Exam 1: Strategic Management and Strategic Competitiveness

Firms use both the ______ and ______ models. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm.

Essentially, _______ has become one of the world's largest markets with 700 million potential consumers.

When a firm earns lower-than-average returns, the highest priority is given to satisfying the needs of capital market stakeholders over the needs of product market and organizational shareholders.

Which of the following statements about organizational knowledge is correct?

The goal of the organization's ______ is to point the firm in the direction of where it would like to be in the years to come.

______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes.

The rapid rate of technological diffusion has increased the competitive benefits of patents.

The firm's ______ provide the foundation for choosing one or more ______ and deciding how to implement them.

It is important to emphasize that almost all strategic management process decisions have ______ because they are related to how a firm interacts with its stakeholders.

Examples of incremental innovations include iPods, PDAs, Wi-Fi, and web browser software.

Relative power is the most critical element for prioritizing the demands of stakeholders.

The "liability of foreignness" is the:

Developed countries still have major advantages in their access to information technology when compared to emerging economies because of the significant cost of the infrastructure needed for computing power.

The culmination of the strategic management process is:

?Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices.

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

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?

Describe and discuss the resource-based model of above-average returns.

The new CEO of Opacity Enterprises is determined to make the long-established firm strategically flexible. The CEO feels that the employees of the company have the ability, training, and resources to engage in continuous learning.  The CEO must encourage ambidextrous learning, absorbing new knowledge and building incremental knowledge.

According to Hitt, the final responsibility for forming the organization's mission lies with the: