BUSI 400 FINAL EXAM UPDATED
QUESTIONS AND CORRECT ANSWERS.
Competitive Intelligence - ANS is a systematic and ethical process of gathering and analyzing
information about the competition's activities and general business trends to further a
business's own goals
Which of these is not an Objective of Competitive Intelligence? - ANS (1) to provide a general
understanding of an industry and its competitors
(2) to identify areas in which competitors are vulnerable and to assess the impact strategic
actions would have on competitors
(3) identify potential moves that a competitor might make that would endanger a firms position
in the market
(4) All of the above
Porter's 5 Forces Model - ANS o (1) Rivalry among competing firms
▪ The most powerful of the five competing forces
o (2) Potential entry of new competitors
▪ Whenever new firms can easily enter a particular industry, the intensity of competitiveness
among firms increases
o (3) Potential development of substitute products
▪ Competitive pressures arising from substitute products increase as the relative price of
substitute products declines and as consumers costs of switching decrease
o (4) Bargaining power of suppliers
▪ In more industries - sellers are forging strategic partnerships with suppliers in efforts to
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,● Reduce inventors and logistics costs
● Speed the availability of next generation components
● Enhance the quality of the parts and components being supplied and reduce def
● ect rates
● Squeeze out important cost savings for both themselves and their suppliers
o (5) Bargaining power of consumers
▪ The bargaining power of consumers can be the most important force affecting competitive
advantage
Forecasting - ANS o Can be broken down into two broad categories
▪ Quantitative
▪ Qualitative
The External Factor Evaluation Matrix (EFE) - ANS Allows strategists to summarize and
evaluate economic, social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive information
Competitive Profile Matrix - ANS Identifies a firm's major competitors and its particular
strengths and weaknesses in relation to a sample of a firm's strategic position.
Key internal forces - ANS it is important that an organization identify their "distinctive
competencies" - the strength that cannot be easily matched or imitated by competitors.
Purpose of an internal audit - ANS o Closely parallels the process of performing an external
audit
o Requires gathering key information from all areas of the company
o An internal audit provides more opportunity for participants to understand how their jobs,
departments, and divisions fit into the whole organization.
o Important: The effectiveness of strategy formulation, implementation, and evaluation hinges
upon a clear understanding of how major business functions affect one another.
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,Resource Based View - ANS o The RBC approach to competitive advantage contends that
internal resources are more important for a firm than external forces in achieving and
sustaining competitive advantage.
o Says that internal performance will be primarily determined by internal resources that cannot
be grouped into three all encompassing categories - physical resources, human resources, and
organizational resources.
o Basic Premise: the mix, type, and nature of a firms internal resources should be considered
first and foremost in devising strategies that can lead to sustainable competitive advantage.
o Identifying Valuable Resources: Must be: (1) Rare (2) Hard to Imitate (3) Not easily
substitutable
Organizational Culture - ANS Note - there is a section that talks about internal culture.
Remember that culture plays a big part in how to implement strategy
The Role of Management
o There are 5 Basis Activities for Managers - ANS ▪ Planning (Strategy Formulation Stage)
● The managerial activities relates to preparing for the future - i.e. forecasting, establishing
objectives, devising strategies, developing policies, and setting goals.
▪ Organizing (Strategy Implementation Stage)
● All activities that result in a structure of task and authority relationships - i.e. job
specialization, span of control, job design, etc.
▪ Motivating (Strategy Implementation Stage)
● Efforts directed towards shaping human behavior (employment morale, leadership,
communication, etc.
▪ Staffing (Strategy Implementation Stage)
● Personnel or human resource management
▪ Controlling (Strategy Evaluation Stage)
● All managerial activities directed towards ensuring that actual results are consistent with
planned results
● The Role of Marketing
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, o Marketing defined - the process of defining, anticipating, creating, and fulfilling customers
needs and wants for products and services. - ANS o Functions of Marketing (7)
▪ 1- Customer Analysis
● The examination of customer needs, desires and wants (i.e. marketing research essentially)
▪ 2 - Selling Products/Services
● Various marketing activities - including basic marketing, advertising, sales, promotion,
publicity, personal selling, et.c
● Personal selling is best for industrial goods companies, whereas advertising is best for
consumer goods companies.
▪ 3- Product and Service Planning
● All activities related to test marketing, product and brand positioning, devising warranties,
packaging, etc.
▪ 4- Pricing
● 5 stakeholders that affect pricing decisions: consumers, governments, suppliers, distributors,
and competitors.
▪ 5 - Distribution
● Includes warehousing, distribution channels, distribution coverage, retail site locations, sales
territories, inventory levels and location, transportation carriers, wholesaling, and retailing.
● Distribution becomes especially important when a firm is striving to implement a market
development or forward integration strategy.
▪ 6- Marketing research
● The systematic gathering, recording and analyzing of data about problems related to the
marketing of goods or services.
▪ 7 - Cost Benefit Analysis
● Assessing the costs, benefits, and risks associated with marketing decisions.
o Steps:
o 1- Compute the total costs associated with the decision
o 2- estimate the total benefits from the decision
o 3- compare the total costs with the total benefit.
