BCOR 2304 Reading 1
A strategy-planning activity in which top management envisions various what-if scenarios to anticipate plausible futures in order to derive strategic responses is known as ____ planning.
scenario
Which of the following is the least formal approach to setting the strategy process?
strategy as planned emergence
Which of the following topics should be considered during the analysis phase of the AFI framework?
the firm's internal strengths and resources the external environment and associated challenges the role of strategic leadership and the strategy process the firm's business model and competitive advantages
Which of the following are characteristics of the strategic plan that makes up an intended strategy?
Structured Top-down Rational
Which of the following statements regarding tasks in the AFI strategy framework is true?
The tasks are very interdependent.
Which of the following are aims of stakeholder strategy? (Select all that apply.)
To gain and sustain competitive advantage To manage various stakeholders effective
Serena is the CEO of an online retailer. She and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in Central and South America. What type of strategic approach is Serena engaging in?
Top-down strategic planning
Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish?
Vision
What is the typical result of cognitive limitations?
We choose the option that is "good enough" and satisfies immediate needs.
Which of the following are questions that managers are likely to ask when beginning the strategic management process?
What do we ultimately hope to achieve? What are our values? How can we achieve our goals?
Which of the following types of questions does scenario planning ask?
What if
Which of the following questions are part of the five steps in stakeholder impact analysis?
What opportunities and threats do our stakeholders present? What are our stakeholders' interests and claims? Who are our stakeholders?
A stakeholder has ______ when its needs are within the bounds of the law or are otherwise relevant to the firm.
a legitimate claim
When a stakeholder has power over a company that stakeholder is ______.
able to influence the company to do something it would otherwise not do
Which term refers to strategic initiatives that lower-level employees undertake of their own volition, typically in response to unanticipated events?
autonomous actions
Which of the following leads to systematic errors in decision making and hinders rational thinking?
cognitive biases
Which cognitive bias refers to people's tendency to seek out information that aligns with their existing beliefs?
confirmation bias
Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?
corporate social responsibility
A core values statement provides information to employees regarding the company's ______.
ethics and morals
Jennie is the CEO of an information technology company. Based on the data that her researchers have compiled, she feels confident that her strategic plan for the company will be successful in the future, regardless of what happens. Based on this information, it seems that Jennie ______.
has an illusion of control
Top-down strategy is derived from ______.
military strategy
After creating a vision as part of the strategic management process, what must a a firm establish next?
mission
A _____ outlines what an organization does, while a vision outlines what the organization wants to do.
mission statement
A ______ vision statement defines a business by describing the goods or services it produces or offers.
product-oriented
What type of vision statement focuses on the good or service provided?
product-oriented
The executives of a computer software company developed an intended strategy to make the company more competitive. The company's ultimate ______ strategy contained elements not only of the intended strategy but also unplanned elements from a(n) ______ strategy.
realized; emergent
The concept, or framework, of corporate social _______ guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.
responsibility
Which of the following is a tool that managers can use to address the needs of stakeholders while maintaining a competitive advantage?
stakeholder impact analysis
A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______.
stakeholder strategy
What term describes the groups or individuals who can impact or be impacted by a firm's actions?
stakeholders
Effective guiding policy is supported by and stays consistent through the use of ______.
strategic commitments
A(n) ______ is any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.
strategic initiative
What are autonomous actions?
strategic initiatives that lower-level employees undertake of their own volition, often in response to unanticipated events
What is the field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation?
strategic management
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 ______.
strategy
What is System 1 of the brain according to Daniel Kahneman and Amos Tverksy?
the brain's default mode
What is strategy?
the set of actions a firm takes to achieve a competitive advantage
If parts of a firm's intended strategy fall by the wayside, it is referred to as _____.
unrealized strategy.
In the external analysis phase of the AFI strategy framework, what should managers ask?
"How do external forces affect our strategy and competitive advantage?"
Burger Bomb has been outperforming other burger restaurants in recent years. This indicates that Burger Bomb has which of the following?
A competitive advantage
What is the first step in the AFI strategy framework?
Analysis
What must a firm do after diagnosing its specific competitive challenge?
Create an effective guiding policy
According to Daniel Kahneman and Amos Tversky, System 1 is analytical, logical, and deliberate.
False
True or false: Emergent strategy is planned.
False
What is the overall purpose of a firm's strategy?
Perform better than other companies in the same industry.
Stakeholder impact analysis is a ______-step process that allows managers to better understand and address stakeholders' needs.
5
Which of the following are three approaches that strategic leaders rely on to formulate and implement strategy?
scenario planning strategy as planned emergence strategic planning
In the strategic management process, which basic principle must be defined first?
vision
All of the following are sources of strategic initiatives except ______.
consumer demand
A(n) ______ is a statement of principles to guide an organization as it works to achieve its vision and fulfill its mission.
core values statement
What method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action?
devil's advocacy
What are cognitive biases?
obstacles in thinking that result in systematic errors in decision making and hinder rational thinking
Which theory proposes that when faced with decisions, we tend to satisfice rather than optimize?
theory of bounded rationality
What is the overall purpose of strategic management?
Gain competitive advantage
Which statement best describes the confirmation bias?
Individuals search only for information that confirms their existing beliefs and ignore evidence that contradicts those beliefs.
What should a successful vision do for an organization?
It should make employees feel that their work is important. It should inspire employees.
Which of the following statements about scenario planning is true?
It starts with a top-down approach.
Which of the following are the relationships that a firm has with stakeholders?
Stakeholders can affect the firm's actions. The actions of the firm can affect stakeholders.
Which of the following best describes an illusion of control?
a belief that a strategic plan will address any scenario
