MGMT 481: Ch. 1, Strategic Management Chapter 3, Ch 4 Strategic Management, Strategic Management- Chapter 2

a. Their offerings provide more value for consumers than competitors' offerings. b. Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs.

In which of the following situations can a firm providing goods and services gain a competitive advantage? (Check all that apply.) a. Their offerings provide more value for consumers than competitors' offerings. b. Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs. c. Their offerings are similar to competitors' offerings at higher prices. d. Their offerings cost more to produce than competitors' offerings.

Strategic fit ______ the likelihood that a firm is able to gain a competitive advantage. Multiple choice question. makes impossible increases does not impact decreases

Increases

C. are usually small improvements in products and processes

Incremental innovations _____________. A. are usually highly disruptive B. usually represent technological breakthroughs C. are usually small improvements in products and processes D. nearly always can be patented

b. a sustainable competitive advantage

Based on its long dominance as a coffeehouse chain, Starbucks has ______. a. a competitive disadvantage b. a sustainable competitive advantage c. competitive parity d. an absolute advantage

Why is employee involvement crucial when developing an inspiring vision and mission? (Check all that apply.)

Because belief in the vision and mission statements motivates employees. Because employees may develop helpful strategic initiatives.

d. a competitive advantage

Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following? a. strategic leadership b. a superior product c. a statistical advantage d. a competitive advantage

b. 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 ______. a. core values statement b. strategy c. competitive parity d. vision

Which of the following were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain? (Check all that apply.)

Carefully choosing the supplier of the potatoes for their fries Focusing on such details as store layout and design

______ describes a situation where the cause and effect of a phenomenon are not readily apparent. Multiple choice question. Competitive parity Causal ambiguity Planned emergence Path dependence

Causal ambiguity

c. two or more firms achieve the same performance results

Competitive parity occurs when ______. a. the performance of two or more firms is superior to the industry average b. two or more firms enter into a strategic alliance c. two or more firms achieve the same performance results d. two or more firms rely on international outsourcing to remain competitive

b. strategic commitments

Effective guiding policy is supported by and stays consistent through the use of ______. a. trade-offs b. strategic commitments c. social responsibilities d. grandiose statements

Which statements about vision statements and firm performance are true?

Effective vision statements can provide a foundation for creating competitive advantage. Vision statements and firm performance are sometimes associated with one another.

Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry? Multiple select question. Timing of the entry Establishing a niche Reconfiguring value chains Leverage existing assets

Establishing a niche Reconfiguring value chains Leverage existing assets

E) Incremental

Every September, Apple releases new versions of its iPhone, boasting improved functions—for example, a better camera. Which type of innovation does this action reflect? A) Disruptive B) Invention C) Architectural D) Radical E) Incremental

True or false: A competitive advantage is most often maintained indefinitely.

False

True or false: Emergent strategy is planned.

False

True or false: Sociocultural factors tend to be fixed. True false question. True False

False

True or false: The value chain concept is applicable primarily to high-tech firms in rapidly changing environments.

False

Which of the following are questions that managers are likely to ask when beginning the strategic management process? (Check all that apply.

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

d. 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) ______. a. overperforming norm b. purchasing parity c. competitive parity d. competitive disadvantage

b. success and failure

In a nutshell, strategy is the art and science of ______. a. amassing wealth b. success and failure c. maintaining a work-life balance d. treating people fairly

d. the performance of other firms in its industry

In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to ______. a. only non-US-based firms b. a firm in the technology industry c. its past financial performance d. the performance of other firms in its industry

e. fourth

In the _____ step of the stakeholder impact analysis, firms identify their various social responsibilities to stakeholders. a. third b. second c. fifth d. first e. fourth

a. first

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. a. first b. fourth c. third d. fifth e. second

a. second

In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework. a. second b. third c. fifth d. fourth e. first

d. third

In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm. a. second b. first c. fifth d. third e. fourth

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

In the external analysis phase of the AFI strategy framework, managers should ask, a. "How do external forces affect our strategy and competitive advantage?" b. "What is the relationship between competitive advantage and firm performance?" c. "How does the firm make money? d. "What effects do internal resources, capabilities, and core competencies have on the firm's competitive advantage?"

c. interests and claims

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ______. a. likelihood of bringing legal action against the firm b. political and cultural affiliations c. interests and claims d. entire investment portfolio

When a new firm enters an industry, which of the following often occur? (Check all that apply.) Multiple select question. Incumbent firms raise prices. Incumbent firms lower prices. Industry profit potential declines. Incumbent firms spend more to satisfy customers. Incumbent firms increase their market share.

