BA 405 Midterm 1
Which one of the following statements is an example of how to improve perceptual acuity?
A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies.
Apple uses its ________ power to pay no more than 2 percent of its sales a square foot in rent.
Buyer
The innovation and learning perspective of the balanced scorecard answers which of the following questions?
Can we continue to improve and create value?
Which of the following websites is not an example of one used routinely for corporate competitive intelligence gathering?
Duolingo
________ tracks the evolution of environmental trends, sequences of events, or streams of activities
Environmental monitoring
An automobile manufacturer acquires a rental car company. This is an example of
Forward integration
The culture of a firm also may be a resource that provides competitive advantage. Which of these companies might be a good example of this intangible resource?
The customer perspective of the balanced scorecard answers which of the following questions?
How do customers see us?
The financial perspective of the balanced scorecard answers which of the following questions?
How do we look to shareholders?
Why must successful managers recognize opportunities and threats in their company external environment?
If they miscalculate the market, opportunities will be lost.
________ are typically embedded in unique routines and practices that have evolved and accumulated over time such as effective work teams.
Intangible resources
Peter Senge, of MIT, recognized three types of leaders. ________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas.
Internal networkers
Gathering competitive intelligence
Is good business practice
Which of the following would not lead a manager to believe that an ethical concern exists?
Is the contemplated technique for gathering information relevant?
Groupon offers online coupons for bargains at local shops and restaurants. Which of the following is a reason that rivals are limiting its growth?
Its core capability is easily imitated.
Which of the following examples demonstrates how successful organizations manage their primary activities?
JIT inventory systems are vital to Toyota committing to fulfill new car orders within five days.
Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?
Managers have low bargaining power.
________ are the competencies or skills that a firm employs to transform inputs into outputs.
Organizational capabilities
________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling
Outbound logistics
Corporate-level strategy looks at how to manage the ________ of its businesses to create synergies.
POrtfolio
Which of the following is not an example of a financial strategic objective?
Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales. (3M)
For an engineering services firm, ________ provides inputs, the transformation process is the engineering itself, and innovative designs and practical solutions are the outputs.
Research and Devlopment
Which of the following statements about strategic groups is false?
Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.
________ may be considered the advance work that must be done in order to effectively formulate and implement strategies.
Strategy analysis
The bargaining power of the buyer is greater than that of the supplier when
The buyer profit margin is low
When the management frame of reference gets out of touch with the realities of the actual business situation, what can happen to the firm?
The company business strategy no longer works.
End users are not
The first customers in a distribution channel
Ms. Frederica Marchionni became CEO of Land's End in February 2015 when the company showed a 73.8 million-dollar profit. By mid-June of 2016, the company had lost 27.2 million dollars. What went wrong?
The new leadership did not understand the corporate culture and image.
The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role?
The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role?
________ ratios reflect whether a firm is efficiently using its resources,
Turnover
Complements are products or services that have a potential impact on the ________ of the products or services of that company.
Value
The internal business perspective of the balanced scorecard answers which of the following questions?
What must we excel at?
Effective vision statements include
a brief statement of the company's direction.
According to Henry Mintzberg, the final realized strategy of a firm is
a combination of deliberate and emergent strategies.
Which of the following firms would likely pose the least competitive threat?
a competitor to your product where a high switching cost exists
Perceptual acuity requires all the following except
a refusal to consult with others.
A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain
a temporary competitive advantage.
Ambidextrous behaviors in individuals illustrate how a dual capacity for ________ can be woven into the fabric of an organization at the individual level.
alignment and adaptability
According to the text, the strategic management process entails three ongoing processes. They are
analyses, decisions, and actions.
Vision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision statements
are massively inspiring.
Supplier stakeholders are concerned with
assurance of a continued relationship with the firm.
In assessing its primary activities, an airline would examine
baggage handling.
The four key attributes of strategic management include the idea that strategy must
be directed toward overall organizational goals and objectives.
The organizational versus the individual rationality perspective suggests that objectives that are
best for a functional area may not be best for the overall organization.
The three participants in corporate governance are the shareholders,
board of directors, and management.
Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports
both individual primary and support activities and the entire value chain.
Harley-Davidson markets motorcycles, clothes, toys, and restaurants. It uses its strong ________, which is ________.
brand image; an intangible resource
SWOT analysis is a framework for analyzing the internal and external environment of a company. It consists of strengths, weaknesses, opportunities, and threats. According to a SWOT analysis, which of the following is not an aspect that the strategy of the firm must follow?
build on its weaknesses
According to Michael Porter in his book, Competitive Advantage, a key concept used in analyzing the competitive position of a firm is creating value for
buyers that exceeds the costs of production (i.e., margin).
How do infomediaries and consumer information websites increase the intensity of competitive rivalry?
by consolidating the marketing message that consumers use to make a purchase decision
Amazon Prime is credited for helping to increase the Amazon stock price by nearly 300 percent from 2008 to 2010. This competitive advantage is known as
casual ambiguity
The root of the 3M innovation process is complex, hard to understand, and difficult to imitate.This is a competitive advantage based on
casual ambiguity.
According to the external control view of leadership, which of the following factors would not be considered an external factor that might positively or negatively affect a firm's success?
company employee morale
In making the decision to enter the pharmaceutical industry, a company would not need to consider which of the following?
comparisons with non-competitors
Strategy implementation can be the most difficult part of the strategic management process. Which of the following is not likely to be a cause of implementation failure?
competition
Entering foreign markets requires firms to ascertain foremost how they will attain
competitive advantage
In terms of value-chain analysis, a telephone operating company would find that negotiating and maintaining ongoing relations with regulatory bodies are important activities for achieving
competitive advantage.
Banks and airlines are examples of two industries that track competitor offers continually. This is called the process of gathering
competitive intelligence.
Four factors help explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate. Which is not one of these factors?
competitor bargaining power
Nintendo built a security chip into its game console hardware and then licensed the right to develop games to outside firms. These firms paid a royalty to Nintendo for each copy of the game sold. This is an example of Nintendo using ________ products.
complement
All of the following are examples of socially complex organizational phenomena except
complex physical technology.
Which of the following is not an example of corporate competitive intelligence?
consumers comparing product offers online
A key stakeholder group that is particularly susceptible to corporate social responsibility (CSR) initiatives is
consumers.
Environmental analysis requires continual questioning of all these assumptions except
continual updating of environmental knowledge.
Internal networks generate their power through the ________ of their ideas.
conviction and clarity
Community stakeholders are concerned primarily with
corporate citizenship behavior
Executive leaders champion and guide ideas by
creating a learning infrastructure.
The best measure of company ability to meet imminent financial obligations is known as the
current ratio
In choosing to focus on stakeholders, which of the following will not lead to success for a manager?
customers only
Companies that are able to spot key trends in the environment know their business and most importantly know their
customers.
Regarding the value-chain concept, the most important interrelationship is between the organization and its
customers.
The aging of the population, changes in ethnic composition, and effects of the millennial generation are ________ changes.
demographic
Incumbent firms may enjoy increased bargaining power because the Internet
diminishes the power of many distribution channel intermediaries.
Stockholders as a stakeholder group are interested primarily in
dividends and capital appreciation.
Effectiveness is often defined as
doing the right thing.
The bargaining power of suppliers is enhanced under which following market condition?
dominance by a few suppliers
For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes?
easy for competitors to substitute
Strategic management involves the recognition of trade-offs between effectiveness and
efficiency
Members of boards of directors are
elected by the shareholders as their representatives.
The four key attributes of strategic management include all of the following except
emphasis on the attainment of short-term objectives.
Netflix inculcates a strategic management perspective by
emphasizing transparency
New value creation is a major engine for economic growth and is the main focus of ________ strategy.
entrepreneurial
Two of the key inputs to developing forecasts discussed in the text are
environmental scanning and competitive intelligence.
Salemi Industries launched Cell Zone unsuccessfully in 2005 because it did not understand the market demand for its new product. This is an example of
environmental scanning.
In using crowdsourcing as a means to integrate the customer into the value chain, there are some perils to consider. Which of the following is not related to crowdsourcing perils?
eroding a low-cost competitive advantage of the firm
Effective leaders set a direction and develop an organization so that it is committed to excellence and ________ behavior.
ethical
The balanced scorecard enables managers to consider their business from all the following perspectives except
ethical perspective.
Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because
every company is trying to implement them.
Peter Senge, of MIT, recognized three types of leaders. Which of the following describes individuals who champion and guide ideas, create learning infrastructure, and establish a domain for taking action?
executive leaders
Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility, which is the
expectation that business will strive to improve the overall welfare of society
Heightened concern with fitness might be a threat to some companies and an opportunity to others. In the SWOT framework, these are ________ environmental factors.
external
The balanced scorecard provides top managers with a ________ view of the business.
fast but comprehensive
The balanced scorecard, developed by Kaplan and Norton, helps to integrate
financial analysis and stakeholder perspectives.
