MGMT 4000 Ch 1 Quiz

_____________ is an important tool because it allows a manager to recognize, prioritize and address the needs of various stakeholders Stockholder appreciation Shareholder voting proxies Stakeholder impact analysis Shareholder Right's Plan

Stakeholder impact analysis

Which of the following statements is true of strategy? Statements of desire, on their own, are strategy. Tactical tools that are a part of a firm's functional and global initiatives are strategy. Operational effectiveness and competitive benchmarking are strategy. Actions that allow a firm to address a competitive challenge are strategy.

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

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. EatNow will be able to create higher value for its customers. EatNow will be better placed to gain a competitive advantage in the industry. EatNow will not face any direct competition in the industry.

EatNow will face low profit potential.

Which of the following statements related to a firm's stakeholders is not true? - While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits. - If internal or external stakeholders withhold participation in the firm's exchange relationships, it can have severe negative performance implications. - A firm's stakeholders include organizations and groups along with individuals who can affect or be affected by the firm's actions. - Effective stakeholder management is an example of how managers can act to enhance a firm's competitive advantage.

While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits.

In which of the following cases was a company at a major competitive disadvantage? - Facebook hired Sheryl Sandberg because Mark Zuckerberg, Facebook's founder, lacked important business skills. - Without a clear strategic position, Sears tried to be too many things for too many types of customers. - Sam's Club decided to prescreen its customers via required membership to establish creditworthiness. - Strategy executives at UPS used scenario planning to identify issues critical to shaping the firm's future.

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

Which of the following groups is most likely to be considered a firm's internal stakeholder? creditors customers alliance partners board members

board members

How has Walmart staked out a unique strategic position? by paying high wages to attract the most talented employees by providing excellent customer service in a luxury setting by cutting costs to offer lower prices than competitors by investing 100% of profits in community development programs

by cutting costs to offer lower prices than competitors

All of the following below are examples of external stakeholders except employees. government. communities. customers.

employees.

Which of the following is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis? legitimacy supremacy literacy solvency

legitimacy

A firm is likely to have a competitive advantage when it performs at a level similar to the other firms in the industry. provides goods similar to those of its competitors, but at a higher price. provides services that consumers will value more than those of its rivals. minimizes the difference between value creation and the costs involved.

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

Which of the following groups will not be considered a company's internal stakeholder? suppliers board members shareholders managers

suppliers

All of the following are examples of internal stakeholders except employees. stockholders. board members. suppliers.

suppliers.

Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time? consistent power position long-term capital gain strategic positioning sustainable competitive advantage

sustainable competitive advantage

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in a competitive advantage through superior performance. trade-offs that work against each other. an increase in the firm's economic contribution. competitive parity with firms that have adopted either of the strategies.

trade-offs that work against each other.

A good strategy should be able to provide products and services to customers at an attractive price point while maintaining internal costs, resulting in value creation. shareholder appreciation. competitive benchmarking. sustainable competitive advantage.

value creation.