Incumbent firms lower prices. Industry profit potential declines. Incumbent firms spend more to satisfy customers.

b. ethical

Internet privacy, genetic engineering, and stem-cell research are examples of areas in which a firm's ______ responsibilities exceed its legal responsibilities. a. philanthropic b. ethical c. economic d. educational

What are the characteristics of a strategic activity system as it applies to firms? (Check all that apply.) Multiple select question. It is causally ambiguous. It consists of interconnected activities. It is socially complex. It weakens competitive advantage.

It is causally ambiguous. It consists of interconnected activities. It is socially complex.

What should a successful vision do for an organization? (Check all that apply.)

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

Philanthropic Responsibilities

Match the element of the pyramid of corporate social responsibility with its explanation: Corporate Citizenship

Ethical Responsibilities

Match the element of the pyramid of corporate social responsibility with its explanation: Do what is right, just, and fair

Economic Responsibilities

Match the element of the pyramid of corporate social responsibility with its explanation: Gain and sustain competitive advantage

Legal Responsibilities

Match the element of the pyramid of corporate social responsibility with its explanation: Laws and regulations are society's codified ethics; define minimum acceptable standard

a. competitive parity

Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has ______. a. competitive parity b. a competitive advantage c. a noncompetitive business d. a competitive disadvantage

Which conditions are most likely to foster a positive relationship between vision statements and firm performance?

Organizational structures align with the vision statements. Internal stakeholders are invested in defining the vision. The vision statements are customer-oriented.

Which of the following statements about industry dynamics is true? Multiple select question. Over time, industry structures are not stable. The five forces model is a static model. Firms in an industry have a tendency to fragment in order to increase profitability. The five forces model takes into account industry dynamics.

Over time, industry structures are not stable. The five forces model is a static model.

______ describes a process in which the options one faces in the current situation are limited by decisions made in the past. Multiple choice question. VRIO framework Social complexity Resource allocation Path dependence

Path dependence

______ suggests that sometimes even random events may have a large impacts on an outcome. Multiple choice question. Path dependence The VRIO framework Agency theory Upper-echelons theory

Path dependence

An industry analysis provides which of the following? (Check all that apply.) Multiple select question. the stability of the firm's internal structure insight into a firm's strategic position within an industry a rigorous way of identifying the industry's profit potential the level of profitability that can be expected for the average firm in the industry

insight into a firm's strategic position within an industry a rigorous way of identifying the industry's profit potential the level of profitability that can be expected for the average firm in the industry

A firm's culture, brand equity, and intellectual property are examples of ______. Multiple choice question. ill-defined resources tangible resources defined resources intangible resources

intangible resources

Which isolating mechanism is set up to legally prevent companies from copying products that give a firm a competitive advantage? Multiple choice question. intellectual property protection social complexity path dependence causal ambiguity

intellectual property protection

Which of the following can help a firm extend its competitive advantage? (Check all that apply.) Multiple select question. intellectual property protection better expectations of future resource value path dependence resource stocks and flows depletion of tangible and intangible resources

intellectual property protection better expectations of future resource value path dependence

A(n) __________ strategy is the outcome of a rational and structured, top-down strategic plan.

intended

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

interacting with others

The relationship between the natural environment and business organizations can best be described as ______. Multiple choice question. a U-shape insignificant interdependent unconnected

interdependent

The value chain describes ______ of a firm. Multiple choice question. the external environment internal competencies internal activities the relationship between resources and the external environment

internal activities

When strategizing about possible competitive advantages, a major advantage of the SWOT analysis is that it allows managers to simultaneously consider ______. Multiple choice question. domestic and international issues affecting the firm all competitors at once implicit and explicit resources internal and external factors

internal and external factors

Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's ______. Multiple choice question. management and labor economic and technological environment internal resources and external environment primary and secondary value chain activities

internal resources and external environment

An example of a recent innovation in process technology is ______. Multiple choice question. the smartphone lean manufacturing the microwave the BP oil spill

lean manufacturing

Deregulation of industries leads to intensified competition and higher value at lower prices for consumers. This is an example of ______ factors influencing business. Multiple choice question. economic technological legal socio-cultural

legal

Studies show that CEOs spend the majority of their time ______.

meeting people face-to-face

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

mission

An organization's ______ is what an organization actually does, including the products and services it plans to provide and the markets in which it will compete

mission

When managers understand the forces in the external environment, they are better able to ______. Multiple choice question. illustrate the impact of strategic actions understand the firm's internal resources achieve price stability mitigate threats and leverage opportunities

mitigate threats and leverage opportunities

The SWOT analysis should be used with caution because ______. Multiple choice question. resource stocks are occasionally confused with resource flows strengths are often viewed as weaknesses it is increasingly outdated in today's economy opportunities can be threats and strengths can be weaknesses

opportunities can be threats and strengths can be weaknesses

The type of vision statement that tends to limit a manager's flexibility and ability to adapt is the ______ vision statement. problem-solving

product-oriented

What type of vision statement focuses on the good or service provided?

product-oriented

A resource is ______ if the number of firms that possess it is less than the number of firms required to reach a state of perfect competition. Multiple choice question. heterogeneous. rare visible immobile

rare

According to the VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be at least both ______. Multiple choice question. rare and valuable valuable and intangible common and competitive rare and intangible

rare and valuable

Which of the following are factors in a firm's legal environment? (Check all that apply.) Multiple select question. demographic trends regulations mandates innovative technology laws

regulations mandates laws

Along which of the following dimensions do strategic groups differ from one another? (Check all that apply.) Multiple select question. research and development market segments customer service distribution channels profit motive

research and development market segments customer service distribution channels

Core competencies of a business are generated by the interaction of ______. Multiple choice question. ownership and management capabilities and management resources and ownership resources and capabilities

resources and capabilities

The concept of social complexity suggests that ______. Multiple choice question. certain phenomena occur for reasons that are not clear decisions made in the past affect present decision-making social and business systems that work for one firm tend to work in another as long as they can be identified as the basis for competitive advantage social and business systems that work for one firm may be hard to imitate because of complex interactions between these systems

social and business systems that work for one firm may be hard to imitate because of complex interactions between these systems

The culture of Zappos is hard to imitate because it consists of numerous, diverse interactions among its employees, processes, procedures, and norms, that create which of the following? Multiple choice question. causal complexity social complexity causal ambiguity social ambiguity

social complexity

The interaction of the many individual systems in the operation of a company often leads to causal ambiguity because of ______. Multiple choice question. social complexity isolating mechanisms path dependence intangible resources

social complexity

A(n) group is a set of companies within a specific industry that seek to achieve competitive advantage in similar ways.

strategic

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

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

strategy as planned emergence

The threat of ______ is one of the five forces and can be exemplified by the threat that videoconferencing presents to business travel. Multiple choice question. substitutes buyers entry suppliers

substitutes

Primary activities include which of the following? (Check all that apply.) Multiple select question. supply chain management research and development operations human resources

supply chain management operations

Accounting and finance are ______ activities in a firm's value chain. Multiple choice question. primary support secondary ambiguous

support

In order to avoid making costly mistakes due to the potential shortcomings of the SWOT analysis, a manager should ______. Multiple choice question. use the SWOT analysis only once a year take results from the SWOT analysis with "a grain of salt" use the SWOT analysis only if no other analysis is available avoid using the SWOT altogether

take results from the SWOT analysis with "a grain of salt"

The resource-based view classifies all resources as ______. Multiple choice question. low cost or high cost capital or labor domestic or foreign tangible or intangible

tangible or intangible

a powerful strategic commitment assures

that steps are taken to achieve the mission

Which of the following is the conceptual framework developed by Jim Collins that describes the progression of leadership through distinct, sequential levels?

the Level-5 leadership pyramid

In performing a SWOT analysis to generate insights from external and internal analysis, internal strengths and weaknesses can be determined by applying ______ and external strengths can be evaluated in part by applying ______. Multiple choice question. Porter's five forces: the VRIO framework the VRIO framework; PESTEL PESTEL; the VRIO framework Porter's five forces; PESTEL

the VRIO framework; PESTEL

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

the brain's default mode

The resource-based model views resources as ______. Multiple choice question. threats to competitors the critical assumption to resource immobility the intangible asset the main driver of firm performance

the main driver of firm performance

Strategy Implementation primarily involves which of the following?

the organization, coordination, and integration of how work gets done

Managers are able to influence which of the following types of external forces? (Check all that apply.) Multiple select question. currency exchange rates the structure of their industry interest rates strategic group composition

the structure of their industry strategic group composition

The pressure of rivalry increases when which of the following forces increase in intensity? (Check all that apply.) Multiple select question. the threat of entry the power of buyers and suppliers the barriers to entry the threat of substitutes

the threat of entry the power of buyers and suppliers the threat of substitutes

What is strategic leadership?

