BCOR 460
Which statement about strategies is true? Multiple choice question. "We will be the best!" is an example of a strategy. Statements of desire typically address economic fundamentals. Vision and mission statements cannot lay the foundation for good strategies. A statement of desire on its own often leads to goal conflict.
A statement of desire on its own often leads to goal conflict.
Stakeholder impact analysis is a decision tool that helps a company do which of the following? (Check all that apply.) Multiple select question. Achieve a competitive advantage Describe the role of functional managers in strategy formulation Act as a good corporate citizen Decide where to compete
Achieve a competitive advantage Act as a good corporate citizen
What must a firm do after diagnosing its specific competitive challenge? Implement a set of coherent actions Identify its primary competitors Collect investments from stockholders Create an effective guiding policy
Create an effective guiding policy
Managers have ______ resources in their quest for competitive advantage. Multiple choice question. unique zero limited unlimited
limited
In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to ______. only non-US-based firms the performance of other firms in its industry its past financial performance a firm in the technology industry
the performance of other firms in its industry
Strategy is ______. a sustainable and dominant market share a decision based on external situational analysis the set of actions a firm takes to achieve a competitive advantage a decision based on internal situational analysis
the set of actions a firm takes to achieve a competitive advantage
A good strategy consists of three elements. The first element is accomplished through analysis of the firm's external and internal environments. We also call this ______. a set of coherent actions to implement the firms' guiding policy a diagnosis of the competitive advantage a guiding policy to address the competitive advantage
a diagnosis of the competitive advantage
True or false: Although they are more vocal, activist investors have the same amount of power as individual investors. True false question. True False
False
A competitive advantage that lasts for a long period of time is said to be ______. accurate theoretical geographic topical sustainable
sustainable
True or false: A statement such as, "We will be the biggest company in the world," is an example of strategy. True false question. True False
False
Which of the following is the best indicator that Tesla's startup master plan has worked as intended? Multiple choice question. Tesla generated 500,000 preorders for an unseen model. Many Americans are still unaware that Tesla exists. Tesla provided cars to some of its employees. Tesla's models outsell all other automobiles in the United States.
Tesla generated 500,000 preorders for an unseen model.
When a stakeholder has power over a company it is ______. Multiple choice question. helping to implement the firm's strategy able to get the company to take immediate and urgent action perceived to have a legally valid claim able to influence the company to do something it would otherwise not do
able to influence the company to do something it would otherwise not do
Shareholder activists, such as Bill Ackman and Carl Icahn, have much more power over a firm than individual investors, because they ______. Multiple select question. can exercise block-voting rights or otherwise influence the corporate government process are less common and own less stock than individual investors have a small amount of assets under management are able to buy or sell a much larger number of shares than individuals can
can exercise block-voting rights or otherwise influence the corporate government process are able to buy or sell a much larger number of shares than individuals can
Firms should identify a ______ so that employees can determine if they are making progress in addressing it. Multiple choice question. source of goal conflict clear competitive challenge statement of desire previous competitive advantage
clear competitive challenge
A(n) ______ occurs when a firm performs below the industry average or is outperformed by its competitors. competitive parity purchasing parity underperforming norm negative advantage competitive disadvantage
competitive disadvantage
If a firm has a 10% return on invested capital while the industry average return on invested capital is 18%, the firm has a(n) ______. purchasing parity competitive parity overperforming norm competitive disadvantage
competitive disadvantage
Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has ______. competitive parity a noncompetitive business a competitive disadvantage a competitive advantage
competitive parity
Which of the following are primary strategy objectives? (Check all that apply.) controlling costs strengthening relationships maximizing sales creating value
controlling costs creating value
Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society? Multiple choice question. strategic management framework corporate social responsibility SWOT analysis AFI frame
corporate social responsibility
Which of the four corporate social responsibilities is considered first and foremost for business enterprises? Multiple choice question. legal philanthropic economic ethical
economic
Which of the following incentivize workers by offering them discounted shares or retirement plans based on company stock? Multiple choice question. employee welfare benefit plans employee stock ownership plans initial public offerings stock buyback plans
employee stock ownership plans
Who among the following are considered internal stakeholders? (Check all that apply.) Multiple select question. Unions Employees Competitors Stockholders Board members Governments Customers
Employees Stockholders Board members
Which statement about shareholders and employees is true? Multiple choice question. Employees are often made into shareholders through employee stock ownership plans. The interests of stakeholders who are employed by a firm are the same as stakeholders who simply own stock. The separation between the claims of management and of ownership has been increasing. Shareholders and employees are entirely separate groups.
Employees are often made into shareholders through employee stock ownership plans.
What are the categories of expectations that society has of the business enterprise as described in the CSR framework? (Check all that apply.) Multiple select question. Ethical Legal Economic Philanthropic Aesthetic
Ethical Legal Economic Philanthropic
True or false: A strategic leader's job is to focus like a laser on shareholders. True false
False
True or false: Since experiencing major operations problems in 2017, Tesla has largely failed to act in a way that is consistent with its competitive challenge diagnosis. True false question.TrueFalse
False
What is the overall purpose of strategic management? Gain competitive advantage Create competitive transparency Calculate parity performance measures Respond to globalization Perform risk analysis
Gain competitive advantage
Which of the following statements is true about Tesla, the manufacturer of all-electric cars? It has a product-oriented vision statement. It has a high market valuation. Its strategy is to create a unique product available only to a few. It has manufactured only two car models.
It has a high market valuation.
Which of the following are outcomes of effective stakeholder management? (Check all that apply.) It helps the firm achieve predictable and stable returns. It lowers the cost of business transactions by building trust. It leads to beneficial cooperation from stakeholders. It reduces organizational adaptability.
It helps the firm achieve predictable and stable returns. It lowers the cost of business transactions by building trust. It leads to beneficial cooperation from stakeholders.
What is something that Tesla is doing to implement its guiding policy and address its competitive challenges? It is taking advantage of economies of scale so that it can offer vehicles at a competitive price point. It is creating electric-gasoline hybrid engines that allow its vehicles to operate even without electric charging stations. It is making sure that its patents and proprietary technology are kept a secret from the public. It is relying more heavily on human labor, which is inexpensive and efficient.
It is taking advantage of economies of scale so that it can offer vehicles at a competitive price point.
What is one explanation for why Tesla underperforms when the company's profits are compared to the profits of established car companies? New companies are not able to employ good strategies. Established firms use different profit measurements. Startups often lose money early on. Investors have been unwilling to purchase the company's stock.
Startups often lose money early on.
Select all that apply Which of the following traits are Tesla specifically aiming to include in its vehicles to achieve competitive advantage? (Check all that apply.) Versatility Sustainability Attractiveness Affordability
Sustainability Attractiveness Affordability
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? The bulbs must be more expensive than competitors' offerings. The bulbs must be sold by online retailers only. The bulbs must have a lower cost than competitors' bulbs. The bulbs must be on the market for a longer period of time than competitors' bulbs.
The bulbs must have a lower cost than competitors' bulbs.
In which of the following situations can a firm providing goods and services gain a competitive advantage? (Check all that apply.) Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs. Their offerings cost more to produce than competitors' offerings. Their offerings are similar to competitors' offerings at higher prices. Their offerings provide more value for consumers than competitors' offerings.
Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs. Their offerings provide more value for consumers than competitors' offerings.
Which statement is true about pricing strategies, internet strategies, alliance strategies, and brand strategies? Multiple choice question. They may be a necessary part of a firm's initiatives to support its competitive strategies. They often play a role in day-to-day operations, but they have no bearing on gaining competitive advantage. They are all that a firm needs to achieve competitive advantage. They represent a complete, consistent guiding policy and a good strategy.
They may be a necessary part of a firm's initiatives to support its competitive strategies.
In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm. Multiple choice question. fourth Reason: The fourth step is identifying social responsibilities. second fifth third first
Third
Which of the following are aims of stakeholder strategy? (Select all that apply.) Multiple select question. To manage various stakeholders effectively To persuade internal stakeholders to cede control to external stakeholders To gain and sustain competitive advantage To reduce the number of stakeholders of a firm
To manage various stakeholders effectively To gain and sustain competitive advantage
Which of the following are aims of stakeholder strategy? (Select all that apply.) Multiple select question. To persuade internal stakeholders to cede control to external stakeholders To reduce the number of stakeholders of a firm To manage various stakeholders effectively To gain and sustain competitive advantage
To manage various stakeholders effectively To gain and sustain competitive advantage
Which of the following questions are part of the five steps in stakeholder impact analysis? (Check all that apply.) Multiple select question. What are our stakeholders' interests and claims? How can we gain maximum competitive advantage without taking our stakeholders into account? Who are our stakeholders? What opportunities and threats do our stakeholders present? Which stakeholders have little to no power over us?
What are our stakeholders' interests and claims? Who are our stakeholders? What opportunities and threats do our stakeholders present?
Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following? a competitive advantage strategic leadership a superior product a statistical advantage
a competitive advantage
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 ______. fiscal debilitation prolonged management combined ideology a competitive advantage
a competitive advantage
A firm's overall efforts to gain and sustain competitive advantage is referred to as which of the following? Multiple choice question. a competitive strategy a marketing strategy an operations strategy a pricing strategy
a competitive strategy
A good strategy consists of three elements. The first element is accomplished through analysis of the firm's external and internal environments. We also call this ______. a guiding policy to address the competitive advantage a set of coherent actions to implement the firms' guiding policy a diagnosis of the competitive advantage
a diagnosis of the competitive advantage
Select all that apply Which of the following are elements of a good strategy according to the AFI framework? (Check all that apply.) a diagnosis of the competitive challenge a set of coherent actions to implement the firm's guiding policy a guiding policy to address the competitive challenge a leadership group with relevant prior industry experience strong stakeholder involvement in the strategy formulation process
a diagnosis of the competitive challenge a set of coherent actions to implement the firm's guiding policy a guiding policy to address the competitive challenge
A good strategy consists of three elements. The second element is accomplished through strategy formulation, resulting in the firm's functional, business-level, and corporate-level strategies. This is also called ______. a guiding policy to address the competitive challenge a set of coherent actions to implement the firms' guiding policy a diagnosis of the competitive challenge
a guiding policy to address the competitive challenge
Based on its long dominance as a coffeehouse chain, Starbucks has ______. a sustainable competitive advantage a competitive disadvantage an absolute advantage competitive parity
a sustainable competitive advantage
Which of the following are primary strategy objectives? (Check all that apply.) strengthening relationships creating value controlling costs maximizing sales
creating value controlling costs
A firm that successfully executes a strategy benefits society by ______. (Check all that apply.) Multiple select question. eliminating legal restrictions on controversial practices limiting competition creating value reinvesting profits and increasing employment
creating value reinvesting profits and increasing employment
When identifying stakeholders, a firm should focus on those stakeholders that ______. Multiple choice question. are directly involved with the production or distribution of the company's products can be ignored with no material impact to the firm currently have, or could potentially have, a material effect on the firm purchase and use its products
currently have, or could potentially have, a material effect on the firm
Customers, suppliers, creditors, unions, and governments are known as ______. Multiple choice question. internal stakeholders external stakeholders crowdsurfers rivals
external stakeholders
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. Multiple choice question. second third fifth first fourth
first
Stakeholder impact analysis is a _____-step process that allows managers to better understand and address stakeholders' needs. Multiple choice question. five two three four
five
In the _____ step of the stakeholder impact analysis, firms identify their various social responsibilities to stakeholders. Multiple choice question. third fourth second first fifth
fourth
What is one significant challenge that Tesla faces? lack of consumer interest in environmentally friendly alternatives to traditional vehicles gaps in the infrastructure needed to keep its vehicles on the road all over the country traditional competitors who already produce affordable, attractive, zero-emissions vehicles mistrust on the part of investors, who routinely threaten to sell stock or withdraw loans
gaps in the infrastructure needed to keep its vehicles on the road all over the country
Effective stakeholder management _____. Multiple choice question. causes a loss of trust with business partners helps a firm build a strong public reputation results in greater likelihood of negative outcomes with employees leads to dissatisfaction with customers
helps a firm build a strong public reputation
Which of the following elements comprise strategic management? (Check all that apply.) implementation definition formulation realization analysis
implementation formulation analysis
The high market valuation achieved by Tesla by 2019 can be largely attributed to its ______. implementation of its secret strategy adherence to an aspirational vision products' proven track records reliance on government subsidies
implementation of its secret strategy
The high market valuation achieved by Tesla by 2019 can be largely attributed to its ______. Multiple choice question. implementation of its secret strategy adherence to an aspirational vision products' proven track records reliance on government subsidies
implementation of its secret strategy
The stakeholders of a firm are ______. Multiple choice question. individuals or groups that can affect and are affected by the actions of the firm only those who directly profit from a firm's success only those firms that contribute to the production and distribution of a company's products individuals or groups who own at least one share of a firm's stock
