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Which of the following is a macroeconomic factor that can affect a firm's strategy?

Levels of employment

Which of the following perspectives best supports the shared value creation framework?

Externalities such as pollution, wasted energy, and costly accidents actually create internal costs

Which of the following approaches to assess competitive advantage is based on the view that noneconomic factors can have a significant impact on a firm's financial performance?

The triple-bottom-line approach

How do strong ethical values benefit a firm?

They serve as the guardrails put in place to keep the company on track when pursuing its mission.

Which of the following statements best represents a customer-oriented vision?

"We provide solutions to streamline payroll and tax processing."

Superior Screen Corp. incurs a cost of $750 to produce one unit of an OLED television. The company's management has priced the product at $1,000 in the market. Considering the technological advancement of the television, customers perceive its value to be around $1,200. What is the economic value created in this scenario?

$450

Online dating is a fragmented and highly competitive market space because of?

Low barriers to entry

Which of Porter's five forces was likely the most powerful factor influencing the decline of Robinhood?

Threat of substitute products or services

Place the five steps of the stakeholder impact analysis in order.

1. Who are our stakeholders? 2. What are our stakeholders' interests? 3. What opportunities and threats do our stakeholders present? 4. What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? 5. What should we do to effectively address the stakeholder concerns?

Which of the following statements about the social responsibilities of a business is accurate?

A firm's ethical responsibilities go beyond its legal responsibilities

Which of Porter's five forces was likely the most powerful factor influencing the initial success of Robinhood?

Threats of new entrants

When a stakeholder has power over a company that stakeholder is?

Able to influence the company to do something it would otherwise not do

Stakeholder impact analysis is a decision tool that helps a company do which of the following?

Act as a good corporate citizen; achieve a competitive advantage

What is the first step in the AFI strategy framework?

Analysis

The Robinhood business model operates an online brokerage that offers commission-free trading by allowing users to buy and sell assets such as stocks, exchange-traded funds (ETFs), options, American depositary receipts (ADRs), and even cryptocurrencies. This business model is called?

Payments for order flow

To be effective, firms need to?

Back up their visions with strategic commitments that are costly and difficult to reverse

Microsoft created a strong strategic and profitable position by using which type of business model?

Bundling

Wolfe Herd differentiated Bumble from other dating sites, thus achieving a competitive advantage by all of the following except?

By allowing the man to make the first move to initiate conversations

A(n) ________ industry is one that is characterized by many small firms, a commodity product, and little or no ability for each firm to raise its prices?

Perfectly competitive

In an industry, the threat of entry is high when?

Capital requirements are low

If French Provincial Decor LLC obtains an 18 percent return on invested capital, which of the following will help determine if it has a competitive advantage over other furniture companies?

Comparing the return to the return on invested capital obtained by other firms in the industry

Underperformance relative to other firms in the same industry or the industry average results in a(n) ________for a firm?

Competitive disadvantage

All of the following are external stakeholders except which of the following?

Competitors

Jennifer was just named the CEO of a pen company called National Pens Inc. She immediately changed the name to "Jenn's Pens." When asked why she made this change by the board of directors, who showed research that there was no correlation between success and CEO names, she responded by saying, "my previous company had the name of their CEO in the title, and they were very successful." This fallacy on Jenifer's part reveals her?

Confirmation bias

How do high interest rates affect a business?

Consumer demand slows down

The early success of Microsoft was due to their application software which integrated seamlessly with their Windows operating system on which 90% of all PCs ran. This unique product is also known as Microsoft's?

Core competency

Bill's Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a week, which is about the same as the income of a close competitor. As a result, we can conclude that the two businesses also have a competitive parity in the industry.

Correct -- competitive parity is a performance of two or more firms at the same level

Which of the following competitively important assets is typically excluded from a firm's balance sheet?

Customer experience

You are the manager in charge of setting the strategy for a new fast-casual restaurant. Which of the following questions would be appropriate for you to ask during the analysis phase of the AFI strategy framework?

How have the consumer preferences in the fast-casual restaurant industry changed in the last five years?

After a firm has recognized its key stakeholders in stakeholder impact analysis, the immediate next step is to?

Identify stakeholders' interests and claims

In the final step of the stakeholder impact analysis, a firm?

Decides a course of action to address the stakeholders' concerns

A new company named ZipZip Inc. entered the motorized scooter retail business, which is a fairly consolidated industry. In response, two large incumbent motorized scooter retailers, Vespa and Apollo, lowered the price of their scooters. Also, they spent more money to improve the features on their scooter and on additional marketing. By doing this Vespa and Apollo?

Decreased industry profit potential

Which of the following best describes a Level 5 manager in the Level-5 leadership pyramid?

Desiree is the CEO of Pelletier LLC.; she has helped her company gain and sustain a competitive advantage through ethical decision making

Marta and Qing both serve as SBU managers of their divisions. They have both been asked by the CEO to generate two different courses of action for a new product launch. This strategic decision-making technique can be described as?