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

According to upper-echelons theory, the way strategic leaders of a firm interpret a situation is influenced by which of the following?

the values and experiences of the firm's leaders

The risk that potential competitors will enter the industry is known as the ______. Multiple choice question. rivalry among existing competitors power of buyers threat of substitutes power of suppliers threat of entry

threat of entry

The _______ is the idea that products or services available from outside the given industry will come close to meeting the needs of current customers. Multiple choice question. rivalry of existing competitors power of buyers threat of new entrants threat of substitutes

threat of substitutes

How are intangible resource stocks acquired? Multiple choice question. through investments over time in intangible resources through financial returns on assets through developing tangible resources through decreasing development of tangible resources

through investments over time in intangible resources

A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of ______. Multiple choice question. time compression diseconomies social complexity path dependence diseconomies causal ambiguity

time compression diseconomies

A core competency can help a company achieve which of the following? (Check all that apply.) Multiple select question. to offer products of comparable value at lower cost than rivals can to differentiate its products and services to reduce the wages of its employees to create higher value for the consumer

to offer products of comparable value at lower cost than rivals can to differentiate its products and services to create higher value for the consumer

Which of the following is not considered an isolating mechanism? Multiple choice question. causal ambiguity uncertainty about future resource value social complexity path dependency better expectations of future resource value

uncertainty about future resource value

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

A resource is considered ______ if it helps a firm to deal with an external threat. Multiple choice question. easily imitated commonplace dynamic valuable

valuable

The ______ describes the internal activities a firm engages in when transforming inputs into outputs. Multiple choice question. primary chain value chain complementary chain supply chain

value chain

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

Corporate strategy concerns questions related to ______

where to compete

Which of the following are addressed during corporate strategy formulation?

which geographic location to compete in which industry to compete in which market to compete in

d. Who are our stakeholders? b. What are our stakeholders' interests? e. What opportunities and threats do our stakeholders present? a. What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? c. What should we do to effectively address the stakeholder concerns?

Place the five steps of the stakeholder impact analysis in order, with the first step at the top: a. What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? b. What are our stakeholders' interests? c. What should we do to effectively address the stakeholder concerns? d. Who are our stakeholders? e. What opportunities and threats do our stakeholders present?

______ factors result from the processes and actions of government bodies that influence the decisions and behavior of firms. Multiple choice question. Technological Profitable Economic Political

Political

Why are businesses with product-oriented vision statements often less effective than businesses with customer-oriented vision statements?

Product-oriented companies have less flexibility to meet consumer needs.

Which of the following is true according to the assumption of resource heterogeneity? Multiple choice question. Each firm deals with a unique set of external influences. Resource bundles vary from company to company. Firm resource differences tend to last for a long time. Companies should focus on duplicating the resources bundles of successful firms.

Resource bundles vary from company to company.

______ refers to the idea that a firm is a bundle of resources and capabilities that is unique to the firm. Multiple choice question. Resource heterogeneity Unique differentiation The critical assumption Resource homogeneity

Resource heterogeneity

______ is a framework that allows mangers to synthesize insights obtained from internal and external analysis.

SWOT analysis

a. Achieve a competitive advantage c. Act as a good corporate citizen

Stakeholder impact analysis is a decision tool that helps a company do which of the following? (Check all that apply.) a. Achieve a competitive advantage b. Describe the role of functional managers in strategy formulation c. Act as a good corporate citizen d. Decide where to compete

c. ethical

Starbucks's commitment to fair trade and responsible growing practices indicates that the firm takes its ______ responsibilities seriously. a. legal b. economic c. ethical d. philanthropic

c. provide customers value while controlling costs

Strategic positioning allows managers to ______. a. balance foreign and domestic sales b. eliminate competition in a given industry c. provide customers value while controlling costs d. provide superior customer value regardless of costs

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

Strategy is ______. a. a decision based on external situational analysis b. a sustainable and dominant market share c. the set of actions a firm takes to achieve a competitive advantage d. a decision based on internal situational analysis

a. maintains superior performance relative to its industry over a long period of time

Sustainable competitive advantage exists when a firm ______. a. maintains superior performance relative to its industry over a long period of time b. starts up and competes for existing market share in the industry c. formulates and implements strategy d. is self-regulated and self-motivated

False

T/F: A statement such as, "We will be the biggest company in the world," is an example of strategy.

True

T/F: Firms should obey all the laws, including but not limited to labor, consumer protection, and the environment.

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

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? a. The bulbs must be sold by online retailers only. b. The bulbs must be on the market for a longer period of time than competitors' bulbs. c. The bulbs must be more expensive than competitors' offerings. d. The bulbs must have a lower cost than competitors' bulbs.

responsibility

The concept, or framework, of corporate social ____________ guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.

