MAN 4720 Exam 1

customer oriented vision statements

-Allow companies to adapt to changing environments. -Focus on problem solving for the customer -Defines a business in terms providing solutions to customer needs. Customer needs may change. The means of meeting those needs may change also.

Organizations, groups, and individuals:

-Can affect or can be affected by a firm's actions. -Have an interest in the performance or survival of the firm.

values (core values)

-Ethical standards and norms. -Govern the behavior of individuals. -Provide stability to the strategy. -Serve as guardrails to keep the company on track.

AFI framework

-analysis -formulation -implementation

tier 3 (leaders)

-competent manager -is efficient and effective in organizing resources to accomplish stated goals and objectives. does things right

tier 2 (leaders)

-contributing team member -uses high level of individual capability to work effectively with others in order to achieve team objectives

tier 4 (leaders)

-effective leader -presents compelling vision and mission to guide groups toward superior performance

tier 5 (leaders)

-executive -builds enduring greatness through a combination of willpower and humility

what strategy is not

-grandiose statements -a failure to face a competitive challenge -operational effectiveness, competitive benchmarking, or other tactical tools

tier 1 (leaders)

-highly capable individual -makes productive contributions through motivation, talent, knowledge and skills

3 elements of strategy

1. A diagnosis of competitive challenges → Analysis of the firm's internal/external environment. 2. A guiding policy to address the competitive challenge. 3. A set of coherent actions to implement the firm's guiding policy.

four keys of strategic leadership

1.Successful use of power and influence. 2.Directing the activities of others. 3.Pursuing an organization's goals. 4.Enabling organizational competitive advantage.

strategic planning

A formal, top-down approach.

strategy

A set of goal-directed actions aimed to gain and sustain superior performance relative to competitors.

how to gain competitive advantage (positioning)

A unique position within an industry that allows the firm to provide value to customers, while controlling costs.

Which of the following statements is true of strategy? Statements of desire, on their own, are strategy. Tactical tools that are a part of a firm's functional and global initiatives are strategy. Operational effectiveness and competitive benchmarking are strategy. Actions that allow a firm to address a competitive challenge are strategy.

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

Companies with a good strategy provide products or services to consumers:

At a price point that they can afford + enables the company to make a profit.

strategic as planned emergence

Begins with a strategic plan, but it is less formal.

_______ tends to be more fierce when exit barriers in the industry are high, resulting in some firms being locked into the industry. Competitive rivalry Strategic complements Co-opetition Strategic Commitments

Competitive rivalry

External: organization

Customers suppliers, alliance partners, creditors, unions, communities, media, and governments (competitors are not considered external stakeholders)

Which of the following statements is true of the Level-5 leadership pyramid? Each level of leadership builds upon the previous one in the pyramid. Successful companies are led by Level-1 executives. At Level 3, managers are capable of devising a vision and mission to guide the firm toward superior performance. Once a manager moves to higher levels, he or she loses the qualities acquired in the previous levels to gain new ones.

Each level of leadership builds upon the previous one in the pyramid.

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? EatNow will face low profit potential. EatNow will be able to create higher value for its customers. EatNow will be better placed to gain a competitive advantage in the industry. EatNow will not face any direct competition in the industry.

EatNow will face low profit potential.

Value creation lays the foundation for a successful economy:

Education, Infrastructure, Public safety, Healthcare, Clean water and air.

Which of the following statements best supports the fact that even during a period of low demand in the U.S. automotive industry, excess capacity remained? Suppliers in the automotive industry had low bargaining power. Other American automakers of plug-in hybrid sports cars, like Fisker Automotive, filed for bankruptcy. Complementary products and services like battery charging and service stations were pervasive. GM and Chrysler, despite their bankruptcy, restructured instead of exiting the industry.

GM and Chrysler, despite their bankruptcy, restructured instead of exiting the industry.

Which of the following questions would a firm's business strategy ideally answer? How should we compete? Where should we compete? Why should we compete? How should we implement the functional strategy?

How should we compete?

business strategy

How to compete? Cost leadership, differentiation, or value innovation.

creating value

Increasing knowledge intensity as an intangible source of competitive advantage

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? It has a direct investment in the other firms. It has a competitive advantage over the other firms. It has an exchange relationship with the other firms. It has competitive parity with the other firms.

It has a competitive advantage over the other firms.

Which of the following statements is true of an oligopoly? Price-competition is the preferred mode of competition. It is often analyzed using game theory. Competing firms are most often independent of one another.

It is often analyzed using game theory.

________ are industry-specific factors that separate one strategic group from another. Mobility barriers Competitive differences Complementary products/services Barriers to entry

Mobility barriers

strategy implementation

Organization, coordination, integration. How work gets done → execution of strategy.

sustainable competitive advantage

Outperforms rivals or industry average over a prolonged period. ex: apple

the rewards of superior value creation:

Profitability + Market share.

formulation

Results in corporate, business and functional strategy.

________ is an important tool because it allows a manager to recognize, prioritize and address the needs of various stakeholders. Stockholder appreciation Shareholder voting proxies Stakeholder impact analysis Shareholder Right's Plan

Stakeholder impact analysis

Internal: organization

Stockholders, employees (including executives, managers, and workers), and board members.

________ is best described as executives' use of power and influence to direct the activities of others when pursuing organizational competitive advantage. Intrapreneurship Venture capitalism Strategic leadership Machiavellianism

Strategic leadership

TESLA

The Competitive Challenge: Manufacture attractive/affordable cars w/ new technology for EVs. A Guiding Policy :1.Attempting to ramp up production vols. to achieve economies of scale. 2.Making significant investments in lithium-ion battery production. 3.Made some of its proprietary technology available to the public.

Strategy Formulation:

The choice of strategy. Where and how to compete.

Which of the following statements will effectively guide a strategist? It is necessary to isolate the key stakeholders and their needs when formulating a strategy. Industry and firm effects that determine firm performance are independent of each other. Strategy is all about competitive benchmarking and operational effectiveness. The principles of strategic management can be applied universally to all organizations.

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

How do complements affect a primary product or service? They reduce the value of the primary product. They act as the strategic equivalent of the primary product. They increase the demand for the primary product. They lower the utility of the primary product.

They increase the demand for the primary product.`

Mastery of strategic management enables you to:

View a firm in its entirety Think like a general manager. Position your organization for superior performance.

vision

What do we want to accomplish ultimately? -Captures an organization's aspiration -Spells out what the organization wants to accomplish. -Identifies the long-term objective → forward-looking and inspiring.

corporate strategy

Where to compete? Industry, markets, and geography.

Which of the following firms most likely has the lowest bargaining power as a buyer? an automobile company that can backwardly integrate to produce its own component parts a fast food chain that has multiple suppliers for processed meat a government agency that buys large quantities of cement from a private supplier a cell phone company that requires highly customized software for its phones

a cell phone company that requires highly customized software for its phones

Generally speaking, which of these situations is likely to lead to greater profits? an industry that is about to undergo deregulation a situation that encourages operating at excess capacity a fragmented industry rather than a consolidated one an industry with fewer but larger competitors

an industry with fewer but larger competitors

What is strategy?

an integrative management field, combining analysis, formulation, and implementation in the quest for competitive advantage.

Which of the following groups is most likely to be considered a firm's internal stakeholder? creditors customers alliance partners board members

board members

How has Walmart staked out a unique strategic position? by paying high wages to attract the most talented employees by providing excellent customer service in a luxury setting by cutting costs to offer lower prices than competitors by investing 100% of profits in community development programs

by cutting costs to offer lower prices than competitors

What term is used to describe cooperation by competitors who want to achieve a strategic objective? co-opetition strategic competition complementary assets

co-opetition

Strategic-group mapping establishes that competitive pressures within an industry are similar among all strategic groups. competitive rivalry is strongest between firms that are within the same strategic group. product features and prices are irrelevant to a strategic group. rivals inside a strategic group serve different customers.

competitive rivalry is strongest between firms that are within the same strategic group.

Some scholars have added a sixth force to Porter's Five Forces model. This sixth force, ________, is believed to add value to the original product offering (or service) when the two are used in tandem. complement value chain mobility barrier technological factor

complement

3 levels

corporate business functional

All of the following below are examples of external stakeholders except employees. government. communities. customers.

employees.

The metaphor of a black swan best applies to small businesses that become successful enough to raise capital through initial public offering. events that are considered highly unexpected and highly impactful when they do occur. highly profitable business units in low growth markets that are to be sustained solely for revenue generation. low profitable strategic business units within a large enterprise that are best divested or liquidated.

events that are considered highly unexpected and highly impactful when they do occur.

