MGMT 3013 Final Study Question/Answers Graded A+
2025/2026
Competitive Parity - performance of 2 or more firms of the same level (Coke or Pepsi)
Industry Effects - (landscape) entry and exit barriers, # of size of company, types of
products/services offered
Firm Effects - (actions taken by management), *more important* than "industry effects"
in determining firms performance
Stakeholders Strategy - integrative approach to managing a diverse set of stakeholders
effectively in order to gain and sustain competitive advantage; allows firms to analyze
and manage how various external/internal stakeholders interact to jointly create and
trade value
External Stakeholders - customers, suppliers, creditors, unions and government
Internal Stakeholders - employees, stockholders and board members
Stakeholder Impact Analysis - a decision tool with which managers can recognize,
prioritize and address the needs of different stakeholders, enabling the firm to achieve
competitive advantage while acting as a good citizen
1. Power
2. Legitimacy
3. Urgency
Stakeholder 5 Step Process - 1. Identify stakeholders? (internal/external)
2. Identify stakeholders interests?
3. Identify opportunities and threats?
4. Identify social responsibilities
5. Address stakeholders concerns?
Corporate Social Responsibility (CSR) - framework that helps recognize and address
the economic, legal, social and philanthropic expectations that society has of the
business enterprise at a given point in time
Black Swan Events - incidents that describe highly improbable but high impact events
PESTEL Model - framework that categorizes and analyzes an important set of external
factors that can affect a firms potential to gain and sustain a competitive advantage
-*P*olitical - government, laws and regulation
-*E*conomic - interest rates, currency exchange, price stability
-*S*ociocultural - societies, culture, norms, values
-*T*echnological - innovations in product/service
-*E*cological - environment issues, pollution, global warming
, -*L*egal - regulation changes, anti-trust laws, class action lawsuits
5 Forces Model - framework that identifies 5 forces that "determine the profit potential"
of an industry and shape a firms competitive strategy; stronger forces = lower profit
1. Threat of Entry
2. Power of Suppliers
3. Power of Buyers
4. Threat of Substitutes
5. Rivalry Among Competitors
Threat of Entry - risk of potential competitors entering the industry which lowers the
industry's profit potential (Amazon)
Threat of Entry: Barriers - obstacles that determine how easily firms can enter the
industry (economies of scale, network effects, customer switching costs, capital
requirement, government policy, credible threat of retail)
Power of Suppliers - pressures that industry suppliers can exert on an industry's profit
potential
Power of Buyers - bargaining power is high when... there are few buyers and purchase
large quantities, products are standardized, buyers are facing low or no switching costs,
buyers can seek to backwardly integrate and become a competitor
Threat of Substitutes - product or services available from outside the industry can come
close to meeting the needs of current customers
-threat is high when... substitute offers an attractive price performance trade off, buyers
cost pf switching to the substitute is low
Rivalry Among Competitors - competitive industry structure (# of size, firms degree of
pricing power, height of industry barriers), industry growth, strategic commitments and
exit barriers
6th Force - Strategic Role of Complements - Porter enhanced his 5 forces model by
highlighting positive sum competition via firm cooperation that yields complements
Complement - product, service, competency that adds value to the original product with
2 or used in tandem
-enhances profit potential for the firm and industry as a whole
-increases demand for the primary product
Competitive Industry Structure - 1. Perfect Competition
2. Monopolistic Competition
3. Oligopoly
4. Monopoly
2025/2026
Competitive Parity - performance of 2 or more firms of the same level (Coke or Pepsi)
Industry Effects - (landscape) entry and exit barriers, # of size of company, types of
products/services offered
Firm Effects - (actions taken by management), *more important* than "industry effects"
in determining firms performance
Stakeholders Strategy - integrative approach to managing a diverse set of stakeholders
effectively in order to gain and sustain competitive advantage; allows firms to analyze
and manage how various external/internal stakeholders interact to jointly create and
trade value
External Stakeholders - customers, suppliers, creditors, unions and government
Internal Stakeholders - employees, stockholders and board members
Stakeholder Impact Analysis - a decision tool with which managers can recognize,
prioritize and address the needs of different stakeholders, enabling the firm to achieve
competitive advantage while acting as a good citizen
1. Power
2. Legitimacy
3. Urgency
Stakeholder 5 Step Process - 1. Identify stakeholders? (internal/external)
2. Identify stakeholders interests?
3. Identify opportunities and threats?
4. Identify social responsibilities
5. Address stakeholders concerns?
Corporate Social Responsibility (CSR) - framework that helps recognize and address
the economic, legal, social and philanthropic expectations that society has of the
business enterprise at a given point in time
Black Swan Events - incidents that describe highly improbable but high impact events
PESTEL Model - framework that categorizes and analyzes an important set of external
factors that can affect a firms potential to gain and sustain a competitive advantage
-*P*olitical - government, laws and regulation
-*E*conomic - interest rates, currency exchange, price stability
-*S*ociocultural - societies, culture, norms, values
-*T*echnological - innovations in product/service
-*E*cological - environment issues, pollution, global warming
, -*L*egal - regulation changes, anti-trust laws, class action lawsuits
5 Forces Model - framework that identifies 5 forces that "determine the profit potential"
of an industry and shape a firms competitive strategy; stronger forces = lower profit
1. Threat of Entry
2. Power of Suppliers
3. Power of Buyers
4. Threat of Substitutes
5. Rivalry Among Competitors
Threat of Entry - risk of potential competitors entering the industry which lowers the
industry's profit potential (Amazon)
Threat of Entry: Barriers - obstacles that determine how easily firms can enter the
industry (economies of scale, network effects, customer switching costs, capital
requirement, government policy, credible threat of retail)
Power of Suppliers - pressures that industry suppliers can exert on an industry's profit
potential
Power of Buyers - bargaining power is high when... there are few buyers and purchase
large quantities, products are standardized, buyers are facing low or no switching costs,
buyers can seek to backwardly integrate and become a competitor
Threat of Substitutes - product or services available from outside the industry can come
close to meeting the needs of current customers
-threat is high when... substitute offers an attractive price performance trade off, buyers
cost pf switching to the substitute is low
Rivalry Among Competitors - competitive industry structure (# of size, firms degree of
pricing power, height of industry barriers), industry growth, strategic commitments and
exit barriers
6th Force - Strategic Role of Complements - Porter enhanced his 5 forces model by
highlighting positive sum competition via firm cooperation that yields complements
Complement - product, service, competency that adds value to the original product with
2 or used in tandem
-enhances profit potential for the firm and industry as a whole
-increases demand for the primary product
Competitive Industry Structure - 1. Perfect Competition
2. Monopolistic Competition
3. Oligopoly
4. Monopoly
