1 Guidance for Preparing for Midterm Exam

2 Exam will be on Thursday, August 14, 2014 Exam will begin exactly at 8:30 am; students arriving after 8:45 am will not be permitted to take the exam and will earn a grade of ZERO (0) for the midterm exam Exam will be all Essay Bring own pen and pencil for writing, paper will be provided for writing your responses. Midterm Exam covers Chapters 1, 2, 3, 4, and 5 and class discussions. Review PowerPoint slides for each chapter and connect slides to materials in each chapter and lecture notes.

3 Chapter 1: Be able to identify and explain the three components of strategic management and their interconnections Be able to explain the concept of strategic issue and its connection to internal and external analysis Be able to explain corporate governance and the role of the Board of Directors Be able to explain the strategic management perspective Be able to explain the modern flow of strategic management and why the flow exists Be able to explain how the hierarchy of goals provides coherence in strategic direction

4 Chapter 2: Be able to identify the components of the general environment and explain why they are important for strategy Be able to explain the following tools for analyzing an industry –Porter Five-Forces Model of Competition (determining the attractiveness of an industry) –Strategic Groups –Key Success Factors –Competitive Changes During industry Evolution Be able to discuss the “How to Get Hired” handout as an example of external analysis for what you would need to do for your job search.

5 Chapter 3: Be able to explain: the meanings of competitive advantage and core competencies; their relationship to each other; and why transient advantage should replace competitive advantage Be able to explain the value chain, its components, and its usefulness for internal analysis Be able to explain the resource-based view of the firm and the three types of resources Be able to explain the DuPont Formula and its usefulness Be able to explain how internal and external analyses are combined and what the combination leads to

Chapter 4: Be able to explain why human capital, social capital, and knowledge are critical to modern business competition Explain the three factors that must be managed for the firm’s human capital Be able to explain social capital and how it can be developed

Chapter 5: Be able to describe cost leadership, differentiation, and speed as competitive strategies and how they can be implemented in the value chain Be able to explain how the Internet can support cost leadership and differentiation strategies Be able to explain focus as a strategy 7

8 Other Preparation: Know the lessons for doing strategy from the class discussions of (1) Forced Retrenchment at Atkinson, (2) Robin Hood case and (3) Standard Oil of Indiana case