In the resource-based view of the firm, examples of tangible resources include
financial resources, physical resources, and technological resources
Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a
financial strategic objective.
According to the text, the triple bottom line approach to corporate accounting includes which three components?
financial, environmental, and social
In the value net analysis, complementors are
firms that produce products that have a positive impact on company product value.
Strategic groups consist of a group of
firms within an industry that follows similar strategies.
From the innovation and learning perspective, survival is dependent upon managers making ________ changes to existing products and services as well as introduce entirely new products with expanded capabilities.
frequent
Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if
functional areas work together to attain overall goals.
Traditional financial models are built around relatively easy-to-measure, monetized results; whereas, the benefits of sustainability projects involve
fuzzy intangibles.
In a telephone operating company, negotiating and maintaining ongoing relations with regulatory bodies can be among the most important activities for competitive advantage. What type of value-chain support activity is this?
general administration
The Germany truck and trailer manufacturer, Schmitz Cargobull, mainly serves customers who are operators of truck or trailer fleets. What sets the company apart is its expertise in telematics (the integrated application of telecommunications data) to monitor the current state of any Schmitz Cargobull-produced trailer. What type of a value-chain support activity is this?
general administration
Corporate retreats do not
guarantee positive consumer response to new products.
In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives
help resolve conflicts through their common purpose.
Raymond Ozzie, the software designer who was critical in the development of Lotus Notes, was able to dictate the terms under which IBM acquired Lotus. This illustrates that he had ________ bargaining power based on the ________ cost required by the firm to replace him.
high;high
Which of the following would be considered part of the general environment of a firm?
higher unemployment rates
Apple Inc. reported revenues of 234 billion USD and net income of 53 billion USD in 2015. These figures represent a stunning annual growth in revenue and net income of 28 percent and 33 percent, respectively, for 2014. This information indicates the importance of using ________ to evaluate company financial performance.
historical comparisons
Corporate level strategy focuses on what businesses to compete in and
how business can be managed to achieve synergy.
Facebook, Intuit, AB InBev, and others empower their recruiters to make offers on the spot when they interview college students, without knowing what specific position they will fill.These firms search for candidates with attributes such as being a self-starter and a problem-solver, and make quick offers to preempt the market. This is an example of which value chain support activity?
human resource management
Which of the following lists consists of support activities?
human resource management, technology development, procurement, and general administration
It is important to question the reliability of forecasts because
if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity.
Historical comparisons provide information to managers about changes in the competitive position of a firm. Historical comparisons often are misleading
in periods of recession or economic boom.
Scenario analysis draws on a range of disciplines and interests. It is a more ________ approach to forecasting.
in-depth
Because the Internet lowers barriers to entry in most industries, it
increases the threat of new entrants.
When investors examine the performance of beauty products like Olay moisturizers and CoverGirl cosmetics, they are looking for
indicators of emerging trends.
Learning organizations permit the entire organization to benefit from ________ talents.
individual and collective
Stakeholders are
individuals, groups, and organizations who have a stake in the success of the organization.
Financial ratio analysis measures the performance of the firm based on all but which of the following?
industry comparison
To be considered strategic resources that contribute competitive advantage, they must have several characteristics. Which of the following is not one of these?
inexpensive to imitate
Richard Branson, founder of the Virgin Group, empowers his companies through a(n) ________ structure in which anyone can bring forth new ideas.
informal
According to value-chain analysis, which of the following would be considered part of the general administration in a firm?
information systems
German truck and trailer manufacturer, Schmitz Cargobull, mainly serves customers that are operators of truck or trailer fleets. What sets the company apart is its expertise in telematics (the integrated application of telecommunications data) to monitor the current state of any Schmitz Cargobull-produced trailer. This is an example of using ________ to enhance customer value and increase ________ position.
information technology; competitive
Strategies should be formulated that enhance foremost the ________ capacity of a firm.
innovative
All the following are ambidextrous behaviors except
intensely focusing on the responsibilities of one individual and maximizing the output of the department in the organization in which that individual works.
An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that
interests of the stockholders are not the only interests that matter.
SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ________ of the firm.
internal strengths and weaknesses
Sustainability programs often find their success beyond company boundaries, thus ________ systems and ________ metrics cannot capture all of the relevant numbers.
internal; process
An executive states that HR must be a true partner of the business, with a deep and up-to-date understanding of business realities and objectives, and must ensure HR initiatives fully support them at all points of the value chain. This is an example of
interrelationships among activities within the firm.
