Strat Management TB 1

single-minded focus on shareholders alone exposes a firm to undue risks that can threaten the very survival of the enterprise.

A core tenet of stakeholder strategy is that a:

competitive advantage

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n) _____.

which of the following is true about the expectations of a firm?

A firm's ethical responsibilities go beyond its legal responsibilities.

strategy analysis

According to AFI strategy framework, in which of the following tasks of strategic management is a firm's vision, mission, and values identified? - evaluating the effects of internal resources and core competencies on a firm's potential to gain and sustain a competitive advantage.

sustainable competitive advantage

Cadia Foods Inc. was the first company to start selling energy drinks in its country—a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of energy drinks, thereby giving Cadia Foods ample competition. In response, Cadia Foods decided to limit its variety of energy drinks to only two. However, it ensured that these two flavors were free of calories and low in cost. With this innovation, Cadia Foods Inc. consistently outperformed its competitors for ten years. In this scenario, Cadia Foods Inc. has maintained a _____ through its innovative strategy.

If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

Comparing the return to the return on invested capital obtained by other firms in the industry

True Cinemas Inc. and Digi Future Inc. are two companies that own and run movie theaters in malls and other commercial areas. While True Cinemas Inc. pursues a cost-leadership strategy, Digi Future Inc. adopts a differentiation strategy. Which of the following statements is most likely true of this scenario?

Digi Future and True Cinemas will not be direct competitors to each other and their customer segments will overlap very little.

strategy formulation

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

recognizing the economic, legal, ethical, and philanthropic responsibilities of the firm to its stakeholders.

In stakeholder impact analysis, identifying the opportunities and threats presented by stakeholders is immediately followed by:

economic responsibilities

In the pyramid of corporate social responsibility, _____ are the foundational building block.

assets under management

Institutional investors have more sway in public companies than individual investors because of the size of their _____.

iPhone

Keeping in mind Apple's competitive advantage, which of the following products was introduced by Apple in 2007?

NOT true?

Operational effectiveness and competitive benchmarking should be treated as strategy.

stakeholder strategy

RedSteel Corp. has been able to gain and sustain a competitive advantage due to its strong relationship with its employees, customers, suppliers, and local communities. The company believes in lifetime employment and ensures that its employees grow along with the company. Investors are more than satisfied with the returns on their investments. Also, 3 percent of the company's profit is spent on community development. With initiatives like these, customers feel privileged to associate themselves with RedSteel products. This scenario best illustrates the implementation of a _____.

gain and sustain competitive advantage

Stakeholder strategy is an integrative approach to managing a diverse set of stakeholders effectively in order to _____.

exchange relationship

The interaction between a firm and its diverse internal and external stakeholders is best described as a(n):

accurately describes firm effects?

They attribute firm performance to the actions managers take within a chosen industry.

strategy implementation

Through _____, a firm puts its guiding policy into practice by employing a set of coherent actions.

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

TrueLink Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years

Suppliers of capital

Which of the following groups is considered to be the primary stakeholder for public-stock companies?

a stakeholder's liquidity

Which of the following is NOT a stakeholder attribute that managers consider during stakeholder impact analysis?

strategy formulation

Which of the following stages in the AFI strategy framework involves designing a business, corporate, and global strategy?

strategy implementation

Which of the following tasks in the AFI strategy framework involves putting the formulated strategy into practice through organizational structure, culture, and controls? - managers primarily focus on the type of corporate governance that is most effective and ways in which it can put the formulated strategy into practice.

Strategy

_____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

Strategic Management

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

gaining and sustaining competitive advantage

a firms economic responsibilities are primarily aimed toward

a firm's stakeholder strategy primarily allows them to

analyze and manage how various external and internal stakeholders interact to jointly create and trade value.

A company wants to determine how industry effects have affected its profitability. Which of the following elements should the company focus on?

barriers to entry and exit of an industry

when a firm adopts a differentiation strategy to attain a competitive advantage it focuses on

delivering unique features to its customers.

Industry effects describe the underlying _____ structure of the industry.

economic

Managers use the AFI framework to primarily

explain and predict differences in firm performance.

Sun Inc., a vendor, regularly supplies pallets to Octangle Corp. for its shipping business. Therefore, Sun Inc. is Octangle Corp.'s _____.

external stakeholder

stakeholder impact analysis primarily helps a firm

gain a competitive advantage while acting as a good corporate citizen.

the first step in stakeholder impact analysis includes

identifying the stakeholders that currently have, or potentially can have, a material effect on a company

external stakeholders

include customers, suppliers, alliance partners, creditors, unions, communities, media, and governments at various levels.

Which of the following factors most effectively contributed to the success of JetBlue airlines in comparison to other airlines like Delta, United, or American?

its point-to-point business model

past black swan events in the US have demonstrated that

managerial actions can affect the economic well-being of large numbers of people around the globe.

internal stakeholders

of a firm include stockholders, employees (including executives, managers, and workers), and board members

A firm is said to gain a competitive advantage when it can

provide products similar to its competitors, but at lower prices.

if a company wants to obtain competitive advantage and a highly competitive industry it should

stake out a unique position within the industry.

Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?

the firms would eventually have no resources to invest in product and process improvements.

In the United States, which of the following was born out of dissatisfaction with the capitalist system in 2011?

the occupy movement - issue of income disparity

Which of the following forces is most closely related to industry effects within the automobile industry?

the types of products and services offered within an industry

a strategists job should be to

understand the complex web of exchange relationships among different stakeholders.

Strategy analysis

which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments?