Hsp 480 Chapter One

A firm's stakeholder strategy primarily allows the firm to A. analyze and manage how various external and internal stakeholders interact to jointly create and trade value. B. effectively isolate its internal stakeholders (like shareholders and employees) from its external stakeholders (like customers and media). C. transfer the contributions external stakeholders make into benefits for the internal stakeholders. D. facilitate the development of a competitive relationship between its internal and external stakeholders.

A

If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the following will help determine if it has a competitive advantage over other pharmaceutical companies? A. Comparing the return to the return on invested capital obtained by other firms in the industry B. Assessing the value based on the shareholders' expectations of return on their capital C. Evaluating the liquidity ratios for other pharmaceutical companies D. Comparing the value to the history of the firm's return of investment over a number of years

A

The Scoop, Ltd. is a magazine publishing company whose average return on invested capital is approximately 5 percent. Because magazine publishing is a declining industry, the industry average has been negative (-5 percent) for the last few years. In this scenario, The Scoop Ltd. has a A. competitive advantage. B. balanced scorecard. C. competitive disadvantage. D. power position.

A

Which tends to be more important in determining a firms performance

Actions by managers

Industry effects describe the underlying _____ structure of the industry. A. demographic B. economic C. psychographic D. ethnographic

B

Rachel owns a large portion of GM Cube Inc.'s stocks. However, she is not employed by the company. In this scenario, Rachel is the company's A. external stakeholder. B. internal stakeholder. C. creditor. D. customer.

B

Stakeholder strategy is an integrative approach to managing a diverse set of stakeholders effectively in order to A. single-mindedly focus on the stockholders alone. B. gain and sustain competitive advantage. C. minimize the joint value created. D. minimize the difference between value creation and cost.

B

___ describe highly improbable but highly impactful events

Black swan events

Pink Couture Inc. and Pink Blush Inc. are two companies in the apparel industry. While Pink Couture Inc. focuses on providing unique product features and superior customer service, Pink Blush Inc. focuses on low prices and minimal customer service. Both companies have been able to gain a competitive advantage. This is most likely because the companies have A. executed integrated strategies. B. entered into a cartel arrangement. C. pursued distinct strategic positions. D. engaged in direct imitation and substitution.

C

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n) A. competitive advantage. B. balanced scorecard. C. power position. D. equity leverage.

Competitive advantage

Organic Food Inc., a multinational company, relies on its media partner Radio Plus to regularly advertise its offers, sales, and new products. Radio Plus is invested in this relationship because it generates most of its revenue from advertising Organic Food's products. In this scenario, Radio Plus is Organic Food Inc.'s A. stockholder. B. workforce. C. internal stakeholder. D. external stakeholder.

D

Patterson Foods Inc. was the first company to start selling energy bars in its country—a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of energy bars, thereby giving Patterson Foods ample competition. In response, Patterson Foods decided to limit its variety of energy bars to only four. However, it ensured that these four varieties were low in calories and low in cost. With this innovation, Patterson Foods Inc. consistently outperformed its competitors for ten years. In this scenario, Patterson Foods Inc. maintained a _____ through its innovative strategy. A. balanced scorecard B. fiduciary responsibility C. consistent power position D. sustainable competitive advantage

D

Underperformance relative to other firms in the same industry or the industry average results in a(n) _____ for a firm. A. sustainable competitive advantage B. increased power distance C. diseconomies of scope D. competitive disadvantage

D

In _____, a firm frames a guiding policy to address the competitive challenge. A. strategy control B. strategy implementation C. strategy formulation D. strategy analysis

Formulation

The average cost of production for a bottle of vitamin water...

Has competitive advantage in the industry

After a firm has identified its key stakeholders impact analysis, the immediate next, step is to

Identify stakeholders interests and claims

Which of the following statements is not true

Operational effectiveness and competitive benchmarking should be treated as strategy

Which of the following statements should ideally reflect a firms strategy for competitive advantage

Our aim is to create superior customer service value while controlling costs

Which scenario best describes good stakeholder strategy

PA Corp distributes only 70% of its annual profit after taxes to shareholders while remaining goes to employees and community

____ provides a decision tool that enables a firm to act as a good corporate citizen by allowing its managers to recognize, prioritize, and address the needs of different groups of individuals who take personal interest in the firms performance and survival.

Stakeholder impact analysis

___ best described as an integrative management field that combines anaylysis, formulation and implementation in the quest for competitive advantage

Strategic management

FindFor Inc. is an e-commerce retail firm that sells a variety of merchandise online. Through services like cash on delivery, easy return, and online tracking, the company has created more customer value than its competitors (brick-and-mortar businesses) at the same price. Also, the company's costs are substantially low due to minimal investment in operation and administration. In this scenario, FindFor Inc. has most likely been able to provide superior value and cost control through _____.

Strategic positioning

___ best described as a set of goal oriented actions a firm takes to gain and sustain superior competitive advantage

Strategy

Which of the following stages of the strategic management process involves an evaluation of a firms external and internal environment

Strategy anaylysis

Through ___, a firm puts its guiding policy into practice by employing a set of coherent action

Strategy implementation

Which of the following statements accurately describes firms effects

They attribute firm performance to the actions managers take within chosen industry

For a firm that operates in an industry where competition is high, which of the following practices will result in inferior performance

Trying to be everything to everybody by combining different competitive strategies

Silver Screen Cinemas Inc. and Digi Now Inc.

Will implement everyday low pricing

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage

Zhang Corp was able to hold its market of 68% for three years

A firm is said to gain a competitive advantage when it can

provide products similar to its competitors, but at lower prices