Which of the following is a philanthropic responsibility of a firm? not infringing on other firms' patents providing products at appropriate prices exhibiting corporate citizenship obeying government regulations

exhibiting corporate citizenship

Gadgets n' Stuff Inc. 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, Gadgets n' Stuff Inc. is a(n) _________ for the appliance manufacturing company. external stakeholder focus group representative sample internal stakeholder

external stakeholder

scenario planning

formal, top-down approach.`

Product-oriented vision statements provide managers with goals for employee development. goals to improve service. strategic flexibility. ways to solve customer problems.

goals to improve service.

The greater the difference between value creation and cost, the less likely a firm will gain competitive advantage. greater a firm's economic contribution. greater a firm's competitive parity. less likely that a firm's strategic position will be competitive.

greater a firm's economic contribution.

The pattern of faulty and biased decision making that occurs in groups whose members strive for agreement at the expense of good decision making is called brainstorming. groupthink. devil's advocacy. bounded rationality. satisficing.

groupthink.

The relative bargaining power of suppliers is most likely low when the suppliers provide products that are differentiated. incumbent firms face low switching costs when changing suppliers. there are no readily available substitutes for the products and services they offer. the suppliers' industry is more concentrated than the industry it sells to.

incumbent firms face low switching costs when changing suppliers.

ABC Hardrives Inc., All Digital Inc., and FastFax Corp. are all companies that manufacture and sell consumer electronics. They procure their component parts from a similar set of suppliers in China and sell the final product to customers with similar needs. Thus, the three companies together are a part of a(n) plant. focus group. industry. occupational group.

industry

A firm's ________ strategy is likely to fall by the wayside because of unpredictable events and turn into unrealized strategy. recognized realized dominant intended

intended

The amount that savers are paid for use of their money and the amount that borrowers pay for that use is best described as a(n) interest rate. service tax. royalty fee. surcharge.

interest rate

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

legitimacy

An organization's ________ describes what the organization actually does—the products and services it plans to provide, and the markets in which it will compete. mission vision promissory note code of conduct

mission

When an organization briefly describes what they do and how they do it, they have more than likely articulated their values statement. mission statement. strategic plan. strategic intent.

mission statement.

In the restaurant industry, a large number of restaurants cater to similar customer needs. However, each restaurant makes its product unique by offering a different cuisine, a different ambience, organic ingredients, or different services like home delivery. This differentiation allows each restaurant to set its own prices. Thus, the restaurant industry best illustrates a(n) perfectly competitive structure. monopolistically competitive structure. monogopoly. oligopoly.

monopolistically competitive structure.

According to the upper-echelons theory, top managers of a company should isolate themselves from the organizational values. organizational outcomes reflect the values of the top management team. strong strategic leadership is solely the result of learning. strategic commitments made by upper-level managers are inexpensive and short-term.

organizational outcomes reflect the values of the top management team.

Legitimacy

perceived to be legally valid or otherwise appropriate.

A firm is likely to have a competitive advantage when it performs at a level similar to the other firms in the industry. provides goods similar to those of its competitors, but at a higher price. provides services that consumers will value more than those of its rivals. minimizes the difference between value creation and the costs involved.

provides services that consumers will value more than those of its rivals.

urgency

require a company's immediate attention and response.

A consolidated industry turns into a fragmented industry when restrictive government policies are introduced in the industry. firms reduce competition within the industry through mergers and acquisitions. technological advances lead to industry convergence. network effects enjoyed by incumbent firms within the industry become stronger.

restrictive government policies are introduced in the industry.

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? managers shareholders local communities government

shareholders

which of the following groups will not be considered a company's internal stakeholder? suppliers board members shareholders managers

suppliers

All of the following are examples of internal stakeholders except. employees. stockholders. board members. suppliers.

suppliers.

Which of the following actions of an automobile firm will be considered as a strategic commitment? the firm launching an existing model of a car in red as a limited edition for six months the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future the firm spending $100,000 on renting a manufacturing facility to meet the temporary demand for its cars the firm promoting its new model of coupe through a free European trip worth $15,000 to be won as an early-bird offer

the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future

Evaluating the data collected from environmental analysis, the corporate executives of BigPharma Inc. realized that it was the right time to expand the business. The company's vision was accordingly adjusted from "To Be the Best in the Pharmaceutical Industry" to "To Make Good Health Accessible to Everyone around the Globe." To support the new vision, the executives decided that the company would first enter the Asian market where its growth potential would be huge. To further support these decisions, the general managers of different SBUs and the functional managers formulated their own strategies. Which of the following approaches to the development of strategy does this best illustrate? scenario planning bottom-up strategic approach reverse mentoring top-down strategic planning

top-down strategic planning

Strategic Positioning Requires Trade-Offs Make conscious trade-offs → How to allocate resources? Which activities to pursue? Example: the retail industry: Walmart: cost leader - big box outlet, low prices. Nordstrom: differentiator - professional salespeople, luxury setting.

trade offs

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in a competitive advantage through superior performance. trade-offs that work against each other. an increase in the firm's economic contribution. competitive parity with firms that have adopted either of the strategies.

trade-offs that work against each other.

