WPC 480 MIDTERM Questions With
Complete Solutions
Strategic Management Process full set of commitment, decisions, and actions required for
a firm to achieve strategic competitiveness and earn above-average returns
first step is to ANALYZE (external and internal resources, capabilities, core c...
Strategic Management Process full set of commitment, decisions, and actions required for
a firm to achieve strategic competitiveness and earn above-average returns
first step is to ANALYZE (external and internal resources, capabilities, core competencies), next
STRATEGIZE (formulation and implementation), then take action to enact strategy to have good
PERFORMANCE
Todays competitive markets: 1. The global economy
2. Globalization
3. Rapid technological change
4. Increasing importance of knowledge and people
Hypercompetition -A term often used to capture the realities of the competitive landscape.
-Emergence of GLOBAL ECONOMY and TECHNOLOGY (rapid change) are two primary
drivers of hyper-competitive environments and nature of todays competitive landscape
, WPC 480 MIDTERM Questions With
Complete Solutions
Other strategic options:
-Use of
price-quality positioning to build market presence
-Creation of new know-how and
use of first-mover advantage
-Protection or invasion of established geographic or product markets
The Global competitive landscape Increasing:
-Market volatility and instability due to
the rapid pace of change in markets
-Globalized flow of financial capital
-Strategic and operational complexity
of global-scale competition
-Need for flexibility, speed, innovation,
and integration in the use of technology
-Rising product quality standards
Decreasing:
, WPC 480 MIDTERM Questions With
Complete Solutions
-Time for adapting to change
-Traditional sources of competitive advantage
-Traditional managerial mindset
Technology and Technological Changes Technology trends impacting the global
competitive environment
-Increasing rate of technology diffusion and the emergence
of disruptive technologies
-The information age: Internet and the global proliferation of low-cost computing power
-Increasing knowledge intensity
as an intangible source of competitive advantage
In order to cope with new marketplace... Strategic Flexibility
-coping with the uncertainty and risks of hypercompetitive environments.
-requires continuous learning and applying the new and updated skills sets and competencies to
the firm's competitive advantage.
--must overcome built-up organizational inertia.
, WPC 480 MIDTERM Questions With
Complete Solutions
What is the marketplace like for today's firms? •A piece of it has moved online
•Globalization, firms were competing with local firms, now you're competing with national firms
•Omni-channel
•More regulations trying to hold CEO's more accountable
•Consumers are more demanding because there are so many other options so they want better
quality for cheaper price
•Pressure to innovate
-Hypercompetition
Where do firm profits come from? o Sales revenue, brand recognition
o Firms that have something valuable internally make a lot of money (resources, capabilities)
o The nature of the industry (some just picked an industry that just isn't very profitable)
o Firm performance comes from
♣ 1. Industry (I/O, Porters 5 Forces)
♣ 2. Firm (e.g., Resource-Based Model)
Can we model this? o Yes, the I/O Model = industry becomes homogeneous
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