Professional Documents
Culture Documents
HTH668 TEST 1
Part A
1. B. Stakeholders
2. C. Internal and external environment
3. A. Flexible
4. D. Traditional
5. D. Enactment
6. C. One that is not planned or intended
7. D. Industry
8. D. Situation analysis
9. B. Stakeholder approach
10. A. Resource based view
Strategic management is a process through which organizations analyze and learn from their
internal and external environments, establish strategic direction, create strategies that are
intended to move the organization in that direction, and implement those strategies, all in an
effort to satisfy key stakeholders.
b) Describe and give an example for each of the following; monopoly, oligopoly and
hypercompetition.
Monopoly
A monopoly is a situation in which one firm is the only significant provider of a good or
service. For example in monopoly situation, one company dominates all others in a
sector. Monopolists may misuse their dominant positions through activities such as
engaging in unfair practices that limit the ability of competitors to compete, erecting
entry barriers to keep new competitors out of the industry, or charging too much for
products or services.
Oligopoly
An oligopoly exists when an industry contains a few very large firms (very common in
established industries). For example, cruise industries and theme park. Other example,
airline industries in the United States, the European Union, and Asia are dominated by a
few large carriers.
Hypercompetition
Hypercompetition is a condition of rapidly escalating competition based on price, quality,
first - mover actions, defensive moves to protect markets, formation of strategic alliances,
and reliance on wealthy parent companies. For example, airlines industries are
hypercompetitive. Competitive practices are forcing profits to lower and lower levels.