4490 Exam 1

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

a) Create an effective guiding policy

ethical responsibilities

Do what is right, just, and fair

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

b) a legitimate claim

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

b) corporate social responsibility

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

c) success and failure

philanthropic responsibilities

corporate citizenship

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) happiness management strategy c) shareholder strategy d) stakeholder strategy

d) stakeholder strategy

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) fifth b) second c) third d) fourth e) first

e) first

economic responsibilities

gain and sustain competitive advantage

legal responsbilities

laws and regulations are society's codified ethics; define minimum acceptable standard

The expectations that society has toward business, in contrast to what society requires, result in which of the following elements of the pyramid of corporate social responsibility? (Check all that apply.) a) legal responsibilities b) ethical responsibilities c) economic responsibilities d) philanthropic responsibilities

b) ethical responsibilities d) philanthropic responsibilities

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

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

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

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

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

a) the set of actions a firm takes to achieve a competitive advantage

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

responsibility

the five steps of the stakeholder impact analysis in order, with the first step at the top

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

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?"

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

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

a) Act as a good corporate citizen b) Achieve a competitive advantage

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 cost more to produce than competitors' offerings. c) Their offerings are similar to competitors' offerings at higher prices. d) Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs.

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

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

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

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

a) a sustainable competitive advantage

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

a) legal responsibilities b) economic responsibilities

n 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) fifth c) third d) fourth e) first

a) second

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

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

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (Check all that apply.) a) urgency b) legitimacy c) power d) financial standing

a) urgency b) legitimacy c) power

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

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

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

c) all types of organizations

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

c) stakeholders

When a firm implements a strategy that leads to superior performance relative to other companies in the same industry, it is said to have achieved ______. a) prolonged management b) fiscal debilitation c) combined ideology d) a competitive advantage

d) a competitive advantage

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) ethical choice analysis c) corporate citizen strategy d) stakeholder impact analysis

d) stakeholder impact analysis

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

d) strategic commitments

Which of the following questions are part of the five steps in stakeholder impact analysis? (Check all that apply.) a) Who are our stakeholders? b) What opportunities and threats do our stakeholders present? c) How can we gain maximum competitive advantage without taking our stakeholders into account? d) What are our stakeholders' interests and claims? e) Which stakeholders have little to no power over us?

a) Who are our stakeholders? b) What opportunities and threats do our stakeholders present? d) What are our stakeholders' interests and claims?

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

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

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

a) interests and claims