smart book chp1

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 Blank______. Multiple choice question. fiscal debilitation combined ideology a competitive advantage prolonged management

a competitive advantage

How should managers prioritize stakeholder concerns in the final step of stakeholder impact analysis? Multiple choice question. by addressing the most vocal or visible complaints first by considering the power, legitimacy, and urgency of stakeholder claims by bringing the question to a vote at shareholder meetings by observing the actions of competitors

by considering the power, legitimacy, and urgency of stakeholder claims

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

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

Stakeholder impact analysis is a decision tool that helps a company do which of the following? Multiple select question. Decide where to compete Achieve a competitive advantage Describe the role of functional managers in strategy formulation Act as a good corporate citizen

Achieve a competitive advantage Act as a good corporate citizen

What is the first step in the AFI strategy framework? Multiple choice question. Analysis Application Acceptance Assurance

Analysis

Which of the following are outcomes of effective stakeholder management? Multiple select question. It helps the firm achieve predictable and stable returns. It leads to beneficial cooperation from stakeholders. It lowers the cost of business transactions by building trust. It reduces organizational adaptability.

It helps the firm achieve predictable and stable returns. It leads to beneficial cooperation from stakeholders. It lowers the cost of business transactions by building trust.

What is the best definition of a cost leadership strategy? Multiple choice question. Offering better goods and services at a higher price. Offering similar goods and services at a higher price. Offering better goods and services at a similar price. Offering similar goods and services at a lower price.

Offering similar goods and services at a lower price.

Which of the following statements regarding tasks in the AFI strategy framework is true? Multiple choice question. Only two of the tasks need to be followed for success. The tasks happen in sequence as separate steps. The tasks are interchangeable. The tasks are very interdependent.

The tasks are very interdependent.

Which statement is true about pricing strategies, internet strategies, alliance strategies, and brand strategies? Multiple choice question. They often play a role in day-to-day operations, but they have no bearing on gaining competitive advantage. They may be a necessary part of a firm's initiatives to support its competitive strategies. They represent a complete, consistent guiding policy and a good strategy. They are all that a firm needs to achieve competitive advantage.

They may be a necessary part of a firm's initiatives to support its competitive strategies.

When does a situation of competitive parity exist? Multiple choice question. The performance of two or more firms is superior to the industry average. Two or more firms enter into a strategic alliance. Two or more firms achieve the same performance results. Two or more firms rely on international outsourcing to remain competitive.

Two or more firms achieve the same performance results.

A good strategy consists of three elements. The first element is accomplished through analysis of the firm's external and internal environments. We also call this Blank______. Multiple choice question. a diagnosis of the competitive advantage a guiding policy to address the competitive advantage a set of coherent actions to implement the firms' guiding policy

a diagnosis of the competitive advantage

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 Blank______. Multiple choice question. strategic positioning competitive parity the competitive challenge competitive disadvantage

strategic positioning

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

the performance of other firms in its industry a firm in the technology industry

What is strategy? Multiple choice question. a decision based on internal situational analysis a sustainable and dominant market share the set of actions a firm takes to achieve a competitive advantage a decision based on external situational analysis

the set of actions a firm takes to achieve a competitive advantage

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 Blank______. Multiple choice question. differences in industry norms a strategic failure by Walmart a strategic failure by Nordstrom the trade-offs required by strategic positioning

the trade-offs required by strategic positioning

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

trade-offs

A successful business strategy creates Blank______ for both producers and consumers. Multiple choice question. value equity profits wealth

value

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

what not to do what to do

Firms should identify a Blank______ so that employees can determine if they are making progress in addressing it. Multiple choice question. clear competitive challenge previous competitive advantage statement of desire source of goal conflict

Clear competitive challenge

What is the best definition of the Red Queen effect? Multiple choice question. Companies acquire too much debt. Companies copy each other but do not change strategic positions. Companies' strategic positions change dramatically. Companies invest too much power in top management.

Companies copy each other but do not change strategic positions.

What are negative outcomes of the Red Queen effect? Multiple select question. Customers gain too much advantage from lowered prices. Companies expend energy to gain little advantage. Companies copy each other, which reduces customer choice. Companies have fewer resources to improve product lines.

