Ch. 1: About Strategy (Strategic Management 4e, Rothaermel) 2.0

industry effects

Firm performance attributed to the structure of the industry in which the firm competes.

part of the five steps in stakeholder impact analysis? (Check all that apply.)

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

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

opportunities and threats

Match the element of the pyramid of corporate social responsibility with its explanation

philanthropic responsibilities - corporate citizenship ethical responsibilities - do what is right, just, and fair legal responsibilities - laws and regulations are society's codified ethics; define minimum acceptable standard economic responsibilities - gain and sustain competitive advantage

What is the first step in the AFI strategy framework?

Analysis

firm effects

Firm performance attributed to the actions managers take.

black swan events

Incidents that describe highly improbable but high-impact events.

The firm's mission is based on its vision

It specifies the business(es) in which the firm intends to compete and the customers it intends to serve.

stakeholders

Organizations, groups, and individuals that can affect or are affected by a firm's actions.

competitive disadvantage

Underperformance relative to other competitors in the same industry or the industry average.

Place the five steps of the stakeholder impact analysis in order, with the first step at the top.

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

stakeholder impact analysis

A decision tool with which managers can recognize, prioritize, and address the needs of different stakeholders, enabling the firm to achieve competitive advantage while acting as a good corporate citizen.

Analysis, Formulation, Implementation (AFI) Strategy Framework

A model that links three interdependent strategic management tasks - analyze, formulate, and implement - that, together, help managers plan and implement a strategy that can improve performance and result in competitive advantage

stakeholder strategy

An integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage.

strategic management

An integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

What are the categories of expectations that society has of the business enterprise as described in the CSR(Corporate Social Responsibility) framework?

Economic Philanthropic Ethical Legal

Hypercompetition is a characteristic of the current competitive landscape. Define hypercompetition

Hypercompetition is based on price-quality positioning, competition to create new knowledge, establish first-mover advantage, and competition to protect or invade established product or geographic markets. firms aggressively challenge competitors. Markets are assumed to be unstable and changeable.

sustainable competitive advantage

Outperforming competitors or the industry average over a prolonged period of time.

competitive parity

Performance of two or more firms at the same level.

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

Stockholders Board members Employees

competitive advantage

Superior performance relative to other competitors in the same industry or the industry average.

What are a firm's vision

The firm's vision is a picture of what it wants to be and what it wants to ultimately achieve.

strategy

The set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

identify Hypercompetition primary drivers

The two primary drivers of hypercompetition are the global economy and rapid technological change.

Corporate Social Responsibility (CSR)

a framework that helps firms recognize and address the economic, legal, social, and philanthropic expectations that society has of the business enterprise at a given point in time

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

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

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

Why a firm's ethical core values are essential to its long term success

ethical core values underlay the vision statement to ensure the stability of the strategy, and thus lay the groundwork for long-term success. Ethical core values are the guardrails that help keep the company on track when pursuing its mission and its quest for competitive advantage.

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 step

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 step

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

five step

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

fourth step

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

interests and claims

AFI strategy framework

mgmt tasks: ANALYSE, FORMULATE, IMPLEMENT A model that links three interdependent strategic management tasks — analyze, formulate, and implement — that, together, help managers plan and implement a strategy that can improve performance and result in competitive advantage.

Value Creation

occurs when companies with a good strategy are able to provide products or services to consumers at a price point that they can afford while keeping their costs in check, thus making a profit at the same time. Both parties benefit from this trade as each captures a part of the value created.

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 step

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

strategic commitments

The field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation is known as ______.

strategic management

The company creates a unique situation for itself in its industry that allows it to provide excellent value to its customers and also control its costs. This is known as ______.

strategic positioning

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

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

Strategy is ______.

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

What is the value to the firm of having a specified vision and mission

the value of having a vision and mission is that they inform stakeholders what the firm is, what it seeks to accomplish, and who it seeks to serve.

In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm.

third step

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis?

urgency power legitimacy

How can organizations survive in a hypercompetitive environment?

To survive in a hypercompetition environment firms need strategic flexibility. This demands continuous learning which allows the firm to develop new skills so that they can adapt to the changing environment and to consistently engage in change.