BADM 4801: test 1 with correct
answers
Strategic Competitiveness <correct answer>achieved when a firm successfully
formulates and implements a value creating strategy.
Strategy <correct answer>an integrated and coordinated set of commitments and
actions designed to exploit core competencies and gain a competitive advantage
Competitive advantage <correct answer>when it implements a strategy that creates
superior value for customers and that competitors are unable to duplicate or find it too
costly to try to imitate.
-not permanent
Above-average returns <correct answer>e returns in excess of what an investor expects
to earn from other investments with a similar amount of risk
Risk <correct answer>an investor's uncertainty about the economic gains or losses that
will result from a particular investment
Average returns <correct answer>returns equal to those an investor expects to earn
from other investments with a similar amount of risk
Strategic Management Process <correct answer>the full set of commitments, decisions,
and actions required for a firm to achieve strategic competitiveness and earn above-
average returns
significantly impacted by the external environment of the firm or org
Hypercompetition <correct answer>is excessive such that it creates inherent instability
and necessitates constant disruptive change for firms in the competitive landscape
Global Economy <correct answer>one in which goods, services, people, skills, and
ideas move freely across geographic borders
Globalization <correct answer>the increasing economic interdependence among
countries and their organizations as reflected in the flow of goods and services, financial
capital, and knowledge across country borders
, Technology Diffusion <correct answer>Speed at which new technologies become
available and are used
Perpetual innovation <correct answer>how rapidly and consistently new information and
intensive technologies replace older ones
Disruptive technologies <correct answer>destroy the value of existing technologies and
create new markets
(apple iphone changed everything)
Knowledge <correct answer>information, intelligence, and expertise
Strategic Flexibility <correct answer>set of capabilities used to respond to various
demands and opportunities existing in a dynamic and uncertain competitive
environment
5 forces model of competition <correct answer>buyers
suppliers
rivalry amongst firms
product sustainability
potential entrants to industry
I/O model <correct answer>1. Study the external environment, especially the industry
environment.
2. Locate an industry with high potential for above- average returns.
3. Identify the strategy called for by the attractive industry to earn above- average
returns.
4. Develop or acquire assets and skills needed to implement the strategy.
5. Use the firm's strengths (its developed or acquired assets and skills) to implement the
strategy.
Resources <correct answer>inputs into a firm's production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented managers
answers
Strategic Competitiveness <correct answer>achieved when a firm successfully
formulates and implements a value creating strategy.
Strategy <correct answer>an integrated and coordinated set of commitments and
actions designed to exploit core competencies and gain a competitive advantage
Competitive advantage <correct answer>when it implements a strategy that creates
superior value for customers and that competitors are unable to duplicate or find it too
costly to try to imitate.
-not permanent
Above-average returns <correct answer>e returns in excess of what an investor expects
to earn from other investments with a similar amount of risk
Risk <correct answer>an investor's uncertainty about the economic gains or losses that
will result from a particular investment
Average returns <correct answer>returns equal to those an investor expects to earn
from other investments with a similar amount of risk
Strategic Management Process <correct answer>the full set of commitments, decisions,
and actions required for a firm to achieve strategic competitiveness and earn above-
average returns
significantly impacted by the external environment of the firm or org
Hypercompetition <correct answer>is excessive such that it creates inherent instability
and necessitates constant disruptive change for firms in the competitive landscape
Global Economy <correct answer>one in which goods, services, people, skills, and
ideas move freely across geographic borders
Globalization <correct answer>the increasing economic interdependence among
countries and their organizations as reflected in the flow of goods and services, financial
capital, and knowledge across country borders
, Technology Diffusion <correct answer>Speed at which new technologies become
available and are used
Perpetual innovation <correct answer>how rapidly and consistently new information and
intensive technologies replace older ones
Disruptive technologies <correct answer>destroy the value of existing technologies and
create new markets
(apple iphone changed everything)
Knowledge <correct answer>information, intelligence, and expertise
Strategic Flexibility <correct answer>set of capabilities used to respond to various
demands and opportunities existing in a dynamic and uncertain competitive
environment
5 forces model of competition <correct answer>buyers
suppliers
rivalry amongst firms
product sustainability
potential entrants to industry
I/O model <correct answer>1. Study the external environment, especially the industry
environment.
2. Locate an industry with high potential for above- average returns.
3. Identify the strategy called for by the attractive industry to earn above- average
returns.
4. Develop or acquire assets and skills needed to implement the strategy.
5. Use the firm's strengths (its developed or acquired assets and skills) to implement the
strategy.
Resources <correct answer>inputs into a firm's production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented managers
