428 SB Ch1

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

In which of the following situations can a firm providing goods and services gain a competitive advantage?

-their offerings provide more value for consumers than competitors offerings -their offerings are of similar quality to competitors offerings but can be sold at lower prices due to lower costs

stakeholder impact analysis

1 - identify stakeholders 2 - identify stakeholder interests 3 - Identify opportunities and threats 4 - identify social responsibilities 5 - Address Stakeholder concerns

competitive advantage

A firm's edge over its competitors that allows it to have higher sales, higher profits, more customers and enjoy greater success year after year.

AFI strategy framework

Analyze, Formulate, Implement

Corporate Social Responsibility

a business's concern for society's welfare

A stakeholder has ______ when its needs are within the bounds of the law or are otherwise relevant to the firm.

a legitimate claim

To which types of organizations can we apply the principles of strategic management?

all types

strategic managment combines what?

analysis, formulation, and implementation

Burger Bomb has been outperforming other burger restaurants in recent years. This indicates that Burger Bomb has which of the following?

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 ______.

competitive advantage

Primary strategy objectives

controlling costs creating value

philanthropic responsibilities

corporate citizenship

What must a firm do after diagnosing its specific competitive challenge?

create an effective guiding policy

When identifying stakeholders, a firm should focus on those stakeholders that ______.

currently have, or could potentially have, a material effect on the firm

ethical responsibilities

do what is right, just, and fair

strategic commitments

effective guiding policy supported by and stay consistent with use of this

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

Stakeholder impact analysis is a _____-step process that allows managers to better understand and address stakeholders' needs.

five

Purpose of Strategic Management

gain a competitive advantage

Economic Resposibilities

gain and sustain competitive advantage

stakeholders

group or individuals who can impact or be impacted by a firms actions

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ______.

interests and claims

legal responsibility

laws and regulations are society's codified ethics: minimum acceptable standard

The third step of stakeholder impact analysis requires managers to identify the ______ presented by internal and external stakeholders.

opportunities and threats

Sustainable competitive advantage exists when a firm ______.

out preforms it's competition or industry average over a prolonged period of time

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (Check all that apply.)

power, legitimacy and urgency

Strategic positioning allows managers to

provide customers value while controlling costs

legal and economic responsibilities

required by society and shareholders

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

philanthropic and ethical responsibilities

society expects this but it is not required

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

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

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. This is known as Burger Bomb's ______.

strategy

Based on its long dominance as a coffeehouse chain, Starbucks has ______.

sustainable competitive advantage

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

Strategy is

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

Which of the following statements regarding tasks in the AFI strategy framework is true?

the tasks are very interdependent

In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm.

third

In the external analysis phase of the AFI strategy framework, managers should ask,

"How do external forces affect our strategy and competitive advantage?"

A Good Strategy Is Based on Three Elements

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

Stakeholder impact analysis is a decision tool that helps a company do which of the following?

-act as a good corporate citizen -achieve a competitive advantage

Aims of stakeholder strategy

-gain and sustain competitive advantage -manage various stakeholders effectively