SM midterm

Creating competitive advantage through effective management of the strategy-making process

• strategy formulation

• strategy implementation

• strategic leadership

• corporate strategy

• busines level strategy

Selecting strategies based on analysis of an organization’s external and internal environment.

• strategic leadership

• strategy implementation

• corporate strategy

• strategy formulation

• business level strategy

Putting strategies into action

• strategic leadership

• strategy formulation

• strategy implementation

• corporate strategy

• business level strategy

Equity capital for which there is no guarantee that stockholders will ever recoup their investment or earn a decent return

• shareholder value

• profitability

• risk capital

• profit growth

• corporate capital

The achieved advantage over rivals when a company’s profitability is greater than the average profitability of firms in its industry

• sustained competitive advantage

• business model

• risk capital

• competitive advantage

• comparative advantage

A company’s strategies enable it to maintain above-average profitability for a number of years.

• competitive advantage

• comparative advantage

• business model

• risk capital

• sustained competitive advantage

The conception of how strategies should work together as a whole to enable the company to achieve competitive advantage.

• sustained competitive advantage

• business model

• competitive advantage

• comparative advantage

• risk capital

A business model encompasses the totality of how a company will:

• Select its customers.

• Grow the business over time.

• Deliver goods and services to the market.

• Configure its resources.

• all true

Performance ratio that aims to measure the percentage return that a company earns on invested capital. The ratio shows how efficiently a company is using the investors’ funds to generate income

• ROA

• ROE

• ROI

• ROIC

• Sales growth

Managers who bear responsibility for the overall performance of the company or for one of its major self-contained subunits or divisions.

• functional managers

• general managers

• multidivisional managers

• business level managers

• supervisors