Dialectic inquiry

One of Satya Nadella's strategic initiatives after gaining the reins of Microsoft was to abandon the Windows-centric strategy and move toward cooperation within Microsoft and across companies. He focused on cutting-edge technologies and acquisitions. These initiatives reflect a focus on which type of strategy?

Differentiation

A(n) ________ is best described as the strategic option that top managers decide most closely matches the current reality and which is then executed?

Dominant strategic plan

Because Toms could not maintain their commitment to creating shared value (CSV), Toms abandoned their buy-one, give-one business model in favor of?

Donating a portion of their profits to social causes

Under the ________ framework, producer surplus is important in the quest for competitive advantage because this is the profit that a firm captures when producing and selling a good or service?

Economic value creation

Which of the following is an example of a business acting upon an organizational core value?

Emerald Autos reduces engine emissions below federal guidelines to reduce pollution

To support the rise of emergent strategies, an organization should?

Empower lower-level employees to take up autonomous actions

Which of the following elements of the pyramid of corporate social responsibilities are result from a society's expectations toward business?

Ethical responsibilities and philanthropic responsibilities

A successful strategy details a set of goal-directed actions that managers make to gain and sustain a competitive advantage; in order to create this strategy, managers must focus on three pillars. Which of the following below is not one of these pillars?

Execution

Which of the following would serve as a feasible option when deciding who are the players in an established industry?

Focus on customers who can extract value

Wolfe Herd achieved enormous success in growing Bumble's user base by using the same marketing strategy she used at Tinder. The business model she used was called?

Freemium

The distribution department at Wheat, Barley and Whey Corp. has decided to adopt the FIFO (first in, first out) method of inventory to dispatch its bags of wheat. Which of the following strategies does this scenario best illustrate?

Functional strategy

Golden Age Cinemas Inc. and HiDef Inc. are two companies that own and run movie theaters in malls and other commercial areas. Both are trying to coax consumers back into movie theaters after the COVID-19 pandemic shutdowns. While Golden Age Cinemas Inc. pursues a cost-leadership strategy, HiDef Inc. adopts a differentiation strategy. Which of the following statements is most likely true of this scenario?

HiDef and Golden Age Cinemas will not be direct competitors to each other, and their customer segments will overlap very little

In which of the following situations is a company that exists in the telecommunications industry most likely to face the highest threat of entry?

If the industry has recently become deregulated

In strategic management, strategists engage in three pillars. These three pillars include the ________of major goals and objectives?

Implementation

The balanced-scorecard framework is a tool for strategy?

Implementation, not formulation

Which of the following statements accurately illustrates the difference between monopolistic competition and an oligopoly?

In monopolistic competition, firms may compete against each other; in an oligopoly, there are few large firms competing against each other

Which of the following statements with regard to industry structures is true?

Industry structures are not static but can change over time

Do vision statements help firms gain and sustain competitive advantage?

It depends, because the effectiveness of vision statements differs by type

Sugar & Sweet Sodas has seen its market share erode in recent years, as consumers increasingly turn toward healthier beverage choices such as unsweetened sparkling water. Hoping to rekindle interest in sugary sodas, Sugar & Sweet decides to produce a limited run of "throwback" cans using labeling first introduced in the 1980s. What is wrong with this strategy?

It fails to face the competitive challenge

The average cost of production for a bottle of mineral water in the industry is $5 while its average price is $8. Forever Spring Inc. manufactures the same product for $3 per bottle and sells it for $8 per bottle. Which of the following statements is most likely true of ForeverSpring Inc. in this scenario?

It has competitive advantage in the industry

What do strategy scholars believe is the result of executives' pursuit of strategies that define value creation too narrowly in public stock companies?

It reduces the trust of shareholders in the organization as a vehicle for value creation and societal welfare

Which of the following answers best explains why addressing strategic inflection points is a difficult leadership challenge?

It requires fundamental changes to the firm's strategy, and leaders are often late in comprehending that their belief system is no longer a good fit with the new circumstances

Which of the following is a primary feature of the five forces model?

It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes

Earth Mother Leisure Wear had a mission to become the leading producer of environmentally friendly leggings, an emerging and in-demand category in the apparel industry. Its strategy involved leveraging a network of organic cotton farmers and suppliers of environmentally responsible synthetic materials to create a product that is durable, attractive, affordable, and 100% recyclable. However, because it did not upgrade its outdated production facilities, Earth Mother Leisure Wear could not assemble its products at a low-enough cost to offer the leggings at a price that was attractive to customers. Earth Mother Leisure Wear's strategy failed because?

It was not backed up with strategic commitments

Which of the following elements of the pyramid of corporate social responsibility are required by society and shareholders?

Legal responsibilities and economic responsibilities

Toms was one of the fastest growing shoe companies in the world. The economic value created determines how much customers value a product. In this case, Toms failed to achieve?

