SEVI 3013 McGraw Hill Chapter 1 Smartbook
Microsoft donating more than $3 billion in cash and software to people in need is an example of which type of corporate social responsibility?
philanthropic
Stakeholder impact analysis is a decision tool that helps a company do which of the following?
-Achieve a competitive advantage -Act as a good corporate citizen
Which of the following are outcomes of effective stakeholder management?
-It lowers the cost of business transactions by building trust. -It helps the firm achieve predictable and stable returns. -It leads to beneficial cooperation from stakeholders.
Which of the following elements of the pyramid of corporate social responsibility are required by society and shareholders?
-Legal responsibilities -Economic responsibilities
Which of the following are the relationships that a firm has with stakeholders?
-The actions of the firm can affect stakeholders. -Stakeholders can affect the firm's actions.
Which of the following questions are part of the five steps in stakeholder impact analysis?
-Who are our stakeholders? -What are our stakeholders' interests and claims? -What opportunities and threats do our stakeholders present?
Which of the following elements comprise strategic management?
-analysis -implementation -formulation
Which of the following legal developments allow business to function as an institution?
-contract enforcement -property rights
Who among the following are considered internal stakeholders?
-employees -stockholders -board members
Which of the following elements of the pyramid of corporate social responsibilities are result from a society's expectations toward business?
-ethical responsibilities -philanthropic responsibilities
Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities?
-giving investors a return on invested capital -repaying debts to creditors
Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis?
-power -urgency -legitimacy
Place the five steps of the stakeholder impact analysis in order, with the first step at the top.
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?
What is the overall purpose of strategic management?
Gain competitive advantage
What is the overall purpose of a firm's strategy?
Perform better than other companies in the same industry.
True or false: Firms should obey all the laws, including but not limited to labor, consumer protection, and the environment.
True
When does a situation of competitive parity exist?
Two or more firms achieve the same performance results.
When a firm implements a strategy that leads to superior performance relative to other companies in the same industry, it is said to have achieved _______________.
a competitive advantage
A stakeholder has _______ when its needs are within the bounds of the law or are otherwise relevant to the firm.
a legitimate claim
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 known as __________________.
corporate citizenship
Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?
corporate social responsibility (CSR)
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 actions to educate its workers and management about racism indicates that the firm takes its _________ responsibilities seriously.
ethical
Customers, suppliers, creditors, unions, and governments are known as ________.
external stakeholders
Stakeholder impact analysis is a ___________-step process that allows managers to better understand and address stakeholders' needs. Multiple choice question.
five
Effective stakeholder management _____________.
helps a firm build a strong public reputation
The stakeholders of a firm are _________________.
individuals or groups that can affect and are affected by the actions of the firm
A competitive advantage ________.
is assessed relative to other competitors in the industry
Sustainable competitive advantage exists when a firm ____________.
maintains superior performance relative to its industry over a long period of time
Drag the type of business action to the appropriate element of the pyramid of corporate social responsibility.
philanthropic responsibilities ----> corporate citizenship ethical responsibilities ----> do what is right, just, and fair legal responsibilities ----> define minimum standard under the law economic responsibilities ----> gain and sustain competitive advantage
The concept, or framework, of corporate social ___________ guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.
responsibility
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. These ideas are Burger Bomb's ___________________.
strategy
A competitive advantage that lasts for a long period of time is said to be _________________.
sustainable
In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to
the performance of other firms in its industry
What is strategy?
the set of actions a firm takes to achieve a competitive advantage
