Wk 1 BUS475

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

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

Which of the following types of questions does scenario planning ask?

"What if?"

Place in order from first to last the steps in the devil's advocacy decision framework

1. Team 1 formulates a course of action2. Team 2 questions the assumptions of and critiques the proposed course of action 3. Team 1 revises the proposed course of action based on the input from Team 2 4. Team 2 questions the assumptions of and critiques the revised course of action, and Team 1 makes additional revisions 5. Team 1 and Team 2 agree upon a course of action

Studies show that CEOs spend the majority of their time

meeting people face-to-face

Top-down strategy is derived from

military strategy

After creating a vision as part of the strategic management process, what must a a firm establish next?

mission

a ___ outlines what an organization does, while a vision outlines what the organization wants to do.

mission statement

What are cognitive biases?

obstacles in thinking that result in systematic errors in decision making and hinder rational thinking

Matching Question 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

Which of the following is an important part of strategic leadership and is the strategic leader's ability to influence and direct individuals to do things?

power

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

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

What term describes the groups or individuals who can impact or be impacted by a firm's actions?

stakeholders Reason: Recall that shareholders are individuals or groups who own shares of a company's stock. The larger group of individuals who are affected by a firm's activities are known as stakeholders.

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

strategic commitments

Which of the following are three approaches that strategic leaders rely on to formulate and implement strategy?

strategic planning strategy as planned emergence scenario planning

What is strategic leadership?

The use of influence and power by executives to direct the activities of individuals while pursuing an organization's goals

To which types of organizations can we apply the principles of strategic management?

all types of organizations

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?

The bulbs must have a lower cost than competitors' bulbs.

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

The tasks are very interdependent.

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?

Stakeholder impact analysis is a decision tool that helps a company do which of the following?

Act as a good corporate citizen Achieve a competitive advantage

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

Why is employee involvement crucial when developing an inspiring vision and mission?

Employees may develop helpful strategic initiatives. Belief in the vision and mission statements motivates employees.

According to Daniel Kahneman and Amos Tversky, System 1 is analytical, logical, and deliberate.

False Reason: System 2 decision making is analytical, logical, and deliberate.

What is the overall purpose of strategic management?

Gain competitive advantage

What should a successful vision do for an organization?

It should inspire employees. It should make employees feel that their work is important.

Which of the following statements about scenario planning is true?

It starts with a top-down approach.

Which of the following elements of the pyramid of corporate social responsibility are required by society and shareholders?

Legal responsibilities Economic responsibilities Reason: Recall that society expects, but does not require, a firm to meet its ethical responsibilities. Recall that society expects, but does not require, a firm to meet its philanthropic responsibilities.

What is the overall purpose of a firm's strategy?

Perform better than other companies in the same industry.

Which of the following are characteristics of the strategic plan that makes up an intended strategy?

Rational Top-down Structured

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.

Which of the following statements is correct?

Strategic initiatives can be the result of top-down planning or a bottom-up process.

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

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?

To manage various stakeholders effectively To gain and sustain competitive advantage

Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision.

True

What is the typical result of cognitive limitations?

We choose the option that is "good enough" and satisfies immediate needs.

Which of the following are questions that managers are likely to ask when beginning the strategic management process?

What do we ultimately hope to achieve? What are our values? How can we achieve our goals?

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 best describes an illusion of control?

a belief that a strategic plan will address any scenario

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

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

a sustainable competitive advantage

Which of the following leads to systematic errors in decision making and hinders rational thinking?

cognitive biases

All of the following are sources of strategic initiatives except

consumer demand

Which of the following is a statement of guiding principles that typically provides very specific ethical considerations?

core values statement

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

What method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action?

devil's advocacy

A core values statement provides information to employees regarding the company's

ethics and morals

In which step of a stakeholder impact analysis do 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

Jennie is the CEO of an information technology company. Based on the data that her researchers have compiled, she feels confident that her strategic plan for the company will be successful in the future, regardless of what happens. Based on this information, it seems that Jennie Blank

has an illusion of control

Which of the following elements comprise strategic management?

implementation formulation analysis

Research about how CEOs spend their days suggests that CEOs spend most of their time

interacting with others

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?

legitimacy power urgency

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

Which of the following is the least formal approach to setting the strategy process?

strategy as planned emergence

In a nutshell, strategy is the art and science of

success and failure

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

sustainable

What is System 1 of the brain according to Daniel Kahneman and Amos Tverksy?

the brain's default mode

Which of the following topics should be considered during the analysis phase of the AFI framework?

the firm's internal strengths and resources the external environment and associated challenges the firm's business model and competitive advantages the role of strategic leadership and the strategy process

What is strategy?

the set of actions a firm takes to achieve a competitive advantage Reason: Recall that a dominant market share is the result of successful strategy implementation, but is not the strategy itself.

Both strategy formulation and strategy implementation are aspects of

the strategy process

Which theory proposes that when faced with decisions, we tend to satisfice rather than optimize?

theory of bounded rationality

Upper-echelons theory views organizational outcomes as a reflection of the values of the

top management team

Serena is the CEO of an online retailer. She and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in Central and South America. What type of strategic approach is Serena engaging in?

top-down strategic planning

If parts of a firm's intended strategy fall by the wayside, it is referred to as

unrealized strategy.

According to the ______, effective leadership is the outcome of certain intrinsic talents as well as education

upper-echelons theory

In crafting a strategic management plan, leaders must first determine the company's long-term objective. This means leaders must first define the organization's

vision

Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish?

vision

Strategy formulation concerns the choice of strategy in terms of ______ to compete.

where and how