A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the
interrelationships among value-creating activities within a firm
In general, the threat of substitutes is heightened because the Internet
introduces new ways to accomplish the same task.
Steve Jobs, former chairman of Apple, demonstrated that ________ also are important in forecasting.
intuition and judgment
The value net is a game-theoretic approach that
is a way to analyze how the interactions of all the players in a game affect the firm.
Buyer Power will be greater when
it is concentrated or when a buyer group purchases large volumes relative to seller sales.
Environmental forecasting does not involve plausible projections about the ________ of environmental change.
lack of intensity
Which of the following would be an entry barrier?
large economies of scale
Which of these categories of financial ratios is used to measure the ability of a firm to meet its short-term financial obligations?
liquidity ratios
A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of ________ financial leverage.
long-term
Managers must commit to a ________ use of the balanced scorecard if they expect sustained performance.
long-term
The threat of new entrants is high when there are
low economies of scale.
Classifying an industry into strategic groups involves judgment. If it is useful as an analytical tool, we must exercise caution in deciding what dimensions to use to map these firms. Dimensions include all of the following except
management team.
Which of the following groups generally is charged with creating value through the process of organizing, coordinating, and leveraging employees as well as other forms of capital such as plant, equipment, and financial capital?
managers
A danger of forecasting discussed in the text is that
managers may view uncertainty as black and white while ignoring important gray areas.
An important implication of the balanced scorecard approach is that
managers should not look at their job as primarily balancing stakeholder demands.
Strategy analysis is the starting point of the strategic management process and consists of the
matching of vision, mission, and objectives with the relevant internal and external environmental factors.
In the general environment, which of the following is not a demographic trend?
more women in the workforce
Interest rate increases have a ________ impact on the residential home construction industry and a ________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.
negative; positive
Product differentiation by incumbents act as an entry barrier because
new entrants will have to spend heavily to overcome existing customer loyalties.
Our goal is to help save 100,000 more lives each year. (Varian Medical Systems) This is an example of a
nonfinancial strategic objective.
In large organizations, the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals. Proper ________ can help to resolve conflicts when they arise.
objectives
There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that
one can only gain at the expense of someone else.
In the SWOT framework, ________ are the same for all firms in the same competitive environment.
opportunities and threats
Many firms are finding that high-tech, computerized training has dual benefits. It develops employees who are more effective and reduces costs at the same time. Employees at FedEx take computer-based job competency tests every 6 to 12 months. This is an example of a(n) ________ ________ tangible resource.
organizational
The ability to hire, motivate, and retain human capital is an example of ________ capabilities in the resource-based view of the firm.
organizational
Apple combines and packages proven technology in new and innovative ways. This is an example of its use of
organizational capabilities.
Effective organizational design means that firms must have ________ that are consistent with their strategy.
organizational structures and designs
General administration is sometimes viewed as only ________, but it can be a powerful source of competitive advantage.
overhead
For a firm such as Nordstrom that has no manufacturing operations, value is added by developing expertise in the procurement of finished goods and by displaying them in its stores in a way that enhances sales. In the value chain, procurement activities become the primary activity. This begins with ________ and ends with ________.
partnering with vendors; marketing and selling
A crash R&D program by one firm cannot replicate a successful technology developed by another firm, when research findings cumulate. This is an example of
path dependency
Ashley Furniture controls all steps of its distribution systems, developing specific competencies that are difficult to match. They are using ________ to build sustainable advantage.
path dependency
XYZ printing is building a dominant position as the low-cost leader in the 3D printer market. Three resources the firm can draw on to build a sustainable advantage are(1) an efficient supply chains and manufacturing system, (2) internal control systems to minimize cost, and (3) competencies in the R&D of electronic products. This set of competencies will make it harder for later movers to imitate. This is an example of using ________ conditions to build protection in the
path dependent
For strategic management to be effective in achieving organizational goals,
people throughout the organization must strive toward overall goals.
Boards of directors use outsiders to critique their strategy. This is necessary mostly to improve
perceptual acuity
Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve
perceptual acuity.
