MSM 6650 Quiz 1

Gadgets n' Stuff Inc. is a vendor who supplies machine parts to an appliance manufacturing company. In return, Gadgets n' Stuff Inc. relies on the company for its revenue and is affected by any decisions taken by the company. In this scenario, Gadgets n' Stuff Inc. is a(n) _________ for the appliance manufacturing company.

external stakeholder

Which of the following has contributed to Tesla's competitive advantage in terms of stock appreciation?

reinvesting profits to continually design and produce better electric vehicles

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

All of the following are examples of internal stakeholders except.

suppliers

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

suppliers

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

Which of the following statements about competitive advantage is not true?

A firm's competitive advantage is always absolute, not relative

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

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

exhibiting corporate citizenship

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?

sustainable competitive advantage

Why are black swan events such as accounting scandals and the global financial crisis perceived as caused by cheap credit and subprime mortgages offered by financial institutions, bad for business?

they erode the implicit trust between the corporate world and society

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

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

Which of the following statements is true of 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 a low profit potential

A firm is likely to have a competitive advantage when it

Provides services that consumers will value more than those of its rivals

Which of the following statements will effectively guide a strategist?

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

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 competitive advantage over the other firms

Which of the following statements related to a firm's stakeholders is not true?

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

How has Walmart staked out a unique strategic position?

by cutting costs to offer lower prices than competitors

All of the following below are examples of external stakeholders except

employees

The greater the difference between value creation and cost, the

greater a firm's economic contribution

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

legitimacy

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

stakeholder impact analysis