QUIZ A

Which of the following examples reflects the strongest vision?

At Fuentes Electronics, all employees are motivated to make the best microwave ovens on the market.

are incidents that describe highly improbable but highly impactful events.

Black swan events

Which of the following is an example of an organizational value?

Burtell Oil, Inc. increases the inspection of pipelines above the legal requirement to prevent oil spills

the firm's working plan for achieving its vision, prioritizing objectives, competing successfully, and optimizing financial performance with its business model.

Business strategy

is best described as a framework that helps firms recognize and address the economic, legal, social, and philanthropic expectation that society has of the business enterprise at a given point in time. Question options:

Corporate social responsibility

Silver Screen Cinemas Inc. and Digi Now Inc. are two companies that own and run movie theaters in malls and other commercial areas. While Silver Screen Cinemas Inc. pursues a cost-leadership strategy, Digi Now Inc. adopts a differentiation strategy. Which of the following statements is most likely true of this scenario?

Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little.

According to the Level-5 leadership pyramid, a manager turns into an executive who is capable of building lasting greatness into the organization through a combination of willpower and humility when he or she reaches

Level 5

are best described as the ethical standards and norms that govern the behavior of individuals within a firm.

Organizational values

is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

Strategic management

Which of the following best illustrates a strategic business unit (SBU)?

The consumer electronics division of a large company that also manufactures automobiles, apparel, and processed food

Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?

The firms would eventually have no resources to invest in product and process.

Which of the following statements about product-oriented visions is true?

They tend to force managers to take a myopic view of the landscape.

True Help is a nonprofit organization that works toward rehabilitating the homeless. The credo of the organization is "help us help you." For an organization like True Help, which of the following statements would make an appropriate mission?

We help the homeless gain and sustain financial independence by providing employment opportunities.

A firm's stakeholder strategy primarily allows the firm to

analyze and manage how various external and internal stakeholders interact to jointly create and trade value.

To be effective, firms need to

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

A firm always has a competitive disadvantage when its return on invested capital is

below the industry average.

Corporate executives at LikeReal, Inc. decide to compete in the remote model airplane industry by making the largest model planes available. By doing this, they completed part of their

business strategy.

If SA Pharmaceuticals obtain an 18 percent return on investigated capital, which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

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

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n)

competitive advantage.

Strategic leadership pertains to the use of power and influence by _____ to direct the activities of others when pursuing an organization's goals.

corporate executives

The CEO of True West Products Inc. (TWP) is a company that sells a wide range of products. It has decided to enter the markets of emerging nations like China and Brazil. This means that the cars, consumer electronics, and services such as hotels included under the TWP banner would be made available in these nations. Which of the following strategies does this scenario best illustrate?

corporate strategy

While creating its AFI strategy framework, the Kowalski Candy Company decided what markets the firm should compete in. By doing this, what type of strategy did the company devise?

corporate strategy

Organizational values are the _____ that govern the behavior of individuals within a firm or organization.

ethical standards and norms

Managers use the AFI strategy framework primarily to

explain and predict differences in firm performance.

Organic Food Inc., a multinational company, relies on its media partner Radio Plus to regularly advertise its offers, sales, and new products. Radio Plus is invested in theis relationship because it generates most of its revenue from advertising Organic Food's products. In this scenario, Radio Plus is Organic Foods Inc.'s

external stakeholder.

As a part of strategy formulation, a firm's functional strategy primarily concerns questions relating to

how to implement business strategy.

Which of the following is step 3 in the five-step process of stakeholder impact analysis?

identifying the opportunities and threats the stakeholders present

A company's strategic business unit

is responsible for its own profit and loss.

The minimum wage in the country of New Morland is $8 an hour. Odion, a restaurant in New Morland's capital city, pays its servers $8 per hour. However, the management of the restaurant feels that this amount is excessive for workers whose only job is to clear tables. By continuing to adhere to the rules set by the government of New Morland, which of the following responsibilities is Odion satisfying?

legal responsibilities

Jake's Taxi Service is a new entrant to the taxi industry. It has achieve success by staking out a unique position in the industry. How did Jake's Taxi Service most likely achieve this position?

providing long-distance cab fares at a lower rate than competitors; servicing the same area as competitors

Pink Couture Inc. and Pink Blush Inc. are two companies in the apparel industry. While Pink Couture Inc. focuses on providing unique product features and superior customer service. Pink Blush Inc. focuses on low prices and minimal customer service. Both companies have been able to gain a competitive advantage. This is most likely because the companies have

pursued distinct strategic positions.

As the legal owners, _______ have the most legitimate claim on a company's profits.

shareholders

A customer-oriented vision statement focuses employees to think about how best to

solve a problem for a consumer.

A(n) _____ is best described as a stand-alone division of a larger conglomerate, with its own profit-and-loss responsibility.

strategic business unit

Executives whose vision and actions enable their organizations to achieve competitive advantage demonstrate

strategic leadership.

Patterson Foods Inc. was the first company to start selling energy bars in its country -- a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of energy bars, thereby giving Patterson Foods ample competition. In response, Patterson Foods decided to limit its variety of energy bars to only four. However, it ensures that these four varieties were low in calories and low in cost. With this innovation, Patterson Foods Inc. consistently outperformed its competitor for ten years. In this scenario, Patterson Foods Inc. maintained a _______ through its innovative strategy.

sustainable competitive advantage

In the United States, which of the following was born out of dissatisfaction with the capitalist system in 2011?

the Occupy movement

Which of the following forces tends to be more important in determining a firm's performance?

the actions of managers within the firm

Who among the following is responsible for making business strategies in a large conglomerate?

the general managers of individual business units

The Chief Executive Officer (CEO) of Yahoo, Marissa Mayer, maintains that if a company builds the best product possible, profits will come. Identify the phrase that represents the new vision she developed for Yahoo.

to make the world's daily habits more inspiring and entertaining