SEVI 3013 Exam 1 with 100% Correct
Answers
strategic competitiveness - ANSWER-achieved when a firm successfully formulates and
implements a value-creating strategy
strategy - ANSWER-an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
competitor analysis - ANSWER-focuses on each company against which a firm
competes directly
In a competitor analysis, the firm seeks to understand the following: - ANSWER-- What
drives the competitor, as shown by its future objectives
- What the competitor is doing, as revealed by its current strategy
- What the competitor believes about the industry, as shown by its assumptions
- What the competitor's capabilities are, as shown by its strengths and weaknesses
Above-average returns - ANSWER-returns in excess of what an investor expects to
earn from other investments with a similar amount of risk
strategic management process - ANSWER-the full set of commitments, decisions, and
actions firms take to achieve strategic competitiveness and earn about-average returns
- the process involves analysis, strategy, and performance (the A-S-P model)
Competitive Landscape - ANSWER-The fundamental nature of competition in many of
the worlds industries is changing
Hypercompetition - ANSWER-a condition where competitors engage in intense rivalry,
markets change quickly and often, and entry barriers are low
makes it difficult for firms to maintain a competitive advantage
Hypercompetition is constantly changing based on - ANSWER-- Price-quality
positioning
- Competition to create new know-how and establish first-mower advantage
- Competition to protect or invade
Two types of hypercompetition - ANSWER-1. The emergence of a global economy
2. Rapid technology change
, I/O Model - ANSWER-the profitability potential of an industry or a segment of it as well
as the actions firms should take to operate profitably are determined by a set of industry
characteristics, such as:
· Economies of scale
· Barriers to market entry
· Diversification
· Product differentiation
suggests that returns are influenced more so by the characteristics of the external
environment than a firm's unique internal resources and capabilities.
Risk - ANSWER-Degree of uncertainty of return on an asset; in business, the likelihood
of loss or reduced profit.
how firms can earn above-average returns - ANSWER-through the strategic
management process
A-S-P model - ANSWER-A firm analyzes the external environment and its internal
organization, then formulates and implements strategies to achieve a desired level of
performance.
*WITHIN THE STRATEGIC MANAGEMENT PROCESS*
Stakeholders - ANSWER-individuals, groups, and organizations that can affect the
firm's vision and mission, are affected by the strategic outcomes achieved, and have
enforceable claims on the firm's performance
Stakeholders ability to influence organizations - ANSWER-Because firms are not
equally dependent on all stakeholders at all times, stakeholders possess different
degrees of ability to influence an organization.
Greater dependence gives the stakeholder more potential influence over a firm's
commitments, decisions, and actions
Threat of Substitute Products - ANSWER-extent to which alternative products/services
may replace the need for existing products/services
Intensity of Rivalry Among Competitors - ANSWER-the threat that customers will switch
their business to competitors within the industry
Competitive rivalry intensifies when: - ANSWER-- A firm is challenged by a competitor's
actions
- A company recognizes an opportunity to improve its market position
Value - ANSWER-measured by a product's performance characteristics and by its
attributes for which customers are willing to pay.
Answers
strategic competitiveness - ANSWER-achieved when a firm successfully formulates and
implements a value-creating strategy
strategy - ANSWER-an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
competitor analysis - ANSWER-focuses on each company against which a firm
competes directly
In a competitor analysis, the firm seeks to understand the following: - ANSWER-- What
drives the competitor, as shown by its future objectives
- What the competitor is doing, as revealed by its current strategy
- What the competitor believes about the industry, as shown by its assumptions
- What the competitor's capabilities are, as shown by its strengths and weaknesses
Above-average returns - ANSWER-returns in excess of what an investor expects to
earn from other investments with a similar amount of risk
strategic management process - ANSWER-the full set of commitments, decisions, and
actions firms take to achieve strategic competitiveness and earn about-average returns
- the process involves analysis, strategy, and performance (the A-S-P model)
Competitive Landscape - ANSWER-The fundamental nature of competition in many of
the worlds industries is changing
Hypercompetition - ANSWER-a condition where competitors engage in intense rivalry,
markets change quickly and often, and entry barriers are low
makes it difficult for firms to maintain a competitive advantage
Hypercompetition is constantly changing based on - ANSWER-- Price-quality
positioning
- Competition to create new know-how and establish first-mower advantage
- Competition to protect or invade
Two types of hypercompetition - ANSWER-1. The emergence of a global economy
2. Rapid technology change
, I/O Model - ANSWER-the profitability potential of an industry or a segment of it as well
as the actions firms should take to operate profitably are determined by a set of industry
characteristics, such as:
· Economies of scale
· Barriers to market entry
· Diversification
· Product differentiation
suggests that returns are influenced more so by the characteristics of the external
environment than a firm's unique internal resources and capabilities.
Risk - ANSWER-Degree of uncertainty of return on an asset; in business, the likelihood
of loss or reduced profit.
how firms can earn above-average returns - ANSWER-through the strategic
management process
A-S-P model - ANSWER-A firm analyzes the external environment and its internal
organization, then formulates and implements strategies to achieve a desired level of
performance.
*WITHIN THE STRATEGIC MANAGEMENT PROCESS*
Stakeholders - ANSWER-individuals, groups, and organizations that can affect the
firm's vision and mission, are affected by the strategic outcomes achieved, and have
enforceable claims on the firm's performance
Stakeholders ability to influence organizations - ANSWER-Because firms are not
equally dependent on all stakeholders at all times, stakeholders possess different
degrees of ability to influence an organization.
Greater dependence gives the stakeholder more potential influence over a firm's
commitments, decisions, and actions
Threat of Substitute Products - ANSWER-extent to which alternative products/services
may replace the need for existing products/services
Intensity of Rivalry Among Competitors - ANSWER-the threat that customers will switch
their business to competitors within the industry
Competitive rivalry intensifies when: - ANSWER-- A firm is challenged by a competitor's
actions
- A company recognizes an opportunity to improve its market position
Value - ANSWER-measured by a product's performance characteristics and by its
attributes for which customers are willing to pay.
