MAN 4720 (Capstone) UCF - Midterm Exam - Spring 2026 (Christopher Leo) - Quizlet V2

What UCF class, exam, term, and professor is this quizlet made for

MAN 4720 (Capstone) - Midterm Exam - Spring 2026 (Christopher Leo)

Strategy

Goal-directed actions a firm takes to gain and sustain competitive advantage

Strategic Management

The process of analyzing, formulating, and implementing strategy

Competitive Advantage

When a firm creates more economic value than its competitors

Economic Value Creation

The difference between the value a customer is willing to pay and the cost to produce the product

AFI Framework

Strategic management model consisting of Analysis, Formulation, and Implementation

Analysis (AFI)

Evaluating external and internal environments

Formulation (AFI)

Deciding what strategy the firm should pursue

Implementation (AFI)

Putting strategy into action through structure, culture, and controls

Vision Statement

Describes what an organization ultimately wants to become

Mission Statement

Defines the organization's purpose and scope of operations

Core Values

Fundamental beliefs that guide behavior and decision making

External Analysis

Examining forces outside the firm that affect competition

Internal Analysis

Evaluating a firm's resources, capabilities, and core competencies

PESTEL Framework

Tool used to analyze macro-environmental factors affecting an industry

Political Factors

Government policies, regulations, and political stability affecting business

Economic Factors

Interest rates, inflation, economic growth, and unemployment

Sociocultural Factors

Demographics, lifestyles, and cultural trends affecting demand

Technological Factors

Innovation, new technologies, and technological change

Environmental Factors

Ecological concerns and sustainability issues affecting industries

Legal Factors

Laws and regulations governing businesses

Porter's Five Forces

Framework used to analyze the competitive intensity and profitability of an industry

Threat of New Entrants

The risk that new competitors will enter the industry

Bargaining Power of Suppliers

The ability of suppliers to influence prices or quality

Bargaining Power of Buyers

The ability of customers to influence prices and terms

Threat of Substitutes

The availability of alternative products satisfying the same need

Industry Rivalry

The intensity of competition among existing firms

Strategic Group

A group of firms within an industry that follow similar strategies

Strategic Group Map

A visual representation of strategic groups in an industry

Resource-Based View (RBV)

A theory stating that competitive advantage comes from unique firm resources

Resources

Assets a firm controls that enable it to create value

Capabilities

A firm's ability to deploy resources effectively

Core Competencies

Unique strengths that allow a firm to create superior value

Tangible Resources

Physical assets such as buildings, equipment, and cash

Intangible Resources

Non-physical assets such as brand reputation, culture, and patents

Value Chain

A model that identifies activities that add value to a product

Primary Activities

Activities directly involved in producing and selling a product

Inbound Logistics

Receiving, storing, and distributing inputs

Operations

Transforming inputs into finished products

Outbound Logistics

Delivering products to customers

Marketing and Sales

Activities used to promote and sell products

Service

Activities that maintain or improve product value after purchase

Support Activities

Activities that assist primary activities

Firm Infrastructure

Organizational structure, control systems, and company culture

Human Resource Management

Recruiting, training, and compensating employees

Technology Development

Research, development, and innovation activities

Procurement

Purchasing inputs and resources used in production

VRIO Framework

Tool used to evaluate whether a resource can create competitive advantage

Valuable (VRIO)

Resource helps exploit opportunities or neutralize threats

Rare (VRIO)

Resource possessed by few competitors

Costly to Imitate (VRIO)

Resource difficult for competitors to copy

Organized to Capture Value (VRIO)

Firm has systems in place to fully utilize the resource

Competitive Parity

Result when a resource is valuable but not rare

Temporary Competitive Advantage

Result when a resource is valuable and rare but easy to imitate

Sustained Competitive Advantage

Result when a resource passes all VRIO tests

SWOT Analysis

Framework that combines internal and external analysis

Strengths

Internal capabilities that help a firm compete

Weaknesses

Internal limitations that hinder performance

Opportunities

External conditions that could benefit the firm

Threats

External conditions that could harm the firm

Strategic Positioning

Performing different activities than rivals or performing similar activities differently

Operational Effectiveness

Performing the same activities better than competitors

Strategic Trade-Off

Choosing one strategic position means giving up others

Cost Leadership Strategy

Becoming the lowest cost producer in the industry

Differentiation Strategy

Offering products perceived as unique by customers

Focused Strategy

Targeting a narrow market segment

Best-Cost Strategy

Providing high value while controlling costs

Stuck in the Middle

When a firm fails to achieve either cost leadership or differentiation

Balanced Scorecard

Performance measurement system including financial and non-financial metrics

Financial Perspective

Measures financial performance

Customer Perspective

Measures customer satisfaction and loyalty

Internal Process Perspective

Measures operational efficiency

Learning and Growth Perspective

Measures employee skills, innovation, and improvement

Triple Bottom Line

Evaluating performance based on people, planet, and profit

People (TBL)

Social impact and responsibility

Planet (TBL)

Environmental sustainability

Profit (TBL)

Financial performance

Business Model

How a company creates, delivers, and captures value

Industry Structure

The overall arrangement of firms and competitive forces in an industry

Barriers to Entry

Obstacles that make it difficult for new firms to enter an industry

Economies of Scale

Cost advantages gained through larger production volumes

Switching Costs

Costs customers face when switching to another product

Complementary Products

Products that increase the value of another product

Substitutes

Different products that fulfill the same need

Strategic Leadership

Leaders' ability to guide an organization toward long-term success

Strategic Decision Making

Choosing actions that shape the firm's long-term direction

Strategic Fit

Alignment between a firm's strategy and its environment

Strategic Failure

When a firm cannot adapt to environmental changes

Environmental Uncertainty

When external conditions are difficult to predict

Strategic Adaptation

Adjusting strategies to respond to environmental changes

Industry Attractiveness

The potential profitability of an industry based on competitive forces

Accounting Profitability Example

Metrics such as Return on Invested Capital (ROIC) are used to compare firm performance.

Industry Life Cycle

The stages an industry goes through including introduction, growth, maturity, and decline.

Introduction Stage

Early stage where products are first introduced and demand is uncertain.

Growth Stage

Stage where industry demand expands rapidly and firms compete for market share.

Maturity Stage

Stage where industry growth slows and competition becomes more intense.

Industry Environment

The set of competitive forces and firms within the same industry that directly influence a company's performance.

General Environment

The broader societal forces that affect industries and organizations indirectly.

Strategic Issue Identification

The process of recognizing major opportunities or threats that affect a firm's strategy.

Strategic Position Defense

Actions taken by a firm to protect its competitive advantage from competitors.