Book Questions - Chapter 1

In a nutshell, strategy is the art and science of _________. amassing wealth success and failure maintaining a work-life balance treating people fairly

success and failure

Which of the following are primary strategy objectives (check all that apply.) -maximizing sales -strengthening relationships -creating value -controlling costs

-creating value -controlling costs

a firm can gain a competitive advantage by providing goods and services ______(check all that apply) -that create more value for consumers than competitor's offerings -similar to competitors' offerings at a higher price -That cost less to produce than competitor's offerings, independent of the value it creates -that are similar quality to competitors' offerings but can be sold at a lower price due to lower costs

-that create more value for consumers than competitor's offerings -that are similar quality to competitors' offerings but can be sold at a lower price due to lower costs

Competitive parity occurs when ________ -two or more firms achieve the same performance results -the performance of two or more firms is superior to the industry average -two or more firms rely on international outsourcing to remain competitive -Two or more firms enter into a strategic alliance

-two or more firms achieve the same performance results

A good strategy consists of three elements. The first element is accomplished through analysis of the firm's external and internal environments. We also call this ___________.

a diagnosis of the competitive advantage

Which of the following are primary strategy objectives Maximizing sales creating value Strengthening relationships controlling costs

creating value controlling costs

Merck's decision to donate more than one billion treatments to help end river blindness free of charge was ____________ a way to quickly introduce a new drug driven by its organizational core values a strategic move designed to appease stakeholders a strategy aimed at creating greater brand awareness

driven by its organizational core values

Tesla's current success can first and foremost be attributed to _____ its implementation for its secret strategy its adherence to an aspirational vision its products' proven track records its reliance on government subsidies

its implementation for its secret strategy

_______vision statements do not describe how to provide solutions to customer needs. Product-oriented sales-oriented customer-oriented manufacturing-oriented

product-oriented

A competitive advantage that lasts for a long period of time is said to be ____________ Geographic theoretical sustainable topical accurate

sustainable

a powerful strategic commitment assures

that steps are taken to achieve the mission

Employees tend to adhere to organizational core values when_______ they are constantly reminded of the values via email notification they are often asked about the values the leaders of the organization also adhere to the values they observe other employees being let go when not adhering values

the leaders of the organization also adhere to the values

Strategy

the set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors

In crafting a strategic management plan, leaders must first determine the company's long-term objective. This means leaders must first define the organization's _______________-

vision

The element of a firm's strategy that summarizes the ultimate goals of the firm is known as the

vision

In the external analysis phase of the AFI strategy framework, managers should ask, "how does strategy come about?" "what is our process for making strategy so that we can be competitive" "how do external forces affect our strategy and competitive advantage?" "what is our mission and purpose"

"how do external forces affect our strategy and competitive advantage?"

managers often have to make decisions between two conflicting strategic options, otherwise known as ______ hot-points bad choices managerial dilemmas trade-offs

trade-offs

Which of the following elements comprise strategic management? Analysis Realization Definition Implementation Formulation

Analysis, Implementation, Formulation

______ are the ethical standards and norms that govern the behavior of individuals within a firm or organization

Organizational core values

A well-devised strategy helps a firm understand ___________ What not to do what to do market trends in unrelated industries past successes or failures

What not to do what to do

A(n) _________ can help employees feel that they are doing something worthwhile and are part of something important and meaningful. Benchmark environmental force competitive mission aspiration vision

aspiration vision

A(n) ________ occurs when a firm performs below the industry average or is outperformed by its competitors purchasing parity competitive disadvantage negative advantage underperforming norm competitive parity

competitive disadvantage

A _____________ vision statement defines a company by describing its intrest in developing solutions to consumer problems

customer-oriented

Good strategy

enables a firm to achieve superior performance. It consists of three elements. 1. a diagnosis of the competitive challenge. 2. a guiding policy to address the competitive challenge. 3. a set of coherent actions to implement a firm's guiding policy

Using a(n) ________ strategy formulation, managers examine where and how the firm should compete around the world. -global -governance -immediate -business

global

What should a successful vision do for an organization? - check all that apply It should describe the products and services it plans to provide it should make employees feel that their work is important It should inspire employees It should ensure that employees understand their job duties

it should make employees feel that their work is important It should inspire employees

In the ___________ step of the strategy implementation phased of the AFI strategy framework, managers would examine how the firm should be structured in order to implement the desired strategy Business ethics internal analysis corporate governance organizational design

organizational design

In order to achieve and sustain competitive advantage, a company devises and adopts a set of gaol-directed actions known collectively a _________

strategies

Which of the following is an example of a strategy for competitive advantage? -"we will implement an HR strategy" -"we will destroy the competition" -"we will leverage our IT systems to provide superior customer service." -"we will keep our eyes on the prize undeterred by what others are doing."

