STRAMA MIDTERM REVIEWER

Question 1

Outperforming competitors or the industry average over a prolonged period of time

Answer 1

Sustainable competitive advantage

Question 2

Superior performance relative to other competitors in the same industry or the average industry

Answer 2

Competitive Advantage

Question 3

Performance of two or more firms at the same level

Answer 3

Competitive Parity

Question 4

_______ is the set of goal-directed actions that a firm takes to gain and sustain superior performance relative to competitors

Answer 4

Strategy

Question 5

The outcome of a rational and structured top-down strategic plan

Answer 5

Intended Strategy

Question 6

Individuals or groups that have a claim on or interest in the firms performance and continued survival. They make specific contributions for which they expect rewards in return

Answer 6

Stakeholder strategy

Question 7

Statement of principles to guide an organization as it works to achieve it’s visio. and fulfill mission, for both internal and external interactions; it often includes explicit ethical considerations.

Answer 7

Core Values

Question 8

Statement of principles to guide an organization as it works to achieve it’s visio. and fulfill mission, for both internal and external interactions; it often includes explicit ethical considerations.

Answer 8

Core Values

Question 9

A statement that captures an organization’s purpose and aspiration. It spells out what the organization ultimately wants to accomplish

Answer 9

Vision

Question 10

_____ is a description of what an organization does, the products and services it plans to provide, and the markets in which it will compete

Answer 10

Mission

Question 11

A Strt h goal that pervades the entire organization with a sense of purpose

Answer 11

Strategic Intent

Question 12

The driving force behind organizational success.It involves executives using their power and influence to guide their organizations towards achieving competitive advantage.

Answer 12

Strategic Leadership

Question 13

Strategy process in which organizational and structure and system allow bottom-up strategic initiatives to emerge and be evaluated and coordinated by top management.

Answer 13

Strategy as planned emerge

Question 14

One of the AFI Strategy Framework that focuses on putting the strategy into action, allocating resources, developing organizational structures, and motivating employees.

Answer 14

Implement

Question 15

One of the AFI Strategy Framework that focuses on developing strategic goals, objectives, action plans based on the analysis. This involve crafting a vision, mission, and core values.

Answer 15

Analysis

Question 16

A framework that helps firms recognize and address the economic, legal, social, and philanthropic expectations that society has of the business enterprise at a given point in time.

Answer 16

Corporate Social Responsibility (CSR)

Question 17

The choice of strategy, including where and how to compete

Answer 17

Strategy Formulation

Question 18

A rational, data-driven strategy process through which top management attempts to program the future success.

Answer 18

Top-Down Planning

Question 19

One of the key elements of strategic management process to address the competitive challenge through strategy formulation

Answer 19

Guiding Policy

Question 20

Strategy planning activity which top managememt envision different what-if scenarios to anticipate plausible futures in order to derive strategic responses

Answer 20

Scenario Planning

Question 21

A_____ is needed to identify the competitive challenge. It includes analys
zing the firms external and internal environments

Answer 21

Diagnosis

Question 22

Any assets that a firm can draw on when formulating and implementing a strategy

Answer 22

Resources

Question 23

The number of firms that possess it is less than the number of firms it would require to reach a state of perfect competition

Answer 23

Rare Resources

Question 24

It helps a firm exploit an external opportunity or offset an external threat.

Answer 24

Valuable Resource

Question 25

Assumption in the resources-based view that a firm has resources that tend to be “sticky” and that do not move easily from firm to firm.

Answer 25

Resource Immobility

Question 26

The internal activities a. firm engages in when transforming input into output; each activity adds

Answer 26

Value chain

Question 27

A process in which the options in a current situation are limited by decisions made in the past

Answer 27

Path Dependence

Question 28

The amount that creditors earn for lending their money and the amount that debtors pay to use that money, adjust for inflation.

Answer 28

Interest Rates

Question 29

Type of macroeconomics factors that measures the change in the value of goods and services produced by a nation’s economy.

Answer 29

Growth Rate

Question 30

Determines how many dollars one must pay for a unit of foreign currency

Answer 30

Currency exchange rates

Question 31

A critical intangible resource that can provide a strong isolating mechanism, thus help sustain a competitive advantage.

Answer 31

Intellectual property(IP) Protection

Question 32

The relative bargaining power of suppliers is high when.

Answer 32

They offer products that are differentiated

Question 33

Describe a firm's ability to create, deploy, modify, reconfigure, upgrade and leverage its resources over time in its quest for competitive advantage

Answer 33

Dynamic Capabilities

Question 34

Organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically

Answer 34

Capabilities

Question 35

An external factor that captures a society’s cultures, norms, and values

Answer 35

Socio cultural

Question 36

An external factor that results from the pressure of various groups such as government bodies, nongovernmental organizations (NGOs), and social movements can exert to influence the decisions and behavior of firms.

Answer 36

Political Factors

Question 37

The threat of substitutes is high when

Answer 37

The substitute offers an attractive price/performance trade-off.

Question 38

The power of buyers is high when

Answer 38

Face low or no switching cost

Question 39

This relates to the pressure they can put on the producers margins by demanding a lower price or higher product quality

Answer 39

Power of buyers

Question 40

Unique strengths, embedded deep within a firm, that are critical to gaining and sustaining competitive advantage

Answer 40

Core Competencies

Question 41

The risk of potential competitors entering the industry

Answer 41

Threat of entry

Question 42

A framework that proposing strategic leaders main a dual focus on shareholder value creation and value creation for society

Answer 42

Shared Value Creation

Question 43

A framework to help managers achieve their strategic objectives more effectively. This approach harnesses multiple internal and external performance metrics to balance financial goals and strategic goals.

Answer 43

Balanced Scorecard

Question 44

A firm performance metric that captures the total dollar market value of a company’s total outstanding shares at any given point in time

Answer 44

Market Capitalization

Question 45

The difference between a buyer’s willingness to pay for a product or service and the firms total cost to produce it.

Answer 45

Economic value Creation

Question 46

The difference between the price charged (P) and the cost to produce ( C) and another term for profit.

Answer 46

Producer surplus

Question 47

Difference between the value a consumer attaches to a good or services (V) and what he. or she paid for it (P), or (V - P).

Answer 47

Consumer Surplus

Question 48

Combination of economic, social, and ecological concerns, that can lead to a sustainable strategy.

Answer 48

Triple bottom line

Question 49

The money provided by shareholders in exchange for an equity share in a company, it cannot be recovered if the firm goes bankrupt.

Answer 49

Risk Capital

Question 50

The idea that all available information about a firm’s past, current state, and expected future performance is embedded in the market price of the firm’s stock is called

Answer 50

Efficient-market Hypothesis

Question 51

The triple bottom line or 3Ps dimension.

Answer 51

Profit People Planet Not included - Power

Question 52

Generic business strategy that seeks to create the same or similar value for customers at a lower cost

Answer 52

Cost-Leadership Strategy

Question 53

Generic business strategy that seeks to create higher value for customers than the value that competitors create, while containing costs

Answer 53

Differentiation Strategy

Question 54

Generic business strategy that seeks to create the same or similar value for customers at a lower cost except with a narrow focus on a niche market

Answer 54

Focused Cost-leadership strategy

Question 55

The goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.

Answer 55

Business-level strategy

Question 56

Decreases in cost per unit as output increases

Answer 56

Economies of scale