Competitive advantage is relative, not absolute.

true

A good strategy should be able to provide products and services to customers at an attractive price point while maintaining internal costs, resulting in value creation. shareholder appreciation. competitive benchmarking. sustainable competitive advantage.

value creation.

step 2

what are our stakeholders interest and claims?

step 3

what opportunities and threats do stakeholders present?

power

when the stakeholder can get the company to do something that it would not otherwise do.

step 1

who are our stakeholders?

actions based on vision will

-Build necessary resources and capabilities. -Ensure continuous organizational learning → learning from failure.

Stakeholder management benefits firm performance:

-Cooperative stakeholders reveal important information. -Increased trust lowers business transaction cost. -Can lead to greater adaptability and flexibility, and more predictable and stable returns. -Stronger reputation.

product oriented statements

-Focus on improving existing products and services -Defines a business in terms of a good or service provided. Forces managers to take a more myopic view. Can hinder understanding of the competitive landscape.

effective vision

-Is expressed as a statement. -Provide meaning for employees.

how do you become a strategic leader

-It is a function of innate abilities and learning. -Leadership actions reflect: Age, education, and career experiences. Personal interpretations of situations. -Upper Echelon's Theory (Don Hambrick): Organizational outcomes reflect the values of the top management team. Their unique perspectives. Shaped by personal circumstances, values, and experiences. -Outcomes include:Strategic choices and performance levels.

vision and performance relation

-This relationship is strongest when: The vision is customer oriented Internal stakeholders help define the vision. Organizational structures align to the vision, for example, compensation.

values (helps employees)

-Understand the company culture. -Deal with complexity. -Resolve conflict.

values

-What commitments do we make? -What safeguards do we put in place? -How do we act legally and ethically to pursue our vision and mission?

This framework:

-Who competition is, how to craft and implement strategy -Explains and predicts differences in firm performance. -Helps leaders formulate and implement a strategy that can result in superior performance.

economic responsibilities

-bottom tier -gain and sustain competitive advantage

ethical responsibilities

-second tier from the top -do what is right, just, and fair

legal responsibilities

-third tier from the top -laws and regulations are society's codified ethics -define minimum acceptable standard

philanthropic responsibilities

-top of the pyramid -corporate citizenship

Which of the following statements about competitive advantage is not true? A firm will have a sustainable competitive advantage when it outperforms its competitors over a prolonged period of time. A firm can gain a competitive advantage by providing goods similar to its competitors' goods at a lower price. A firm's competitive advantage is always absolute, not relative. A firm's past performance does not guarantee its future performance.

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

Which of the following real-world examples best supports the statement that strategic commitments to a specific industry may be the result of political rather than economic considerations? A number of European governments created Airbus through direct subsidies to provide a countervailing power to Boeing. Airbus and Boeing are likely to exit the aircraft manufacturing industry when industry profit potential falls to zero. The traditional U.S. airlines Delta, United, and American Airlines have large fixed costs to maintain their network of routes that affords global coverage, frequently in conjunction with foreign partner airlines. Given their strategic commitments, neither Delta nor United is likely to merge with other airlines.

A number of European governments created Airbus through direct subsidies to provide a countervailing power to Boeing.

Which of the following statements does the upper-echelons theory support? Organizational outcomes including strategic choices and performance levels reflect the values of external stakeholders. The leadership actions of executives are independent of their characteristics like age, education, and career experiences. Strong leadership is solely the result of innate abilities and not learning. Executives interpret situations through the lens of their unique perspectives, shaped by personal circumstances, values, and experiences.

Executives interpret situations through the lens of their unique perspectives, shaped by personal circumstances, values, and experiences.

Ez Solutions Inc. has been operating in the country of Jamtland for almost a decade. The nation is currently experiencing an economic downturn. Which of the following is the most likely benefit of this economic condition for Ez Solutions Inc.? Ez Solutions Inc. will have better access to highly skilled human capital at a lower cost. Ez Solutions Inc. will have to expand its operations to meet the increasing consumer demand. Ez Solutions Inc. will experience less competition from rival companies. Ez Solutions Inc. will find it easier to raise prices to increase profits.

