1 for specific request mail
WPC 480 MIDTERM Questions and Correct Answers |
Latest Update
Strategic Competitiveness Ans: achieved when a firm successfully
formulates and implements a value-creating strategy
Strategy Ans: integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
Competitive Advantage Ans: when it implements a strategy that creates
superior value for customers and competitors are unable to duplicate or
Assignment Expert
find too costly to try to imitate.
Above average returns Ans: returns in excess of what an investor expects
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to earn from other investments with a similar amount of risk
Risk Ans: investors uncertainty about the economic gains or losses that
will result from a particular investment
2026
Average returns Ans: returns equal to those an investor expects to earn
from other investments with a similar amount of risk
©
Strategic Management Process Ans: full set of commitment, decisions,
and actions required for a firm to achieve strategic competitiveness and
earn above-average returns
first step is to ANALYZE (external and internal resources, capabilities,
core competencies), next STRATEGIZE (formulation and implementation),
then take action to enact strategy to have good PERFORMANCE
Todays competitive markets: Ans: 1. The global economy
2. Globalization
3. Rapid technological change
4. Increasing importance of knowledge and people
, 2 for specific request mail
Hypercompetition Ans: -A term often used to capture the realities of the
competitive landscape.
-Emergence of GLOBAL ECONOMY and TECHNOLOGY (rapid change) are
two primary drivers of hyper-competitive environments and nature of
todays competitive landscape
Other strategic options:
-Use of
price-quality positioning to build market presence
Assignment Expert
-Creation of new know-how and
Guru01 - Stuvia
use of first-mover advantage
-Protection or invasion of established geographic or product markets
The Global competitive landscape Ans: Increasing:
2026
-Market volatility and instability due to
©
the rapid pace of change in markets
-Globalized flow of financial capital
-Strategic and operational complexity
of global-scale competition
-Need for flexibility, speed, innovation,
and integration in the use of technology
-Rising product quality standards
Decreasing:
-Time for adapting to change
, 3 for specific request mail
-Traditional sources of competitive advantage
-Traditional managerial mindset
Technology and Technological Changes Ans: Technology trends
impacting the global competitive environment
-Increasing rate of technology diffusion and the emergence
of disruptive technologies
-The information age: Internet and the global proliferation of low-cost
computing power
Assignment Expert
-Increasing knowledge intensity
Guru01 - Stuvia
as an intangible source of competitive advantage
In order to cope with new marketplace... Ans: Strategic Flexibility
2026
-coping with the uncertainty and risks of hypercompetitive
environments.
©
-requires continuous learning and applying the new and updated skills
sets and competencies to the firm's competitive advantage.
--must overcome built-up organizational inertia.
What is the marketplace like for today's firms? Ans: •A piece of it has
moved online
•Globalization, firms were competing with local firms, now you're
competing with national firms
•Omni-channel
•More regulations trying to hold CEO's more accountable
•Consumers are more demanding because there are so many other
options so they want better quality for cheaper price
, 4 for specific request mail
•Pressure to innovate
-Hypercompetition
Where do firm profits come from? Ans: o Sales revenue, brand
recognition
o Firms that have something valuable internally make a lot of money
(resources, capabilities)
o The nature of the industry (some just picked an industry that just isn't
very profitable)
Assignment Expert
o Firm performance comes from
Guru01 - Stuvia
♣ 1. Industry (I/O, Porters 5 Forces)
♣ 2. Firm (e.g., Resource-Based Model)
Can we model this? Ans: o Yes, the I/O Model = industry becomes
2026
homogeneous
©
The I/O Model of Above Average Returns Ans: Model on pg. 15
The External Environment --> An Attractive Industry --> Strategy
Formulation --> Assets and Skills --> Strategy Implementation --> Superior
Returns
The external environment Ans: -The external environment imposes
pressures and constraints that determine strategic choices
--Similarity in resources causes competitors to pursue similar strategies
--Resource differences among competitors are short-lived due to resource
mobility across firms
-Above average performance will be competed away quickly
--Industry attractiveness (average industry returns) is what matters
WPC 480 MIDTERM Questions and Correct Answers |
Latest Update
Strategic Competitiveness Ans: achieved when a firm successfully
formulates and implements a value-creating strategy
Strategy Ans: integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage
Competitive Advantage Ans: when it implements a strategy that creates
superior value for customers and competitors are unable to duplicate or
Assignment Expert
find too costly to try to imitate.
