CH.1 SM

Which of the following statements is true of strategy?

Actions that allow a firm to address a competitive challenge are strategy.

In which of the following cases was a company at a major competitive disadvantage?

Without a clear strategic position, Sears tried to be too many things for too many types of customers.

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy

analysis.

Which of the following groups is most likely to be considered a firm's internal stakeholder?

board members

All of the following below are examples of external stakeholders except

employees.

Which of the following is a philanthropic responsibility of a firm?

exhibiting corporate citizenship

A firm is likely to have a competitive advantage when it

provides services that consumers will value more than those of its rivals.

The annual net profit after taxes for Tele Corp., a multinational conglomerate, is $5.5 billion. As legal owners, which of the following stakeholder groups has the most legitimate claim on this profit?

shareholders

Which of the following groups will not be considered a company's internal stakeholder?

suppliers

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in

trade-offs that work against each other.

All of the following are examples of internal stakeholders except.

suppliers.

EatNow is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, EatNow also wants to adopt the same strategy. Which of the following will be a likely implication of this decision?

EatNow will face low profit potential.

Too Fast Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Too Fast Inc. from this scenario?

It has a competitive advantage over the other firms.

________ is an important tool because it allows a manager to recognize, prioritize and address the needs of various stakeholders.

Stakeholder impact analysis

Which of the following statements will effectively guide a strategist?

The principles of strategic management can be applied universally to all organizations.