Exam 1: What Is Strategy and the Strategic Management Process

Emergent strategies are theories of how to gain competitive advantage in an industry that emerge over time or that have been radically reshaped once they are initially implemented.

What is the residual claimants view of equity holders?

Fed Ex entered their market with a well-defined mission and objectives, making strategic choices and implementing those strategies. This is an example of which type of strategy?

If the average ROE in the heating and cooling industry is 10.1%, and Thermacorp's ROE is 17.3%, Thermacorp is said to have

Visionary firms earn substantially higher returns than average firms because they acknowledge that profit maximizing is their primary reason for existence.

Actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously are known as

Strategy implementation occurs when a firm adopts organizational policies and practices that are consistent with its strategy.

A firm's accounting performance is a measure of its competitive advantage calculated using information from a firm's published profit and loss and balance sheet statements.

Which of the following statements regarding firm mission is accurate?

The two types of measures of competitive advantage include

Firms whose mission is central to all they do are known as ________ firms.

A firm that earns its cost of capital is said to be earning

The center of Osterwalder and Pigneur's business model canvas is the

An important limitation of comparing a firm's performance to its cost of capital occurs when a firm is

Green Frog is an environmentally friendly firm in the cosmetics industry. Even though Green Frog is environmentally friendly, the strategic planning team had decided that financial performance is one of the company's top priorities. Which of the following is the best example of an objective the company might use to help it achieve its goal of superior financial performance?

Firms with strategies that are unlikely to be a source of competitive advantage will rarely provide the same career opportunities as firms with strategies that do generate such advantages.

Mission statements that are very inwardly focused and are defined only with reference to the personal values and priorities of its founders and top managers can hurt a firm's performance.

Economic measures of competitive advantage compare a firm's level of return to its costs of capital instead of to the average level of return to the industry.

Green Frog is an environmentally friendly firm in the cosmetics industry. If during the strategic planning process Green Frog tried to determine the critical threats and opportunities in its competitive environment, it would be performing a(n)

Discuss a firm's competitive advantage. Identify when a firm has a competitive advantage and distinguish between a temporary competitive advantage and a sustainable competitive advantage.