Mission

The mission focuses on how the company can accomplish their goals.

b. perform better than other companies in the same industry

The overall purpose of a firm's strategy is to ______. a. sell all existing inventory of a given product b. perform better than other companies in the same industry c. determine demand for new product ideas d. generate significant interest from foreign investors

Which of the following are situations in which a resource is considered valuable? (Check all that apply.) Multiple select question. The resource helps the firm produce tangible, not intangible competencies. The resource is both heterogeneous and immobile. The resource helps the firm increase its economic value creation (V-C). The resource helps a firm exploit an external opportunity.

The resource helps the firm increase its economic value creation (V-C). The resource helps a firm exploit an external opportunity.

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

The stakeholders of a firm are ______. a. only those firms that contribute to the production and distribution of a company's products b. only those who directly profit from a firm's success c. individuals or groups that can affect and are affected by the actions of the firm d. individuals or groups who own at least one share of a firm's stock

a. opportunities and threats

The third step of stakeholder impact analysis requires managers to identify the ______ presented by internal and external stakeholders. a. opportunities and threats b. threats and responsibilities c. stakeholder interests and opportunities d. social responsibilities and stakeholder interests

Which of the following statements are true about the capabilities of a firm? (Check all that apply.) Multiple select question. They concern the deployment of resources. They include managerial skills. They include organizational skills. They include intellectual property.

They concern the deployment of resources. They include managerial skills. They include organizational skills.

A firm's network of interconnected activities is referred to a strategic activity system because activities that are interconnected are very difficult for competitors to copy effectively. True false question. True False

True

True or false: According to the resource-based model, a firm is assumed to be a unique bundle of resources, capabilities, and competencies.

True

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

True

D) Guiding policy

Under Steve Jobs' leadership, Apple shifted away from personal computers to mobile devices. With which element of good strategy does this shift reflect? A) Coherent action B) Open innovation C) Competitive challenge D) Guiding policy E) Entrepreneurship

c. able to influence the company to do something it would otherwise not do

When a stakeholder has power over a company it is ______. a. helping to implement the firm's strategy b. perceived to have a legally valid claim c. able to influence the company to do something it would otherwise not do d. able to get the company to take immediate and urgent action

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

When identifying stakeholders, a firm should focus on those stakeholders that ______. a. are directly involved with the production or distribution of the company's products b. currently have, or could potentially have, a material effect on the firm d. can be ignored with no material impact to the firm d. purchase and use its products

Which of the following are essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully? (Check all that apply.) Multiple select question. Why is it important to study the external environment? When to enter? What type of entry should be made? Who are the players? How to enter?

When to enter? What type of entry should be made? Who are the players? How to enter?

d. corporate social responsibility

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society? a. AFI framework b. strategic management framework c. SWOT analysis d. corporate social responsibility

a. To manage various stakeholders effectively b. To gain and sustain competitive advantage

Which of the following are aims of stakeholder strategy? (Select all that apply.) a. To manage various stakeholders effectively b. To gain and sustain competitive advantage c. To persuade internal stakeholders to cede control to external stakeholders d. To reduce the number of stakeholders of a firm

b. creating value d. controlling costs

Which of the following are primary strategy objectives? (Check all that apply.) a. maximizing sales b. creating value c. strengthening relationships d. controlling costs

a. Stakeholders can affect the firm's actions. d. The actions of the firm can affect stakeholders.

Which of the following are the relationships that a firm has with stakeholders? (Check all that apply.) a. Stakeholders can affect the firm's actions. b. The stakeholders generally have no interest in the firm. c. The firm controls the actions of stakeholders. d. The actions of the firm can affect stakeholders.

a. implementation c. analysis e. formulation

Which of the following elements comprise strategic management? (Check all that apply.) a. implementation b. realization c. analysis d. definition e. formulation

a. legal responsibilities c. economic responsibilities

Which of the following elements of the pyramid of corporate social responsibility are required by society? (Check all that apply.) a. legal responsibilities b. philanthropic responsibilities c. economic responsibilities d. ethical responsibilities

d. stakeholder impact analysis

Which of the following is a tool that managers can use to address the needs of stakeholders while maintaining a competitive advantage? a. group happiness strategy b. corporate citizen strategy c. ethical choice analysis d. stakeholder impact analysis

b. contract enforcement c. property rights

Which of the following legal developments allow business to function as an institution? (Check all that apply.) a. voting rights b. contract enforcement c. property rights d. freedom of speech

c. The tasks are very interdependent.

Which of the following statements regarding tasks in the AFI strategy framework is true? a. Only two of the tasks need to be followed for success. b. The tasks happen in sequence as separate steps. c. The tasks are very interdependent. d. The tasks are interchangeable.

