Strategic Management Chapter 1

In which of the following situations can a firm providing goods and services gain a competitive advantage? (Check all that apply.) Multiple select question. Their offerings provide more value for consumers than competitors' offerings. Their offerings are similar to competitors' offerings at higher prices. Their offerings cost more to produce than competitors' offerings. Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs.

Their offerings provide more value for consumers than competitors' offerings. Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs.

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. New companies are not able to employ good strategies. Established firms use different profit measurements. Investors have been unwilling to purchase the company's stock.

Startups often lose money early on

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 ______. competitive disadvantage strategic positioning the competitive challenge competitive parity

Strategic positioning

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 be sold by online retailers only. The bulbs must have a lower cost than competitors' bulbs. The bulbs must be on the market for a longer period of time than competitors' bulbs. The bulbs must be more expensive than competitors' offerings.

The bulbs must have a lower cost than competitors' bulbs

Strategy is ______. a decision based on internal situational analysis the set of actions a firm takes to achieve a competitive advantage a sustainable and dominant market share a decision based on external situational analysis

The set of actions a firm takes to achieve a competitive advantage.

Which of the following are primary strategy objectives? (Check all that apply.) Multiple select question. controlling costs creating value maximizing sales strengthening relationships

controlling costs creating value

Sustainable competitive advantage exists when a firm ______. maintains superior performance relative to its industry over a long period of time is self-regulated and self-motivated formulates and implements strategy starts up and competes for existing market share in the industry

maintains superior performance relative to its industry over a long period of time

Which of the following indicates that investors expect future growth for Tesla? the firm's philanthropic efforts the increasing value of the company's stock the large upfront investment Tesla had to make the lack of a defined competitive challenge

the increasing value of the company's stock

In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to ______. only non-US-based firms the performance of other firms in its industry a firm in the technology industry its past financial performance

the performance of other firms in its industry

Who among the following are considered internal stakeholders? (Check all that apply.) Multiple select question. Competitors Employees Customers Stockholders Unions Board members Governments

Employees Stockholders Board members

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 ______. prolonged management combined ideology a competitive advantage fiscal debilitation

a competitive advantage

Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following? Multiple choice question. a competitive advantage strategic leadership a superior product a statistical advantage

a competitive advantage

Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has ______. a competitive disadvantage a competitive advantage a noncompetitive business competitive parity

competitive parity

Customers, suppliers, creditors, unions, and governments are known as ______. Multiple choice question. external stakeholders rivals internal stakeholders crowdsurfers

external stakeholders

The stakeholders of a firm are ______. Multiple choice question. individuals or groups who own at least one share of a firm's stock individuals or groups that can affect and are affected by the actions of the firm only those who directly profit from a firm's success only those firms that contribute to the production and distribution of a company's products

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

Managers have ______ resources in their quest for competitive advantage. Multiple choice question. limited zero unlimited unique

limited

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 ______. a strategic failure by Nordstrom differences in industry norms a strategic failure by Walmart the trade-offs required by strategic positioning

the trade-offs required by strategic positioning

Competitive parity occurs when ______. 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 achieve the same performance results two or more firms enter into a strategic alliance

two or more firms achieve the same performance results

A well-devised strategy is about which two things? Multiple select question. market trends in unrelated industries past successes or failures what to do what not to do

what to do what not to do

Which statement about strategies is true? Multiple choice question. Vision and mission statements cannot lay the foundation for good strategies. Statements of desire typically address economic fundamentals. A statement of desire on its own often leads to goal conflict. "We will be the best!" is an example of a strategy.

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

What must a firm do after diagnosing its specific competitive challenge? collect investments from stockholders implement a set of coherent actions create an effective guiding policy identify its primary competitors

Create an effective guiding policy

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

Is assessed relative to other competitors in the industry

The overall purpose of a firm's strategy is to ______. generate significant interest from foreign investors sell all existing inventory of a given product determine demand for new product ideas perform better than other companies in the same industry

Perform better than other companies in the same industry

True or false: A statement such as, "We will be the biggest company in the world," is an example of strategy. True false question. True False

False

The groups or individuals who can impact or be impacted by a firm's actions are known as ______. Multiple choice question. competitors expatriates shareholders stakeholders

Stakeholders

A competitive advantage that lasts for a long period of time is said to be ______. accurate sustainable theoretical geographic topical

Sustainable

Which of the following are the relationships that a firm has with stakeholders? Multiple select question. The firm controls the actions of stakeholders. The actions of the firm can affect stakeholders. Stakeholders can affect the firm's actions. The stakeholders generally have no interest in the firm.

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

Which of the following are aims of stakeholder strategy? (Select all that apply.) Multiple select question. To gain and sustain competitive advantage To persuade internal stakeholders to cede control to external stakeholders To manage various stakeholders effectively To reduce the number of stakeholders of a firm

To gain and sustain competitive advantage To manage various stakeholders effectively

Strategic positioning allows managers to ______. Multiple choice question. provide superior customer value regardless of costs provide customers value while controlling costs eliminate competition in a given industry balance foreign and domestic sales

provide customers value while controlling costs

A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______. Multiple choice question. shareholder strategy stakeholder strategy integrative strategy happiness management strategy

stakeholder strategy

Effective guiding policy is supported by and stays consistent through the use of ______. strategic commitments social responsibilities grandiose statements trade-offs

strategic commitments

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

trade-offs

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

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) ______. overperforming norm competitive disadvantage purchasing parity competitive parity

Competitive disadvantage