Strategic management ch 1

Effective guiding policy is supported by and stays consistent through the use of

strategic communication

Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that uses locally sourced, organic ingredients. This is known as Burger Bomb's ______.

strategy

In the (blank) step of the stakeholder impact analysis in the firm identifies their stakeholder interests and claims according to the power, legitimacy, and urgency framework.

Step 2

The contribution to a firm to the type of stakeholder who makes the contribution.

Shareholders- provide capital where they will receive a return on investments in stock appreciation and dividend payments. Creditors- provide financing for the firm. Employees- contribute their time and talents to the firm, receiving wages and salaries in exchange. Communities- furnish real estate, infrastructure, and public safety.

Which of the following is a tool that managers can use to address the needs of stakeholder while maintaining a competitive advantage.

Stakeholder impact analysis

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

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

Strategic Management

The field of management that focuses on attaining competitive advantage by combing analysis, formulation, and implementation known as

What is strategy?

The set of actions a firm takes to achieve a competitive advantage.

A Good Strategy enables a firm

To achieve superior performance and sustainable competitive advantage relative to its competitors in any competitive situation.

Managers have to make decisions between two conflicting strategic options, otherwise know as

Trade-offs

True or false: firms should obey the laws, including but not limited to labor, protection, and the environment.

True

A successful business strategy creates(blank) for both producers and consumers.

Value

Which of the following questions are part of the five steps in stakeholder impact analysis?

What opportunities and threats do our stakeholders present? What are our stakeholders' interests and claims? Who are our stakeholders?

When a stakeholder has power over a company it is ______.

able to influence the company to do something it would otherwise not do

How should managers prioritize stakeholder concerns in the final step of the stakeholder impact analysis ?

by considering the power, legitimacy, and urgency of stakeholder claims

Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following?

competitive advantage

If a firm has a 10% return on invested capital while the industry average return on invested capital is 18%, the firm has a(n) ______.

competitive disadvantage

The idea that firms should voluntarily give back to society when they are able to do so is known as

corporate citizenship

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?

corporate social responsibility

A firm that successfully executes a strategy benefits society by

creating value reinvesting profits and increasing employment

When identifying stakeholders, a firm should focus on those stakeholders that

currently have, or could potentially have, a material effect on the firm

Internet privacy, genetic engineering, and stem-cell research are examples of areas in which a firm's ______ responsibilities exceed its legal responsibilities.

ethical

What is the overall purpose of strategic management?

gain competitive advantage

sustainable competitive advantage exists when a firm

maintains superior performance relative to its industry over a long period of time

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis?

power, legitimacy, urgency

strategic positioning allows managers to

provide customers value while controlling costs

Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities?

repaying debts to creditors and giving investors a return on invested capital

What do shareholders receive from firms in return for their contribution of capital?

stock dividends

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 ______.

strategic positioning

In a nutshell, strategy is the art and science of

success and failure

Based on its long dominance as a coffeehouse chain, Starbucks has ______.

sustainable competitive advantage

In order to determine if home depot has a competitive advantage, we must compare home depots performance to

the performance of other firms in its industry

When does a situation of competitive parity exist?

two or more firms achieve the same performance results

In the external analysis phase of the AFI strategy framework, what should managers ask?

"How do external forces affect our strategy and competitive advantage?"

A good strategy consists of three elements:

A diagnosis- to identify the competitive challenge. It includes analyzing the firms external and internal environments. A guiding policy- to address the competitive challenge through strategy formulation. The guiding policy lats the foundation to craft a firms corporate, business, and functional strategies. A set of coherent actions to implement the firms guiding policy.

sustainable competitive advantage

A firm that can outpreform its competitors or the industry average over s prolonged period.

Which statement about strategies is true?

A statement of desire on its own often leads to goal conflict.

Stakeholder impact analysis is a decision tool that helps a company of which of the following?

Act as a good corporate citizen and achieve a competitive advantage

To which type of organizations can we apply the principles of strategic management?

All types of organizations

This occurs when a firm performs below the industry average or is outperformed by its competitors.

Competitive disadvantage

When two or more firms perform at the same level they have

Competitive parity

What are the categories of expectations that society has of the business enterprise as described in the CRS framework?

Economic Legal Ethical Philanthropic

Starbucks actions to educate its workers and management about racism indicates that the firm take its (blank) responsibilities seriously.

Ethical

True or false: as statement such as "we will be the biggest company in the world" is an example of strategy.

False

The third step of stakeholder impact analysis requires managers to identify the (blank) presented by internal and external stakeholders.

Opportunities and threats

What is the overall purpse of a firms strategy?

Perform better than other companies in the same industry

Which if the following elements of the pyramid of corporate social responsibilities are result from a society's expectations towards business?

Philanthropic responsibilities and ethical responsibilities

The type of business action to the appropriate element of the pyramid of corporate and social responsibility

Philanthropic responsibilities- corporate citizenship Ethical responsibilities- do what is right, just, and fair Legal responsibilities- define minimum standard under the law Economic responsibilities- gain and sustain competitive advantage

Two distinct strategies form the basis for competitive advantage

1-a firm provides goods or services that consumers value more than its competitors offerings but a similar cost ( a differentiation strategy) 2-a firm furnishes goods and services similar to those of competitors but at a lower cost( a cost leadership strategy)

What is the first step in the AFI framework?

Analysis

What is a strategic commitment?

Are significant investments resulting in fundamental changes to the organizations structure. They are significant changes that are difficult and costly to reverse.

What must a firm do after diagnosing its specific competitive challenge?

Create an effective guiding policy

Which of the following are primary strategic objectives?

Creating value and controlling costs

Which of the following four corporate social responsibilities is considered first and foremost for business enterprises?

Economic bc legal responsibilities follow economic ones

Which of the following elements of the pyramid of corporate social responsibility are required by society and shareholders?

Economic responsibilities Legal responsibilities

Customers, suppliers, creditors, unions, and government are known as

External stakeholders

The stakeholder of a firm are

Individuals or groups that can affect or are affected by the actions of the firm.

philanthropic

Is about voluntarily giving back to society.

A competitive advantage

Is assessed relative to other competitors the industry. It's comparing firm performance.

Managers have (blank) resources in their quest for competitive advantage

Limited

What is the best definition of a cost leadership strategy?

Offering similar goods and services at a lower price.

Which if the following legal developments allow business to function as an institution?

Property rights and contract enforcement

The concept or framework of a corporate social (blank) guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.

Responsibility

Which of the following statements regarding tasks in the AFI strategy framework is true?

The tasks are very interdependent.

Walmart and Nordstrom maintain very different strategic profiles, one based on cost leadership and the other based on differentiation through superior customer service. This is an example of

The trade-offs required by strategic positioning

If a firm underperforms its rivals or the industry average, it has a

competitive disadvantage

Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has ______.

competitive parity

When a firm works to gain a competitive advantage by providing better goods and services than its rivals, it is employing a _______ strategy

differentiation

Who among the following are considered internal stakeholders?

employees, board members, stockholders

Which of the following are the relationships that a firm has with stakeholders?

Stakeholders can affect the firm's actions. The actions of the firm can affect stakeholders.

A well-devised strategy is about which two things?

What to do and what not to do

In which step of a stakeholder impact analysis do firms identify those stakeholders that currently have, or potentially can have, a material effect on the company?

First step

Which of the following elements compromise strategic management?

Implementation Analysis Formulation

The five steps of the stakeholder impact analysis in order, with the first step at the top.

Who are our stakeholders? What are our stakeholder interests and claims? What opportunities and threats do our stakeholders present? What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholder? What should we do to effectively address the stakeholder concerns?