CH. 1 QUIZ

Which of the following statements is true of strategy?

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

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

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

Stakeholder impact analysis

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

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

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

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

board members

How has Walmart staked out a unique strategic position?

by cutting costs to offer lower prices than competitors

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

legitimacy

A firm is likely to have a competitive advantage when it

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

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

suppliers

All of the following below are examples of external stakeholders except

suppliers

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

suppliers

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?

sustainable competitive advantage

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

trade-offs that work against each other

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