Chap 1
Which of the following elements comprise strategic management?
formulation, implementation, analysis
In the _____ step of the stakeholder impact analysis, firms identify their various social responsibilities to stakeholders.
fourth
What are the categories of expectations that society has of the business enterprise as described in the CSR framework?
legal, ethical, philanthropic, economic
Using a(n) ______ strategy formulation, managers examine where and how the firm should compete around the world.
global
Which of the following statements regarding tasks in the AFI strategy framework is true?
independent
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?
power, legitimacy, urgency
Strategic positioning allows managers to
provide customers value while controlling costs
A competitive advantage that lasts for a long period of time is said to be
sustainable
In which of the following situations can a firm providing goods and services gain a competitive advantage?
- Their offerings provide more value for consumers than competitors' offerings. - Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs.
Which of the following are primary strategy objectives?
- creating value - controlling costs
Which of the following statements is true of strategy?
Actions that allow a firm to address a competitive challenge are strategy.
Which of the following statements is true about Tesla, the manufacturer of all-electric cars?
It has a high market valuation.
Based on its long dominance as a coffeehouse chain, Starbucks has
a sustainable competitive advantage
Which of the four corporate social responsibilities is considered first and foremost for business enterprises?
economic
Customers, suppliers, creditors, unions, and governments are known as
external
In the external analysis phase of the AFI strategy framework, managers should ask,
"How do external forces affect our strategy and competitive advantage?"
A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy
analysis
Who among the following are considered internal stakeholders?
board members, employees, stockholders
In a(n) ______ strategy formulation, managers focus on deciding HOW the firm should compete.
business
True or false: A statement such as, "We will be the biggest company in the world," is an example of strategy.
false
The stakeholders of a firm are
individuals or groups that can affect and are affected by the actions of the firm
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
Which of the following is the best indicator that Tesla's startup master plan has worked as intended?
Tesla generated 500,000 preorders for an unseen model.
Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following?
competitive advantage
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
Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?
corporate social responsibility
True or false: Although they are more vocal, activist investors have the same amount of power as individual investors.
false
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
In the ______ step of the strategy implementation phase of the AFI strategy framework, managers would examine how the firm should be structured in order to implement the desired strategy.
organizational design
The overall purpose of a firm's strategy is to
perform better than other companies in the same industry
________ is an important tool because it allows a manager to recognize, prioritize and address the needs of various stakeholders.
stakeholder impact analysis
The groups or individuals who can impact or be impacted by a firm's actions are known as
stakeholders
The field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation is known as
strategic management
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
When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in
trade-offs that work against each other.
Competitive parity occurs when
two or more firms achieve the same performance results