BSG Midterm Exam 1 Study
Guide Recent 2023 With Verified
Questions And Answers
Lecture 1
● company’s strategy - represents managerial
... [Show More] commitment to undertake one set of actions rather than
another
● What is a competitive advantage and why does it matter?
when a large number of buyers are drawn to purchase its products/services over a
competitor
● What is a sustainable competitive advantage?
when basis for buyer preferences for product/service compared to competitors is
durable,despite competitors’ best efforts to nullify/overcome appeal of its
● What is abusiness model and how does it differ from a company’s strategy?
Concerns whether revenues & costs flowing from strategy demonstrate firm can be
profitable &viable
● Customer Value - How firm will satisfy customer needs at a price customers consider a good value.
● ●Profit Proposition - How firm will create/deliver customer value in a cost-efficient manner, at a price
that produces enough revenues to cover costs & attractive profits.
● What are the tests of the validity of a company’s profit proposition?
Goodness of fit test, competitive advantage test, performance test (must pass all 3)
Lecture 2
● What are the definitions of a strategic vision, vision statement, and mission statement?
Strategic Vision - describes route a firm intends to take in developing &
strengthening itsbusiness, lays out the firm’s strategic course in preparing for the
future.
Vision statement - clearly conveys a firm’s long-term direction
Mission statement - Briefly describes the present
business
● What are the key differences between them?
Strategic vision is forward looking and mission statement is present
● What are a company’s core values?
Beliefs, traits, behavioral norms that firms employees are expected to display when
conductingbusiness
● What are a firm's objectives? What is a stretch objective?
Objectives - organizations performance targets - results management wants to achieve
Stretch objectives - use compensation incentives to motivate organization members to
perform
● What are the key elements of a company’s strategic plan?
Strategic vision, business mission, core values
Strategic & financial objectives
Chosen strategy
Lecture 3
● What is game theory?
Formal study of strategic interaction
● Know the three elements that make up a game. What are the definitions of each element?
Players - set of participants in game
Strategies - choices available to players in game
Payoffs - What each player receives in game based on actions chosen by players
● What is a simultaneous game? A sequential game? What are the differences?
Simultaneous game - players in game either make their decisions at the same time
or makechoices without knowledge of the other players choice
Sequential game - where game has a strict order in which players make their [Show Less]