Chapter 1- MGT 4750

5 steps of the stakeholder impact analysis in order.

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?

Which statement about strategies is true?

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

What are the categories of expectations that society has of the business enterprise as described in the CSR framework? (Check all that apply.)

Legal Economic Ethical Philanthropic

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

Strategic Management

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.

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.

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

To manage various stakeholders effectively To gain and sustain 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

What is the first step in the AFI strategy framework?

analysis

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

economic

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

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

strategic commitments

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

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

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(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

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

controlling costs creating value

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

corporate social responsibility

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

create an effective guiding policy

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

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

True or false: A statement such as, "We will be the biggest company in the world," is an example of strategy.

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

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

what is the overall purpose of strategic management

gain competitive advantage

Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities? (Check all that apply.)

giving investors a return on invested capital repaying debts to creditors

The stakeholders of a firm are ______.

individuals or groups that can affect and are affected by the actions of the firm

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

interest and claims

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

interests and claims

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

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

opportunities and threats

The overall purpose of a firm's strategy is to ______.

perform better than other companies in the same industry

Match the element of the pyramid of corporate social responsibility (on the left) with its explanation (on the right).

philanthropic responsibilities-corporate citizenshipethical responsibilities-do what is right, just, and fairlegal responsibilities-laws and regulations are society's codified ethics; define minimum acceptable standardeconomic responsibilities- gain and sustain competitive advantage

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

property rights contract enforcement

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

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

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

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

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

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

True or false: Firms should obey all the laws, including but not limited to labor, consumer protection, and the environment.

true

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

urgency legitimacy power

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

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