Strategic Management

When a company creates value for customers by performing key activities BETTER than its competitors, the firm is said to possess a ....

Competitive Advantage

Strategic leadership involves which of the following? 1.Creating a "win at all costs" culture 2Designing effective IT systems 3Developing a vision for the firm 4Evaluating employee performance

Developing a vision for the firm

Managers can use the Industrial Organization (I/O) model to identify strengths and weaknesses in the external environment.

FALSE

T/F Heterogeneous top management teams make decisions more quickly than homogeneous teams, but are less likely to make mistakes.

FALSE

T/F The jobs of CEO and Chairman of the Board of Directors are essentially the same.

FALSE

T/F: All related-party transactions are unethical.

FALSE

Changes in economic conditions are environmental threats/opportunities that could affect any company in any industry.

TRUE

Effective communication is an essential aspect of successful strategy implementation.

TRUE

Managing relationships between the firm and its stakeholders can be difficult because the satisfaction of one stakeholder's desires may come at the expense of that of another's.

TRUE

T/F Developing the top management team and a plan for management succession are important strategic leadership actions.

TRUE

T/F: A company's mission defines the firm's core intent and the business or businesses in which it intends to operate.

True

Which of the following strategic management concepts consists of a company's mission and a picture of what the firm hopes to become in the future?

Vision

When a firm creates value for customers by performing activities that its competitors can't perform, the firm is said to possess

competitive advantage

Consolidation in the airline industry is the direct result of

many significant environmental changes.

To build social capital, effective strategic leaders have well-developed

relational skills.

What do we call the action plan that is designed to help a company achieve its vision?

strategy

The process of putting strategy into action is known as

strategy implementation

Resources and capabilities that allow a firm to complete important tasks are known as

strengths

According to Table 1.2 in the text, McDonald's vision is "to give each customer, every time, an experience that sets new standards in value, service, friendliness, and quality." Given this vision, which of the following might be considered to be part of McDonald's DNA? 1. All of these 2. employee training that focuses on friendliness and customer service 3. information about customer preferences for various menu items 4. pricing policies that offer customers exceptional value for their money

1. All of these

Which of the following IS NOT part of the strategic management process? 1. Analyzing the internal and external environments. 2. Creating a vision. 3. Hiring and training employees. 4. Selecting strategies that create value for stakeholders.

3. Hiring and training employees.

The MISSION of any company should focus on 1. eliminating competition by acquiring competitors or driving them out of business. 2. avoiding litigation, such as product liability lawsuits filed by unhappy customers. 3. understanding how economic forces, such as interest rates and tax policies might affect the firm's pricing decisions and profitability. 4. identifying the markets the company wants to serve and the goods and services the company will provide.

4. identifying the markets the company wants to serve and the goods and services the company will provide.

A firm's intellectual property is developed by its

Human Capital

When a company has core competencies that are different than the capabilities of competitors, these core competencies are also known as

distinctive competencies

From which of the following stakeholder groups do companies usually receive capital (i.e. money) to finance their continuing operations?

investors and financial institutions \