smart book 1

A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______.

stakeholder strategy

Which of the following are aims of stakeholder strategy? (Select all that apply.)

To gain and sustain competitive advantage,To manage various stakeholders effectively

Burger Bomb has been outperforming other burger restaurants in recent years. This indicates that Burger Bomb has which of the following?

A competitive advantage

What is the first step in the AFI strategy framework?

Analysis

What are the categories of expectations that society has of the business enterprise as described in the CSR framework? (Check all that apply.)

Economic,Philanthropic,Legal,Ethical

Who among the following are considered internal stakeholders? (Check all that apply.)

Employees,Stockholders,Board members

Which of the following elements of the pyramid of corporate social responsibility are required by society? (Check all that apply.)

Legal responsibilities,Economic responsibilities

When a stakeholder has power over a company it is ______.

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

To which types of organizations can we apply the principles of strategic management?

all types of organizations

How should managers prioritize stakeholder concerns in the final step of stakeholder impact analysis?

by considering the power, legitimacy, and urgency of stakeholder claims

A(n) ______ occurs when a firm performs below the industry average or is outperformed by its competitors.

competitive disadvantage

If a firm has a 10% return on invested capital while the industry average return on invested capital is 18%, the firm has a(n) ______.

competitive disadvantage

Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has ______.

competitive parity

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?

corporate social responsibility

Internet privacy, genetic engineering, and stem-cell research are examples of areas in which a firm's ______ responsibilities exceed its legal responsibilities.

ethical

Starbucks's commitment to fair trade and responsible growing practices indicates that the firm takes its ______ responsibilities seriously.

ethical

The expectations that society has toward business, in contrast to what society requires, result in which of the following elements of the pyramid of corporate social responsibility? (Check all that apply.)

ethical responsibilities,philanthropic responsibilities

Customers, suppliers, creditors, unions, and governments are known as ______.

external stakeholders

In the ______ step of the stakeholder impact analysis, managers need to decide the appropriate course of action for the firm in relation to stakeholder concerns.

fifth

In the ______ step of a stakeholder impact analysis, firms identify those stakeholders that currently have, or potentially can have, a material effect on the company.

first

In the _____ step of the stakeholder impact analysis, firms identify their various social responsibilities to stakeholders.

fourth

The stakeholders of a firm are ______.

individuals or groups that can affect and are affected by the actions of the firm

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ______.

interests and claims

Managers have ______ resources in their quest for competitive advantage.

limited

The overall purpose of a firm's strategy is to ______.

perform better than other companies in the same industry

Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities? (Check all that apply.)

repaying debts to creditors,giving investors a return on invested capital

The concept, or framework, of corporate social guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.

responsibility

In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework.

second

The groups or individuals who can impact or be impacted by a firm's actions are known as ______.

stakeholders

In a nutshell, strategy is the art and science of ______.

success and failure

Which of the following indicates that investors expect future growth for Tesla?

the increasing value of the company's stock

Managers often have to make decisions between two conflicting strategic options, otherwise known as ______.

trade-offs

The Bright Bulb light bulb company produces a line of LED bulbs that customers consider very similar to competitors' LED bulbs. Which of the following conditions must be true for Bright Bulb to have a competitive advantage?

The bulbs must have a lower cost than competitors' bulbs.

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

The tasks are very interdependent.

Which statement about strategies is true?

A statement of desire on its own often leads to goal conflict.

Which of the following are the relationships that a firm has with stakeholders?

Stakeholders can affect the firm's actions.,The actions of the firm can affect stakeholders.

What is one explanation for why Tesla underperforms when the company's profits are compared to the profits of established car companies?

Startups often lose money early on.

True or false: Firms should obey all the laws, including but not limited to labor, consumer protection, and the environment.Â

TRUE

The idea that firms should voluntarily give back to society when they are able to do so is also known as ______.

corporate citizenship

Match the element of the pyramid of corporate social responsibility (on the left) with its explanation (on the right).

corporate citizenship,do what is right, just, and fair,laws and regulations are society's codified ethics; define minimum acceptable standard,gain and sustain competitive advantage

Which of the following legal developments allow business to function as an institution? (Check all that apply.)

property rights,contract enforcement

Strategic positioning allows managers to ______.

provide customers value while controlling costs

Which of the following is a tool that managers can use to address the needs of stakeholders while maintaining a competitive advantage?

stakeholder impact analysis

Andrew's Home Center has created a unique situation for itself in its industry that allows the company to not only provide excellent value to its customers but also control its costs. This is known as ______.

strategic positioning

Walmart and Nordstrom maintain very different strategic profiles, one based on cost-leadership and the other based on differentiation through superior customer service. This is an example of ______.

the trade-offs required by strategic positioning

Which of the following topics should be considered during the analysis phase of the AFI framework?

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

A well-devised strategy is about which two things?

what not to do,what to do

When identifying stakeholders, a firm should focus on those stakeholders that ______.

currently have, or could potentially have, a material effect on the firm

Which of the four corporate social responsibilities is considered first and foremost for business enterprises?

economic

Stakeholder impact analysis is a _____-step process that allows managers to better understand and address stakeholders' needs.

five

The third step of stakeholder impact analysis requires managers to identify the ______ presented by internal and external stakeholders.

opportunities and threats

Which of the following are primary strategy objectives? (Check all that apply.)

creating value,controlling costs

Microsoft donating more than $3 billion in cash and software to people in need is an example of which type of corporate social responsibility?

philanthropic

In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm.

third

Competitive parity occurs when ______.

two or more firms achieve the same performance results

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (Check all that apply.)

urgency,legitimacy,power

Which of the following questions are part of the five steps in stakeholder impact analysis? (Check all that apply.)

What are our stakeholders' interests and claims?,Who are our stakeholders?,What opportunities and threats do our stakeholders present?

True or false: A statement such as, \We will be the biggest company in the world

\" is an example of strategy."

In the external analysis phase of the AFI strategy framework, managers should ask,

\How do external forces affect our strategy and competitive advantage?\""

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

A stakeholder has ______ when its needs are within the bounds of the law or are otherwise relevant to the firm.

a legitimate claim