s s s s s s
competitors has this.
s s s
Sustainable competitive advantage - Correct Answer - Outperforming competitors or the industry
s s s s ss s s s s s s
average over a prolonged period of time.
s s s s s s s
Competitive disadvantage - Correct Answer - Under performance relative to other competitors in the
s s s ss s s s s s s s s s
same industry or the industry average.
s s s s s s
Competitive parity - Correct Answer - Performance of two or more firms at the same level.
s s s ss s s s s s s s s s s s
Strategy - Correct Answer - The goal-directed actions a firm intends to take in its quest to gain and
s s ss s s s s s s s s s s s s s s s
sustain competitive advantages.
s s s
Manager's "theory" about how to gain and sustain.
s s s s s s s
, Strategic positioning - Correct Answer - Staking out a unique position in an industry that allows the firm
s s s ss s s s s s s s s s s s s s
to provide value to customers while controlling costs.
s s s s s s s s
Co-opetition - Correct Answer - Cooperation by competitors to achieve a strategic objective.
s s ss s s s s s s s s s
Firm effects - Correct Answer - The results of managers' actions to influence firm performance.
s s s ss s s s s s s s s s s
Have stronger effect on the firm.
s s s s s
Industry effects - Correct Answer - The results attributed to the choice of industry in which to compete.
s s s ss s s s s s s s s s s s s s
Corporate-level strategy - Correct Answer - Involves decisions made at the highest level of the firm
s s s ss s s s s s s s s s s s
about where to compete. Which industries, markets, and geographies their company should compete,
s s s s s s s s s s s s s
and how well they can create synergies across different business units.
s s s s s s s s s s s
Business-level strategy - Correct Answer - Involves deciding how to compete in order to achieve
s s s ss s s s s s s s s s s
superior performance within the business unit. Formulated by general managers.
s s s s s s s s s s
Functional-level strategy - Correct Answer - Involves deciding how to implement the business-level
s s s ss s s s s s s s s
strategy. Functional managers within a single functional area (accounting, HR, finance, IT, customer
s s s s s s s s s s s s s
service) are responsible for decisions and actions.
s s s s s s s
Strategic business unit (SBU) - Correct Answer - Standalone division of a larger conglomerate, with its
s s s s s ss s s s s s s s s s
own profits and losses.
s s s s
Business model - Correct Answer - The translation of the strategy into action takes place here, and it
s s s ss s s s s s s s s s s s s s
details the firm's competitive tactics and initiatives. How the firm intends to make money.
s s s s s s s s s s s s s s