Ez Solutions Inc. will have better access to highly skilled human capital at a lower cost.`

functional strategy

How to implement a chosen business strategy? Different strategies will require different activities across the various functions.

Which of the following is a feature of a fragmented industry? It tends to generate high profitability. It consists of many small firms. It allows firms to set prices. One large firm dominates the industry.

It consists of many small firms.

Which of the following is not true concerning a customer-oriented mission? It defines the means of how a customer need will be met. It has more flexibility than a product-oriented mission. It has a higher likelihood of remaining relevant in the long-term. Organizations that have customer-oriented missions are more likely to be successful.

It defines the means of how a customer need will be met.

Stan has been recently promoted to the position of a team lead at an insurance company. This promotion was based on his boss's assessment that Stan is capable of conveying the company's vision and mission to groups. As a result, he can guide groups to superior performance. From this scenario, we can say that Stan is currently at __________ of the Level-5 leadership pyramid. Level 1 Level 3 Level 4 Level 5

Level 4

To achieve superior performance, companies compete for resources:

New ventures: financial and human capital. Existing companies: profitable growth. Charities: donations Universities: the best students and professors. Sports teams: championships. Celebrities: media attention.

how to gain competitive advantage (goods)

Provide goods or services that: Consumers value more highly than those of its competitors Are similar to the competitors at a lower price.

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy implementation. formulation. analysis. control.

analysis

When the Alta Velocidad Española (AVE) was completed, it impacted Spain's local airline industry. Which of the following statements about the five forces does this reflect? Substitutes were not readily available because customers cannot use other means of transport. Substitutes made it difficult for generating a profit potential in Spain's airline industry. The combination of the competitive forces leads to collusion among existing airlines. Entry barriers in Spain's airline industry are relatively high because of the high costs involved.

Substitutes made it difficult for generating a profit potential in Spain's airline industry.

power (leadership)

The ability to influence others to do things Formal authority (their position), informal authority (persuasion).

If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision? The company will tend to be more flexible when adapting to changing environments. The company will clearly define how it means to satisfy a customer need. The company will fail to establish a positive relationship between its vision statement and performance. The company will have a short-term, unidirectional focus.

The company will tend to be more flexible when adapting to changing environments.

Incumbent firms can benefit from several important sources of entry barriers. Economies of scale are one such source. Which of the following is an implication of economies of scale for incumbent firms? They cannot employ technology efficiently. They can spread fixed costs over lesser units. They benefit from a less specialized division of labor. They can demand better terms from their suppliers.

They can demand better terms from their suppliers.

Which of the following statements is true of customer-oriented visions? They tend to force managers to take a myopic view of the business environment. They define a business in terms of providing solutions to people's needs. They are inflexible with regard to adapting to changing environments. They state an organization's goals in terms of a good or service provided to customers.

They define a business in terms of providing solutions to people's needs.

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? They allow companies to gain a competitive advantage unfairly. They erode the implicit trust between the corporate world and society. They contribute to competitive parity, which hinders economic growth. They foster a false sense of prosperity, which results in economic depression.

They erode the implicit trust between the corporate world and society.

Which of the following statements accurately brings out the difference between an organization's vision and mission? Mission is the organization's aspirations for the future and vision is about how these aspirations can be made true over time. Vision is short-term: oriented and related to the organization's present, whereas the mission is futuristic. Vision is valid at the functional level of the organization, whereas mission covers the entire organization. Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.

Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.

Organizational core values are the answer to which of the following questions? What commitments do we make to act both legally and ethically? Which of the value chain activities are primary? What is the value added to a good or service at each step in the production? What is the company's customer lifetime value?

What commitments do we make to act both legally and ethically?

Which of the following statements related to a firm's stakeholders is not true? While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits. If internal or external stakeholders withhold participation in the firm's exchange relationships, it can have severe negative performance implications. A firm's stakeholders include organizations and groups along with individuals who can affect or be affected by the firm's actions. Effective stakeholder management is an example of how managers can act to enhance a firm's competitive advantage.

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

In which of the following cases was a company at a major competitive disadvantage? Facebook hired Sheryl Sandberg because Mark Zuckerberg, Facebook's founder, lacked important business skills. Without a clear strategic position, Sears tried to be too many things for too many types of customers. Sam's Club decided to prescreen its customers via required membership to establish creditworthiness. Strategy executives at UPS used scenario planning to identify issues critical to shaping the firm's future.

