mgnt 428 ch1

strategy is not what?

a zero-sum game

Investors expect an adequate return for their risk capital. Creditors expect the firm to repay its debts. Consumers expect safe products and services at appropriate prices and quality. Suppliers expect to be paid in full and on time. Governments expect the firm to pay taxes a. legal b. economic c. philantrophic d. ethical

b

Sustainable competitive advantage exists when a firm ______. a. starts up and competes for existing market share in the industry b. maintains superior performance relative to its industry over a long period of time c. formulates and implements strategy d. is self-regulated and self-motivated

b

What must a firm do after diagnosing its specific competitive challenge? a. Collect investments from stockholders b. Create an effective guiding policy c. Identify its primary competitors d. Implement a set of coherent actions

b

a guiding policy is a. accomplished through analysis of the firm's external and internal environments b. accomplished through strategy formulation, resulting in the firm's corporate, business, and functional strategies c. This element is accomplished through strategy implementation

b

strategic management a. set of goal-directed actions a firm takes to gain and sustain superior performance relative to competetion b.an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantages

b

Which of the following traits are Tesla specifically aiming to include in its vehicles to achieve competitive advantage? (Check all that apply.) Affordability Versatility Attractiveness Sustainability

b c

A good strategy consists of three elements. The second element is accomplished through strategy formulation, resulting in the firm's functional, business-level, and corporate-level strategies. This is also called ______. Multiple choice question. a. a diagnosis of the competitive challenge b. a set of coherent actions to implement the firms' guiding policy c. a guiding policy to address the competitive challenge

c

In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to ______. a. its past financial performance b.only non-US-based firms c. the performance of other firms in its industry d. a firm in the technology industry

c

The Bright Bulb light bulb company produces a line of LED bulbs that customers consider very similar to competitors' LED bulbs. Which of the following conditions must be true for Bright Bulb to have a competitive advantage? a. The bulbs must be on the market for a longer period of time than competitors' bulbs. b. The bulbs must be sold by online retailers only. c. The bulbs must have a lower cost than competitors' bulbs. d. The bulbs must be more expensive than competitors' offerings.

c

What must a firm do after diagnosing its specific competitive challenge? a. Collect investments from stockholders b. Implement a set of coherent actions c. Create an effective guiding policy d. Identify its primary competitors

c

a set of coherent actions is a. accomplished through analysis of the firm's external and internal environments b. accomplished through strategy formulation, resulting in the firm's corporate, business, and functional strategies c. This element is accomplished through strategy implementation

c

two or more comanies performing at the same level is?

competitive parity

Which of the following are primary strategy objectives? (Check all that apply.)

creating value, controlling costs

Strategic positioning allows managers to ______. provide customers value while controlling costs balance foreign and domestic sales eliminate competition in a given industry provide superior customer value regardless of costs

provide superior customer value regardless of costs

A firm that successfully executes a strategy benefits society by ______. (Check all that apply.) reinvesting profits and increasing employment limiting competition eliminating legal restrictions on controversial practices creating value

reinvesting profits and increasing employment creating value

competitive advantages are always what

relative

Why should a firm define a clear competitive challenge?

so that employees can assess their progress toward addressing it

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

competitve advantage

superior performance relative to other competitors in the same industry or the industry average

the ability to outperform competitors or in the industry over a prolonged period is?

sustainable competitive advantage

The greater the difference between value creation and cost,

the greater the firm's economic contribution

strategic positions require

trade offs

there is "good strategy" true or false

true

every business uses CSR?

yes

strategic management consists of what 3 key elements

1. diagnosis 2. guiding policy 3. set of coherent actions

what are our stakeholders interest and claims is what step?

2

what opportunities and threats do our stakeholders present?

3

what economic, legal, and Philantrophic responsibilities do we have to our stakeholders is what step?

4

how many steps in the stakeholder analysis

5

what should we do to effectively address the stakeholders concerns is what step?

5

Which statement about strategies is true? Vision and mission statements cannot lay the foundation for good strategies. "We will be the best!" is an example of a strategy. Statements of desire typically address economic fundamentals. A statement of desire on its own often leads to goal conflict.

