MGT4750 - Smartbook Ch. 1

It leads to beneficial cooperation from stakeholders. It helps the firm achieve predictable and stable returns. It lowers the cost of business transactions by building trust.

Which of the following are outcomes of effective stakeholder management?

controlling costs creating value

Which of the following are primary strategy objectives?

strategic management

What is the field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation?

gain competitive advantage

What is the overall purpose of strategic management?

Create an effective guiding policy

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

stakeholders

What term describes the groups or individuals who can impact or be impacted by a firm's actions?

differentiation

When a firm works to gain a competitive advantage by providing better goods and services than its rivals, it is employing a _____ strategy.

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

When a stakeholder has power over a company that stakeholder is _____.

Two or more firms achieve the same performance results.

When does a situation of competitive parity exist?

a diagnosis of the competitive challenge a set of coherent actions to implement the firm's guiding policy a guiding policy to address the competitive challenge

Which of the following are elements of a good strategy according to the AFI framework?

power legitimacy urgency

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

employee stock ownership plans

Which of the following incentivize workers by offering them discounted shares or retirement plans based on company stock?

the increasing value of the company's stock

Which of the following indicates that investors expect future growth for Tesla?

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?

Tesla generated 500,000 preorders for an unseen model.

Which of the following is the best indicator that Tesla's startup master plan has worked as intended?

It has a high market valuation.

Which of the following statements is true about Tesla, the manufacturer of all-electric cars?

Affordability New technology Attractiveness

Which of the following traits are Tesla specifically aiming to include in its vehicles to achieve competitive advantage?

They may be a necessary part of a firm's initiatives to support its competitive strategies.

Which statement is true about pricing strategies, internet strategies, alliance strategies, and brand strategies?

Stock holders Board members Employees

Who among the following are considered internal stakeholders? Multiple select question. Governments Stockholders Customers Competitors Board members Employees Unions

a sustainable competitive advantage

Based on its long dominance as a coffeehouse chain, Starbucks has

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)

False

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

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

Sustainable competitive advantage exists when a firm

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

Which statement about strategies is true?

Companies have fewer resources to improve product lines. Companies copy each other, which reduces customer choice. Companies expend energy to gain little advantage.

What are negative outcomes of the Red Queen effect?

stock dividend

What do shareholders receive from firms in return for their contribution of capital?

gaps in the infrastructure needed to keep its vehicles on the road all over the country

What is one significant challenge that Tesla faces?

Perform better than other companies in the same industry.

What is the overall purpose of a firm's strategy?

is assessed relative to other competitors in the industry

A competitive advantage _____.

Creating value Reinvesting profits and increasing employment

A firm that successfully executes a strategy benefits society by

a competitive strategy

A firm's overall efforts to gain and sustain competitive advantage is referred to as which of the following?

value

A successful business strategy creates Blank______ for both producers and consumers.

implementation of its secret strategy

The high market valuation achieved by Tesla by 2019 can be largely attributed to its ______.

so that employees can assess their progress toward addressing it

Why should a firm define a clear competitive challenge?

limited

Managers have ______ resources in their quest for competitive advantage.

trade-offs

Managers often have to make decisions between two conflicting strategic options, otherwise known as

competitive parity

Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has

False

True or false: A strategic leader's job is to focus like a laser on shareholders.

the trade-offs required by strategic positioning

Walmart and Nordstrom maintain very different strategic profiles, one based on cost-leadership and the other based on differentiation through superior customer service. This is an example of _____.

Startups often lose money early on.

What is one explanation for why Tesla underperforms when the company's profits are compared to the profits of established car companies?

a set of actions a firm takes to gain competitive advantag

What is strategy?

Offering similar goods and services at a lower price.

What is the best definition of a cost leadership strategy?

Companies copy each other but do not change strategic positions.

What is the best definition of the Red Queen effect?

competitive disadvantage

A(n) ______ occurs when a firm performs below the industry average or is outperformed by its competitors.

external stakeholders

Customers, suppliers, creditors, unions, and governments are known as _____.

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 _____.

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. These ideas are Burger Bomb's

strategic compliments

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

helps a firm build a strong public reputation

Effective stakeholder management ______.

A competitive advantage

Burger Bomb has been outperforming other burger restaurants in recent years. This indicates that Burger Bomb has which of the following?

a diagnosis of the competitive advantage

A good strategy consists of three elements. The first element is accomplished through analysis of the firm's external and internal environments. We also call this ______.

what to do what not to do

A well-devised strategy is about which two things?

clear competitive change

Firms should identify a Blank______ so that employees can determine if they are making progress in addressing it.

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) _____.

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

interests and claims

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

first

In which step of a stakeholder impact analysis do firms identify those stakeholders that currently have, or potentially can have, a material effect on the company?

Achieve a competitive advantage Act as a good corporate citizen

Stakeholder impact analysis is a decision tool that helps a company do which of the following?

shareholders

Stakeholder strategy argues that focusing exclusively on the needs of Blank______ places the firm at risk of failure.

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

The stakeholders of a firm are ______.