Download MGMT 3004 Chapters 1-6 Exam Questions And Answers and more Exams Social Management in PDF only on Docsity!
Questions And Answers
strategic management - correct answer ✅integrative management field that combines Analysis, Formulation, and Implementation in the quest for competitive advantage (AFI strategy framework) strategy - correct answer ✅set of goal-directed actions a firm takes to gain and sustain competitive advantage -through competition for resources -science of success and failure good strategy - correct answer ✅1) diagnosis of the competitive challenge (Analysis of external/internal environments)
- guiding policy to address the competitive advantage (Formulation)
- set of coherent actions to implement the guiding policy (Implementation) business model - correct answer ✅how the firm intends to make money
Questions And Answers
benchmark - correct answer ✅either the performance of other firms in the same industry or the industry average competitive advantage - correct answer ✅superior performance relative to other firms in the same industry or the industry average sustainable competitive advantage - correct answer ✅outperforming competitors in the same industry or the industry average over a prolonged period of time competitive disadvantage - correct answer ✅inferior performance relative to competitors in the same industry or the industry average competitive parity - correct answer ✅2+ firms that perform at the same level
Questions And Answers
integrated strategy - correct answer ✅cost leadership + differentiation -difficult to execute -stuck in the middle: where managers failed to carve out a clear strategic position = neither cost leadership/differentiation key to successful strategy - correct answer ✅combine set of activities --> unique positioning strategy is NOT... - correct answer ✅1) NOT grand statements
- NOT failure to face/ignore a competitive challenge
- NOT operational effectiveness, competitive benchmarking, or other tools industry effects - correct answer ✅firm performance attributed to the structure of the industry in which the firm competes -entry/exit barriers -number/size of companies -types of g/s offered
Questions And Answers
(determines about 20% of firm's profitability) industry effects --> industry attractiveness (5 forces model & complements) --> within industry (strategic groups) --> competitive advantage firm effects - correct answer ✅firm performance attributed to the actions managers take -firm's strategy explains 55% of its performance firm effects --> value position/cost position --> business strategy (cost leadership/differentiation/integration) --> competitive advantage competition - correct answer ✅ongoing struggle among firms to gain and sustain competitive advantage value creation - correct answer ✅firms compete in their own self-interest while obeying the law and acting ethically
Questions And Answers
stakeholder strategy - correct answer ✅integrative approach to managing a diverse set of stakeholders efficiently in order to gain and sustain competitive advantage -allows analysis of interactions of stakeholders -understand complex web of stakeholder relationships -maximize stakeholder value benefits of effective stakeholder management - correct answer ✅-more cooperative = increase value or lower cost -increase trust = lower cost -more organizational adaptability/flexibility -more predictable/stable returns -strong reputations stakeholder impact analysis - correct answer ✅decision tool with which managers can recognize, prioritize, and address the needs of different stakeholders -enables firm to achieve competitive advantage
Questions And Answers
-enables firm to act as a good corporate citizen
- identify stakeholders
- identify stakeholders' interests
- identify opportunities and threats
- identify social responsibilities
- address stakeholder concerns managers must pay attention to stakeholders in each step of the stakeholder impact analysis when... (stakeholder impact analysis) - correct answer ✅1) stakeholder has POWER over a company
- stakeholder has a LEGITIMATE claim
- stakeholder has an URGENT claim 5 steps of a stakeholder impact analysis - correct answer ✅1) identify stakeholders
- identify stakeholders' interests
- identify opportunities and threats
- identify social responsibilities
- address stakeholder concerns
Questions And Answers
do what is right, just, and fair -expectations, norms, and values of stakeholders philanthropic responsibilities - correct answer ✅CSR = 4th corporate citizenship: voluntarily giving back to society AFI strategy framework - correct answer ✅model that links 3 interdependent strategic management tasks (Analyze, Formulation, Implementation) that help managers plan/implement a strategy that can improve performance --> competitive advantage
- explain/predict differences in firm performance
- help managers formulate/implement a strategy that results in superior performance 2 things the AFI strategy framework does... - correct answer ✅1) explain/predict differences in firm performance
- help managers formulate/implement a strategy that results in superior performance
Questions And Answers
strategy Analysis - correct answer ✅strategic leadership/strategy process external/internal analysis competitive advantage firm performance business models strategy Formulation - correct answer ✅business strategy corporate strategy global strategy strategy Implementation - correct answer ✅organizational design corporate governance business ethics effective strategists - correct answer ✅1) Analyze the external/internal environments
- Formulate appropriate business/corporate strategies
Questions And Answers
PESTEL model - correct answer ✅framework that categorizes and analyzes an important set of external forces (Political, Economic, Sociocultural, Technological, Ecological, Legal) that might impinge upon a firm -scan, monitor, evaluate external factors to identify opportunities/threats -global world (PESTEL) --> industry --> strategic group --> firm non-market strategies - correct answer ✅lobbying, contributions, litigation, etc. economic factors - correct answer ✅1) growth rates: measure of g/s produced by a nation's economy
- interest rates
- levels of employment
- price stability (rare)
- currency exchange rates growth rates - correct answer ✅measure of g/s produced by nation's economy
Questions And Answers
demographic - correct answer ✅age, gender, family size, ethnicity, sexual orientation, religion, socioeconomic class industry - correct answer ✅group of incumbent companies that face more or less the same set of suppliers/buyers -offer similar g/s to meet customer needs industry analysis - correct answer ✅method to
- identify industry's profit potential
- derive implications for a firm's strategic position within an industry strategic position - correct answer ✅firm's strategic profile based on value creation and cost (V-C)
Questions And Answers
- advantages independent of size: patents, resources, locations, learning, and experience
- government policy: restrict/prevent new entrants
- credible threat of retaliation: price wars, cutthroat competition economies of scale - correct answer ✅decreases in cost/unit as output increases (entry barrier & cost driver) -firms spread fixed costs over larger output -firms employ specialized systems & equipment -firms take advantage of certain physical properties network effects - correct answer ✅positive effect that one user of a g/s has on the value of that g/s for other users (more users = more valuable) (entry barrier) high power of buyers - correct answer ✅few buyers each buyer purchases large quantities standardized commodities in industry
Questions And Answers
low/no switching costs can credibly threaten to backwardly integrate industry high power of suppliers - correct answer ✅supplier industry = more concentrated than industry it sell to don't depend on industry for large portion of revenue significant switching costs when changing suppliers differentiated g/s no substitutes can credibly threaten to forward integrate industry determinants of rivalry among existing competitors - correct answer ✅1) competitive industry structure
- industry growth
- strategic commitments
- exit barriers competitive industry structure - correct answer ✅1) number and size of competitors in an industry
Questions And Answers
perfect competition - correct answer ✅1 of main competitive industry structures many small firms firms = price takers commodity products low entry barriers monopolistic competition - correct answer ✅2 of main competitive industry structures many firms some pricing power differentiated product medium entry barriers oligopoly - correct answer ✅3 of main competitive industry structures few large firms some pricing power differentiated product high entry barriers
Questions And Answers
monopoly - correct answer ✅4 of main competitive industry structures one firm considerable pricing power unique product very high entry barriers complement - correct answer ✅g/s/competency that adds value to the original product offering when the 2 are used together -increase demand for primary product -increase profit potential complementor - correct answer ✅company that provides g/s that leads customers to value your firm's offering more when the 2 are combined high rivalry among existing competitors - correct answer ✅many competitors
