FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Strategic Management and Strategic Competitiveness

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

The rate of technology diffusion has been steadily increasing over the last two decades.

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

The strategic management process is

A) a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm.
B) a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment.
C) a process directed by top-management with input from other stakeholders that seeks to achieve above-average returns for investors through effective use of the organization's resources.
D) the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness.

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

Describe an organization's various stakeholders and their different interests. Under what condition can the firm most easily satisfy all stakeholders? If the firm cannot satisfy all stakeholders, which ones must it satisfy in order to survive?

Knowledge is composed of all the following EXCEPT

Capital market stakeholders include

Case Scenario 1: Palmetto. Palmetto was an early pioneer of personal data assistants (PDAs) and dominates that market space (in terms of market share) with its core product, the Palmetto Pidgy. Because this product category was entirely new to the market, Palmetto had to internally develop the hardware and software sides of the business, and today is both a manufacturer of PDAs and a programmer and licensor of its PDA operating system software. Recently, however, the hand-held device maker's performance has taken a dive as a result of slumping sales and costly inventory problems. New large entrants are entering both the equipment and software sides of its business, putting further pressure on margins. Management is currently considering its options, including the break up of Palmetto into two separate, independent public companies - one devoted to hardware, the other software. -(Refer to Case Scenario 1) What primary corporate strategy issues does Palmetto face?

The goal of strategic management is to develop a competitive advantage that is permanently sustainable.

The advent of inexpensive high-performance digital cameras may be an example of

A firm's mission

A competitive advantage

Case Scenario 2: Jewell Company. Jewell Company is a diversified manufacturer and marketer of simple household items, cookware, and hardware. In its annual report, it expresses its strategy as follows: "Jewell manufactures and markets staple volume lines to the volume purchaser. We aim to increase shareholder value by continuing to build a company with superior earnings per share growth and return on investment (ROI), and to earn a reputation for excellence in performance and management. We plan to do this by merchandising to the customer goods market a multi-product offering with superior customer service performance for maximum market leverage. Through this we will achieve an ROI of 20% plus EPS growth of 15%, with the constraint that debt not exceed half of our equity." -(Refer to Case Scenario 2) Does Jewell Company's statement of strategy include a vision statement or a mission statement? Why or why not?

An effective vision statement will specify the market to be served.

Investors in an established firm judge the adequacy of the returns on their investment in relation to:

An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values.

If a firm can earn at least average returns it will be able to survive.

One way to evaluate if Airbus had achieved above average returns would be to compare stock market returns against those of Boeing.

Hypercompetition is a characteristic of the current competitive landscape. Define hypercompetition and identify its primary drivers. How can organizations survive in a hypercompetitive environment?

The five forces model suggests that an industry's profitability is a function of all the following factors EXCEPT

Five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy.

Dissatisfied capital market stakeholders may: