CBA-469-001 Test #1 JSU (Dr. Mertens)

What are the three parts to the AFI strategy framework?

-Analysis -Formulation -Implementation

List the four main competitive industry structures (Hint: "Monopoly" is one of them).

1. Perfect competition 2. Monopolistic competition 3. Oligopoly 4. Monopoly

The PESTEL model groups environmental factors into which six segments?

1. Political 2. Economic 3. Sociocultural 4. Technological 5. Ecological 6. Legal

The Vanguard Group, one of the world's largest investment companies, updated its _____ (year) activity system, earning roughly $500 billion in assets at the time, into its new, _____ (another year) version, and saw it increase to $4 trillion.

1997; 2017

In the Level-5 Leadership Pyramid, level _____ (1/5) is the lowest and level _____ (1/5) is the highest.

1; 5

If dynamic capabilities are a firm's ability to adapt resources over time due to environmental change, what is "the dynamic capabilities perspective"?

A MODEL which EMPHASIZES a firm's ability to adapt resources over time due to environmental change

A level-_____ HIGHLY CAPABLE INDIVIDUAL makes productive contributions through motivation, knowledge, talent, and skills. A) 1 B) 2 C) 3 D) 4 E) 5

A) 1

_____ consists of cost leadership, and/or value innovation. (AKA: HOW to compete) A) Business strategy B) Corporate strategy C) Global strategy

A) Business strategy

An industry is made up of many small firms and not much pricing power exists. They all offer commodity products and the barriers to entry are low. Which type of competitive industry structure exists? A) Perfect competition B) Monopolistic competition C) Oligopoly D) Monopoly

A) Perfect competition

_____ are any ASSETS on which a firm can draw. A) Resources B) Capabilities C) Activities

A) Resources

_____ consists of managing the strategy process. A) Strategic leadership B) External analysis C) Internal analysis

A) Strategic leadership

The auditor of a public company is assessing the value of all the INTANGIBLE assets owned by the company. Which of the following would most likely be included in this assessment? A) The company's brand equity B) The company's cash reserves C) The company's plant and equipment D) The company's headquarters

A) The company's brand equity

Do the following questions correlate to vision, mission, or values? WHAT do we want to accomplish? Where do we want to get? A) Vision B) Mission C) Values

A) Vision

A diagnosis of the competitive challenge (AKA: ANALYSIS of the firm's internal and external environments) is known as _____. A) analysis B) formulation C) implementation

A) analysis

In the corporate social responsibility pyramid, the _____ responsibility is to gain and sustain competitive advantage. A) economic B) legal C) ethical D) philanthropic

A) economic

The outcome of a rational and structured top-down strategic plan is known as a(n) _____. A) intended strategy B) realized strategy C) emergent strategy

A) intended strategy

ABC, Inc.'s competitive environment consists of strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and buyers. For ABC, Inc., this industry: A) is competitively unattractive for earning good profits B) presents minimal opportunity to build a sustainable competitive advantage C) is competitively attractive for securing above-average profits D) presents only moderate prospects for making a reasonable profit

A) is competitively unattractive for earning good profits

The _____ factor of the PESTEL model involves the processes and actions of government bodies, and can be shaped through lobbying, public relations, contributions, and litigation. A) political B) economic C) sociocultural D) technological E) ecological F) legal

A) political

The assumption that a firm is a unique bundle of resources and capabilities, and these bundles differ across firms, is called _____. A) resource heterogeneity B) resource immobility C) both D) neither

A) resource heterogeneity

A resource is _____ if it helps exploit an opportunity or offsets a threat. A) valuable B) rare C) costly to imitate D) organized

A) valuable

Which three of the following four options are approaches to organizational strategy? A) Strategic planning B) Business strategy C) Scenario planning D) Strategy as planned emergence

A, C, & D

Which of the following are involved in the "Formulation" of the AFI strategy framework? (Select all that apply) A) Business strategy B) Internal analysis C) Organizational design D) External analysis E) Strategic leadership F) Global strategy G) Corporate strategy H) Business ethics

A, F, & G

Strategic MISSION commitments are often _____. (Select all that apply) A) Costly B) Long-term oriented C) Difficult to reverse

A-C

Which of the following are characteristics of strategic leadership? (Select all that apply) A) Successful use of power and influence B) Directing the activities of others C) Pursuing an organization's goals D) Enabling organizational competitive advantage

A-D

Which of the following are included in Porter's Five Forces model? (Select all that apply) A) Threat of new entrants B) Threat of substitutes C) Bargaining power of buyers D) Bargaining power of suppliers

A-D

The _____ strategy framework, the basis of Business Policy and strategic management, helps managers craft and execute a strategy, which enhances chances of achieving superior performance.

AFI

A level-_____ CONTRIBUTING TEAM MEMBER uses a high level of individual capability to work effectively with others in order to achieve team objectives. A) 1 B) 2 C) 3 D) 4 E) 5

B) 2

_____ include all organizational and managerial SKILLS. A) Resources B) Capabilities C) Activities

B) Capabilities

_____ determines which industries, markets, and geographies the firm should compete. (AKA: WHERE to compete) A) Business strategy B) Corporate strategy C) Global strategy

B) Corporate strategy

Do the following questions correlate to vision, mission, or values? HOW do we accomplish our goals? What are we today? A) Vision B) Mission C) Values

B) Mission

An industry is made up of many firms and some pricing power exists. They all offer differentiated products and the barriers to entry are medium. Which type of competitive industry structure exists? A) Perfect competition B) Monopolistic competition C) Oligopoly D) Monopoly

B) Monopolistic competition

According to the value chain analysis, which of the following is a SUPPORT activity? A) Production and operations B) Research and development C) Supply chain management D) Marketing and sales

B) Research and development

A firm's _____ are best described as distinct and fine-grained business processes such as order taking, physical delivery of products, or invoicing customers. A) capital gains B) activities C) capabilities D) resource flows

B) activities

Strategic initiatives undertaken by employees in response to unexpected situations are known as _____ actions. A) black swan B) autonomous C) serendipity D) RAP

B) autonomous

The _____ factor of the PESTEL model involves economy-wide phenomena such as growth rates, unemployment, interest rates, price stability, and exchange rates. A) political B) economic C) sociocultural D) technological E) ecological F) legal

B) economic

A guiding policy to address the competitive challenge backed by strategic commitments is known as _____. A) analysis B) formulation C) implementation

B) formulation

In the corporate social responsibility pyramid, _____ responsibilities include adhering to laws and regulations and defining a minimum acceptable standard. A) economic B) legal C) ethical D) philanthropic

B) legal

A resource is _____ if only one or a few firms possess it. A) valuable B) rare C) costly to imitate D) organized

B) rare

A combination of intended and emergent strategy is known as (an) _____. A) intended strategy B) realized strategy C) emergent strategy

B) realized strategy

The assumption that resources don't move easily from firm to firm, they're difficult to replicate, and they can last for a long time, is called _____. A) resource heterogeneity B) resource immobility C) both D) neither

B) resource immobility

Using the _____, managers can see how competitive advantage flows from a firm's distinct set of activities. A) resource-based view B) value chain analysis C) VRIO framework D) SWOT analysis

B) value chain analysis

Which of the following are involved in the "Analysis" of the AFI strategy framework? (Select all that apply) A) Business strategy B) Internal analysis C) Organizational design D) External analysis E) Strategic leadership F) Global strategy G) Corporate strategy H) Business ethics I) Vision, mission, & values

B, D, E, & I

_____% ROIC is expected in the consulting industry. A) 10 B) 15 C) 20 D) 25

C) 20

A level-_____ COMPETENT MANAGER is efficient and effective in organizing resources to achieve stated goals and objectives. Does things right. A) 1 B) 2 C) 3 D) 4 E) 5

C) 3

_____ are distinct and fine-grained business PROCESSES. A) Resources B) Capabilities C) Activities

C) Activities

_____ consists of competing around the world. A) Business strategy B) Corporate strategy C) Global strategy

C) Global strategy

An industry is made up of a few large firms and some pricing power exists. They all offer differentiated products and the barriers to entry are high. Which type of competitive industry structure exists? A) Perfect competition B) Monopolistic competition C) Oligopoly D) Monopoly

C) Oligopoly

_____ help(s) strategic leaders recognize, prioritize, and address the needs of different stakeholders. A) A strategic plan B) A scenario plan C) Stakeholder impact analysis D) Stakeholder strategy

C) Stakeholder impact analysis

Onivo Auto Inc. has been the leader in low-cost and fuel-efficient engine technology for many years. It has been able to sustain its competitive advantage primarily because of its highly efficient automobile engines, which competitors have been unable to develop or buy at a reasonable price. In the context of the VRIO framework, which of the following resource attributes most likely underpins Onivo's competitive advantage? A) The resource decreases the perceived value of its products B) The resource is easy to replicate C) The resource is costly to imitate D) The resource neutralizes external opportunities

C) The resource is costly to imitate

Do the following questions correlate to vision, mission, or values? What commitments do we make, and what guardrails do we put in place, to act both legally and ethically as we pursue our vision and mission? A) Vision B) Mission C) Values

C) Values

If a firm is not effectively organized to exploit the competitive potential of a valuable, rare, and costly to imitate (VRI) resource, the best case scenario is _____. A) strategic equivalence B) direct imitation C) a temporary competitive advantage D) a state of perfect competition

C) a temporary competitive advantage

In the context of the VRIO framework, a resource is said to be valuable if it _____. A) helps a firm increase its costs but lower its prices B) results in a perfectly competitive industry structure C) allows a firm to take advantage of an external opportunity D) leads to competitive parity within an industry

C) allows a firm to take advantage of an external opportunity

In a perfectly competitive industry structure, _____. A) resource heterogeneity is high B) resource immobility is high C) any competitive advantage that one firm has will be short-lived D) competitors cannot quickly acquire resources used by the current market leader

C) any competitive advantage that one firm has will be short-lived

Strategy as planned emergence involves _____ strategic initiatives. A) top-down B) bottom-up C) both D) neither

C) both

Strong leadership is made up of _____. A) innate abilities B) learning C) both D) neither

C) both

To gain a competitive advantage, a firm must _____. A) provide products which consumers value MORE HIGHLY than those of its competitors B) provide products which are SIMILAR to the competitors', but at a LOWER PRICE/HIGHER VALUE C) both D) neither

C) both

The _____ determines the position of a company. A) retailer B) manufacturer C) consumer

C) consumer

The _____ determines what's valuable and what's not. A) retailer B) manufacturer C) consumer

C) consumer

A resource is _____ if competitors cannot develop the resource for a reasonable price. A) valuable B) rare C) costly to imitate D) organized

C) costly to imitate

Any unplanned strategic initiative which bubbles up from the bottom of the organization is known as a(n) _____. A) intended strategy B) realized strategy C) emergent strategy

C) emergent strategy

In the corporate social responsibility pyramid, the _____ responsibility is to do what is right, just, and fair. A) economic B) legal C) ethical D) philanthropic

C) ethical

A set of coherent actions to implement the firm's guiding policy is known as _____. A) analysis B) formulation C) implementation

C) implementation

When a random event, surprise, or coincidence occurs, which has an effect on strategic initiatives, it is known as _____. A) a black swan event B) an autonomous action C) serendipity D) the RAP

C) serendipity

The _____ factor of the PESTEL model involves society's cultures, norms, values, and demographic trends. A) political B) economic C) sociocultural D) technological E) ecological F) legal

C) sociocultural

Strategic groups are sets of companies in the same industry pursuing a similar strategy. Therefore, a(n) _____ clusters different firms into groups based on key strategic dimensions. A) industry analysis B) stakeholder impact analysis C) strategic group map D) A & C E) none of the above

C) strategic group map

A unique position within an industry which allows the firm to provide value to customers, while controlling costs, is known as _____. A) brand positioning B) consumer positioning C) strategic positioning

C) strategic positioning

A(n) _____ is a set of goal-directed actions a firm takes to gain and sustain superior performance relative to COMPETITORS. A) analysis B) formulation C) strategy D) competitive advantage

C) strategy

A _____ serves as a guardrail to keep a company on track. A) vision B) mission C) value

C) value

_____ (Corporate/Business) strategy involves WHERE to compete, while _____ (corporate/business) strategy involves HOW to compete. And functional strategy involves HOW to IMPLEMENT.

Corporate; business

_____ (Customer/Product)-oriented vision statements focus employees on problem-solving for the CUSTOMER, while _____ (customer/product)-oriented statements focus employees on improving existing PRODUCTS.

Customer; product

A level-_____ EFFECTIVE LEADER presents a compelling vision and mission to guide groups toward superior performance. Does the right things. A) 1 B) 2 C) 3 D) 4 E) 5

D) 4

Which of the following explains how dynamic capabilities are different from the resource-based view? A) Dynamic capabilities deal with applying resources over time B) Dynamic capabilities deal with resource heterogeneity C) Dynamic capabilities deal with tangible resources D) Dynamic capabilities deal with intangible resources

D) Dynamic capabilities deal with intangible resources

An industry is made up of one firm with considerable pricing power. It offers a unique product and the barriers to entry are very high. Which type of competitive industry structure exists? A) Perfect competition B) Monopolistic competition C) Oligopoly D) Monopoly

D) Monopoly

Which of the following will most likely be considered as an automobile company's core competency? A) The company's ability to start distributing its cars in areas where a competitor is the market leader B) The company's ability to manufacture cars at a cost that is average in the industry C) The company's ability to follow federal laws just like its competitors D) The company's ability to make its cars more fuel efficient than most of its competitors

D) The company's ability to make its cars more fuel efficient than most of its competitors

In the dynamic capabilities perspective, for an asset or a capability to be included in a firm's resource stock, it should be _____. A) capable of reducing the barriers to entry in an industry B) readily available for purchase using cash C) commonly shared by other firms in the same industry D) built through investments over time

D) built through investments over time

Corporate executives at Mertens, Inc. decide to compete in the tricycle industry by making the largest wheeled tricycles available. By doing this, they completed part of their: A) implementation strategy B) corporate strategy C) functional strategy D) business strategy

D) business strategy

Patents, designs, copyrights, trademarks, and trade secrets are five forms of _____. A) causal ambiguity B) path dependence C) social complexity D) intellectual property

D) intellectual property

A resource is _____ if it can capture value through effective organizational structure and coordinating systems. A) valuable B) rare C) costly to imitate D) organized

D) organized

In the corporate social responsibility pyramid, the _____ responsibility is corporate citizenship. A) economic B) legal C) ethical D) philanthropic

D) philanthropic

The _____ is an integrative approach to managing a diverse set of stakeholders to gain and sustain competitive advantage. A) strategic plan B) scenario plan C) stakeholder impact analysis D) stakeholder strategy

D) stakeholder strategy

Any activity a firm pursues to explore and develop new products, processes, markets, and ventures is known as a(n) _____. A) intended strategy B) realized strategy C) emergent strategy D) strategic initiative

D) strategic initiative

A(n) _____ gets a firm from their mission to their vision. (Choose the BEST answer) A) statement B) competitive advantage C) commitment D) strategy

D) strategy

The _____ factor of the PESTEL model involves innovations in both process and product technology. A) political B) economic C) sociocultural D) technological E) ecological F) legal

D) technological

The _____ describes the internal activities a firm engages in when transforming inputs into outputs? A) SWOT analysis B) resource-based view C) PESTEL analysis D) value chain view

D) value chain view

What is the FIRST step in gaining and sustaining a competitive advantage?

Defining your firm's vision, mission, and values

Why are "dynamic capabilities" the opposite of "core rigidity"?

Dynamic capabilities are a firm's ABILITY to adapt resources over time due to environmental change, and core rigidity is a firm's INABILITY to adapt

A level-_____ EXECUTIVE builds enduring greatness through a combination of willpower and humility. A) 1 B) 2 C) 3 D) 4 E) 5

E) 5

The _____ factor of the PESTEL model involves broad environmental issues such as natural environment, global warming, and economic growth. A) political B) economic C) sociocultural D) technological E) ecological F) legal

E) ecological

_____ (External/Internal) analysis consists of industry structure, competitive forces, and strategic groups.

External

_____ help deliver core competencies. A) Resources B) Capabilities C) Activities D) A & C E) B & C F) A-C G) None of the above

F) A-C

Which of the following are pitfalls of the top-down approach? (Select all that apply) A) May not adapt well to change B) Information flows one-way C) Leaders' future vision can be wrong D) Formulation is separate from implementation E) A-C F) A-D G) None of the above

F) A-D

The _____ factor of the PESTEL model involves the official outcomes of political processes such as laws, mandates, regulations, and court decisions. A) political B) economic C) sociocultural D) technological E) ecological F) legal

F) legal

T/F) Competitive parity is a good thing for a firm which is seeking a competitive advantage.

False

T/F) Competitive intelligence (information about rivals) is not very useful in anticipating their next strategic moves because unfortunately, predicting rivals' next moves is impossible.

False (Competitive intelligence IS useful. While fully predicting their next moves is, in fact, impossible, every bit of information helps gain an advantage)

T/F) A principle of strategic management holds that a company's strategy is defective the more it provides some insulation from competitive pressures, shifts the competitive battle in the company's favor, and positions firms to take advantage of attractive growth opportunities.

False (If these factors exist, the company's strategy is EFFECTIVE, not DEFECTIVE)

T/F) Industry dynamics are not useful since industries are stable.

False (Industry dynamics provide insight about the changing speed of an industry and the rate of innovation)

T/F) Stakeholder management does not benefit firm performance.

False (It DOES benefit firm performance)

T/F) When internal stakeholders help define the vision of a company, it generally performs worse.

False (It generally performs BETTER)

T/F) The degree to which an industry is attractive or unattractive is the same for all industry participants and all potential entrants.

False (It is NOT the same)

T/F) A firm making a statement such as "We will be #1!" is a fantastic business strategy.

False (Making grandiose statements and failing to address any competitive challenges or utilize any tactical tools does NOT create a good strategy)

T/F) Strategic positioning does not require any trade-offs. As long as managers have a strong strategy in place, they are able to allocate as many resources and pursue as many activities as they want.

False (Managers MUST make conscious trade-offs)

T/F) Strategic failure typically isn't too costly.

False (Strategic failure IS expensive)

T/F) Typically, the HIGHER the industry entry barrier, the LOWER the profit potential.

False (The HIGHER the industry barrier, the HIGHER the profit potential)

T/F) When U.S. Railroad companies entered the market, they focused SOLELY on the railroad business, thereby creating a CUSTOMER-oriented vision statement.

False (They created a PRODUCT-oriented vision statement)

Which of the following are involved in the "Formulation" of the AFI strategy framework? (Select all that apply) A) Organizational structure B) Organizational culture C) Organizational control D) Corporate governance E) Business ethics F) A-C G) D & E H) A-E

H) A-E

To achieve superior performance, companies compete for which of the following resources? A) New ventures: financial and human capital B) Existing companies: profitable growth C) Charities: donations D) Universities: the best students and professors E) Sports teams: championships F) Celebrities: media attention G) A, C, & E H) B, D, & F I) A-F J) None of the above

I) A-F

Technological advances cause industry convergence. Explain why.

Industry convergence is when unrelated industries satisfy the same need, such as the radio and social media providing the same information to consumers as newspapers used to provide.

Are tangible or intangible resources more valuable to a firm? Explain why.

Intangible, because they are VRIO (Valuable, Rare, costly to Imitate, and Organized)

_____ (External/Internal) analysis consists of resources, capabilities, and core competencies

Internal

What is lobbying?

Legally attempting to influence the decisions, actions, or policies of government officials

Barriers to imitation are examples of isolating mechanisms because they prevent rivals from competing away the advantage a firm contains. Some of these barriers to imitation are as follows: A) Better expectations of a resource's future value B) Path dependence C) Causal ambiguity D) Social complexity E) Intellectual property (IP) protection Explain path dependence, causal ambiguity, and social complexity.

Path dependence - The decisions a firm has are dependent upon decisions it has made in the past Causal ambiguity - The cause/effect of something is not apparent Social complexity - Social and business systems interact

_____ (Customer/Product)-oriented vision statements often constrain the ability to change to adapting environments, while _____ (customer/product)-oriented statements allow this ability.

Product; customer

Name the two critical assumptions of the RBV (Resource-Based View).

Resource heterogeneity & Resource immobility

What does RAP stand for?

Resource-Allocation Process

What does ROIC stand for?

Return On Invested Capital

What does SBU stand for?

Strategic Business Unit

What is the concept which simultaneously increases value and decreases cost?

Sustainable competitive advantage

What is litigation?

Taking legal action

Industries are not stable; they're dynamic. What does this mean?

They are constantly changing and progressing

T/F) A firm choosing whether or not to enter an industry may ask the following questions: When?, How?, What?, Where?, and Who?

True

T/F) A principle of strategic management holds that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces.

True

T/F) An industry analysis is a way to identify an industry's profit potential and derive a strategic position.

True

T/F) Competitive advantage has to come from performing different activities OR performing the same activities DIFFERENTLY than rivals.

True

T/F) Complements are products which add value when used with the original product and co-opetition is cooperation by competitors to achieve a strategic objective, such as Google and Samsung working together to sell more phones.

True

T/F) Leadership actions reflect age, education, career experiences, and personal interpretations of situations.

True

T/F) Strategic activity systems, and UPDATING these systems, enhance the likelihood of sustained competitive advantage.

True

T/F) Strategic positioning enhances the likelihood of a competitive advantage.

True

T/F) The PESTEL model is a straightforward way to scan, monitor, and evaluate a firm.

True

T/F) The following are important attributes of stakeholders: 1. Power (Control over actions) 2. Legitimacy (Valid concerns) 3. Urgency (Require immediate attention)

True

T/F) The upper echelons theory states that organizational outcomes reflect the values of the top management team.

True

T/F) Top-down strategic planning is a DATA-driven strategy process.

True

T/F) When Ford Motor Company entered the market in the early 1900s, Henry focused on PERSONAL mobility, thereby creating a CUSTOMER-oriented vision statement.

True

T/F) How a firm allocates resources based on policy is known as the RAP.

True (Because RAP stands for Resource-Allocation Process)

The VRIO framework is used for evaluating a firm's resources. What does VRIO stand for?

Valuable Rare Costly to Imitate Organized to capture the value of the resource

SUPERIOR performance relative to other competitors in the same industry or the industry average is known as competitive _____ (advantage/disadvantage).

advantage

Research shows that vision statements and firm performance _____ (are/are not) related.

are

Generally, firms which have strong vision statements perform _____ (better/worse).

better

In the past, most people assumed all swans were white. When they first encountered swans that were black, they were surprised. These events can occur in business as well, known as _____ _____ events.

black swan

The high impact of a highly improbable event is known as a(n) _____ _____ event.

black swan

Strategy as planned emergence differs from strategic planning and scenario planning, in that personal experience and front-line employee insights are evaluated, meaning it can utilize a _____ (top-down/bottom-up) approach.

bottom-up

When an industry BUYER (AKA: CUSTOMER) has the ability to exert pressure on its industry's profit potential, such as obtaining price discounts and raising production costs, bargaining power of _____ (suppliers/buyers) exists.

buyers

A _____ (commodity/differentiated) product is roughly the same as one which competitors offer, whereas a _____ (commodity/differentiated) product has a variation.

commodity; differentiated

When unrelated industries satisfy the same need, it is referred to as industry _____ (parity/convergence).

convergence

Unique strengths, embedded deep within a firm, which are critical to gaining and sustaining competitive advantage, are called _____ _____.

core competencies

In the retail industry, Walmart is a _____ (differentiator/cost leader), while Nordstrom is a _____ (differentiator/cost leader).

cost leader; differentiator

When a firm UNDERPERFORMS its rivals or the industry average, it is known as a competitive _____ (advantage/disadvantage).

disadvantage

The risk that potential competitors will ENTER an industry is known as the threat of _____.

entry

Incumbent firms are _____ (incoming/existing) firms within an industry.

existing

Contractual obligations and emotional attachments to an industry leave a firm feeling like it cannot exit the industry, thereby creating an _____ (entry/exit) barrier.

exit

Obstacles which determine how easily a firm can LEAVE the industry are known as _____ barriers.

exit

Customers, suppliers, alliance partners, creditors, unions, communities, media, and governments are considered _____ (internal/external) stakeholders.

external

Superior firm performance is made up of 55% _____ (firm/industry/other) effects, 20% _____ (firm/industry/other) effects, and 25% _____ (firm/industry/other) effects.

firm; industry; other

Strategy _____ (implementation/formulation) involves WHERE and HOW to compete, while strategy _____ (implementation/formulation) involves the EXECUTION of strategy.

formulation; implementation

Growth within an industry and strategic commitments affect the intensity among the industry's competitors. During periods of _____ (negative/high) growth, consumer demand rises and price competition among firms decreases. During periods of _____ (negative/high) growth, rivalry is fierce and they can only gain at the expense of one another.

high; negative

The following are the five steps to the stakeholder _____ _____: Step 1: Who are our stakeholders? Step 2: What are our stakeholders' interests and claims? Step 3: What opportunities and threats do our stakeholders present? Step 4: What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? Step 5: What should we do to affectively address the stakeholder concerns?

impact analysis

The difference between industry and firm effects is industry effects affect the _____ (firm/industry), such as entry/exit barriers and types of products offered, while firm effects affect the _____ (firm/industry), such as the specific actions managers take.

industry; firm

In the bathtub metaphor within a value chain analysis, a firm's INVESTMENTS in resources are its _____ (stocks/inflows), and its CURRENT resources are its _____ (stocks/inflows).

inflows; stocks

Culture, knowledge, brand equity, reputation, and intellectual property are examples of _____ (intangible/tangible) resources.

intangible

INVISIBLE resources which do NOT have physical attributes are seen as _____ (intangible/tangible).

intangible

Stockholders, employees, and board members are considered _____ (internal/external) stakeholders.

internal

A firm's strengths and weaknesses assume _____ (internal/external) factors, while their opportunities and threats assume _____ (internal/external) factors.

internal; external

The ultimate goal of strategic positioning is to generate a _____ (small/large) gap between the value of the firm's product and the cost required to produce it (Hint: High value / Low cost)

large

Strategy as planned emergence begins with a strategic plan and is similar to strategic planning and scenario planning, but is _____ (more/less) formal.

less

Managers have _____ (much/little) control in a GENERAL environment and they _____ (can/cannot) influence in a TASK environment.

little; can

"Don't give up what you want most for what you want now" is a _____ (long/short)-term focus.

long

Core rigidity is a firm's former asset (core competency) and due to environmental change of some sort, it has now become a liability. This is a _____ (positive/negative) thing because it was the firm's inability to adapt to its environment.

negative

Competitive _____ occurs when two or more firms perform at the same level.

parity

Supply chain management, operations, distribution, marketing & sales, and after-sales service are all examples of _____ (primary/support) activities.

primary

Firm activities which add value DIRECTLY are called _____ (primary/support) activities, while activities which add value INDIRECTLY are called _____ (primary/support) activities.

primary; support

Mobility barriers _____ (restrict/allow) movement between strategic groups.

restrict

Price discounting and after-sales service are both examples of _____ (camaraderie/rivalry) among competitors.

rivalry

In _____ (strategic/scenario) planning, managers ask what-if questions and envision different scenarios (both optimistic and pessimistic), then derive strategic responses to each of those scenarios.

scenario

In _____ (strategic/scenario) planning, probabilities are attached to different future states (ie: highly likely vs. unlikely).

scenario

The following are questions to ask in _____ (strategic/scenario) planning: 1. What resources and capabilities do we need to compete successfully in each scenario? 2. What strategic initiatives should we put in place to respond to each scenario? 3. How can we shape our expected future environment?

scenario

Organizations, groups, or individuals who can affect or are affected by a firm's actions because they have an interest in the firm are known as _____.

stakeholders

Resource _____ (stocks/flows) are a firm's CURRENT LEVEL of intangible resources, while resource _____ (stocks/flows) are its level of INVESTMENTS to MAINTAIN/BUILD the resource.

stocks; flows

Energy drinks vs. coffee, videoconferencing vs. business travel, and email vs. express mail are all examples of _____.

substitutes

Products which meet the same basic customer need and are available outside the industry are known as _____.

substitutes

When an industry SUPPLIER has the ability to exert pressure on its industry's profit potential, such as demanding higher prices for their inputs or reducing quality, bargaining power of _____ (suppliers/buyers) exists.

suppliers

Research & development, information systems, human resources, accounting & finance, and firm infrastructure are all examples of _____ (primary/support) activities.

support

The ultimate goal is for core competencies to grow into _____ competitive advantage.

sustainable

When a firm is able to outperform its competitors or the industry average over a PROLONGED period, it is known as a _____ competitive advantage.

sustainable

Labor, capital, land, buildings, equipment, supplies, and the plant are examples of _____ (intangible/tangible) resources.

tangible

VISIBLE resources which have PHYSICAL attributes are seen as _____ (intangible/tangible).

tangible

A firm's RESOURCES fall into the following two categories: _____ and _____.

tangible; intangible

T/F) Economies of scale, customer switching costs, capital requirements, government policy, credible threat of retaliation, advantages independent of size, and network effects are all examples of _____ of _____.

threats; entry

Strategic planning and scenario planning are both formal, _____ (top-down/bottom-up) planning approaches.

top-down

The _____ chain describes the internal activities in which a firm engages when transforming inputs into outputs. These activities consist of both primary and support.

value