Midterm Study Guide
Question 1: Describe the strategic management process?
The ongoing process companies use to form a vision, analyze their external environment and their internal organization and
select one or more strategies to use to create value for customers and stakeholders, especially stakeholders.
Question 2: The MISSION of any company should focus on what?
Is focused on the markets the firm serves and the products it provides.
Question 3: What strategic management concept consists of a company’s mission and a picture of what the firm hopes to
become in the future?
Effective mission provides direction to the firm, while an effective vision inspires stakeholders to ethical actions as the firm
moves toward its intended future.
Question 4: What do we call the action plan that is designed to help a company achieve its vision?
Strategy.
Question 5: The statement that defines a company’s core intent and the business in which it intends to operate is known as what?
MISSION
Question 6: Population trends, income levels, and competition are conditions that can affect a firm’s performance. All of these
conditions are aspects of what?
Question 7: A company’s strengths, weaknesses and resources are conditions that affect its choice of strategies. All of these
conditions are aspects of what?
Question 8: Resources and capabilities that allow a firm to complete important tasks are known as what?
Question 9: Tangible assets, such as a strong balance sheet, and intangible assets like a company’s reputation or knowledge are
known as what?
Question 10: When a firm is able to integrate its resources and complete important tasks, the firm is said to possess what?
Question 11: When a company has core competencies that are different than the capabilities of competitors, these core
competencies are also known as what?
Question 12: When a company creates value for customers by performing key activities BETTER than its competitors, the firm
is said to possess what?
Question 13: When a firm creates value for customers by performing activities that its competitors can’t perform, the firm is said
to possess what?