individuals or groups that can affect and are affected by the actions of the firm
In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ______. Multiple choice question. interests and claims political and cultural affiliations entire investment portfolio likelihood of bringing legal action against the firm
interests and claims
A competitive advantage _____. places a firm at a disadvantage in regards to its ROI is assessed relative to other competitors in the industry takes into consideration globalization and rival factors is based on the return of invested capital over a 15-year period
is assessed relative to other competitors in the industry
The third step of stakeholder impact analysis requires managers to identify the ______ presented by internal and external stakeholders. Multiple choice question. social responsibilities and stakeholder interests stakeholder interests and opportunities threats and responsibilities opportunities and threats
opportunities and threats
The overall purpose of a firm's strategy is to ______. perform better than other companies in the same industry sell all existing inventory of a given product generate significant interest from foreign investors determine demand for new product ideas
perform better than other companies in the same industry
Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (Check all that apply.) Multiple select question. financial standing power urgency legitimacy
power urgency legitimacy
In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework. Multiple choice question. second fifth first third fourth
second
Stakeholder strategy argues that focusing only on the needs of ______ places the firm at risk of failure. Multiple choice question. employees competitors managers shareholders
shareholders
Why should a firm define a clear competitive challenge? Multiple choice question. so that external stakeholders have the same information as internal stakeholders so that the firm can achieve competitive parity so that managers can substitute tactical tools for a traditional strategy so that employees can assess their progress toward addressing it
so that employees can assess their progress toward addressing it
Which of the following is a tool that managers can use to address the needs of stakeholders while maintaining a competitive advantage? Multiple choice question. corporate citizen strategy group happiness strategy ethical choice analysis stakeholder impact analysis
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 ______. Multiple choice question. stakeholder strategy integrative strategy happiness management strategy shareholder strategy
stakeholder strategy
The groups or individuals who can impact or be impacted by a firm's actions are known as ______. Multiple choice question. competitors expatriates stakeholders shareholders
stakeholders
Effective guiding policy is supported by and stays consistent through the use of ______. social responsibilities trade-offs strategic commitments grandiose statements
strategic commitments
The field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation is known as ______. strategic management human resources management management of foundational behavior management of stakeholder impact
strategic management
Andrew's Home Center has created a unique situation for itself in its industry that allows the company to not only provide excellent value to its customers but also control its costs. This is known as ______. Multiple choice question. the competitive challenge strategic positioning competitive parity competitive disadvantage
strategic positioning
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. This is known as Burger Bomb's ______. competitive parity strategy vision core values statement
strategy
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. This is known as Burger Bomb's ______. strategy vision core values statement competitive parity
strategy
Which of the following indicates that investors expect future growth for Tesla? the increasing value of the company's stock the firm's philanthropic efforts the lack of a defined competitive challenge the large upfront investment Tesla had to make
the increasing value of the company's stock
Which of the following indicates that investors expect future growth for Tesla? Multiple choice question. the lack of a defined competitive challenge the large upfront investment Tesla had to make the increasing value of the company's stock the firm's philanthropic efforts
the increasing value of the company's stock
Walmart and Nordstrom maintain very different strategic profiles, one based on cost-leadership and the other based on differentiation through superior customer service. This is an example of ______. Multiple choice question. the trade-offs required by strategic positioning a strategic failure by Walmart a strategic failure by Nordstrom differences in industry norms
the trade-offs required by strategic positioning
Managers often have to make decisions between two conflicting strategic options, otherwise known as ______. trade-offs bad choices managerial dilemmas hot-points
trade-offs
Competitive parity occurs when ______. two or more firms achieve the same performance results two or more firms rely on international outsourcing to remain competitive two or more firms enter into a strategic alliance the performance of two or more firms is superior to the industry average
two or more firms achieve the same performance results
A well-devised strategy is about which two things? what not to do market trends in unrelated industries past successes or failures what to do
what not to do what to do