MGT 499 1

Which statement about strategies is true?

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

True or false: Since experiencing major operations problems in 2017, Tesla has largely failed to act in a way that is consistent with its competitive challenge diagnosis.

False

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.

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

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

The question "How do we implement the formulated strategy through an organizational structure, culture, and control system that values and encourages ethical behavior?" would most likely be examined by managers in the ______ phase of the AFI strategy framework.

implementation

A competitive advantage _____.

is assessed relative to other competitors in the industry

legal responsibilities

laws and regulations are society's codified ethics; define minimum acceptable standard

Managers have ______ resources in their quest for competitive advantage.

limited

Sustainable competitive advantage exists when a firm ______.

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

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

opportunities and threats

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

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

Who among the following are considered internal stakeholders? (Check all that apply.)

-Board members -Stockholders -Employees

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

a competitive advantage

A firm's overall efforts to gain and sustain competitive advantage is referred to as which of the following?

a competitive strategy

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 ______.

a guiding policy to address the competitive challenge

A stakeholder has ______ when its needs are within the bounds of the law or are otherwise relevant to the firm.

a legitimate claim

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

a sustainable competitive advantage

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

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

Firms should identify a ______ so that employees can determine if they are making progress in addressing it.

clear competitive challenge

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

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

corporate citizenship

philanthropic responsibilities

corporate citizenship

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

corporate social responsibility

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

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

ethical responsibilities

do what is right, just, and fair

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

economic

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

ethical

Starbucks's commitment to fair trade and responsible growing practices indicates that the firm takes its ______ responsibilities seriously.

ethical

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

external stakeholders

In the ______ step of the stakeholder impact analysis, managers need to decide the appropriate course of action for the firm in relation to stakeholder concerns.

fifth

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

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

five

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

fourth

economic responsibilities

gain and sustain competitive advantage

What is one significant challenge that Tesla faces?

gaps in the infrastructure needed to keep its vehicles on the road all over the country

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

global

Effective stakeholder management _____.

helps a firm build a strong public reputation

The high market valuation achieved by Tesla by 2019 can be largely attributed to its ______.

implementation of its secret strategy

Strategic positioning allows managers to ______.

provide customers value while controlling costs

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

responsibility

In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework.

second

Why should a firm define a clear competitive challenge?

so that employees can assess their progress toward addressing it

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

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

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

stakeholders

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

strategic commitments

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

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 a nutshell, strategy is the art and science of ______.

success and failure

Which of the following indicates that investors expect future growth for Tesla?

the increasing value of the company's stock

Strategy is ______.

the set of actions a firm takes to achieve a competitive advantage

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

What is the first step in the AFI strategy framework?

Analysis

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

Create an effective guiding policy

Which statement about shareholders and employees is true?

Employees are often made into shareholders through employee stock ownership plans.

True or false: A strategic leader's job is to focus like a laser on shareholders.

False

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

False

What is the overall purpose of strategic management?

Gain competitive advantage

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

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

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

It has a high market valuation.

What is one explanation for why Tesla underperforms when the company's profits are compared to the profits of established car companies?

Startups often lose money early on.

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.

In which of the following situations can a firm providing goods and services gain a competitive advantage? (Check all that apply.)

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

Which of the following are aims of stakeholder strategy? (Select all that apply.)

-To gain and sustain competitive advantage -To manage various stakeholders effectively

Which of the following elements comprise strategic management? (Check all that apply.)

-analysis -formulation -implementation

Which of the following legal developments allow business to function as an institution? (Check all that apply.)

-contract enforcement -property rights

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

-controlling costs -creating value

The expectations that society has toward business, in contrast to what society requires, result in which of the following elements of the pyramid of corporate social responsibility? (Check all that apply.)

-philanthropic responsibilities -ethical responsibilities

A firm that successfully executes a strategy benefits society by ______. (Check all that apply.)

-reinvesting profits and increasing employment -creating value

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

a diagnosis of the competitive advantage

Which of the following elements of the pyramid of corporate social responsibility are required by society? (Check all that apply.)

-economic responsibilities -legal responsibilities

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (Check all that apply.)

-legitimacy -urgency -power