Strategic Management Chapter 1 Questions

The stakeholders of a firm are

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

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.

To which types of organizations can we apply the principles of strategic management?

all types of organizations

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

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

Sustainable competitive advantage exists when a firm

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

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

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

strategic commitments

In a nutshell, strategy is the art and science of

success and failure

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

urgency legitimacy power

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

"How do external forces affect our strategy and competitive advantage?"

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.

Which of the following are aims of stakeholder strategy?

To manage various stakeholders effectively To gain and sustain competitive advantage

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?

Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following?

a competitive advantage

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

a legitimate claim

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

economic responsibilities legal responsibilities

The expectations that society has toward business, in contrast to what society requires, result in which of the following elements of the pyramid of corporate social responsibility?

ethical responsibilities philanthropic responsibilities

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

interests and claims

The overall purpose of a firm's strategy is to

perform better than other companies in the same industry

Strategy is

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

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

What must a firm do after diagnosing its specific competitive challenge?

Create an effective guiding policy

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

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

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

second

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

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

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

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

first