The most rigorous means of analyzing the profit potential within a specific industry is to conduct ______. Multiple choice question. an industry PET scan an industry analysis a PESTEL analysis a market analysis

an industry analysis

The pressures that industry suppliers can exert on an industry's profit potential, is also called the ______. Multiple choice question. rivalry amongst existing competitors threat of new entry bargaining power of suppliers bargaining power of buyers

bargaining power of suppliers

Isolating mechanisms are considered to be ______.

barriers to imitation

According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must ______. Multiple choice question. temporarily ignore its organizational design pay special attention to its main competitor be organized to capture value have a lot of cash on hand

be organized to capture value

In order to be successful, a firm must have a resource that is valuable, rare, costly to imitate, and the firm must ______. Multiple choice question. identify primary activities identify support activities be organized to capture value be mobile and virtual in its value chain

be organized to capture value

In the strategy process, questions concerning HOW to compete, such as through differentiation, are referred to as _____ strategy.

business

Which strategy addresses the question of how to compete?

business

Production costs can increase when ______. Multiple choice question. buyers demand lower quality and less service the power of suppliers goes down buyers demand higher quality and more service

buyers demand higher quality and more service

Which of the following are ways in which the power of buyers affects producers? (Check all that apply.) Multiple select question. by demanding higher quality by obtaining price discounts by requesting more service by reducing economies of scale

by demanding higher quality by obtaining price discounts by requesting more service

The organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically are called _____. Multiple choice question. activities capabilities resources core competencies

capabilities

The external forces called technological factors ______. Multiple choice question. capture the application of knowledge to create new process and products describe society's norms and values quantify characteristics of the economy and business climate represent official government decisions and regulations

capture the application of knowledge to create new process and products

Cowgirl Boots, inexpensive leather boots for women, are selling at record-high numbers. The CEO of the company, however, cannot figure out why. Was it caused by the company's recent advertisement campaign or the newly reduced price of the boots or some other unknown factor? Based on this information, what concept describes the CEO's confusion regarding Cowgirl Boots' recent success? Multiple choice question. path dependence causal ambiguity social complexity time compression diseconomies

causal ambiguity

A ______ is a product or service that adds value to the original product offering. Multiple choice question. significant reduction complement strategic intent co-opetitive potential

compliment

Firms have a tendency to change the industry structure in their favor, for example by making industries more __ through mergers and acquisitions. Multiple choice question. competitive diffuse consolidated intuitive

consolidated

What do the best firms in an industry seek to identify and manage on an ongoing basis as sources to respond to their external environment?

core competencies resources capabilities

A(n) ______ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage. Multiple choice question. activity core competency resource capability

core competency

If a firm's resource is valuable, rare, costly to imitate, and the firm is organized to exploit it, this resource is a ______. Multiple choice question. valued service planned emergent supportive component core competency

core competency

A(n) ______ is a statement of principles to guide an organization as it works to achieve its vision and fulfill its mission.

core values statement

Enterprise Machinists is always improving upon its core competencies by training its machinists constantly so that they are equipped to deal with technological changes and advancements. Based on this information, this is an example of which concept? Multiple choice question. causal ambiguity core rigidities a value chain dynamic capabilities

dynamic capabilities

What are examples of intangible resource stock a company may have?

dynamic capabilities engineering expertise reputation for quality

The purpose of a SWOT analysis is to ______. Multiple choice question. deliver value-added resources in a socially complex environment adapt to planned emergence and scenario planning assess if employees are performing their jobs correctly using an evaluation of their strengths and weaknesses form a strategy that is tailored to the firm's unique strengths and weaknesses and the opportunities and threats in its environment

form a strategy that is tailored to the firm's unique strengths and weaknesses and the opportunities and threats in its environment

In the PESTEL model, political factors are those that relate to ______. Multiple choice question. employment government bodies banking organizations climate and weather

government bodies

Which of the following are examples of economic factors in the firm's general environment? (Check all that apply.) Multiple select question. growth rates government regulations technological advancements price stability interest rates

growth rates price stability interest rates

What should a firm do in order to be organized to capture value? (Check all that apply.) Multiple select question. have a rare and valuable resource have good coordinating systems have a good organizational structure have CEOs with forward-thinking vision

have good coordinating systems have a good organizational structure

Resource ______ and resource ______ are the key assumptions behind the resource-based model of the firm. Multiple choice question. homogeneity; immobility heterogeneity; mobility heterogeneity; immobility homogeneity; mobility

heterogeneity; immobility

The Level-5 leadership pyramid is a conceptual framework that shows ______.

how leaders develop

Strategy ______ concerns the organization, coordination, and integration of how work gets done.

implementation

a. is assessed relative to other competitors in the industry

A competitive advantage _____. a. is assessed relative to other competitors in the industry b. is based on the return of invested capital over a 15-year period c. takes into consideration globalization and rival factors d. places a firm at a disadvantage in regards to its ROI

Growth rates, interest rates, and levels of employment would be considered ______ factors in a firm's general environment. Multiple choice question. sociocultural economic technological political

Economic

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.

