Exam 1

Question 1

What is strategic mangement?

Answer 1

the integrative field that combines analysis, formulation, and implementation in the quest for competitive advantage

Question 2

What is the AFI framework?

Answer 2

Analysis Formulation Implementation

Question 3

What is strategy?

Answer 3

a set of goal oriented actions a firm takes to gain and sustain superior performance relative to competitors

Question 4

What makes a good strategy?

Answer 4

Analysis of the firm’s internal and external environement
formulating the firm’s corportate, business, and functional strategies
implementing a set of coherent actions to implement the firm’s guiding policy

Question 5

What is competitive advantage?

Answer 5

superior performance relative to other companies within the industry

Question 6

What is competitive disadvantage?

Answer 6

if a firm underperforms its rivals

Question 7

What is competitive parity?

Answer 7

When two firms perform at a equal rate

Question 8

What is a firm’s vision?

Answer 8

What are you looking to accomplish?

Question 9

What is a firm’s mission?

Answer 9

How will we accomplish our goals

Question 10

What are our values?

Answer 10

What commitments do we make

Question 11

What are the core values?

Answer 11

ethical standards and norms that govern an organization

Question 12

What is PESTEL?

Answer 12

Political, economic, sociocultural, tech, ecological, legal

evaluates the external factors on a firm

Question 13

What is industry convergence?

Answer 13

formerly unrelated industries begin to satisfy the same customer need

Question 14

What is an oligopoly?

Answer 14

a few large firms, high barrier to entry, differentiated products

Question 15

What is a perfectly competitive industry?

Answer 15

industry is fragmented, firms in the industry sell a commodity product, individual firms have little or no ability to raise prices

Question 16

What are the five forces in porter’s model?

Answer 16

threat of entry, power of buyers, power of suppliers, threat of substitutes, and rivalry among existing forces

Question 17

What are core competencies?

Answer 17

unique strengths embedded wihtin a firm, that are critical to gaining and sustaining a competitve advantage

Question 18

What is the resource-based view?

Answer 18

a model that sees certain types of resources as key to superior firm performance

Question 19

What is resource heterogenity?

Answer 19

assumption that a firm is a bundle of resources within the resource based view

Question 20

What is resource immobility?

Answer 20

assumption that a firm has resources that tend to be sticky and do not move easily from firm to firm in the resource based view

Question 21

What is the VRIO framework?

Answer 21

Valuable, Rare, Imitatable, Organized to capture value

Question 22

What is path dependence?

Answer 22

a situation in which the options one faces currently are limited by decisions made in the past

Question 23

What is causual ambiguity?

Answer 23

a situation in which the cause and effect of a situation aare not readily apparent

Question 24

What is core ridgity?

Answer 24

a former core competency that turned into a liability beause the firm failed to upgrade the competency as hte environement changed

Question 25

What are resource stocks?

Answer 25

the firm’s level of intanigble resources