Introduction

Question 1

The full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns

Answer 1

Strategic Management Process

Question 2

is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage

Answer 2

Strategy

Question 3

Achieved when a firm implements a strategy that creates superior value for customers and
that competitors are unable to duplicate or find it too costly to try to imitate.

Answer 3

Competitive Advantage

Question 4

Achieved when a firm successfully formulates and implements a value-creating strategy

Answer 4

Strategic Competitiveness

Question 5

Occurs when a firm develops a strategy that competitors are not simultaneously implementing
Provides benefits which current and potential competitors are unable to duplicate

Answer 5

Above-Average Returns

Question 6

An investor’s uncertainty about the economic gains or losses that will result from a particular investment

Answer 6

Risk

Question 7

Returns that are equal to those an investor expects to earn from other investments with a similar amount of risk

Answer 7

Average Returns

Question 8

Dynamics of strategic maneuvering among global
and innovative combatants
Price-quality positioning, new
know-how, first mover
Protect or invade established product or geographic markets

Answer 8

Hyper competitive environments

Question 9

Goods, services, people, skills, and ideas move freely across geographic borders.
Spread of economic innovations around the world.
Political and cultural adjustments are required.

Answer 9

Emergence of global economy

Question 10

Increasing rate of technological change and diffusion
The information age
Increasing knowledge intensity

Answer 10

Rapid technological change

Question 11

describes competition that is excessive such that it creates inherent instability and necessitates constant disruptive change for firms in the competitive landscape

Answer 11

Hyper Competition

Question 12

Technology diffusion and disruptive technologies
The information age,
Increasing knowledge intensity.

Answer 12

Technology and Technological Changes

Question 13

is one in which goods, services, people, skills, and ideas move freely across geographic Borders.

Answer 13

Global Economy

Question 14

is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders

Answer 14

Globalization

Question 15

A set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment
It involves coping with uncertainty and the accompanying risks

Answer 15

Strategic Flexibility

Question 16

3 parts that comprises Strategic Flexibility

Answer 16

Organizational Slack
Strategic Reorientation
Capacity to learn

Question 17

Give the 2 Alternative Models of Superior Returns

Answer 17

Industrial Organization Model

Resourced-based Model

Question 18

Capacity of an integrated set of resources to integratively perform a task or activity

Answer 18

Capability

Question 19

4 Attributes of Resources and Capabilities

Competitive Advantage

Answer 19

Valuable
Rare
Costly to Imitate
Nonsubstitutable

Question 20

allow the firm to exploit opportunities or neutralize threats in its external environment

Answer 20

Valuable

Question 21

possessed by few, if any, current and potential competitors

Answer 21

Rare

Question 22

when other firms cannot obtain them or must obtain them at a much higher cost

Answer 22

Costly to Imitate

Question 23

the firm is organized appropriately to obtain the full benefits of the resources in order to realize a competitive advantage

Answer 23

Nonsubstitutable

Question 24

Resources and Capabilities that meet the 4 criteria become source of:

Answer 24

Core Competencies

Question 25

Core Competencies are the basis for a firms:

Answer 25

Competitive Advantage
Strategic Competitiveness
Ability to Earn Above Average Returns

Question 26

The key purpose of vision and mission statements:

Answer 26

is to inform stakeholders of what the firm is, what it seeks to accomplish, and who its seeks to serve.

Question 27

is a picture of what the firm wants to be and, in broad terms, what it wants to
ultimately achieve.

Answer 27

Vision

Question 28

points the firm in the direction of where it would like to be in the years to come

Answer 28

Vision

Question 29

It specifies the businesses in which the firm intends to compete and the customers it intends to serve.

Answer 29

Mission

Question 30

is more concrete than its vision

Answer 30

Mission

Question 31

Together, the vision and mission provide the foundation that

Answer 31

the firm needs to choose and implement one or more strategies.

Question 32

3 kinds of Stakeholders

Answer 32

Capital Market Stakeholder
Product Market Stakeholder
Organizational Stakeholder

Question 33

Who are the Capital Market Stakeholder

Answer 33

Shareholders
Major suppliers of capital
Banks
Private lenders
Venture capitalists

Question 34

Who are the Product Market Stakeholder

Answer 34

Primary customers
Suppliers
Host communities
Unions

Question 35

Who are the Organizational Stakeholder

Answer 35

Employees
Managers
Nonmanagers