______ strategy answers questions regarding how to implement the business strategy.

Functional

Which of the following best describes the core competency of the Five Guys Burgers and Fries company? Multiple choice question. Making inexpensive burgers that are very flavorful Making burgers with minimal wait time and cost Making high-quality burgers without limiting costs Making quality burgers as part of a full-menu offering

Making high-quality burgers without limiting costs

______ activities add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain. Multiple choice question. Resource Value Primary Complementary

Primary

______ are the firm's current level of intangible resources. Multiple choice question. Tangible expectations Dynamic capabilities Resource flows Resource stocks

Resource stocks

One of the most popular tools used by firms to evaluate their current situation and future prospects is the ______. Multiple choice question. value chain analysis VRIO framework SWOT analysis dynamic capabilities perspective

SWOT analysis

D) Industry Life Cycle

Smartphone sales have stagnated in developed economies, but they continue to experience high growth in emerging economies. Which aspect of the industry does this trend reflect? A) Incremental innovation B) Architectural innovation C) Invention D) Industry life cycle E) Open innovation

______ describes a situation in which different social and business systems interact with each other. Multiple choice question. Social complexity Causal ambiguity Planned emergence Path dependence

Social complexity

Although the five forces model is useful in understanding an industry's profit potential, it provides only a ___. Multiple choice question. dynamic view of a moving target point-in-time snapshot of a moving target fixed view of a static competitive market point-in-time snapshot of static industries

point-in-time snapshot of a moving target

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

When suppliers can demand higher prices for their inputs or reduce the quality of the input factor delivered, they demonstrate that they are ______. Multiple choice question. evil desperate for business weak powerful

powerful

Marketing, sales, and distribution are ______ activities in a firm's value chain. Multiple choice question. secondary support primary ambiguous

primary

A ______ vision statement defines a business by describing the goods or services it produces or offers.

product-oriented

The type of vision statement that tends to limit a manager's flexibility and ability to adapt is the ______ vision statement.

product-oriented

The executives of a computer software company developed an intended strategy to make the company more competitive. The company's ultimate ______ strategy contained elements not only of the intended strategy but also unplanned elements from a(n) ______ strategy.

realized; emergent

The intensity with which companies in an industry jockey for market share and profitability is known as ______. Multiple choice question. rivalry identification barriers threats

rivalry

A strategic business unit (SBU) is defined as a(n) ______

standalone division of a larger conglomerate

Functional strategy is primarily concerned with ______.

strategy implementation

Both strategy formulation and strategy implementation are aspects of ______.

the strategy process

a. strategic management

The field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation is known as ______. a. strategic management b. management of stakeholder impact c. management of foundational behavior d. human resources management

d. stakeholders

The groups or individuals who can impact or be impacted by a firm's actions are known as ______. a. competitors b. shareholders c. expatriates d. stakeholders

Which of the following are intangible resources that can be protected as intellectual property? Multiple select question. generic formulas trademarks trade secrets copyrights

trademarks trade secrets copyright

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

What distinguishes a Level-5 leader from other levels of leaders?

They create enduring greatness.

c. all types of organizations

To which types of organizations can we apply the principles of strategic management? a. governmental agencies b. nonprofit organizations only c. all types of organizations d. privately owned companies only

Which of the following identifies the resources that can lead to a competitive advantage? Multiple choice question. resource heterogeneity PESTEL value chain VRIO framework

VRIO framework

a. Economic b. Legal c. Philanthropic d. Ethical

What are the categories of expectations that society has of the business enterprise as described in the CSR framework? (Check all that apply.) a. Economic b. Legal c. Philanthropic d. Ethical e. Aesthetic

a. Analysis

What is the first step in the AFI strategy framework? a. Analysis b. Assurance c. Acceptance d. Application

b. Create an effective guiding policy

What must a firm do after diagnosing its specific competitive challenge? a. Collect investments from stockholders b. Create an effective guiding policy c. Identify its primary competitors d. Implement a set of coherent actions

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

Which of the following topics should be considered during the analysis phase of the AFI framework? a. the firm's business model and competitive advantages b. the external environment and associated challenges c. the locations in the world where the firm should complete d. the firm's internal strengths and resources e. the role of strategic leadership and the strategy process

b. economic

Which of the four corporate social responsibilities is considered first and foremost for business enterprises? a. philanthropic b. economic c. legal d. ethical

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

Which statement about strategies is true? a. Statements of desire typically address economic fundamentals. b. A statement of desire on its own often leads to goal conflict. c. Vision and mission statements cannot lay the foundation for good strategies. d. "We will be the best!" is an example of a strategy.