A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:
physical uniqueness, path dependency, causal ambiguity, and social complexity
The Dodd-Frank Wall Street Reform and Consumer Protection Act require companies to disclose whether any tin, tantalum, tungsten or gold in their supply chain is connected to violent militia groups in the Congo or nine surrounding countries, including Angola, Rwanda, and Sudan. This is an example of which segment of the general environment?
political and legal
There are many challenges to complying with the Dodd-Frank Wall Street Reform and Consumer Protection Act to the tracking of materials from more than two million small scale or subsistence miners in the Eastern Congo. Modern supply-chain logistics are not very relevant in these environments. This is an example of which segment of the general environment?
political and legal
In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of
poor forecasting of future consumer demand.
Richard Branson of the Virgin Group believes that the ________ of a person should not dictate the level of influence their ideas should be accorded.
position
In the general environment, many relationships exist among the various elements. General environmental trends can have positive and negative impacts on various industries. For example, the aging population might have a ________ impact on the health care industry and a ________ impact on the baby product industry. These are called ________ impacts.
positive; negative; demographic
According to the Corporate Citizenship poll conducted by Cone Communications, most Americans say they would be likely to switch brands to one associated with a good cause, if there are similarities between
price and quality.
Mercedes-Benz aggressively pushed for product placement in Hollywood movies. This is an example of which value chain primary or support activity?
primary activity: marketing and sales
Advertising is a ________ activity. Supply of replacement parts is a ________ activity.
primary; primary
By emphasizing the importance of identifying opportunities and threats, the SWOT framework makes firms act ________ rather than ________.
proactively; reactively
To inculcate a strategic management perspective, managers must create management ________ to foster change
processes
Local line leaders have ________ responsibility.
profit-and-loss
In contrast to ________ interactions, which allow the firm to gain insights on the needs of a particular customer, ________ offers the opportunity to leverage the wisdom of a larger crowd.
prosumer; crowdsourcing
Which of the following is not a correct usage of the SWOT framework?
protect the firm from environmental weaknesses
If managers do not recognize from the beginning that the balanced scorecard is not a ________ and fail to commit to it long term, the organization will be disappointed.
quick fix
In the five-forces model, conditions under which a supplier group can be powerful include all of the following except
readily available substitute products.
Some benefits of sustainability projects include
reducing risks.
Campbell Soup uses electronic networks to improve the efficiency of outbound logistics. These networks also helped Campbell Soup manage the ordering of raw materials more efficiently, improve its production scheduling, and help its customers better manage their inbound logistics operations. This is an example of ________
relationships among activities within the firm and with other stakeholders that are part of the expanded value chain of the firm.
Comparing your firm with all other firms in your industry assesses ________ performance.
relative
While working to prioritize and fulfill their responsibilities, members of the board of directors of an organization should
represent the interests of the shareholders.
Which of the following is not an example of organizational capabilities?
reputation with customers for quality and reliability
The tenure of Ms. Marchionni as CEO of Lands' End was largely a result of her efforts to re-invent the apparel brand,
resulting in conflicts with the customer base and the corporate culture.
Which of the following is a profitability ratio?
return on equity
Which is considered a force in the five-forces model?
rivalry among competing firms
Strategy formulation and implementation is a challenging ongoing process. To be effective, it should not involve
rivals.
The text addresses two perspectives of leadership as well as their implications. These two perspectives are
romantic and external control
A CEO made a lot of mistakes in assessing the market and the competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the ________ perspective of leadership.
romatic
PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass, and fiber glass suffered serious failures in 1986 and 1987 when it attempted to diversify its offers. It used a technique to help it identify possible future strategies. What was it
scenario analysis
A travel agent adds value by creating an itinerary that includes transportation, accommodations, and activities that are customized to your budget and travel dates. In terms of the value-chain analysis, this is an example of a ________ organization.
service
When Nordstrom, the Seattle-based department store chain, aids customers with after-sales support, it exemplifies which primary value-chain activity?
service
Making comparisons between a firm and its most direct rivals is useful because firms within the same strategic industry group have ________ strategies.
similar
Strategic groups consist of firms that are more ________ to each other than firms that are not.
similar
Strategic groups are clusters of firms that share ________ strategies
simliar
A wide variety of firm resources that are costly to imitate due to the social engineering that is required being beyond the capability of competitors include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon
social complexity.
Professor Tamara Erickson says that members of different generations bring different experiences, assumptions, and benefits to the workforce. She believes companies can gain a great deal from creating a culture that welcomes workers of all ages and in which leaders address biases. This is an example of which segments of the general environment?
sociocultural
Research published in Personnel Psychology shows that older workers are slightly more willing to implement organizational changes than younger workers. This is an example of which segment of the general environment?
sociocultural
Larger numbers of women entering the work force since the early 1970s is an example of
sociocultural changes.
