MGT 400 Chapter 1

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

Ethical

Which of the following are considered part of the firm's economic responsibilities?

Firms must try to give investors a sufficient return on their invested capital. Firms need to repay the debts they have with creditors and suppliers.

Stakeholders are?

Individuals or groups that can affect and are affected by the actions of a business

What are the expectations that society has of the business enterprise as described in the CSR framework? Legal Ethical Aesthetic Philanthropic Economic

Legal Ethical Philanthropic Economic

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? Legitimacy Financial Standing Urgency Power

Legitimacy Urgency Power

A good strategy consists of three elements. The first element is accomplished through strategy analysis of the firm's external and internal environments. We also call this:

A diagnosis of the competitive advantage

A good strategy consists of three elements. The second element is accomplished through strategy formulation, resulting in the firm's corporate, business, and functional strategies. This is also called what?

A guiding policy to address the competitive challenge

When a stakeholder has power over a company it is able to do what?

Able to influence the company to pursue a course of action it would not otherwise take.

What is the first step in the AFI strategy network?

Analysis

What is the overall purpose of strategic management?

Competitive Advantage

Which of the following factors would be examined in the External Analysis stage of the AFI strategy framework? Competitive Forces Strategic Groups Corporate Forces Resources

Competitive Forces Strategic Groups

Which of the following legal developments allow business to exist as an institution?

Contract Enforcement Property Rights

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

Corporate Social Responsibility

Ethical Responsibilities

Do what is right, just, and fair

As a CEO, Maya's actions influence company performance far more than any forces exerted by the external environment. Maya's actions are classified as

Firm Effects

Economic Responsibilities

Gain and sustain competitive advantage

Firm effects refers to the way in which

Management affects the performance of a firm

Which of the following are types of corporate social responsibilities that a firm may identify during the fourth step of stakeholder impact analysis?

Philanthropic Economic Legal Ethical

A well-devised strategy helps a firm understand what?

What not to do What to do

Which of the following is considered an internal stakeholder?

Board Members Employees Stockholders

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

False

A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as?

Stakeholder Strategy

__________ is an integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage

Stakeholder Strategy

Which of the following are examples of a black swan event? The Fukushima nuclear disaster The accounting scandal at Enron The president's annual State of the Union Address Daily traffic jams during rush hour The 9/11 terrorist attacks

The Fukushima nuclear disaster The accounting scandal at Enron The 9/11 terrorist attacks

Order of the stakeholder impact analysis

1. Who are our stakeholders? 2. What are our stakeholders' interests? 3. What opportunities and threats do our stakeholders present? 4. What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? 5. What should we do to effectively address the stakeholder concerns?

The industry a firm is in determines about _______ of a firm's profitability.

20%

Philanthropic Responsibilities

Corporate Citizenship

Industry effects refers to?

The way in which the structure of an industry affects the performance of individual firms

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? Financial Standing Urgency Legitimacy Power

Urgency Legitimacy Power

A successful business strategy creates _____ for both producers and consumers.

Value

Which of the following questions are part of the five steps in stakeholder impact analysis? What are our stakeholders' interest and claims? Who are our stakeholders? What opportunities and threats do our stakeholders present? Which stakeholders have little to no power over us? How can we gain maximum competitive advantage without taking our stakeholders into account?

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

Which of the following are elements of a good strategy according to the AFI framework? Strong stakeholder involvement in the strategy formulation process. A leadership group with relevant prior industry experience. A diagnosis of the competitive challenge. A guiding policy to address the competitive challenge. A set of coherent actions to implement the firm's guiding policy.

A diagnosis of the competitive challenge. A guiding policy to address the competitive challenge. A set of coherent actions to implement the firm's guiding policy.

Sustainable competitive advantage exists when

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

Which of the following could accurately be called a strategy?

A set of activities designed to achieve a sustainable competitive advantage

Which of the following elements comprise strategic management? Analysis Formulation Implementation Realization Definition

Analysis Formulation Implementation

A ________ event is an unexpected and unlikely occurrence that has a significant impact on society.

Black Swan

Which of the following is a term used to describe a highly unlikely event that has a significant impact on society?

Black Swan Event

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

By observing the actions of competitors. By bringing the question to a vote at a shareholders meetings. By addressing the most vocal or visible complaints first

Which of the following are primary strategy objectives? Maximizing Sales Strengthening Relationships Creating Value Controlling Costs

Creating Value Controlling Costs

A firm that successfully executes a strategy benefits society by

Creating value Reinvesting profits and increasing employment

Which of these factors was not specifically pointed out as a contributing factor to Apple's success over the past few years: Hiring and maintaining superior human resources. Protecting intellectual property. Establishing an iconic brand. Expensively priced products.

Expensively priced products

Stakeholder impact analysis is a _____-step process that allows manager to better understand and address stakeholders' needs.

Five

"How do we ensure our strategy addresses our ethical responsibilities?" would most likely be examined by managers in the _____ phase of the AFI strategy framework.

Implementation

Legal Responsibilities

Laws and regulations are society's codified ethics; defined minimum acceptable standard

The third step of stakeholder impact analysis requires managers to identify the ______ and ______ presented by internal an external stakeholders.

Opportunities and Threats

The overall purpose of a firm's strategy is to:

Perform better than other companies in the same industry

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

Stakeholder Impact Analysis

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

Stakeholders

In order to achieve and sustain competitive advantage, a company devises and adopts a set of goal directed actions collectively as a(n)?

Strategy

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

Sustainable

A firm can gain a competitive advantage by providing goods and services....?

That create more value for consumers than competitors' offerings. That are of similar quality to competitors' offerings but at a lower price.

Strategic Positioning allows managers to?

Provide customer value while controlling costs.

A firm that successfully executes a strategy benefits society by? Reinvesting profits and increasing employment. Eliminating legal restrictions on controversial practices. Limiting competition. Creating Value

Reinvesting profits and increasing employment. Creating Value