Many drivers find a GPS navigation system useful. Because installing a GPS system in an automobile adds value to the vehicle, the system functions as ______. Multiple choice question. a complement co-opetition mobility barrier loss leader

a compliment

Global warming would be an example of ______ factor in a firm's external environment. Multiple choice question. an ecological a sociocultural a political a technological

an ecological

Which of the following are examples of sociocultural factors? (Check all that apply.) Multiple select question. an increased demand by consumers for gluten-free products an extended period of low interest rates the growth of the Hispanic population the widespread adoption of smart phones

an increased demand by consumers for gluten-free products the growth of the Hispanic population the widespread adoption of smart phones

A group of companies that deal with more or less the same set of suppliers and buyers make up ______. Multiple choice question. an industry a state a business group a multi-environment

an industry

A(n) ______ can help employees feel that they are doing something worthwhile and are part of something important and meaningful.

aspirational vision

"Time compression diseconomies" refers to the concept that ______. Multiple choice question. some phenomena do not have a clear cause or effect attempting to get a good outcome in less time tends to be ineffective options one faces in the current situation are limited by past decisions barriers to imitation may prevent other firms from competing away a firm's competitive advantage

attempting to get a good outcome in less time tends to be ineffective

Time compression diseconomies occur when a firm ______. Multiple choice question. mismatches labor and R&D resources uses automation that slows the rate at which equipment operators need to make decisions tries to shorten the accounting period for production units attempts to reach an outcome in a reduced amount of time

attempts to reach an outcome in a reduced amount of time

According to Porter's model, which of the following should be considered when analyzing a firm's competition? (Check all that apply.) Multiple select question. buyers the threat of substitutes the regulations in possible host countries suppliers

buyers the threat of substitutes suppliers

A company with a ______ vision statement tends to be more flexible and more likely to succeed.

customer-oriented

What is the primary focus of a customer-oriented vision statement?

developing goods and services that solve consumer problems

Strategic commitments tend to be which of the following?

difficult to reverse costly

For a firm to sustain any competitive advantage over time, the fit between its internal strengths and external environment needs to be ______. Multiple choice question. tangible dynamic compressed causal ambiguous

dynamic

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

ethics and morals

According to the Level-5 pyramid, which level of leadership has the fewest members?

executives

An inspiring vision helps employees ______.

find meaning in their work.

Michael Porter developed the five forces model to help firms do which of the following? (Check all that apply.) Multiple select question. understand the strengths and weaknesses of a firm's resources analyze PESTEL forces gain and sustain a competitive advantage determine the profit potential of different industries

gain and sustain a competitive advantage determine the profit potential of different industries

Which of the following are examples of resources for a firm? (Check all that apply.) Multiple select question. legal liabilities intellectual property buildings cash

intellectual property buildings cash

d. stakeholder strategy

A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______. a. integrative strategy b. shareholder strategy c. happiness management strategy d. stakeholder strategy

d. a legitimate claim

A stakeholder has ______ when its needs are within the bounds of the law or are otherwise relevant to the firm. a. a false claim b. an urgent claim c. power over a company d. a legitimate claim

d. competitive disadvantage

A(n) ______ occurs when a firm performs below the industry average or is outperformed by its competitors. a. underperforming norm b. negative advantage c. competitive parity d. competitive disadvantage e. purchasing parity

a. giving investors a return on invested capital b. repaying debts to creditors

Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities? (Check all that apply.) a. giving investors a return on invested capital b. repaying debts to creditors c. doing what society deems just and fair d. obeying consumer protection laws

b. strategic positioning

Andrew's Home Center has created a unique situation for itself in its industry that allows the company to not only provide excellent value to its customers but also control its costs. This is known as ______. a. competitive disadvantage b. strategic positioning c. the competitive challenge d. competitive parity

A) Value driver

Apple developed iTunes to drive iPod sales. Which aspect of differentiation strategy does this move represent? A) Value driver B) Business model C) First-mover advantage D) Cost driver E) Innovation