Economic Strategy for Business Decisions

Final Exam Study Guide

Please schedule a time to take your exam through Examity. Remember these terms and theories are to guide
your studies. It is not completely exhaustive. Please study Chapters 9-13 fully, but spend the most time in these
areas.

Chapter 9 Chapter 11
• Share strategy • Resource heterogeneity
• Capability • Resource-based theory of the firm
• Value Add Analysis • Firm specific assets
• Indifference curve • Dynamic capabilities
• Resource • Sunk cost effect
• Industry segmentation matrix • Switching costs
• Focus strategy • Capabilities
• Value chain • Shock
• Margin strategy • Creative destruction

Chapter 10 Chapter 12
• Mean reversion • Herding
• Simultaneous search • 360 degree peer review
• Risk adjustment • Performance measure
• Certification bias • Pay for performance contract
• Non-profits • Management by objectives system
• Report card • Organizational structure
• Outcomes • Risk neutral
• Voluntary signal of quality • Implicit incentive contract
• Experience goods
• Search goods Chapter 13
• Task interdependence
• Coordination
• Accountability
• Matrix structure