BUS/475: Integrated Business Topics - Week 1

The groups or individuals who can impact or be impacted by a firm's actions are known as ______.

stakeholders

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

Which of the following types of questions does scenario planning ask?

"What if?"

Stakeholder impact analysis is a decision tool that helps a company do which of the following? (Check all that apply.)

Achieve a competitive advantage Act as a good corporate citizen

What is the first step in the AFI strategy framework?

Analysis

Why is employee involvement crucial when developing an inspiring vision and mission? (Check all that apply.)

Because belief in the vision and mission statements motivates employees. Because employees may develop helpful strategic initiatives.

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

Create an effective guiding policy

According to Daniel Kahneman and Amos Tversky, System 1 is analytical, logical, and deliberate.

False

What is the overall purpose of strategic management?

Gain competitive advantage

What should a successful vision do for an organization? (Check all that apply.)

It should make employees feel that their work is important. It should inspire employees.

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.

Which of the following statements is correct? Strategic initiatives can be the result of top-down planning or a bottom-up process. Strategic initiatives generally lead to financial success. Strategic initiatives are always the result of a bottom-up process. Strategic initiatives are always the result of top-down planning.

Strategic initiatives can be the result of top-down planning or a bottom-up process.

What are the approaches that can be utilized when strategizing for competitive advantage?

Strategic planning Scenario planning Strategy as planned emergence

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.

What is strategic leadership?

The use of influence and power by executives to direct the activities of individuals while pursuing an organization's goals

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

Their offerings are similar to competitors' offerings at higher prices. 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.

Which of the following are aims of stakeholder strategy? (Select all that apply.)

To manage various stakeholders effectively To gain and sustain competitive advantage

True or false: Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision.

True

What is the typical result of cognitive limitations?

We choose the option that is "good enough" and satisfies immediate needs.

Which of the following are questions that managers are likely to ask when beginning the strategic management process?

What are our values? How can we achieve our goals? What do we ultimately hope to achieve?

Which of the following questions are part of the five steps in stakeholder impact analysis?

What opportunities and threats do our stakeholders present? What are our stakeholders' interests and claims? Who are our stakeholders?

Which of the following best describes an illusion of control?

a belief that a strategic plan will address any scenario

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

Which of the following elements comprise strategic management? (Check all that apply.)

analysis implementation formulation

Which of the following leads to systematic errors in decision making and hinders rational thinking?

cognitive biases

A(n) ______ is a statement of principles to guide an organization as it works to achieve its vision and fulfill its mission.

core values statement

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

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

What method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action?

devil's advocacy

A core values statement provides information to employees regarding the company's ______.

ethics and morals

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

Jennie is the CEO of an information technology company. Based on the data that her researchers have compiled, she feels confident that her strategic plan for the company will be successful in the future, regardless of what happens. Based on this information, it seems that Jennie ______.

has an illusion of control

A(n) _____ strategy is the outcome of a rational and structured, top-down strategic plan.

intended

Research about how CEOs spend their days suggests that CEOs spend most of their time ______.

interacting with others

Sustainable competitive advantage exists when a firm ______.

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

Studies show that CEOs spend the majority of their time ______.

meeting people face-to-face

Top-down strategy is derived from ______.

military strategy

After creating a vision as part of the strategic management process, a firm must next establish a(n) ______.

mission

A _____ outlines what an organization does, while a vision outlines what the organization wants to do.

mission, missions, or mission statement

What are cognitive biases?

obstacles in thinking that result in systematic errors in decision making and hinder rational thinking

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

philanthropic responsibilities ethical responsibilities

Match the element of the pyramid of corporate social responsibility (on the left) with its explanation (on the right). Instructions

philanthropic responsibilities-corporate citizenship ethical responsibilities-do what is right, just, and fair legal responsibilities-laws and regulations are society's codified ethics; define minimum acceptable standard economic responsibilities- gain and sustain competitive advantage

Which of the following is an important part of strategic leadership and is the strategic leader's ability to influence and direct individuals to do things?

power

Effective guiding policy is supported by and stays consistent through the use of ______.

strategic commitments

A(n) ______ is any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.

strategic initiative

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

Which of the following is the least formal approach to setting the strategy process?

strategy as planned emergence

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

sustainable

What is System 1 of the brain according to Daniel Kahneman and Amos Tverksy?

the brain's default mode

Which of the following topics should be considered during the analysis phase of the AFI framework?

the firm's internal strengths and resources the external environment and associated challenges the firm's business model and competitive advantages the role of strategic leadership and the strategy process

Strategy is ______.

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

Both strategy formulation and strategy implementation are aspects of ______.

the strategy process

According to upper-echelons theory, the way strategic leaders of a firm interpret a situation is influenced by which of the following?

the values and experiences of the firm's leaders

Which theory proposes that when faced with decisions, we tend to satisfice rather than optimize?

theory of bounded rationality

If parts of a firm's intended strategy fall by the wayside, it is referred to as

unrealized strategy.

Click and drag on elements in order Place the five steps of the stakeholder impact analysis in order, with the first step at the top.

1. Who are our stakeholders? 2. What are our stakeholders' interests? 3. What opportunities and threats do our stakeholders present? 4. What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? 5. what should we do to effectively address the stakeholder concerns?

Click and drag on elements in order Place in order from first to last the steps in the devil's advocacy decision framework. (Place the first step at the top.) Instructions Choice 1 of 5. Team 1 formulates a course of action. toggle button Team 1 formulates a course of action. Choice 2 of 5. Team 1 and Team 2 agree upon a course of action. toggle button Team 1 and Team 2 agree upon a course of action. Choice 3 of 5. Team 2 questions the assumptions of and critiques the revised course of action, and Team 1 makes additional revisions. toggle button Team 2 questions the assumptions of and critiques the revised course of action, and Team 1 makes additional revisions. Choice 4 of 5. Team 1 revises the proposed course of action based on the input from Team 2. toggle button Team 1 revises the proposed course of action based on the input from Team 2. Choice 5 of 5. Team 2 questions the assumptions of and critiques the proposed course of action. toggle button Team 2 questions the assumptions of and critiques the proposed course of action.

1) Team 1 formulates a course of action 2) Team 2 questions the assumptions of an critiques the proposed course of action 3) Team 1 revises the proposed course of action based on the input from Team 2 4) Team 2 questions the assumptions of and critiques the revised course of action, and team 1 makes additional revisions 5) Team 1 and Team 2 agree upon a course of action

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

A competitive advantage

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?

corporate social responsibility

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

legitimacy power urgency

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

responsibility

A strategy-planning activity in which top management envisions various what-if scenarios to anticipate plausible futures in order to derive strategic responses is known as _____ planning.

scenario

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

Serena is the CEO of an online retailer. She and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in Central and South America. What type of strategic approach is Serena engaging in?

top-down strategic planning

According to the ______, effective leadership is the outcome of certain intrinsic talents as well as education.

upper-echelons theory

In the strategic management process, which basic principle must be defined first?

vision

Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish?

vision

Strategy formulation concerns the choice of strategy in terms of ______ to compete.

where and how