Mgt 301 Connect Questions Chapter 1-3
In the external analysis phase of the AFI strategy framework, managers should ask?
"How do external forces affect our strategy and competitive advantage" -- CHAP 1
Which of the following types of questions does scenario planning ask?
"What if?" -- CHAP 2
Stakeholder impact analysis is a decision tool that helps a company do which of the following?
- Act a good corporate citizen - achieve a competitive advantage -- CHAP 1
Why is employee involvement crucial when developing an inspiring vision and mission?
- Because belief in the vision and mission statements motivates employees - because employees may develop helpful strategic initiatives -- CHAP 2
What are the approaches that can be utilized when strategizing for competitive advantage?
- Strategy as planned emergence - scenario planning - strategic planning -- CHAP 2
Which of the following are the relationships that a firm has with stakeholders
- The actions of the firm can affect stakeholders - Stakeholders can affect the firm's actions -- CHAP 1
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 firm's business model and competitive advantages - the external environment and associated challenges -- CHAP 1
Which of the following are important strategic dimensions in mapping strategic groups?
- cost structure - product and service offerings - expenditures on research and development -- CHAP 3
True or false: Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision.
True: it is important that employees feel invested in and inspired by a firm's vision and mission -- CHAP 2
in the strategic management process, which basic principle must be defined first?
Vision (then mission then values) -- CHAP 2
What method for improving strategic decision making involved 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 -- CHAP 2
Production costs can increase when
buyers demand higher quality and more service -- CHAP 3
According to Daniel Kahneman and Amos Tversky, Sytem 1 is analytical, logical, and deliberate
False (system 1 is the brain's default mode, gut reaction) -- CHAP 2
What is the overall purpose of strategic management
Gain competitive advantage -- CHAP 1
A(n)_________ strategy is the outcome of a rational and structured, top-down strategic plan.
Intended -- CHAP 2
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 -- CHAP 1
Which of the following are factors in a firm's legal environment?
- mandates - laws - regulations -- CHAP 3
true or false: sociocultural factors tend to be fixed
false -- CHAP 3
In the PESTEL Model, political factors are those that relate to
government bodies -- CHAP 3
What is system 1 of the brain according to Daniel Kahneman and Amos Tversky?
the brain's default mode -- CHAP 2
the threat of ______ is one of the five forces and can be exemplified by the threat that videoconferencing present to business travel
substitutes -- CHAP 3
Which of the following statements about Airbnb is correct?
It handles more accommodations than the three biggest hotel chains combined -- CHAP 3
Which of the following statements about scenario planning is true?
It starts with a top-down approach -- CHAP 2
the external forces called technological factors
capture the application of knowledge to create new process and products -- CHAP 3
A _________ is a statement of principles to guide and organization as it works to achieve its vision and fulfill its mission?
core values statement -- CHAP 2
along which of the following dimensions do strategic groups differ from one another?
customer service, distribution channels, research and development, market segments -- CHAP 3
A core values statement provides information to employees regarding the company's
ethics and morals -- CHAP 2
Stakeholder impact analysis is a ______-step process that allows managers to better understand and address stakeholders' needs
five -- CHAP 1
What are cognitive biases?
obstacles in thinking that result in systematic errors in decision making and hinder rational thinking -- CHAP 2
The overall purpose of a firm's strategy is to
perform better than other companies in the same industry -- CHAP 1
in the five forces model, threat of entry refers to the risk that ______
potential competitors will enter a given industry -- CHAP 3
The intensity with which companies in an industry jockey for market share and profitability is known as
rivalry -- CHAP 3
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 -- CHAP 1
The groups or individuals who can impact or be impacted by a firm's actions are known as
stakeholders -- CHAP 1
A ________ group is a set of companies within a specific industry that seek to achieve competitive advantage in similar ways
strategic -- CHAP 3
Effective guiding policy is supported by and stays consistent through the use of _________ ______
strategic committments -- CHAP 1
The field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation is known as _________
strategic management -- CHAP 1
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 -- CHAP 1
Which of the following are ways that powerful suppliers are threat to firms?
- they can reduce the industry's profit potential - they can capture part of the economic value created by firms - they can force the cost of production to increase -- CHAP 3
Which of the following are essential questions that strategic leaders need to consider to increase the profitability of entering an industry successfully?
- when to enter? - what type of entry should be made? - who are players? - how to enter? -- CHAP 3
the economic factors that affect a firm's external environment are ____
largely macroeconomic -- CHAP 3
Deregulation of industries leads to intensified competition and higher value at lower prices for consumers. This is an example of _____ factors influencing business
legal -- CHAP 3
Managers have______ direct influence over external forces in the firm's general environment than those in the firm's task environment
less -- CHAP 3
Studies show that CEOs spend the majority of their time _______
meeting people face-to-face -- CHAP 2
What should a successful vision do for an organization?
- it should inspire employees - it should make employees feel that their work is important -- CHAP 2
Which of the following are questions that managers are likely to ask when beginning the strategic management process?
How can we achieve our goals, what do we ultimately hope to achieve, what are our values -- CHAP 2
A group of companies that deal with more or less the same set of suppliers and buyers make up
an industry -- CHAP 3
Which of the following leads to systematic errors in decision making and hinders rational thinking?
cognitive biases -- CHAP 2
Which of the following is an important part of strategic leadership and is the strategic leader's ability to influence and direct individuals to do things?
power -- CHAP 2
When suppliers can demand higher prices for their inputs or reduce the quality of the input factor delivered, they demonstrate that they are _________
powerful -- CHAP 3
Strategy is ____________
the set of actions a firm takes to achieve a competitive advantage -- CHAP 1
What must a firm do after diagnosing its specific competitive advantage?
Create an effective guiding policy -- CHAP 1
An intended strategy is the outcome of a plan that has which of the following characteristics?
Rational, Top-down, structured -- CHAP 2
Which of the following statements about legal factors as an external force is true?
Regulatory changes tend to affect entire industries at once -- CHAP 3
Research about how CEO's spend their days suggest that CEOs spend most of their time______
interacting with others -- CHAP 2
The relationship between the natural environment and business organizations can best be described as
interdependent -- CHAP 3
Which of the following statements regarding tasks in the AFI strategy framework is true? a) The tasks happen in sequence as separate streps b) the tasks are very interdependent c) only two of the tasks need to be followed for success d) the tasks are interchangeable
the tasks are very interdependent -- CHAP 1
According to upper-echelons theory, the way strategic leaders of a firm interpret a situation is influenced by which of the following?
the values and experiences of the firm's leaders -- CHAP 2
the risk that potential competitors will enter the industry is known as the _________
threat of entry -- CHAP 3
Upper echelons theory views organizational outcomes as a reflection of the values of the ________
top management team -- CHAP 2
If parts of a firm's intended strategy fall by the wayside, it is referred to as
unrealized strategy -- CHAP 2
Which of the following helped Airbnbb develop a successful business in the peer-to-peer rental space?
- presenting a well-designed website - developing a smooth transaction between hosts and guests - fortuitous timing that led to growing demand -- CHAP 3
Which of the following are approaches for answering the question "how to enter?" when a firm is considering entering an industry?
- leverage existing assets - establishing a niche - reconfiguring value chains -- CHAP 3
When a new firm enters an industry, which of the following often occur?