Companies expend energy to gain little advantage. Companies copy each other, which reduces customer choice. Companies have fewer resources to improve product lines.

What is the best definition of the Red Queen effect? Multiple choice question. Companies copy each other but do not change strategic positions. Companies acquire too much debt. Companies' strategic positions change dramatically. Companies invest too much power in top management.

Companies' strategic positions change dramatically.

A firm's overall efforts to gain and sustain competitive advantage is referred to as which of the following? Multiple choice question. a marketing strategy a pricing strategy a competitive strategy an operations strategy

a competitive strategy

A stakeholder has Blank______ when its needs are within the bounds of the law or are otherwise relevant to the firm. Multiple choice question. a false claim power over a company a legitimate claim an urgent claim

a legitimate claim

Select all that apply Which of the following are elements of a good strategy according to the AFI framework? Multiple select question. strong stakeholder involvement in the strategy formulation process a leadership group with relevant prior industry experience a set of coherent actions to implement the firm's guiding policy a guiding policy to address the competitive challenge a diagnosis of the competitive challenge

a set of coherent actions to implement the firm's guiding policy a guiding policy to address the competitive challenge a diagnosis of the competitive challenge

Based on its long dominance as a coffeehouse chain, Starbucks has Blank______. Multiple choice question. an absolute advantage a sustainable competitive advantage competitive parity a competitive disadvantage

a sustainable competitive advantage

When a stakeholder has power over a company that stakeholder is Blank______. Multiple choice question. able to influence the company to do something it would otherwise not do able to get the company more profit helping to implement the firm's strategy helping to improve the sales of the company by implementing new strategies

able to influence the company to do something it would otherwise not do

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

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) Blank______. Multiple choice question. competitive disadvantage competitive parity overperforming norm purchasing parity

competitive disadvantage

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

competitive parity

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society? Multiple choice question. AFI framework strategic management framework SWOT analysis corporate social responsibility

corporate social responsibility

Which of the following are primary strategy objectives? Multiple select question. creating value controlling costs strengthening relationships maximizing sales

creating value controlling costs

A firm that successfully executes a strategy benefits society by Blank______. Multiple select question. eliminating legal restrictions on controversial practices limiting competition creating value reinvesting profits and increasing employment

creating value reinvesting profits and increasing employment

When a firm works to gain a competitive advantage by providing better goods and services than its rivals, it is employing a strategy. (Enter one word in the blank.)

differentiation

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

false

True or false: A strategic leader's job is to focus like a laser on shareholders. True false question.TrueFalse

false

Effective stakeholder management Blank______. Multiple choice question. results in greater likelihood of negative outcomes with employees helps a firm build a strong public reputation leads to dissatisfaction with customers causes a loss of trust with business partners

helps a firm build a strong public reputation

The stakeholders of a firm are Blank______. Multiple choice question. only those who directly profit from a firm's success individuals or groups who own at least one share of a firm's stock 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

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

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

is assessed relative to other competitors in the industry

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

limited

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

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

What is the overall purpose of a firm's strategy? Multiple choice question. Sell all existing inventory of a given product. Generate significant interest from foreign investors. Perform better than other companies in the same industry. Determine demand for new product ideas.

perform better than other companies in the same industry

The concept, or framework, of corporate social guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.

responsibility

Stakeholder strategy argues that focusing exclusively on the needs of Blank______ places the firm at risk of failure. Multiple choice question. employees competitors managers shareholders

shareholders

Why should a firm define a clear competitive challenge? Multiple choice question. so that employees can assess their progress toward addressing it so that external stakeholders have the same information as internal stakeholders so that the firm can achieve competitive parity so that managers can substitute tactical tools for a traditional strategy

so that employees can assess their progress toward addressing it

which of the following is a tool that managers can use to address the needs of stakeholders while maintaining a competitive advantage? Multiple choice question. ethical choice analysis stakeholder impact analysis group happiness strategy corporate citizen strategy

stakeholder impact analysis

What term describes the groups or individuals who can impact or be impacted by a firm's actions? Multiple choice question. competitors shareholders stakeholders expatriates

stakeholders