Strategic Management Flashcards
7 cards from real MEM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Strategic Management flashcards as text
Which strategic framework evaluates a firm's resources using the criteria of Value, Rarity, Imitability, and Organization?
Answer: VRIO framework
The VRIO framework assesses whether a firm's resources and capabilities can provide a sustained competitive advantage.
In the context of corporate-level strategy, a company acquiring a supplier to control its input supply chain is an example of:
Answer: Backward vertical integration
Backward vertical integration occurs when a company acquires or controls entities in its upstream supply chain.
A 'first-mover advantage' in technology markets is BEST sustained through:
Answer: Building switching costs and network effects
Switching costs and network effects lock in early customers, making it costly or inconvenient for them to adopt competitor offerings.
The concept of 'strategic intent' in an organization refers to:
Answer: An ambitious long-term vision that stretches the organization beyond current capabilities
Strategic intent, introduced by Hamel and Prahalad, describes a compelling aspirational goal that motivates organizational effort and innovation.
When two engineering firms with complementary technologies form a joint venture, the PRIMARY strategic rationale is typically:
Answer: Accessing resources and capabilities neither possesses alone
Joint ventures allow firms to combine complementary strengths, share risks, and enter markets or develop technologies that would be difficult to achieve independently.
In a balanced scorecard, the 'learning and growth' perspective primarily measures:
Answer: Employee capabilities, information systems, and organizational culture
The learning and growth perspective focuses on the intangible assets—human capital, information capital, and organizational capital—that enable strategy execution.
A 'blue ocean strategy' is characterized by:
Answer: Creating uncontested market space by redefining industry boundaries
Blue ocean strategy, developed by Kim and Mauborgne, focuses on creating new demand in uncontested space rather than competing in existing 'red ocean' markets.