MSB 480 quiz 1

Which of the following terms describes the guiding policy to address the competitive challenge, and uses corporate and business level strategy? A. Formulation B. Implementation C. Analysis D. Competitive Advantage

A. Formulation = Formulation deals with business and corporate strategies, whereas analysis deals with external and internal analysis and implementation is the organizational design

Which of the following tasks in the AFI strategy framework involves evaluating the internal and external environments in which a firm operates? A. Competitive Advantage B. Analysis C. Formulation D. Implementation

Analysis = The A part of AFI framework involves internal and external analysis whereas the formulation is based on corporate or business strategy and implementation is the organizational design

Tommy wants to open his own food truck but doesn't know anything about business. He needs help determining who his competition is, how he should craft his strategy to compete, and how he'll implement his strategy to achieve a competitive advantage. He's hired you to help him get started. As a result, you know that you will probably use the A. Stakeholder impact analysis B. AFI Strategy framework C. Business model analysis D. Six sigma tool

B. AFI Strategy Framework = helps leaders formulate and implement a strategy that can result in superior performance

Jill is interested in the concept of strategy and decides to create her own. As a result, Jill says that her strategy is to focus on growth and marketing to achieve a competitive advantage. How would you evaluate Jill's statement? A. Jill's strategy makes sense and she should move forward with it B. Jill should reevaluate her statement because it fails to meet the principles of what a strategy should be C. Jill's strategy reveals a clear strategic position and tradeoff D. Jill should reevaluate her statement because it fails to mention human resources

B. Jill should reevaluate her statement because it fails to meet the principles of what a strategy should be = Strategies should be goal-directed and relative to gain and sustain superior performance.

In order to better achieve a competitive advantage, firms must now adopt a holistic approach towards satisfying multiple stakeholders as opposed to focusing on the needs of their stockholders. This integrative approach is referred to as A. integration strategy B. stakeholder strategy C. exchange relationship strategy D. internal shareholder strategy

B. stakeholder strategy = There are internal and external stakeholders in a company that all make specific contributions to a firm. Stockholders are under the internal category but are not the main group in stakeholder strategy.

As the legal owners, ________ have the most legitimate claim on a company's profits. A. Creditors B. Employees C. Shareholders D. Board members

C. shareholders = All shareholders are stakeholders, but not all stakeholders are shareholders so they control how much a company benefits in profits.

Bill's Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a week; this is the industry average. We can conclude that since he has a positive net income, he also has a competitive parity in the industry. A. Correct - the competitive advantage is achieved through profitability alone B. Correct - competitive parity is achieved by generating average returns, relative to competition in a given industry C. Correct - competitive advantage is achieved since Bill's auto and airplane repair shop has a positive net income D. Incorrect - Bill's auto and airplane repair shop than likely has a sustained competitive advantage since his business is diversified

Correct - competitive parity is achieved by generating average returns, relative to competition in a given industry = hence Bill's net income is the industry average.

Tony's Pizza Shop is able to net $10,000 a week; this makes his shop profitable. His number one competitor, Leo's Pies is also profitable, netting $12,000 a week. Lil Anthony's Pizza Palace nets $13,000 a week. Since Tony's Pizza Shop is profitable, we can conclude that he has a competitive advantage in the industry. A. False - the competitive advantage is only achieved by generating above-average returns, relative to the competition B. False - Tony more than likely has a sustained competitive advantage since he's been in business longer C. True - Competitive advantage is achieved through profitability alone D. True - Competitive advantage is achieved since Tony has a positive net income

False - competitive advantage is only achieved by generating above average returns, relative to competition = Tony has less than all other competitors so he does not have competitive advantage.

Which of the following is typically an economic responsibility of a firm? A. Helping a nation increase its import of goods and services B. Donating resources, in terms of money and time, toward community development C. Sourcing raw materials from highly developed countries D. paying adequate returns to the firm's stockholders on the capital invested by them

Paying adequate returns to the firm's stockholders on the capital invested by them = how to gain and sustain competitive advantage

Sean, a retired CEO, invests capital in a start-up company that creates budgeting software. He mentors the entrepreneur and the employees of the company because he wants the company to perform well and survive in the market. Thus, Sean is the start-up company's A. Headhunter B. Category Captain C. Stakeholder D. Employee

Stakeholder = stakeholder is someone who has an interest in any decision or activity of the company hence he is mentoring the employees