Chap 1

A competitive advantage that lasts for a long period of time is said to be

sustainable

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

stakeholder impact analysis

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

strategic management

Which of the following elements comprise strategic management?

formulation, implementation, analysis

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

legal, ethical, philanthropic, economic

Using a(n) ______ strategy formulation, managers examine where and how the firm should compete around the world.

global

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

independent

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders'

interests and claims

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

In which of the following situations can a firm providing goods and services gain a competitive advantage?

- Their offerings provide more value for consumers than competitors' offerings. - Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs.

Which of the following statements is true of strategy?

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

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

economic

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

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

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy

analysis

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

false

Which of the following is the best indicator that Tesla's startup master plan has worked as intended?

Tesla generated 500,000 preorders for an unseen model.

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

competitive advantage

A(n) ______ occurs when a firm performs below the industry average or is outperformed by its competitors.

competitive disadvantage

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

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

competitive parity

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

corporate social responsibility

True or false: Although they are more vocal, activist investors have the same amount of power as individual investors.

false

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

first

The overall purpose of a firm's strategy is to

perform better than other companies in the same industry

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

stakeholder impact analysis

The groups or individuals who can impact or be impacted by a firm's actions are known as

stakeholders

In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm.

third

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

trade offs

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.

Competitive parity occurs when

two or more firms achieve the same performance results

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

external

Which of the following are primary strategy objectives?

- creating value - controlling costs

Which of the following statements is true about Tesla, the manufacturer of all-electric cars?

It has a high market valuation.

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

a sustainable competitive advantage

Who among the following are considered internal stakeholders?

board members, employees, stockholders

In a(n) ______ strategy formulation, managers focus on deciding HOW the firm should compete.

business

In the _____ step of the stakeholder impact analysis, firms identify their various social responsibilities to stakeholders.

fourth

The stakeholders of a firm are

individuals or groups that can affect and are affected by the actions of the firm

In the ______ step of the strategy implementation phase of the AFI strategy framework, managers would examine how the firm should be structured in order to implement the desired strategy.

organizational design