WPC 480 EXAM QUESTIONS AND ANSWERS
LATEST UPDATE (ALREADY GRADED A+)
The two most important goals and outcomes of effective Strategic Managers/Leaders are:
Gaining a competitive advantage
Generating above-average returns
What is strategic management?
It is the ongoing planning, monitoring, analysis and assessment of all necessities an organization needs
to meet and/or exceed its' goals and objectives
Another definition for Strategic management
process designed to build strategic competitiveness, develop alternative business strategies, exploit
enterprise resources, cope with technological issues and opportunities, build and reinforce an
enterprise's vision and mission, and most importantly......generate above average returns for all
stakeholders
Producing standardized goods or services at costs below competitor costs
cost leadership
Producing differentiated goods or services for which customers are willing to pay a pricepremium
differentiation
Industry profitability is a function of:
the five forces
Industry Driving Performance?
The I/O Model: Study the external environment, especially the industry, locate an industry with high
potential for above average returns,
The I/O Model
- the external environment
- an attractive industry
- strategy formulation
- assets and skills
- strategy implementation
- superior returns
, Helps explain the dominant influence of the external environment (industry) on a firm's strategic actions
and performance
The 5 Forces Model
1. threat of entry
2. power of suppliers
3. power of buyers
4. threat of substitutes
5. rivalry among existing competitors
Resources
Are inputs into a firm's production process, such as capital equipment, the skills of individual employees,
patents, financial strength/access, and managerial/executive talent and creativity
capability
the capacity for a set of resources to perform a task or an activity in an integrative manner
Core Competency
Capabilities that serve as a key source of competitive advantage for a firm over it's rivals
Capabilities (can) Become?
Core Competencies
How capabilities become core become core competencies competencies?
VRIO
What is a vision statement?
A picture of what the firm wants to be, and in broad terms what it wants to achieve
articulates the ideal description of an organization and gives shape to its intended future.
What is a Mission Statement
a statement of the organization's purpose - what it wants to accomplish in the larger environment
Specifies the businesses in which the firm intends to compete and the customers it intends to serve
Who are primary stakeholders?
Individiuals, groups, organizations
Can affect development of the firm's vision and of the firm's vision and mission
Stakeholders
people who are affected by a firm's performance and who have claims on its performance
LATEST UPDATE (ALREADY GRADED A+)
The two most important goals and outcomes of effective Strategic Managers/Leaders are:
Gaining a competitive advantage
Generating above-average returns
What is strategic management?
It is the ongoing planning, monitoring, analysis and assessment of all necessities an organization needs
to meet and/or exceed its' goals and objectives
Another definition for Strategic management
process designed to build strategic competitiveness, develop alternative business strategies, exploit
enterprise resources, cope with technological issues and opportunities, build and reinforce an
enterprise's vision and mission, and most importantly......generate above average returns for all
stakeholders
Producing standardized goods or services at costs below competitor costs
cost leadership
Producing differentiated goods or services for which customers are willing to pay a pricepremium
differentiation
Industry profitability is a function of:
the five forces
Industry Driving Performance?
The I/O Model: Study the external environment, especially the industry, locate an industry with high
potential for above average returns,
The I/O Model
- the external environment
- an attractive industry
- strategy formulation
- assets and skills
- strategy implementation
- superior returns
, Helps explain the dominant influence of the external environment (industry) on a firm's strategic actions
and performance
The 5 Forces Model
1. threat of entry
2. power of suppliers
3. power of buyers
4. threat of substitutes
5. rivalry among existing competitors
Resources
Are inputs into a firm's production process, such as capital equipment, the skills of individual employees,
patents, financial strength/access, and managerial/executive talent and creativity
capability
the capacity for a set of resources to perform a task or an activity in an integrative manner
Core Competency
Capabilities that serve as a key source of competitive advantage for a firm over it's rivals
Capabilities (can) Become?
Core Competencies
How capabilities become core become core competencies competencies?
VRIO
What is a vision statement?
A picture of what the firm wants to be, and in broad terms what it wants to achieve
articulates the ideal description of an organization and gives shape to its intended future.
What is a Mission Statement
a statement of the organization's purpose - what it wants to accomplish in the larger environment
Specifies the businesses in which the firm intends to compete and the customers it intends to serve
Who are primary stakeholders?
Individiuals, groups, organizations
Can affect development of the firm's vision and of the firm's vision and mission
Stakeholders
people who are affected by a firm's performance and who have claims on its performance