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

Stakeholder impact analysis is a decision tool that helps a company do which of the following? (Check all that apply.) Achieve a competitive advantage Act as a good corporate citizen Describe the role of functional managers in strategy formulation Decide where to compete

Achieve a competitive advantage Act as a good corporate citizen

Who among the following are considered internal stakeholders? (Check all that apply.) Board members Competitors Customers Unions Employees Governments Stockholders

Board members Employees Stockholders

What are the categories of expectations that society has of the business enterprise as described in the CSR framework? (Check all that apply.) Aesthetic Ethical Legal Economic Philanthropic

Ethical Legal Economic Philanthropic

Which of the following are outcomes of effective stakeholder management? (Check all that apply.) It leads to beneficial cooperation from stakeholders. It lowers the cost of business transactions by building trust. It helps the firm achieve predictable and stable returns. It reduces organizational adaptability.

It leads to beneficial cooperation from stakeholders. It lowers the cost of business transactions by building trust. It helps the firm achieve predictable and stable returns.

two rewards of superior value creation are?

Market share and profitability

what are some resources used to achieve superior performances

-financial and human capital -profitable growth -donations -best workers -endorsements -market research

who are our stakeholders is what step?

1

economic, legal, ethical, philanthropic

The levels of social responsibility are _____.

Which statement is true about pricing strategies, internet strategies, alliance strategies, and brand strategies?

They may be a necessary part of a firm's initiatives to support its competitive strategies.

example of strategic positioning

Walmart and Nordstrom have different positions but are in retail

A well-devised strategy is about which two things?

What to do and what not to do

A diagnosis of a good strategy is a. accomplished through analysis of the firm's external and internal environments b. accomplished through strategy formulation, resulting in the firm's corporate, business, and functional strategies c. This element is accomplished through strategy implementation

a

Based on its long dominance as a coffeehouse chain, Starbucks has ______. a. a sustainable competitive advantage b. competitive parity c. a competitive disadvantage d. an absolute advantage

a

Burger Bomb has been outperforming other burger restaurants in recent years. This indicates that Burger Bomb has which of the following? A competitive advantage A superior product A statistical advantage Strategic leadership

a

Competitive parity occurs when ______. a. two or more firms achieve the same performance results b. two or more firms rely on international outsourcing to remain competitive c. two or more firms enter into a strategic alliance d. the performance of two or more firms is superior to the industry average

a

Laws and regulations are a society's codified ethics, embodying notions of right and wrong. They also establish the rules of the game. For example, business as an institution can function because property rights exist and contracts can be enforced in courts of law. Strategic leaders must ensure that their firms obey all the laws and regulations, including but not limited to labor, consumer protection, and environmental laws. a. legal b. economic c. philantrophic d. ethical

a

What is one significant challenge that Tesla faces? a. gaps in the infrastructure needed to keep its vehicles on the road all over the country b. lack of consumer interest in environmentally friendly alternatives to traditional vehicles c. traditional competitors who already produce affordable, attractive, zero-emissions vehicles d. mistrust on the part of investors, who routinely threaten to sell stock or withdraw loans

a

What is one significant challenge that Tesla faces? a. gaps in the infrastructure needed to keep its vehicles on the road all over the country b. mistrust on the part of investors, who routinely threaten to sell stock or withdraw loans c. traditional competitors who already produce affordable, attractive, zero-emissions vehicles d. lack of consumer interest in environmentally friendly alternatives to traditional vehicles

a

What is something that Tesla is doing to implement its guiding policy and address its competitive challenges? a. It is taking advantage of economies of scale so that it can offer vehicles at a competitive price point. b. It is creating electric-gasoline hybrid engines that allow its vehicles to operate even without electric charging stations. c. It is making sure that its patents and proprietary technology are kept a secret from the public. d. It is relying more heavily on human labor, which is inexpensive and efficient.

a

strategy a. set of goal-directed actions a firm takes to gain and sustain superior performance relative to competetion b.an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantages

a

Which of the following are elements of a good strategy according to the AFI framework? (Check all that apply.) a. a diagnosis of the competitive challenge b. strong stakeholder involvement in the strategy formulation process c. a set of coherent actions to implement the firm's guiding policy d. a leadership group with relevant prior industry experience e. a guiding policy to address the competitive challenge

a c e

sears is an example of what?

a company that did not have a clear strategic plan