-Incumbent firms spend more to satisfy customers -incumbent firms lower prices -industry profit potential decline -- CHAP 3
industry-specific factors known as ______ separate one strategic group from another
mobility barriers -- CHAP 3
A _______ is a product or service that adds value to the original product offering
complement -- CHAP 3
Firms have a tendency to change the industry structure in their favor, for example by making industries more _____ through mergers and acquisitions
consolidated -- CHAP 3
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 -- CHAP 2
According to the ______, effective leadership is the outcome of certain intrinsic talents as well as education
upper-echelons theory -- CHAP 2
In crafting a strategic management plan, leaders must first determine the company's long-term objective. This means leaders must first define the organizations ______
vision -- CHAP 2
Strategy formulation concerns the choice of strategy in term of _____ to compete
where and how -- CHAP 2
What are the three aspects of mapping strategic groups?
-identifying the most important strategic dimensions -graphing the firms in the strategic group and indicating each firm's market share -choosing two key dimensions for the horizontal and vertical axes -- CHAP 3
Which of the following contribute to consumer buying power?
-low switching costs -real time, accurate price comparisons -- CHAP 3
Which of the following are aims of stakeholder strategy?
-to gain and sustain competitive advantage -to manage various stakeholders effectively -- CHAP 1
Place the three frameworks used in industry analysis in the order they should be used, with the first at the top.
1) PESTEL analysis 2) Porter's five forces 3) strategic group mapping -- CHAP 3
Place in order from first to last the steps in the devil's advocacy decision framework.
1) Team 1 formulates a course of action 2) Team 2 questions the assumptions of an critiques the proposed course of action 3) Team 1 revises the proposed course of action based on the input from Team 2 4) Team 2 questions the assumptions of and critiques the revised course of action, and team 1 makes additional revisions 5) Team 1 and Team 2 agree upon a course of action -- CHAP 2
What is the result of the airline industry having powerful buyers?
Airlines' profit margins are reduced -- CHAP 3
To which types of organization can we apply the principles of strategic management?
All types of organizations -- CHAP 1
What is the first step in the AFI strategy network?
Analysis (the others are formulation and implementation) -- CHAP 1
Which of the following elements comprise strategic management?
Analysis, Implementation, Formulation -- CHAP 1
A statement of guiding principles that typically provides very specific ethical considerations is a(n) ________.
Core values statement -- CHAP 2
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 -- CHAP 1
What is strategic leadership?
The use of influence and power by executives to direct the activities of individuals while pursing and organization's goals -- CHAP 2
Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish?
Vision -- CHAP 2
What is the typical result of cognitive limitations?
We choose the option that is "good enough" and satisfies immediate needs -- CHAP 2
Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following?
a competitive advantage -- CHAP 1
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 _________
a competitive advantage -- CHAP 1
According to Michael Porter, the profit potential of an industry is
a function of five forces related to competition -- CHAP 3
the pressures that industry suppliers can exert on an industry's profit potential is also called the
bargaining power of suppliers -- CHAP 3
The stakeholders of a firm are ______
individuals or groups that can affect and are affected by the actions of the firm -- CHAP 1
In addition to the static nature of the PESTEL, Porter's five forces, and strategic group mapping frameworks, what is their other shortcoming
it does not help us understand why there are performance differences among firms in the same strategic group -- CHAP 3
Top-down strategy is derived from
military strategy -- CHAP 2
A _____ outlines what an organization does, while a vision outlines what the organization wants to do. -- CHAP 2
mission
An organization's _______ is what an organization actually does, including the products and services it plans to provide and the markets in which it will compete
mission -- CHAP 2
When managers understand the forces in the external environment, they are better able to
mitigate threats and leverage opportunities -- CHAP 3
In the airline industry, the _______ of offering international routes restricts movement between hub-and-spoke and point-to-point airlines
mobility barrier -- CHAP 3
Which of the following is the least formal approach to setting the strategy process?
strategy as planned emergence -- CHAP 2
In a nutshell, strategy is the art and science of ________
success and failure -- CHAP 1
Both strategy formulation and strategy implementation are aspects of ____
the strategy process -- CHAP 2
Which theory proposes that when faced with decisions, we tend to satisfice rather than optimize?
theory of bounded rationality -- CHAP 2