MGMT 4513 Final Exam || with 100% Errorless Solutions.
Question : Strategic Management
Correct answer: the study of why some firms outperform
others
Question : Mission
Correct answer: statement explaining why a company exists.
both internal and external. No time frame.
Question : Vision
Correct answer: Crystallization of what leaders want firm to
be. Guides development of strategy and organization.achievable within a time period. Internal except for slogans.
Question : Goals/ Strat. Plan
Correct answer: How to beat present and potential
competitors. Set of actions to provide products or services that create more value than their cost. Constantly changing.Internal use.
Question : Strat Mgmt- Firm Perspective
Correct answer: Goals and values, resources and capabilities,
structure and systems.
Question : Strat Mgmt- The industry Environment
Correct answer: competitors, customers, suppliers
Question : Alt. views of "outperform others"
Correct answer: economic value model: max shareholder wealth Objectives other than wealth creation
Stakeholder surplus model: defines benificiary group and max
wealth for total group
Question : How do we know if a company is performing
well?
Correct answer: -to replace assets a firm must earn return on
capital in excess of cost of capital
-to survive acquisition, firm must achieve stock market value in excess of break-up value
Question : Value Metrics Framework
Correct answer: shareholder value: market value of the firm, MVA, return to shareholders.
Intrinsic Value: discounted CFs, real option values
Financial Indicators: Return on Capital, Growth, EVA
Value Drivers: Market Share, Scale Economies, Innovation,
Brands
Question : 2 Approaches for eval. firm performance
Correct answer: 1. financial Ratio analysis: balance sheet, income stmt
2. Stakeholder Perspective: employees, owners, customers
Question : Stakeholders
Correct answer: individuals and groups who can affect the
strategic outcomes achieved & have enforceable claims on a firms performance
Capital Market, Product Market and Organizational Stakeholders.
Question : Strategic Competitiveness
Correct answer: When a firm successfully formulates and
implements a value-creating strategy
Question : Sustainable Competitive Advantage
Correct answer: When competitors are unable to duplicate a
companys value-creating strategy
Question : Strategic Management Process
Correct answer: full set of commitments, decisions, and
actions required for a firm to achieve strategic competitiveness and earn above-average returns
Question : Risk
Correct answer: an investor's uncertainty about the economic
gains or losses that will result from a particular investment