Supplier power has increased because of the Internet for all the following reasons except
some suppliers have created web-based purchasing systems that encourage switching.
The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This results in a conflict between
stability and change.
Which of the following is not an input process to develop forecasts?
stakeholder management
Procter and Gamble has perfected a technique for compacting cleaning powder into a liquid concentration. Consumers, retailers, shipping and wholesalers, and environmentalists all have benefited from the resulting change in consumer shopping habits and the revolution in industry supply-chain economics. According to the text, this is an example of
stakeholder symbiosis.
Managers should do more than focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that
stakeholders are dependent on each other for their success.
Wall Street executives have received excessive bonus pay in the past. This concerns which of the following stakeholder groups most directly?
stockholders
In the SWOT framework, ________ are internal factors that are specific to the company.
strengths and weaknesses
According to a CEO survey by Accenture, ________ are not mutually exclusive corporate goals.
sustainability and profitability
The case for sustainability projects needs to be made on the basis of a more holistic and comprehensive understanding of all the ________ benefits.
tangible and intangible
The three key types of resources that are central to the resource-based view of the firm are
tangible resources, intangible resources, and organizational capabilities.
Which of the following is not a tangible resource
technical and scientific skills
Data Analytics are being used by corporations to understand their customer purchasing patterns. This is an example of which segment of the general environment?
technological
Genetic engineering has had a positive impact on the pharmaceutical industry. This is an example of which type of general environmental trend?
technological
Coca-Cola has developed data analytic technologies to produce orange juice that meets the taste demands of a global customer base. This is an example of using which value chain support activity?
technology development
Which of the following is a support activity?
technology development
Scanning the general environment would identify information on
the aging population and ethnic shifts.
Firms that were successful in the past can fail today because
the company strategy is outdated.
Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm) if
the cost to the firm of replacing them is high.
In strategic management, both the short-term and long-term perspectives need to be considered because
the creative tension between the two forces managers to develop more successful strategy.
Elements of the five forces can be quantified. This is important for analyzing industry structure. Which of the following is not an example of an element that can be quantified?
the governmental regulatory policy
All of the following are important elements of the political and legal segment of the general environment except
the increased use of Internet technology.
Emerging sociocultural changes in the environment include
the increasing educational attainment of women in the past decade.
The resource-based view (RBV) of the firm combines the following two perspectives:
the internal analysis of the firm and the external analysis of the industry and competitive environment.
Which of the following would be most difficult to assess?
the legitimacy and reputation of a firm
The internal measures should reflect business processes that have ________ impact on customer satisfaction. These include factors that affect cycle time, quality, employee skills, and productivity.
the most
The ROI on sustainability efforts can be difficult to quantify because
the payback period is on a different time frame.
Airbnb, a room-sharing site, offers more rooms than Marriott. Goldman Sachs suggests that the supply of new rooms over the next two years will outpace the previous five even though the growth of American occupancy rates has begun to slow. Which competitive force is involved in this situation?
the threat of new entrants
Successful organizations are effective in motivating people. Employees work best when
they are striving toward specific goals.
The bargaining power of suppliers increases as
threat of forward integration by suppliers increases.
New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a
threat of substitute products.
Leadership is a necessary (but not sufficient) condition for organizational success. Leaders should emerge at which level(s) of an organization?
throughout the organization
The text argues that a strategic perspective in an organization should be emphasized
throughout the organization
Strategy formulation at the business level addresses best how to compete in a given business
to attain competitive advantage.
Executives must be careful to avoid spending so much time and effort tracking the actions of ________ that they ignore ________.
traditional competitors; new competitors
Accounting is a sort of transformation process that converts daily records of individual transactions into monthly financial reports. The ________ are the inputs, accounting is the operation that adds value, and ________ are the outputs.
transaction records; financial statements
Intangible resources are typically embedded in ________ routines and practices that have evolved and accumulated over time.
unique
Scenario planning is a useful technique for firms competing in industries characterized by ________ and ________.
unpredictability; change
Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of the ________ of an organization.
values, aspirations, and goals
WellPoint Health Network states: WellPoint will redefine our industry through a new generation of consumer-friendly products that put individuals back in control of their future. This is an example of a
vision statement.
The hierarchy of organizational goals is in the following order (least specific to most specific):
vision statements, mission statements, strategic objectives
Employee stakeholders are concerned with
wages, benefits, and job security.
Inbound logistics include which of the following?
warehousing and inventory control
