mgmt seminar

The greater the difference between value creation and cost, the

greater a firm's economic contribution.

Through a strategy's ________Blank, a firm puts its guiding policy into practice by employing a set of coherent actions.

implementation

Customer-oriented vision statements are better suited than product-oriented vision statements for helping companies to adapt to changing environments.

true

One key aspect of strategy is choosing not to do certain things at all.

true

The core competencies of a firm are determined by the interplay of its tangible resources and intangible capabilities.

true

The stronger the five forces, the lower the industry's ability to earn above-average profits and gain and sustain a competitive advantage.

true

A vision describes in broad, inspirational terms what an organization hopes to accomplish in the future.

true

The primary objective of the ________Blank model is to understand the profit potential of different industries.

five forces

According to the resource immobility assumption, resources tend to be "sticky" and don't move easily from firm to firm.

true

Core values provide ethical guidelines for how individual employees will behave.

true

Which of the following statements about product-oriented visions is true?

They tend to force managers to take a myopic view of the competitive landscape.

Which of the following is an example of competitive parity?

A firm produces a similar number of wall clocks at a similar cost as its competitors.

Underperformance relative to other firms in the same industry or the industry average results in a(n) ________Blank for a firm.

competitive disadvantage

Which of the following frameworks correctly identifies the three steps in the strategic management process?

AFI: Analyze-Formulate-Implement

________Blank allow(s) a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost.

Core competencies

Bill's Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a week, which is about the same as the income of a close competitor. As a result, we can conclude that the two businesses also have a competitive parity in the industry.

Correct—competitive parity is a performance of two or more firms at the same level.

Tony's Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its number one competitor, Leo's Pies, is also profitable, netting $12,000 a week. Lil Anthony's Pizza Palace nets $13,000 a week. Since Tony's Pizza Shop is profitable, we can conclude that it has a competitive advantage in its industry.

False—competitive advantage is only achieved by generating above average returns, relative to competition.

Free 2 Roam Inc., an all-terrain vehicle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Free 2 Roam Inc. from this scenario?

It has a competitive advantage over the other firms.

________Blank are best described as the ethical standards and norms that govern the behavior of individuals within a firm.

Organizational core values

________Blank factors capture a society's cultures, norms, and values.

Sociocultural

________Blank is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

Strategic management

A diagnosis of the competitive challenge, which is an element of a good strategy, is primarily accomplished through strategy

analysis

Which of the following tasks in the AFI strategy framework involves evaluating the internal and external environments in which a firm operates?

analysis

The COVID-19 pandemic, the BP oil spill, and the 9/11 terrorist attacks are examples of

black swan events.

In an industry, the threat of entry is high when

capital requirements are low.

The PESTEL framework allows the scanning, monitoring, and evaluating of ________Blank in a firm's macro environment.

changes and trends

In the top-down strategic planning approach, all strategic intelligence and decision-making responsibilities rest primarily on the

chief executive officer.

According to Michael Porter's five forces model, ________Blank must be viewed broadly to encompass other forces in an industry.

competition

All of the following are external stakeholders except which of the following?

competitors

Strategic commitments are actions that are

costly, long-term-oriented, and difficult to reverse.

The goal of a good strategy is focused primarily on

creating superior value while containing costs.

In the final step of the stakeholder impact analysis, a firm

decides a course of action to address the stakeholders' concerns.

The first step to gain and sustain a competitive advantage is to

define an organization's vision, mission, and values.

A strategic group will typically include

firms within the same industry.

In a firm's external environment, ________Blank factors to consider are growth rates, interest rates, the employment level, price stability, and currency exchange rates.

economic

A SWOT analysis would provide a definitive answer as to whether a firm's growing footprint in overseas markets is a strength or weakness.

false

Accounting, human resources, and research and development (R&D) are examples of primary activities that add value directly to the value chain.

false

The upper-echelons theory favors the idea that effective strategic leadership results from innate abilities rather than learning.

false

firms within the same industry automatically belong to the same strategic group.

false

According to the resource-based view, a firm's competitive advantage often stems from its

intangible resources.

Economies of scale are cost advantages that accrue for firms with

larger output.

Jatteland Jets Inc., a firm controlled and managed by the government of Jatteland, is the only company that has the license to manufacture private jets in the country. Which of the following industry competitive structures does this best illustrate?

monopoly

A(n) ________Blank industry is one that is characterized by many small firms, a commodity product, and little or no ability for each firm to raise its prices.

perfectly competitive

Which of the following strategy plans might work best in an industry that is considered a fast-changing environment with new laws going into effect regularly?

scenario planning

What happens when a firm fails to successfully navigate a strategic inflection point?

self-reinforcing failure

As the legal owners, ________Blank have the most legitimate claim on a company's profits.

shareholders

Top-down strategic planning as an approach to the strategic management process will be most effective when the

size of the firm is large.

A customer-oriented vision statement focuses employees to think about how best to

solve a problem for a consumer.

To better achieve a competitive advantage, firms must now adopt a holistic approach towards satisfying multiple stakeholders opposed to focusing on the needs of their shareholders. What term is used for this approach?

stakeholder strategy

A firm's ________Blank is based on creating value for customers (V) while containing the cost (C).

strategic position

In ________Blank, a firm frames a guiding policy to address the competitive challenge.

strategy formulation

Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time?

sustainable competitive advantage

A surprise event that leads to a change in strategic initiatives, such as the accidental discovery of a new use for an existing product, is known as serendipity.

true