Strategic Management Module 1

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

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

Burger Bomb has been outperforming other burger restaurants in recent years. This indicates that Burger Bomb has which of the following? a. A competitive advantage b. A superior product c. Strategic leadership d. A statistical advantage

a. A competitive advantage

Based on its long dominance as a coffeehouse chain, Starbucks has ______. a. a sustainable competitive advantage b. competitive parity c. an absolute advantage d. a competitive disadvantage

a. a sustainable competitive advantage

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society? a. corporate social responsibility b. strategic management framework c. AFI framework d. SWOT analysis

a. corporate social responsibility

Strategic positioning allows managers to Blank______. a. provide customers value while controlling costs b. eliminate competition in a given industry c. provide superior customer value regardless of costs d. balance foreign and domestic sales

a. provide customers value while controlling costs

Stakeholder impact analysis is a decision tool that helps a company do which of the following? a. Describe the role of functional managers in strategy formulation b. Act as a good corporate citizen c. Decide where to compete d. Achieve a competitive advantage

b. Act as a good corporate citizen d. Achieve a competitive advantage

What must a firm do after diagnosing its specific competitive challenge? a. Identify its primary competitors b. Create an effective guiding policy c. Implement a set of coherent actions d. Collect investments from stockholders

b. Create an effective guiding policy

In the Blank______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm. a. fifth b. second c. first d. fourth e. third

e. third

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

False

Which statement about strategies is true? a. A statement of desire on its own often leads to goal conflict. b. "We will be the best!" is an example of a strategy. c. Vision and mission statements cannot lay the foundation for good strategies. d. Statements of desire typically address economic fundamentals.

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

What is the first step in the AFI strategy framework? a. Analysis b. Acceptance c. Application d. Assurance

a. Analysis

Which of the following statements regarding tasks in the AFI strategy framework is true? a. The tasks are very interdependent. b. Only two of the tasks need to be followed for success. c. The tasks happen in sequence as separate steps. d. The tasks are interchangeable.

a. The tasks are very interdependent.

In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework. a. first b. fourth c. fifth d. third e. second

e. second

Which of the following questions are part of the five steps in stakeholder impact analysis? a. What are our stakeholders' interests and claims? b. What opportunities and threats do our stakeholders present? c. How can we gain maximum competitive advantage without taking our stakeholders into account? d. Who are our stakeholders? e. Which stakeholders have little to no power over us?

a. What are our stakeholders' interests and claims? b. What opportunities and threats do our stakeholders present? d. Who are our stakeholders?

Which of the following are primary strategy objectives? a. creating value b. strengthening relationships c. controlling costs d. maximizing sales

a. creating value c. controlling costs

Stakeholder impact analysis is a Blank______-step process that allows managers to better understand and address stakeholders' needs. a. five b. three c. four d. two

a. five

A competitive advantage that lasts for a long period of time is said to be Blank______. a. theoretical b. accurate c. geographic d. topical e. sustainable

e. sustainable

The third step of stakeholder impact analysis requires managers to identify the ______ presented by internal and external stakeholders. a. opportunities and threats b. stakeholder interests and opportunities c. social responsibilities and stakeholder interests d. threats and responsibilities

a. opportunities and threats

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 ______. a. strategy b. core values statement c. competitive parity d. vision

a. strategy

Which of the following topics should be considered during the analysis phase of the AFI framework? a. the external environment and associated challenges b. the firm's internal strengths and resources c. the firm's business model and competitive advantages d. the locations in the world where the firm should compete e. the role of strategic leadership and the strategy process

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

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? a. urgency b. legitimacy c. financial standing d. power

a. urgency b. legitimacy d. power

Which of the following elements of the pyramid of corporate social responsibility are required by society and shareholders? a. Ethical responsibilities b. Legal responsibilities c. Philanthropic responsibilities d. Economic responsibilities

b. Legal responsibilities d. Economic responsibilities

Which of the following questions are part of the five steps in stakeholder impact analysis? a. How can we gain maximum competitive advantage without taking our stakeholders into account? b. What opportunities and threats do our stakeholders present? c. Which stakeholders have little to no power over us? d. What are our stakeholders' interests and claims? e. Who are our stakeholders?

b. What opportunities and threats do our stakeholders present? d. What are our stakeholders' interests and claims? e. Who are our stakeholders?

When identifying stakeholders, a firm should focus on those stakeholders that Blank______. a. purchase and use its products b. currently have, or could potentially have, a material effect on the firm c. are directly involved with the production or distribution of the company's products d. can be ignored with no material impact to the firm

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

Which of the following elements of the pyramid of corporate social responsibilities are result from a society's expectations toward business? a. legal responsibilities b. ethical responsibilities c. philanthropic responsibilities d. economic responsibilities

b. ethical responsibilities c. philanthropic responsibilities

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? a. fourth b. first c. third d. second e. fifth

b. first

The stakeholders of a firm are Blank______. a. individuals or groups who own at least one share of a firm's stock b. individuals or groups that can affect and are affected by the actions of the firm c. only those who directly profit from a firm's success d. only those firms that contribute to the production and distribution of a company's products

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

What is the field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation? a. management of foundational behavior b. strategic management c. management of stakeholder impact d. human resources management

b. strategic management

What is the overall purpose of strategic management? a. Calculate parity performance measures b. Create competitive transparency c. Gain competitive advantage d. Respond to globalization e. Perform risk analysis

c. Gain competitive advantage

What is the overall purpose of a firm's strategy? a. Determine demand for new product ideas. b. Sell all existing inventory of a given product. c. Perform better than other companies in the same industry. d. Generate significant interest from foreign investors.

c. Perform better than other companies in the same industry.

Which of the following are the relationships that a firm has with stakeholders? a. The stakeholders generally have no interest in the firm. b. The firm controls the actions of stakeholders. c. The actions of the firm can affect stakeholders. d. Stakeholders can affect the firm's actions.

c. The actions of the firm can affect stakeholders. d. Stakeholders can affect the firm's actions.

A stakeholder has Blank______ when its needs are within the bounds of the law or are otherwise relevant to the firm. a. a false claim b. an urgent claim c. a legitimate claim d. power over a company

c. a legitimate claim

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ______. a. likelihood of bringing legal action against the firm b. entire investment portfolio c. interests and claims d. political and cultural affiliations

c. interests and claims

Effective guiding policy is supported by and stays consistent through the use of Blank______. a. grandiose statements b. social responsibilities c. strategic commitments d. trade-offs

c. strategic commitments

What is strategy? a. a decision based on external situational analysis b. a sustainable and dominant market share c. the set of actions a firm takes to achieve a competitive advantage d. a decision based on internal situational analysis

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

In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm. a. second b. fifth c. fourth d. third e. first

d. third

The concept, or framework, of corporate social ___________ guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.

responsibility

In the external analysis phase of the AFI strategy framework, what should managers ask? a. "What effects do internal resources, capabilities, and core competencies have on the firm's competitive advantage?" b. "What is the relationship between competitive advantage and firm performance?" c. "How does the firm make money? d. "How do external forces affect our strategy and competitive advantage?"

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