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