Strategic Management Chp 1
A successful business strategy creates Blank______ for both producers and consumers.
Value
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
______ occurs when a firm performs below the industry average or is outperformed by its competitors.
competitive disadvantage
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
Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that uses locally sourced, organic ingredients. These ideas are Burger Bomb's
Strategy
A stakeholder has Blank______ when its needs are within the bounds of the law or are otherwise relevant to the firm.
a legitimate claim
Based on its long dominance as a coffeehouse chain, Starbucks has
a sustainable competitive advantage
When a stakeholder has power over a company that stakeholder is
able to influence the company to do something it would otherwise not do
In which step of a stakeholder impact analysis do 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
A competitive advantage
is assessed relative to other competitors in the industry
Strategic positioning allows managers to
provide customer value while controlling costs
What term describes the groups or individuals who can impact or be impacted by a firm's actions?
stakeholders
Managers often have to make decisions between two conflicting strategic options, otherwise known as
trade-offs
True or false: A statement such as, "We will be the biggest company in the world," is an example of strategy.
False
What is the overall purpose of a firm's strategy?
Perform better than other companies in the same industry.
Which statement about strategies is true?
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?
Achieve a competitive advantage Act as a good corporate citizen
What must a firm do after diagnosing its specific competitive challenge?
Create an effective guiding policy
Which of the following questions are part of the five steps in stakeholder impact analysis?
What opportunities and threats do our stakeholders present? Who are our stakeholders? What are our stakeholders' interests and claims?
A well-devised strategy is about which two things?
What to do and what not to do
The third step of stakeholder impact analysis requires managers to identify the Blank______ presented by internal and external stakeholders.
opportunities and threats
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
What do shareholders receive from firms in return for their contribution of capital?
stock dividends
Effective guiding policy is supported by and stays consistent through the use of
strategic commitments
A competitive advantage that lasts for a long period of time is said to be
sustainable
A firm that successfully executes a strategy benefits society by
reinvesting profits and increasing employment & creating value
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
What is the field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation?
strategic management
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
What is the overall purpose of strategic management?
Gain competitive advantage
Burger Bomb has been outperforming other burger restaurants in recent years. This indicates that Burger Bomb has which of the following?
A competitive advantage
When a firm works to gain a competitive advantage by providing better goods and services than its rivals, it is employing a strategy.
differentiation
What is the best definition of a cost leadership strategy?
Offering similar goods and services at a lower price.
When does a situation of competitive parity exist?
Two or more firms achieve the same performance results.
Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has
competitive parity
When identifying stakeholders, a firm should focus on those stakeholders that
currently have, or could potentially have, a material effect on the firm
Managers have Blank______ resources in their quest for competitive advantage.
limited
In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to
the performance of other firms in its industry
What is strategy?
the set of actions a firm takes to achieve a competitive advantage