MGT 4970 Exam 1 | Questions with Verified Answers

MGT 4970 Exam 1 | Questions with Verified Answers How do firms achieve strategic competitiveness? through the use of value-creating strategy How does an organization know its strategies have created a competitive advantage? Competitors cannot duplicate it. Why is it important for firms to develop a dynamic strategic management process? to be able to respond to changing markets and conditions What is the foundation of any firm's efforts to achieve strategic competitiveness and outperform rivals? knowing how to use a competitive advantage in marketplace competition How does a hypercompetitive environment challenge those in an industry? Firms have to aggressively strengthen market position through performance. How can a global supply chain increase a firm's competitive advantage in an industry? by providing the best and most inexpensive supplies What is key to an organization's ability to be strategically flexible and gain competitive advantage from that flexibility? continuous learning In which way can a firm create sustainability in its business practices? promote gender equality When managers use the I/O model, why do they consider industry characteristics such as economies of scale and market frictions in their decision making? It determines the profit potential of the industry. When firms possess the same types of resources that are mobile, how can a firm increase performance? by using resources to implement strategy with the highest profit potential How can managers use the five forces model of competition as an analytical tool when attempting to achieve above-average returns? to find the industry that is the most attractive for them In addition to a firm's resources and capabilities, what accounts for the variance in a firm's profitability? strategic actions by managers What is the basis of assumption for how profit is generated in the resource-based model of above-average returns? unique resources and capabilities How can managers increase the likelihood of an individual resource creating a competitive advantage? integrate resources to form a capability How can a firm make capabilities stronger and more difficult for competitors to imitate? through continuous use How can competitors compete against a firm that has rare, valuable, and costly-to-imitate resources? create new resources that create different value for the customer Why is a community where a firm opens a facility considered to be a primary stakeholder in the firm? It is directly affected by what a firm does. When an employee feels their performance review accurately reflects their efforts, and the firm recognizes the employee's contributions are appropriate, which type of organizational justice has occurred? Distributional How can a firm increase innovation and sales growth while encouraging employees to share information about how to improve the products or processes being used? increase feelings of trust Why would a firm choose to use "arms-length" transactions with stakeholders? when stakeholder motivation is not as important Where could a stakeholder go to learn more about the ideals of an organization and its intended future? vision statement How can a CEO develop the most effective vision statement possible? involve stakeholders in its development Why should a CEO include a variety of managers and employees in the development of a mission statement? because a mission deals with customers and markets How should a manager determine what employee efforts should be rewarded and reinforced? Values Who best exemplifies successful strategic leaders in an organization? only those committed to helping the firm create value for stakeholder groups Why is it important to allow those at lower levels of the firm to have a role in choosing and implementing a firm's strategy? They are closest to the action. How is organizational culture used to shape how the firm conducts business? It helps to establish core values among employees. Why is a disciplined approach to the strategic management process important for firms? It serves as the foundation for developing a competitive advantage. Why is mastery of the strategic management process important in creating strategic competitiveness? It has a major affect on performance. How can paying attention to the external environment help a firm earn above-average returns? They will know what it takes to outperform competitors. Why do firms need to pay attention to intense competition in the industry? to prevent it from eroding first-mover advantage How do sociological changes that are occurring in other countries impact an organization? by changing labor practices Why is it important that a firm understand conditions in the general, industry, and competitor environments? to develop appropriate competitive actions How can firms lessen the impact of changes in the general environment's segments? try to predict the effects of trends Who or what would be considered a threat in the industry environment? product substitutes What does an analysis of the five factors in the industry environment tell a firm about the industry? its profitability potential How can a firm develop and implement the most effective strategy possible? by integrating insights from the general, industry, and competitive environments Why is it often difficult to interpret environments effectively? They are often global and complex. Why should firms identify important stakeholders when monitoring environmental changes? to understand the firm's reputation as the foundation for serving their needs Why is forecasting demand for technology products difficult to do? The product life cycles are continually being shortened. How do firms gain value from the assessment process? by understanding the relevance of data Why should managers consider the global implication when looking at the demographics in the general environment? to understand competition in the global market Why is it important for firms to understand the cultural orientation in the markets they hope to serve? Attitudes and culture form the cornerstone of a society. Why do firms need to scan the health of economies outside of their host nation? Nations are interconnected through the global economy. In addition to sustainability, why should firms consider their impact on the natural environment? Social movements can magnify global climate concerns and the firm's response to them. Why are strategies used in the political/legal segment, such as lobbying efforts, considered non-market strategies? The strategies do not deal directly with competition. When analyzing the competitive environment of an industry, why should firms also consider the customers of the industry in the analysis? customers become competitors Why do new entrants pose a threat to the market? They increase production capacity. How can a new entrant combat the perception of uniqueness in a competitor's product? offer products at lower prices How do firms create economies of scale? improvements in experience What makes an industry attractive in the global market? suppliers and buyers with little bargaining power Why is intra-strategic group competition more intense than inter-group competition? Performance leaders can follow similar strategies. How can performance leaders maintain distinctiveness within a strategic group? Differentiation What serves to limit an industry's formation of strategic groups? high mobility barriers Why does competitive rivalry within strategic groups tend to be intense? They offer similar products to the same customer. When using a competitor analysis, how can a firm best understand what drives the competitors? look at their future objectives Who is typically included in a business ecosystem? Any group whose efforts are associated with the satisfaction of a particular value proposition. How should firms handle the ethical and legal implications of intelligence gathering? Ensure all actions are consistent with established principles of ethics. How should information gathered from intelligence efforts be used by the organization? to improve strategic decision making What advantage can firms achieve by bundling and leveraging resources to create value for the customer? strategic competitiveness Why do all competitive advantages have to continuously be reevaluated and improved? Rivals quickly learn how to duplicate the benefits derived from them. How can firms remain ahead of competitors over the long term? manage current core competencies while developing new ones Why is it important that firms manage the internal organization in ways that are not dependent on a single country, culture, or context? to ensure a global mindset Why are those with a strong understanding of country-specific factors and unique cultures important to developing a global mindset in an organization? They can more easily span artificial boundaries.