Matching demand with supply

Farm to Table Inc. is a supermarket chain. Due to strong competition from other stores in the industry, Farm to Table has aggressively used branding, pricing, and superior customer service to uniquely position itself in the market. As a result, the supermarket chain has been able to differentiate itself from its competitors and sell its products at higher prices. Which of the following industry competitive structures does this scenario best illustrate?

Monopolistic competition

Firms that compete within the same strategic group generally experience?

More competitive rivalry than firms outside their strategic group

Which of the following scenarios best illustrates a good stakeholder strategy?

Nowadays Corp. distributes only 40 percent of its annual profit after taxes to shareholders, while the remaining is invested for further research and distributed among employees and the local community

What is the best definition of a cost leadership strategy?

Offering similar goods and services at a lower price.

Mycoskie believed that companies are better at providing societal needs than governments or charities. He founded Toms as a for-profit company to provide children in less developed countries with shoes. He created a new business model called?

One-for-one

The difference between the price charged for a product and the cost to manufacture it is referred to as the?

Producer surplus

According to the five forces model, the stronger the five forces, the lower the industry's?

Profit potential

Limozine Inc. is a car service firm that provides high-end transportation in a major metropolitan area. It has several competitors that each offer similar services, and based on its current structure, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Limozine pursue instead?

Pursue a differentiated strategy

In 2000, Steve Ballmer was named CEO of Microsoft. He began to focus on the Windows-centric strategy that had become so profitable. Their monopolistic position that shut out other application providers resulted in the U.S. Department of Justice winning an anti-trust litigation against Microsoft in 1998. As a result, this effort diluted its core culture, resulting in competitive disadvantage because the Microsoft application software that was its core competency was no longer?

Rare

Better Capsules is a highly successful vitamin manufacturer. At the close of its most recent fiscal year, the company's balance sheet showed cash holdings of $110 million. Which of the following actions will provide the most benefit for stakeholders?

Reinvest profits into expanding the company and creating more jobs

Which of the following strategy plans might work best in an industry that is considered a fast-changing environment with new laws going into effect regularly?

Scenario planning

What happens when a firm fails to successfully navigate a strategic inflection point?

Self-reinforcing failure

Which of following practices of a firm satisfies its ethical responsibilities?

Selling vaccines at a subsidized price in a less developed country even though this results in reduced shareholder returns

When Mycoskie combined capitalism with a focus on helping needy children, he created?

Shared value

Amelja manages product design and development at a toy company. The junior managers who report to her tell her that new complementors for the firm's products are available. What should Amelja's reaction be?

She needs to find out if her company and other companies can provide the complements

How did Tinder use innovation to disrupt the online dating market?

Simplified the application process

Sean, a retired CEO, invests capital in a start-up company that creates budgeting software. He mentors the entrepreneur and the employees of the company because he wants the company to perform well and survive in the market. Thus, Sean is the start-up company's?

Stakeholder

EverMart Inc. is a large company that sells a variety of products such as cosmetics, jewelry, frozen foods, navigation electronics, and airplanes. Apart from this, the company also has a strong presence in the service industry through its chain of dance studios, casinos, and nightclubs. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under EverMart can be referred to as?

Strategic business units

What is the strategic management process?

Strategic leaders design a method to formulate and implement strategy

How is a firm's task environment different from its general environment?

Strategic leaders have some influence over external factors in the task environment; they have little direct effect over external forces in the general environment

A firm's ________ is based on creating value for customers (V) while containing the cost (C)?

Strategic position

________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors?

Strategy

Which of the following statements regarding tasks in the AFI strategy framework is true?

The tasks are very interdependent

LuxWear Inc., an apparel company, recently moved locations to be closer to their main manufacturer in South Carolina. The move required the firm to upgrade its legacy ordering system with its manufactures ordering system, which should facilitate its supply chain to gain future efficiencies and reap future savings. However, the new system costs $75,000 and will require a significant amount of time to train employees. This best represents a significant increase in the company's?

Switching cost

Using the PESTEL framework, which factors were the most powerful in influencing the rise of Robinhood?

Technological and sociocultural

In a large company, who is most responsible for devising the corporate strategy?

The CEO of the company

Which of the following external forces is a part of a firm's task environment?

The composition of the strategic group to which the firm belongs

Jalen Corp., a large conglomerate, wants to liquidate its business in certain industries to improve its overall profitability. Which of the following industries would Jalen Corp. find it most difficult to exit?

The steel industry, in which the company has obligations such as severance pay towards employees

The Founder of Teach for America, Wendy Kopp, wants to make teaching an attractive option for promising young professionals. Identify the phrase that represents the vision she developed for Teach for America?

To give all children in the United States the opportunity to attain an excellent education

A problem that arises when individuals, companies, or nations pursue their own self-interest without considering the well-being of society or the global community is known as a?

Tragedy of the commons

During strategy implementation, managers primarily focus on deciding the?

Type of corporate governance that is most effective and ways in which it can put the formulated strategy into practice

Which of the following strategies represents a CSR perspective?

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