SEVI Exam 1 Study Guide

Juan wants to open his own hot dog restaurant but doesn't know anything about business. He needs help determining who his competition is, how he should craft his strategy to compete and how he'll implement his strategy to achieve a competitive advantage. He's hired you to help him get started. As a result, you will probably use which of the following? competitive benchmarking Stakeholder Impact analysis Red Queen effect AFI strategy framework

AFI strategy framework

Which is a model that links strategy analysis, strategy formulation, and strategy implementation, thereby helping managers plan and implement a good strategy? corporate social responsibility AFI strategy framework the Four Ps stakeholder impact analysis

AFI strategy framework

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 advantage is achieved since Bill's Auto & Airplane Repair shop has a positive net income. Incorrect—Bill's Auto & Airplane Repair shop more than likely has a sustained competitive advantage because the business is diversified. Correct—competitive parity is a performance of two or more firms at the same level. Correct—competitive advantage is achieved through profitability alon

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

________ is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage. Supply chain management Strategic management Inventory management Integrated technology management

Strategic management

________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. Credo Competency management Behavior modification Strategy

Strategy

Which of the following provides an example of what AFI strategy framework is used for? Using AFI, the Fine Dine Restaurant Group was able to improve employee benefits and thereby increase employee loyalty. Using AFI, the Quest Auto firm was able to implement a strategy that produced high-quality cars more efficiently and thereby reduced costs. Using AFI, the Massimo Apparel Company was able to implement a strategy that allowed them to give more money to charities and thereby gain good press. Using AFI, the Pure Tea Group was able to reduce the pollution it caused while processing tea and thereby receive an award.

Using AFI, the Quest Auto firm was able to implement a strategy that produced high-quality cars more efficiently and thereby reduced costs.

The goal of a good strategy is focused primarily on making as much money as possible. encouraging investors to buy more shares of the firm. employing lean manufacturing and Six Sigma. creating superior value while containing costs.

creating superior value while containing costs.

Which of the following three important stakeholder attributes should managers pay special close attention to in order to better understand stakeholder impact analysis? competitive advantage, economic value, and time grace under pressure, financial control, and reward power shareholder rights plan, board representation and CEO influence power, legitimacy, and urgency

power, legitimacy, and urgency

Superior performance allows a company to benefit society by implementing which of the following strategies? sell more advertising space substitute less-expensive components to keep costs low imitate the features of the most popular products of competitors on the market reinvest some of its profits and grow, providing more employment and career opportunities

reinvest some of its profits and grow, providing more employment and career opportunities

John is a bit confused about the difference between stakeholders and stockholders. You meet with John and inform him that the main difference is that stakeholders are external to the firm while stockholders are considered internal to the firm. stakeholders can be both internal and external while stockholders own shares of a firm and are classified as internal to the firm. stakeholders are considered internal to the firm while stockholders are external to the firm. stakeholders are both internal and external to the firm while stockholders are considered external to the firm.

stakeholders can be both internal and external while stockholders own shares of a firm and are classified as internal to the firm.