Chap 1: What is strategy

Internet privacy, genetic engineering, and stem-cell research are examples of areas in which a firm's ______ responsibilities exceed its legal responsibilities. A. philanthropic B. ethical C. educational D. economic

B

The stakeholders of a firm are ______. Multiple choice question. A. only those who directly profit from a firm's success B. individuals or groups that can affect and are affected by the actions of the firm C. individuals or groups who own at least one share of a firm's stock D. only those firms that contribute to the production and distribution of a company's products

B

The third step of stakeholder impact analysis requires managers to identify the ______ presented by internal and external stakeholders. Multiple choice question. A. stakeholder interests and opportunities B. opportunities and threats C. threats and responsibilities D. social responsibilities and stakeholder interests

B

When identifying stakeholders, a firm should focus on those stakeholders that ______. Multiple choice question. A. can be ignored with no material impact on the firm B. currently have, or could potentially have, a material effect on the firm C. are directly involved with the production or distribution of the company's products D. purchase and use its products

B

Which of the following are primary strategy objectives? (Check all that apply.) Multiple select question. A. maximizing sales B. controlling costs C. strengthening relationships D. creating value

B and D

In a nutshell, strategy is the art and science of ______. Multiple choice question. A. maintaining a work-life balance B. treating people fairly C. success and failure D. amassing wealth

C

In the ______ step of the stakeholder impact analysis, managers need to decide the appropriate course of action for the firm in relation to stakeholder concerns. A. second B. fourth C. fifth D. third E. first

C

In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm. Multiple choice question. A. second B. first C. third D. fifth E. fourth

C

Stakeholder impact analysis is a _____-step process that allows managers to better understand and address stakeholders' needs. Multiple choice question. A. three B. two C. five D. four

C

Starbucks's commitment to fair trade and responsible growing practices indicates that the firm takes its ______ responsibilities seriously. Multiple choice question. A. legal B. philanthropic C. ethical D. economic

C

The idea that firms should voluntarily give back to society when they are able to do so is also known as ______. A. employee profit sharing B. corporate profit sharing C. corporate citizenship D. legal citizenship

C

To which types of organizations can we apply the principles of strategic management? A. nonprofit organizations only B. privately owned companies only C. all types of organizations D. governmental agencies

C

Which of the four corporate social responsibilities is considered first and foremost for business enterprises? A. philanthropic B. legal C. economic D. ethical

C

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

C

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. Multiple choice question. A. third B. fifth C. first D. fourth E. second

C. First

Microsoft donating more than $3 billion in cash and software to people in need is an example of which type of corporate social responsibility? A. ethical B. economic C. philanthropic D. legal

C. Philanthropic is usually about donation

A well-devised strategy is about which two things? A. past successes or failures B. market trends in unrelated industries C. what to do D. what not to do

C. what to do D. what not to do

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. A. group happiness strategy B. corporate citizen strategy C. ethical choice analysis D. stakeholder impact analysis

D

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

D

In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework. Multiple choice question. A. fourth B. first C. fifth D. third E. second

E

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (Check all that apply.) Multiple select question. A. legitimacy B. financial standing C. urgency D. power

legitimacy urgency power

Who among the following are considered internal stakeholders? (Check all that apply.) Multiple select question. Stockholders Unions Board members Competitors Employees Governments Customers

Stockholders Board members Employees

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

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

Five steps of stakeholder impact analysis in order

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 effective address the stakeholder concerns?

In the _____ step of the stakeholder impact analysis, firms identify their various social responsibilities to stakeholders. Multiple choice question. third fourth fifth second first

4

Which of the following elements of the pyramid of corporate social responsibility are required by society? (Check all that apply.) Multiple select question. A. Ethical responsibilities B. Philanthropic responsibilities C. Legal responsibilities D. Economic responsibilities

C and D

True or false: Firms should obey all the laws, including but not limited to labor, consumer protection, and the environment. True false question. True False

True

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

responsibility

er incorrect The expectations that society has toward business, in contrast to what society requires, result in which of the following elements of the pyramid of corporate social responsibility? (Check all that apply.) Multiple select question. A. ethical responsibilities B. philanthropic responsibilities C. economic responsibilities D. legal responsibilities

C and D A. ethical responsibilities Reason: Recall that society expects, but does not require, a firm to meet its ethical responsibilities. B. philanthropic responsibilities Reason: Recall that society expects, but does not require, a firm to meet its philanthropic responsibilities. C. economic responsibilities Reason: These are required by society and shareholders. D. legal responsibilities Reason: These are required by society and shareholders.

A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______. Multiple choice question. A. integrative strategy B. shareholder strategy C. happiness management strategy D. stakeholder strategy

D

Managers have ______ resources in their quest for competitive advantage. Multiple choice question. A. unique B. unlimited C. zero D. limited

D

What is the first step in the AFI strategy framework? A. Acceptance B. Application C. Assurance D. Analysis

D

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

D

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

D

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 ______. Multiple choice question. A. competitive disadvantage B. strategic positioning C. competitive parity D. the competitive challenge

B

Customers, suppliers, creditors, unions, and governments are known as ______. Multiple choice question. A. internal stakeholders B. external stakeholders C. crowdsurfers D. rivals

B

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

B

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ______. Multiple choice question. A. entire investment portfolio B. interests and claims C. political and cultural affiliations D. likelihood of bringing legal action against the firm

B

In the external analysis phase of the AFI strategy framework, managers should ask, A. "How do external forces affect our strategy and competitive advantage?" B"What is the relationship between competitive advantage and firm performance?" C "How does the firm make money? D. "What effects do internal resources, capabilities, and core competencies have on the firm's competitive advantage?"

A

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

A

Which of the following legal developments allow business to function as an institution? (Check all that apply.) A. contract enforcement B. freedom of speech C. property rights D. voting rights

A and C

Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities? (Check all that apply.) Multiple select question. A. repaying debts to creditors B. obeying consumer protection laws Reason: This falls under the firm's legal and/or ethical responsibilities. C. doing what society deems just and fair Reason: This falls under the firm's ethical responsibilities. D. giving investors a return on invested capital

A and D

Which of the following are the aims of stakeholder strategy? (Select all that apply.) Multiple select questions. A. To manage various stakeholders effectively B. To persuade internal stakeholders to cede control to external stakeholders C. To reduce the number of stakeholders of a firm D. To gain and sustain competitive advantage

A and D

What are the categories of expectations that society has of the business enterprise as described in the CSR framework? (Check all that apply.) Multiple select question. A. Economic B. Aesthetic C. Legal D. Philanthropic E. Ethical

A, C, D, E