GM 170 Midterm (Part 1)

Value creation

A good strategy should be able to provide products and services to customers at an attractive price point when maintaining internal costs, resulting in...

Legitimacy

Which of the following is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis?

Sustainable competitive advantage

Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time?

Board members

Which of the following groups is most likely to be considered a firm's internal stakeholder?

Suppliers

Which of the following groups will NOT be considered a company's internal stakeholder?

Reinvesting profits to continually design and produce better electric vehicles

Which of the following has contributed to Tesla's competitive advantage in terms of stock appreciation?

Exhibiting corporate citizenship

Which of the following is a philanthropic responsibility of a firm?

A firm's competitive advantage is always absolute, not relative

Which of the following statements about competitive advantage is NOT true?

Actions that allow a firm to address a competitive challenge are strategy

Which of the following statements is true of strategy?

While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits

Which of the following statements related to a firm's stakeholders is NOT true?

The principles of strategic management can be applied universally to all organizations

Which of the following statements will effectively guide a strategist?

They erode the implicit trust between the corporate world and society

Why are black swan events such as accounting scandals and the global financial crisis perceived as caused by cheap credit and subprime mortgages offered by financial institutions, bad for business?

Stakeholder impact analysis

___________ is an important tool because it allows a manager to recognize, prioritize and address the needs of various stakeholders.

Analysis

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy _________

Provides services that consumers will value more than those of its rivals

A firm is likely to have a competitive advantage when it...

Suppliers

All of the following are examples of internal stakeholders except...

Employees

All of the following below are examples of external stakeholders except...

EatNow will face low profit potential

EatNow is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well. EatNow also wants to adopt the same strategy. Which of the following will be a likely implication of this decision?

External stakeholder

Gadgets n Stuff is a vendor who supplies machine parts to an appliance manufacturing company. In return, Gadgets n Stuff Inc relies on the company for its revenue and is affected by any decisions taken by the company. In this scenario, Widgets Inc is a(n) ___________ for the appliance manufacturing company.

By cutting costs to offer lower prices than competitors

How has Walmart staked out a unique strategic position?

Without a clear strategic position, Sears tried to be too many things for too many types of customers

In which of the following cases was a company at a major competitive disadvantage?

Shareholders

The annual net profit after taxes for Tele Corp., a multinational conglomerate, is $5.5 billion. As legal owners, which of the following stakeholder groups has the most legitimate claim on this profit?

Greater a firm's economic contribution

The greater the difference between value creation and cost, the...

It has a competitive advantage over the other firms

Too Fast Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Too Fast Inc. from this scenario?

Trade-offs that work against each other

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in...