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

In the 1980s, Japanese competitors brought better-quality chips to the market at lower cost, threatening Intel Corporation's position and strategic plan regarding the production of DRAM (dynamic random-access memory) chips. When the functional managers at Intel came up with the simple rule of producing whichever product delivered the higher margin, the front-line managers shifted Intel's production capacity away from the lower-margin DRAM business to the higher-margin semiconductor business. This ________ emerged as a consequence of the firm's resource allocation process. unrealized strategy strategic alliance intended strategy bottom-up strategy

bottom-up strategy

Superior performance relative to competitors in the same industry or the industry average.

competitive advantage

According to the Level-5 leadership pyramid, the Level 2 manager is a(n) strategic leader. competent manager. contributing team member. effective leader.

contributing team member.

The board of directors of Qwik Inc., a company that has a large product mix, has decided to get actively involved in research and development for the next three financial years. Budget for each business unit under the company will be allocated from the headquarters in proportion to its previous performance. The board has also decided to liquidate those units that have failed to perform so far. Which of the following strategies does this scenario best illustrate? functional strategy business strategy divisional strategy corporate strategy

corporate strategy

Which of these is a way to reconfigure a value chain? thinking about new combinations of resources and capabilities that a firm already possesses, such as repurposing a movie theater as a location for off-site corporate meetings creating a partnership through strategic alliances, such as a bakery partnering with a restaurant preparing to leave an industry rather than supply unreliable or substandard products to customers entering an industry by offering sporting events on streaming video when competitors are offering them through cable hookups

entering an industry by offering sporting events on streaming video when competitors are offering them through cable hookups

A fragmented industry turns into a consolidated industry when there are no restrictive government policies introduced in the industry. firms reduce competition within the industry through mergers and acquisitions. the barriers to enter the industry are reduced. the products/services are seen as commodities.

firms reduce competition within the industry through mergers and acquisitions.

MicroChips Corp. is a company that supplies microprocessors to 2020 Processors Inc., a computer hardware company. When 2020 Processors Inc. demands lower prices for the microprocessors, MicroChips Corp. makes it clear that it would profit more from launching its own brand of laptops and desktops in the market. Fearing the competition it would then face from MicroChips Corp., 2020 Processors Inc. decides to buy the microprocessors at the quoted price itself. In this scenario, MicroChips Corp., as a supplier, has exercised its bargaining power by threatening to forward integrate. crowdsource. outsource. backward integrate.

forward integrate

Owners of coffee plantations in the country of Cantonica grow their own coffee beans and supply them to various stores and restaurants all over the country. There are many plantation owners supplying to a huge number of companies, and they are typically unable to differentiate their products from one another. They also do not have the power to fix their own prices in the industry. In addition, these suppliers can only achieve competitive parity and not a competitive advantage. Thus, the coffee bean industry in Cantonica best illustrates a(n) ________ structure. monopolistically competitive oligopolistic monopolistic perfectly competitive

perfectly competitive

Restrictions imposed by the government, such as export quotas on certain products, are a part of the ________ environment of the PESTEL framework. economic sociocultural ecological political

political

Three important stakeholder attributes:

power legitimacy urgency

Which of the following has contributed to Tesla's competitive advantage in terms of stock appreciation? copying the most popular features of competitors' vehicles reinvesting profits to continually design and produce better electric vehicles keeping its proprietary technologies secret using inexpensive materials to keep costs low

reinvesting profits to continually design and produce better electric vehicles

Within the context of strategic management it is important to understand that black swan events in the past have demonstrated that stakeholders can affect or be affected by a firm's actions. capitalism as an economic system is highly reliable. companies can successfully integrate cost-leadership and differentiation strategies. globalization has reduced the need for standardized corporate ethics.

stakeholders can affect or be affected by a firm's actions.

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? consistent power position long-term capital gain strategic positioning sustainable competitive advantage

sustainable competitive advantage

Stakeholder Impact Analysis helps to recognize, prioritize and address stakeholder needs.

true

Value creation minus costs equal economic contribution.

true

Competitive Parity

two or more firms that perform at the same level.

step 4

what economic, legal, ethical, and philanthropic responsibilities do we have to our responsibilities \?

step 5

what should we do to effectively address the stakeholder concerns?

A company's vision primarily states how the company plans to accomplish its goals. what the company actually does to generate revenues. what the company wants to ultimately accomplish. how the company plans to compete in its industry.

what the company wants to ultimately accomplish.