-"we will leverage our IT systems to provide superior customer service."

A good strategy consists of three elements. The second element is accomplished through strategy formulation, resulting in the firm's functional, business-level and corporate-level strategies. This is also called_____________ -A guiding principle to address the competitive challenge -A diagnosis of the competitive challenge -A set of coherent actions to implement the firms' guiding policy

-A guiding principle to address the competitive challenge

Which of the following are elements of a good strategy according to the AFI Framework? (check all that apply) -a leadership group with relevant prior industry experience -strong stakeholder involvement in the strategy formulation process -A set of coherent actions to implement the firm's guiding policy -A guiding policy to address the competitive challenge -A diagnosis of the competitive challenge

-A set of coherent actions to implement the firm's guiding policy -A guiding policy to address the competitive challenge -A diagnosis of the competitive challenge

Greener Grocers provides goods that are similar to competitors' goods at a comparable price. Greener Grocers cannot lower prices more without facing financial difficulties. What is another way Greener Grocers could gain a competitive advantage? -It could provide goods or services that its consumers would value more highly than competitors' offerings -It could offer price discounts on some items but increase the price on other items -It could try to eliminate the competition -It could allow itself to be purchased by a competitor

-It could provide goods or services that its consumers would value more highly than competitors' offerings

When a firm implements a strategy that leads to superior performance relative to other companies in the same industry, it is said to have achieved a competitive advantage fiscal debilitation combined iedology prolonger management

Competitive advantage

A good strategy consists of three elements. The second element is accomplished through strategy formulation, resulting in the firm's functional, business-level and corporate-level strategies. This is also called_____________ -A guiding principle to address the competitive challenge -A diagnosis of the competitive challenge -A set of coherent actions to implement the firms' guiding policy

a guiding policy

A statement of guiding principles that typically provides very specific ethical considerations is a(n) -product-oriented vision statement -behavioral analysis -sustainable competitive summary -core value statement

core value statement

A _____ outlines what an organization does, while a vision outlines what the organization wants to do

mission

A ________ outlines what an organization does, while a vision outlines what the organization wants to do

mission

Which of the following factors would be examined in the external analysis stage of the AFI Strategy framework? -the firm's own resources -company culture -Strategic groups -competitive forces -corporate strategy

-Strategic groups -competitive forces

Walmart and Nordstrom maintain very different strategic positions, one based on cost-leadership and the other based on differentiation through superior customer service. This is an example of __________. -A strategic failure by Walmart -differences in industry norms -A strategic failure by Nordstrom -The trade-offs required by strategic positioning

-The trade-offs required by strategic positioning

Which of the following are elements of a good strategy according to the AFI Framework? (check all that apply) -a diagnosis of the competitive challenge -Strong stakeholder involvement in the strategy formulation process -A set of coherent actions to implement the firm's guiding policy -A leadership group with relevant prior industry experience -A guiding policy to address the competitive challenge

-a diagnosis of the competitive challenge -A set of coherent actions to implement the firm's guiding policy -A guiding policy to address the competitive challenge

A competitive advantage____________ -is based on the return of invested capital over a 15-year period -places a firm at a disadvantage in regards to its ROI -is assessed relative to other competitors in the industry -takes into consideration globalization and rival factors

-is assessed relative to other competitors in the industry

Which of the following statements about Tesla is true? -it has a high market valuation -its strategy is to create a unique product available only to a few -it has manufactured only two car models -it has a product-oriented vision statement

-it has a high market valuation

A firm can gain a competitive advantage by providing goods and services _______(check all that apply). -Similar to competitors' offerings at a higher price -that are of similar quality to competitor's offerings but can be sold at a lower price due to lower costs -that cost less to produce than competitors' offerings, independent of the value it creates -that creates more value for consumers than competitors' offerings

-that are of similar quality to competitor's offerings but can be sold at a lower price due to lower costs -that creates more value for consumers than competitors' offerings

Which of the following topics should be considered during the strategy analysis phase of the AFI Framework? -the amount and types of compensation to offer employees. -the firm's internal strengths and resources -the firm's business model and competitive advantages -the role of strategic leadership and the strategy-making process -the external environment and associated challenges

-the firm's internal strengths and resources -the firm's business model and competitive advantages -the role of strategic leadership and the strategy-making process -the external environment and associated challenges

What are strategic commitments? -they are actions that are costly, long-term oriented, and difficult to reverse -they are comparisons of scenario planning and planned emergence -they are mission statements for technological innovators -they are relationships between strategic planning, competitive parity, and mission statement

-they are actions that are costly, long-term oriented, and difficult to reverse