Topic 1

Who among the following are considered internal stakeholders?

Board members Stockholders Employees

Drag the contribution to a firm to the type of stakeholder who makes that contribution.

Shareholders - Provide capital Creditors - Provide financing in the form of loans Employees - Provide time and talent Communities - Provide real estate and public safety

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 of the following are primary strategy objectives?

controlling costs creating value

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

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 term describes the groups or individuals who can impact or be impacted by a firm's actions?

stakeholders

A competitive advantage that lasts for a long period of time is said to be ______.

sustainable

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 must a firm do after diagnosing its specific competitive challenge?

Create an effective guiding policy

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 best definition of a cost leadership strategy?

Offering similar goods and services at a lower price.

Firms should identify a ______ so that employees can determine if they are making progress in addressing it.

clear competitive challenge

Which of the following elements of the pyramid of corporate social responsibilities are result from a society's expectations toward business? Select all that apply

ethical responsibilities philanthropic responsibilities

The stakeholders of a firm are ______.

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

Managers have ______ resources in their quest for competitive advantage.

limited

What is the field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation?

strategic management

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

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

Managers often have to make decisions between two conflicting strategic options, otherwise known as ______.

trade-offs

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis?

urgency legitimacy power

A successful business strategy creates ______ for both producers and consumers.

value