Above average returns Ans: returns in excess of what an investor expects
Guru01 - Stuvia
to earn from other investments with a similar amount of risk
Risk Ans: investors uncertainty about the economic gains or losses that
will result from a particular investment
2026
Average returns Ans: returns equal to those an investor expects to earn
from other investments with a similar amount of risk
©
Strategic Management Process Ans: full set of commitment, decisions,
and actions required for a firm to achieve strategic competitiveness and
earn above-average returns
first step is to ANALYZE (external and internal resources, capabilities,
core competencies), next STRATEGIZE (formulation and implementation),
then take action to enact strategy to have good PERFORMANCE
Todays competitive markets: Ans: 1. The global economy
2. Globalization
3. Rapid technological change
4. Increasing importance of knowledge and people
, 2 for specific request mail
Hypercompetition Ans: -A term often used to capture the realities of the
competitive landscape.
-Emergence of GLOBAL ECONOMY and TECHNOLOGY (rapid change) are
two primary drivers of hyper-competitive environments and nature of
todays competitive landscape
Other strategic options:
-Use of
price-quality positioning to build market presence
Assignment Expert
-Creation of new know-how and
Guru01 - Stuvia
use of first-mover advantage
-Protection or invasion of established geographic or product markets
The Global competitive landscape Ans: Increasing:
2026
-Market volatility and instability due to
©
the rapid pace of change in markets
-Globalized flow of financial capital
-Strategic and operational complexity
of global-scale competition
-Need for flexibility, speed, innovation,
and integration in the use of technology
-Rising product quality standards
Decreasing:
-Time for adapting to change
, 3 for specific request mail
-Traditional sources of competitive advantage
-Traditional managerial mindset
Technology and Technological Changes Ans: Technology trends
impacting the global competitive environment
-Increasing rate of technology diffusion and the emergence
of disruptive technologies
-The information age: Internet and the global proliferation of low-cost
computing power
Assignment Expert
-Increasing knowledge intensity
Guru01 - Stuvia
as an intangible source of competitive advantage
In order to cope with new marketplace... Ans: Strategic Flexibility
2026
-coping with the uncertainty and risks of hypercompetitive
environments.
©
-requires continuous learning and applying the new and updated skills
sets and competencies to the firm's competitive advantage.
--must overcome built-up organizational inertia.
What is the marketplace like for today's firms? Ans: •A piece of it has
moved online
•Globalization, firms were competing with local firms, now you're
competing with national firms
•Omni-channel
•More regulations trying to hold CEO's more accountable
•Consumers are more demanding because there are so many other
options so they want better quality for cheaper price
, 4 for specific request mail
•Pressure to innovate
-Hypercompetition
Where do firm profits come from? Ans: o Sales revenue, brand
recognition
o Firms that have something valuable internally make a lot of money
(resources, capabilities)
o The nature of the industry (some just picked an industry that just isn't
very profitable)
Assignment Expert
o Firm performance comes from
Guru01 - Stuvia
♣ 1. Industry (I/O, Porters 5 Forces)
♣ 2. Firm (e.g., Resource-Based Model)
Can we model this? Ans: o Yes, the I/O Model = industry becomes
2026
homogeneous
©
The I/O Model of Above Average Returns Ans: Model on pg. 15
The External Environment --> An Attractive Industry --> Strategy
Formulation --> Assets and Skills --> Strategy Implementation --> Superior
Returns
The external environment Ans: -The external environment imposes
pressures and constraints that determine strategic choices
--Similarity in resources causes competitors to pursue similar strategies
--Resource differences among competitors are short-lived due to resource
mobility across firms
-Above average performance will be competed away quickly
--Industry attractiveness (average industry returns) is what matters
