chapter 1

Stakeholder impact analysis is a Blank______-step process that allows managers to better understand and address stakeholders' needs.

five

In the external analysis phase of the AFI strategy framework, what should managers ask?

"How do external forces affect our strategy and 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

Select all that apply What are the categories of expectations that society has of the business enterprise as described in the CSR framework?

Ethical Economic Philanthropic Legal

A strategic leader's job is to focus like a laser on shareholders.

False

When a stakeholder has power over a company that stakeholder is Blank______.

able to influence the company to do something it would otherwise not do

How should managers prioritize stakeholder concerns in the final step of stakeholder impact analysis?

by considering the power, legitimacy, and urgency of stakeholder claims

A(n) Blank______ occurs when a firm performs below the industry average or is outperformed by its competitors.

competitive disadvantage

Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has Blank______.

competitive parity

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?

corporate social responsibility

Customers, suppliers, creditors, unions, and governments are known as Blank______.

external stakeholders

In which step of a stakeholder impact analysis do firms identify those stakeholders that currently have, or potentially can have, a material effect on the company?

first

Select all that apply Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities?

giving investors a return on invested capital repaying debts to creditors

The stakeholders of a firm are Blank______.

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

Select all that apply Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis?

legitimacy power urgency

The third step of stakeholder impact analysis requires managers to identify the Blank______ presented by internal and external stakeholders.

opportunities and threats

Strategic positioning allows managers to Blank______.

provide customers value while controlling costs

In the Blank______ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework.

second

Effective guiding policy is supported by and stays consistent through the use of ______.

strategic commitments

What is strategy?

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

Managers often have to make decisions between two conflicting strategic options, otherwise known as Blank______.

trade-offs

Which of the following statements regarding tasks in the AFI strategy framework is true?

The tasks are very interdependent.

Firms should obey all the laws, including but not limited to labor, consumer protection, and the environment.

True

When does a situation of competitive parity exist?

Two or more firms achieve the same performance results.

What must a firm do after diagnosing its specific competitive challenge? Multiple choice question.

Create an effective guiding policy

A statement such as, "We will be the biggest company in the world," is an example of strategy.

False

What is the overall purpose of strategic management?

Gain competitive advantage

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

1. Who are the stakeholders? 2. What are our stakeholders' interests? 3. What opportunities and threats do our stakeholders present? 4. What economic, legal, ethical, and philo? 5. What should we do to effectively address the stakeholder concerns?

Which statement about strategies is true?

A statement of desire on its own often leads to goal conflict.

Select all that apply Stakeholder impact analysis is a decision tool that helps a company do which of the following?

Achieve a competitive advantage Act as a good corporate citizen

Which of the following elements of the pyramid of corporate social responsibility are required by society and shareholders?

Economic responsibilities Legal responsibilities

What is the overall purpose of a firm's strategy?

Perform better than other companies in the same industry.

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 have a lower cost than competitors' bulbs.

The idea that firms should voluntarily give back to society when they are able to do so is known as Blank______.

corporate citizenship

Starbucks's actions to educate its workers and management about racism indicates that the firm takes its Blank______ responsibilities seriously.

ethical

Which of the following elements of the pyramid of corporate social responsibilities are result from a society's expectations toward business?

ethical responsibilities philanthropic responsibilities

Select all that apply Which of the following elements comprise strategic management?

implementation analysis formulation

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' Blank______.

interests and claims

A competitive advantage Blank______.

is assessed relative to other competitors in the industry

Managers have Blank______ resources in their quest for competitive advantage.

limited

Stakeholder strategy argues that focusing exclusively on the needs of Blank______ places the firm at risk of failure.

shareholders

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 Blank______.

strategy

In a nutshell, strategy is the art and science of Blank______.

success and failure

In the Blank______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm. Multiple choice question.

third

Select all that apply In which of the following situations can a firm providing goods and services gain a competitive advantage?

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 of the following incentivize workers by offering them discounted shares or retirement plans based on company stock?

employee stock ownership plans

Using a(n) Blank______ strategy formulation, managers examine where and how the firm should compete around the world.

global

Sustainable competitive advantage exists when a firm Blank______.

maintains superior performance relative to its industry over a long period of time

When identifying stakeholders, a firm should focus on those stakeholders that Blank______.

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

Which of the four corporate social responsibilities is considered first and foremost for business enterprises?

economic

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

Which of the following topics should be considered during the analysis phase of the AFI framework?

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

In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to Blank______.

the performance of other firms in its industry

Select all that apply Which of the following questions are part of the five steps in stakeholder impact analysis?

What are our stakeholders' interests and claims? What opportunities and threats do our stakeholders present? Who are our stakeholders?

A stakeholder has Blank______ when its needs are within the bounds of the law or are otherwise relevant to the firm.

a legitimate claim