● Finance/Accounting
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QUESTIONS AND CORRECT ANSWERS.
Competitive Intelligence - ANS is a systematic and ethical process of gathering and analyzing
information about the competition's activities and general business trends to further a
business's own goals
Which of these is not an Objective of Competitive Intelligence? - ANS (1) to provide a general
understanding of an industry and its competitors
(2) to identify areas in which competitors are vulnerable and to assess the impact strategic
actions would have on competitors
(3) identify potential moves that a competitor might make that would endanger a firms position
in the market
(4) All of the above
Porter's 5 Forces Model - ANS o (1) Rivalry among competing firms
▪ The most powerful of the five competing forces
o (2) Potential entry of new competitors
▪ Whenever new firms can easily enter a particular industry, the intensity of competitiveness
among firms increases
o (3) Potential development of substitute products
▪ Competitive pressures arising from substitute products increase as the relative price of
substitute products declines and as consumers costs of switching decrease
o (4) Bargaining power of suppliers
▪ In more industries - sellers are forging strategic partnerships with suppliers in efforts to
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,● Reduce inventors and logistics costs
● Speed the availability of next generation components
● Enhance the quality of the parts and components being supplied and reduce def
● ect rates
● Squeeze out important cost savings for both themselves and their suppliers
o (5) Bargaining power of consumers
▪ The bargaining power of consumers can be the most important force affecting competitive
advantage
Forecasting - ANS o Can be broken down into two broad categories
▪ Quantitative
▪ Qualitative
The External Factor Evaluation Matrix (EFE) - ANS Allows strategists to summarize and
evaluate economic, social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive information
Competitive Profile Matrix - ANS Identifies a firm's major competitors and its particular
strengths and weaknesses in relation to a sample of a firm's strategic position.
Key internal forces - ANS it is important that an organization identify their "distinctive
competencies" - the strength that cannot be easily matched or imitated by competitors.
Purpose of an internal audit - ANS o Closely parallels the process of performing an external
audit
o Requires gathering key information from all areas of the company
o An internal audit provides more opportunity for participants to understand how their jobs,
departments, and divisions fit into the whole organization.
o Important: The effectiveness of strategy formulation, implementation, and evaluation hinges
upon a clear understanding of how major business functions affect one another.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Resource Based View - ANS o The RBC approach to competitive advantage contends that
internal resources are more important for a firm than external forces in achieving and
sustaining competitive advantage.
o Says that internal performance will be primarily determined by internal resources that cannot
be grouped into three all encompassing categories - physical resources, human resources, and
organizational resources.
o Basic Premise: the mix, type, and nature of a firms internal resources should be considered
first and foremost in devising strategies that can lead to sustainable competitive advantage.
o Identifying Valuable Resources: Must be: (1) Rare (2) Hard to Imitate (3) Not easily
substitutable
Organizational Culture - ANS Note - there is a section that talks about internal culture.
Remember that culture plays a big part in how to implement strategy
The Role of Management
o There are 5 Basis Activities for Managers - ANS ▪ Planning (Strategy Formulation Stage)
● The managerial activities relates to preparing for the future - i.e. forecasting, establishing
objectives, devising strategies, developing policies, and setting goals.
▪ Organizing (Strategy Implementation Stage)
● All activities that result in a structure of task and authority relationships - i.e. job
specialization, span of control, job design, etc.
▪ Motivating (Strategy Implementation Stage)
● Efforts directed towards shaping human behavior (employment morale, leadership,
communication, etc.
▪ Staffing (Strategy Implementation Stage)
● Personnel or human resource management
▪ Controlling (Strategy Evaluation Stage)
● All managerial activities directed towards ensuring that actual results are consistent with
planned results
● The Role of Marketing
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, o Marketing defined - the process of defining, anticipating, creating, and fulfilling customers
needs and wants for products and services. - ANS o Functions of Marketing (7)
▪ 1- Customer Analysis
● The examination of customer needs, desires and wants (i.e. marketing research essentially)
▪ 2 - Selling Products/Services
● Various marketing activities - including basic marketing, advertising, sales, promotion,
publicity, personal selling, et.c
● Personal selling is best for industrial goods companies, whereas advertising is best for
consumer goods companies.
▪ 3- Product and Service Planning
● All activities related to test marketing, product and brand positioning, devising warranties,
packaging, etc.
▪ 4- Pricing
● 5 stakeholders that affect pricing decisions: consumers, governments, suppliers, distributors,
and competitors.
▪ 5 - Distribution
● Includes warehousing, distribution channels, distribution coverage, retail site locations, sales
territories, inventory levels and location, transportation carriers, wholesaling, and retailing.
● Distribution becomes especially important when a firm is striving to implement a market
development or forward integration strategy.
▪ 6- Marketing research
● The systematic gathering, recording and analyzing of data about problems related to the
marketing of goods or services.
▪ 7 - Cost Benefit Analysis
● Assessing the costs, benefits, and risks associated with marketing decisions.
o Steps:
o 1- Compute the total costs associated with the decision
o 2- estimate the total benefits from the decision
o 3- compare the total costs with the total benefit.
● Finance/Accounting
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
