Bus 401 Vanderkelen Midterm #1 || Possible Questions Accurately
Answered.
competitive advantage correct answers compete in order to maintain above industry average
profits
leader obligations correct answers re-enforce regulations that help you and toss what hinders you
strategy correct answers deliberate effort to figure out how to win/the best way to compete
plan to acheive competitive advantage
2 generic firm-level strategies correct answers 1. low cost (cost drives margin) and product
2. differentiation (price/quality drives margin)
fundamental equation of strategy correct answers price-cost=margin
4 questions of strategy formulation correct answers 1) markets: which will we pursue?
2) UNIQUE value: why we win with customers?
3) resources and capabilities: how we deliver unique value?
4) sustained advantage: how to capture and sustain value?
determinants to shareholder value correct answers effectiveness of strategy--> profitability
ROIC--> SH value
effectiveness of strategy--> profit growth--> SH value
strategic management process correct answers selection of a company's mission and
external/internal analyses that contributed to formulation of company strategy
mission correct answers outline company primary purpose and scope of activity
, external analysis correct answers analysis of companies current or potential markets or industries
to understand environmental factors that influence firms profitability
internal analysis correct answers set of resources and capabilities (or new ones) and can be
deployed to create competitive advantages
strategic management phases correct answers analysis--> strategic decisions--> actions
4 primary stakeholder groups correct answers 1) capital market stakeholder (shareholders/banks)
2) product market stakeholder (customers/suppliers)
3) organizational stakeholder (employees)
4) community stakeholder (everyone/government)
WALMART most important factor for growth correct answers target rural communities with
lower price/cost than mom+ pop
1st - started before Kmart etc
WALMART why less success in foreign countries correct answers government regulations,
cultural differences, lack infrastructure (ex. cars, roads)
WALMART how keep costs low correct answers link warehouse + website VERY well
many locations
WALMART resources and capabilities (& lower costs) correct answers tangible resources: store
location (rent)
intangible resources: brand reputation, employee loyalty (ads, payroll, shrinkage)
Answered.
competitive advantage correct answers compete in order to maintain above industry average
profits
leader obligations correct answers re-enforce regulations that help you and toss what hinders you
strategy correct answers deliberate effort to figure out how to win/the best way to compete
plan to acheive competitive advantage
2 generic firm-level strategies correct answers 1. low cost (cost drives margin) and product
2. differentiation (price/quality drives margin)
fundamental equation of strategy correct answers price-cost=margin
4 questions of strategy formulation correct answers 1) markets: which will we pursue?
2) UNIQUE value: why we win with customers?
3) resources and capabilities: how we deliver unique value?
4) sustained advantage: how to capture and sustain value?
determinants to shareholder value correct answers effectiveness of strategy--> profitability
ROIC--> SH value
effectiveness of strategy--> profit growth--> SH value
strategic management process correct answers selection of a company's mission and
external/internal analyses that contributed to formulation of company strategy
mission correct answers outline company primary purpose and scope of activity
, external analysis correct answers analysis of companies current or potential markets or industries
to understand environmental factors that influence firms profitability
internal analysis correct answers set of resources and capabilities (or new ones) and can be
deployed to create competitive advantages
strategic management phases correct answers analysis--> strategic decisions--> actions
4 primary stakeholder groups correct answers 1) capital market stakeholder (shareholders/banks)
2) product market stakeholder (customers/suppliers)
3) organizational stakeholder (employees)
4) community stakeholder (everyone/government)
WALMART most important factor for growth correct answers target rural communities with
lower price/cost than mom+ pop
1st - started before Kmart etc
WALMART why less success in foreign countries correct answers government regulations,
cultural differences, lack infrastructure (ex. cars, roads)
WALMART how keep costs low correct answers link warehouse + website VERY well
many locations
WALMART resources and capabilities (& lower costs) correct answers tangible resources: store
location (rent)
intangible resources: brand reputation, employee loyalty (ads, payroll, shrinkage)
