CBME 101

MIDTERM EXAMINATION STUDY GUIDE FOR TEST II (DEFINITION)

IMPORTANT: The following terms MUST be defined in your own words during the Midterm
Examination. PLEASE DO NOT MEMORIZE!

Strategic Management Strategic Plan

Environmental Scanning Business Plan
Environmental Monitoring Horizontal Integration
Culture Vertical Integration
Competitors Forward Integration
Strategic Intelligence Political Forces
Strategic Performance Supply Management
Social Forces Value Chain
Community Market Share
Strategic Planning Market Growth
Organizational Competitiveness Strategy Gap Analysis
Strategy Formation Sourcing and Ordering
Technological Forces Inventory Management
Competitors International Strategies
Strategy Mapping Multinational Strategies
Suppliers Porter’s Five Forces
Political Forces Lead Time
Suppliers Transformational Process
SWOT Analysis Global Strategies
PESTLE Analysis Backward Integration

MIDTERM EXAMINATION STUDY GUIDE FOR TEST III

IMPORTANT:

Determine the appropriate answers to the following questions in advance yet, only 6 questions
will appear in your midterm examination. Be sure that you can answer each question in not less
than 5 sentences but not more than 10 sentences.

DO NOT MEMORIZE!

As you take the Midterm Examination, remember that you are in time constraint and Test III has
60 points. So, answer Test III first before you move to answer Tests I and II.

HAPPY STUDYING! ENJOY!

 Explain how value chain analysis could help a business organization.

 Why is appropriate business resource allocation a key to business success?
 What can you (as a student) do to achieve personal growth?
 How can social forces affect a business?
 Can management trust employees to make decisions and hold them accountable?
Support your answer.
 One of the questions In the strategic planning process is “Where are you now?”. How
can the answers to this question determine the business’ future?
 Explain how the factors in Porter's five forces model (rivalry among competitors, and
the threat of potential entrants, suppliers, substitutes, and buyers) differ from the other
environmental elements (economic, technological, socio-cultural, political-legal, and
global).
 Why strategies are needed for the favorable existence of a business enterprise?
 Why is coordination an important component of a business organization?
 Explain: Political institutions are part of the success or failure of businesses in the
country.
 Explain: Competition is important for businesses to grow and prosper.
 What strategy or strategies must be implemented if the firm would like to expand both
local and abroad? Why do you think so?
 Why is the market-oriented organizational structure central to the existence of a
business organization?
 How can corporate culture be changed?
 What considerations should small-business entrepreneurs keep in mind when they are
deciding if a company should follow a growth or a stability strategy?
 Why is dealing with customers a challenging one? Why will businesses make
customers a special element in business operations?
 How does innovation occur in an organization?
 Why is strategic management important to the firm? How does the firm give
importance to strategic management?
 Describe in general terms how each element of the external environment (economic,
technological, socio-cultural, political-legal, global, and business) affects business
firms.
 Why are governments called the ‘business caretaker’? As a business caretaker, is it
the right of the government to interfere in the workings of the market? Why or why not?
 Why is there a need to determine the present status of a business organization? Is
there really a need for a strategic review within the business organization? Why or why
not?
 How are activities classified in the value chain analysis model?
 In what ways can micro and small businesses conduct strategic planning at the least
possible cost? Is it really necessary to do strategic planning at the face of these limited
resources? Why or why not?
 Why is a strategic plan vital in the existence of a business organization? Would it be
acceptable for a business organization to simply deny the existence of a strategic
plan? Why or why not?
 How does a firm encourage work-life balance?
 What is the objective of analyzing the physical and societal environments of a firm?