MGMT 490 UPDATED ACTUAL Exam
Questions and CORRECT Answers
Strategy - CORRECT ANSWER✔✔- An integrated and coordinated set of commitments and
actions designed to exploit core competencies (what you're good at) and gain a competitive
advantage (what you do better than everyone else)
Strategic Management - CORRECT ANSWER✔✔- Competitive strategy is about being
different. It means deliberately choosing a different set of activities to deliver a unique mix of
value
Strategic Management Steps - CORRECT ANSWER✔✔- 1) Analysis, 2) decisions
(strategy), 3) actions (implementation), 4) performance/alignment check
Vision Statement - CORRECT ANSWER✔✔- The IDEAL description of the firm/business
unit. A picture of what the firm/business unit wants to be and ultimately achieve. Typically
short and concise
Mission Statement - CORRECT ANSWER✔✔- Specifies the business or businesses in
which the firm/business unit competes and the customers it intends to serve. Typically longer
and more specific
Values - CORRECT ANSWER✔✔- They specify what the business stands for. The core
principles that define and guide decisions
Example of a mission statement - CORRECT ANSWER✔✔- Amazon is guided by four
principles: customer obsession rather than competitor focus, passion for invention,
commitment to operational excellence, and long-term thinking. Amazon strives to be Earth's
most customer-centric company, Earth's best employer, and Earth's safest place to work.
(Amazon)
Example of a vision statement - CORRECT ANSWER✔✔- We are here for one purpose, to
help build a better world, where every person is free to move and pursue their dreams. (Ford)
, SMART goals - CORRECT ANSWER✔✔- Specific, Measurable, Attainable, Realistic,
Time-bound
Analysis - CORRECT ANSWER✔✔- Who do we want to be? What are we good at? What
resources do we have? What does the external environment demand today and in the future?
(the "research")
Decisions - CORRECT ANSWER✔✔- We should acquire (or divest) X resources. We
should compete in X industry. We should source our products from X supplier in X country.
We should position our product as low cost. We should reposition our product. (the
"strategy")
Actions - CORRECT ANSWER✔✔- The implementation of strategies. Performance check.
And... the cycle continues.
External model - CORRECT ANSWER✔✔- (aka I/O model) Our environment (e.g.,
industry conditions, economy) has a greater effect on our performance than our internal
resources and capabilities.
When formulating a strategy, focus on understanding the opportunities and threats across the
external environment, which includes the general, industry, and competitor environments
Internal model - CORRECT ANSWER✔✔- (aka resource-based model) Our unique
resources and capabilities have a greater effect on our performance than external trends
When formulating a strategy, focus on understanding our strengths and weaknesses, which
includes understanding and developing our unique resources and capabilities
Two Views of Analysis - CORRECT ANSWER✔✔- SWOT - Strengths, weaknesses,
opportunities, threats
TOWS - S/O, W/O, S/T, W/T
Questions and CORRECT Answers
Strategy - CORRECT ANSWER✔✔- An integrated and coordinated set of commitments and
actions designed to exploit core competencies (what you're good at) and gain a competitive
advantage (what you do better than everyone else)
Strategic Management - CORRECT ANSWER✔✔- Competitive strategy is about being
different. It means deliberately choosing a different set of activities to deliver a unique mix of
value
Strategic Management Steps - CORRECT ANSWER✔✔- 1) Analysis, 2) decisions
(strategy), 3) actions (implementation), 4) performance/alignment check
Vision Statement - CORRECT ANSWER✔✔- The IDEAL description of the firm/business
unit. A picture of what the firm/business unit wants to be and ultimately achieve. Typically
short and concise
Mission Statement - CORRECT ANSWER✔✔- Specifies the business or businesses in
which the firm/business unit competes and the customers it intends to serve. Typically longer
and more specific
Values - CORRECT ANSWER✔✔- They specify what the business stands for. The core
principles that define and guide decisions
Example of a mission statement - CORRECT ANSWER✔✔- Amazon is guided by four
principles: customer obsession rather than competitor focus, passion for invention,
commitment to operational excellence, and long-term thinking. Amazon strives to be Earth's
most customer-centric company, Earth's best employer, and Earth's safest place to work.
(Amazon)
Example of a vision statement - CORRECT ANSWER✔✔- We are here for one purpose, to
help build a better world, where every person is free to move and pursue their dreams. (Ford)
, SMART goals - CORRECT ANSWER✔✔- Specific, Measurable, Attainable, Realistic,
Time-bound
Analysis - CORRECT ANSWER✔✔- Who do we want to be? What are we good at? What
resources do we have? What does the external environment demand today and in the future?
(the "research")
Decisions - CORRECT ANSWER✔✔- We should acquire (or divest) X resources. We
should compete in X industry. We should source our products from X supplier in X country.
We should position our product as low cost. We should reposition our product. (the
"strategy")
Actions - CORRECT ANSWER✔✔- The implementation of strategies. Performance check.
And... the cycle continues.
External model - CORRECT ANSWER✔✔- (aka I/O model) Our environment (e.g.,
industry conditions, economy) has a greater effect on our performance than our internal
resources and capabilities.
When formulating a strategy, focus on understanding the opportunities and threats across the
external environment, which includes the general, industry, and competitor environments
Internal model - CORRECT ANSWER✔✔- (aka resource-based model) Our unique
resources and capabilities have a greater effect on our performance than external trends
When formulating a strategy, focus on understanding our strengths and weaknesses, which
includes understanding and developing our unique resources and capabilities
Two Views of Analysis - CORRECT ANSWER✔✔- SWOT - Strengths, weaknesses,
opportunities, threats
TOWS - S/O, W/O, S/T, W/T
