Question 1

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n) _____.

Accepted Answer

A)   competitive advantage
B)   balanced scorecard
C)   power position
D)   equity leverageE) B) and C)
F) All of the above

Question 2

Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments?

Accepted Answer

A)   Strategy analysis
B)   Strategy implementation
C)   Strategy formulation
D)   Strategy controlE) A) and B)
F) A) and C)

Question 3

Pink Couture Inc.and Pink Blush Inc.are two companies in the apparel industry.While Pink Couture Inc.focuses on providing unique product features and superior customer service, Pink Blush Inc.focuses on low prices and minimal customer service.Both companies have been able to gain a competitive advantage.This is most likely because:

Accepted Answer

A)   the companies have executed integrated strategies.
B)   the companies have entered into a cartel arrangement.
C)   the companies have pursued distinct strategic positions.
D)   the companies have engaged in direct imitation and substitution.E) None of the above
F) B) and C)

Question 4

During strategy implementation, managers primarily focus on deciding the:

Accepted Answer

A)   type of corporate governance that is most effective and ways in which it can put the formulated strategy into practice.
B)   industries and markets the firm should compete in to be able to gain and sustain a competitive advantage.
C)   relationship between competitive advantage and firm performance.
D)   role strategic leaders should play in gaining and sustaining a competitive advantage.E) None of the above
F) All of the above

Question 5

For a strategist, which of the following is NOT an implication of effective strategic management?

Accepted Answer

A)   The difference between a firm's success and failure lies in its strategy.
B)   The principles of strategic management can be applied universally to all organizations.
C)   A firm's performance is determined by a set of independent factors, which includes firm and industry effects.
D)   It is necessary to maintain an awareness of key stakeholders and how they can affect or be affected by managerial actions.E) B) and D)
F) A) and D)

Question 6

Rachel owns a large portion of GM Cube Inc.'s stocks.However, she is not employed by the company.In this scenario, Rachel is the company's _____.

Accepted Answer

A)   external stakeholder
B)   internal stakeholder
C)   creditor
D)   customerE) B) and D)
F) None of the above

Question 7

What is the relationship between economic contribution and competitive advantage?

Accepted Answer

Strategy is about creating superior valu...

Question 8

The U.S.government legitimized claims by thousands of businesses and individuals in the aftermath of the BP oil spill in the Gulf of Mexico, causing the claims to become of great urgency to BP.This best represents the process of _____.

Accepted Answer

A)   addressing stakeholder concerns
B)   identifying stakeholders
C)   establishing competitive parity
D)   implementing a cost-leadership strategyE) B) and D)
F) B) and C)

Question 9

If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

Accepted Answer

A)   Comparing the return to the return on invested capital obtained by other firms in the industry
B)   Assessing the value based on the shareholders' expectations of return on their capital
C)   Evaluating the liquidity ratios for other pharmaceutical companies
D)   Comparing the value to the history of the firm's return of investment over a number of yearsE) B) and D)
F) A) and C)

Question 10

Which of the following is NOT a stakeholder attribute that managers consider during stakeholder impact analysis?

Accepted Answer

A)   A stakeholder's power
B)   A stakeholder's legitimate claim
C)   A stakeholder's urgent claim
D)   A stakeholder's liquidityE) B) and D)
F) A) and D)

Question 11

Through _____, a firm puts its guiding policy into practice by employing a set of coherent actions.

Accepted Answer

A)   strategy control
B)   strategy implementation
C)   strategy formulation
D)   strategy analysisE) B) and C)
F) None of the above

Question 12

Sun Inc., a vendor, regularly supplies pallets to Octangle Corp.for its shipping business.Therefore, Sun Inc.is Octangle Corp.'s _____.

Accepted Answer

A)   internal stakeholder
B)   stockholder
C)   shareholder
D)   external stakeholderE) B) and D)
F) A) and D)

Question 13

How can effective stakeholder management benefit firm performance?

Accepted Answer

Effective stakeholder management can ben...

Question 14

In a firm, a strategist's job should be to:

Accepted Answer

A)   limit the participation of external stakeholders-customers and suppliers-in value creation.
B)   isolate the firm's internal stakeholders from its external stakeholders.
C)   focus solely, in a single-minded manner, on maximizing shareholder wealth.
D)   understand the complex web of exchange relationships among different stakeholders.E) C) and D)
F) None of the above

Question 15

Why is it important for firms in the same industry to choose distinct but different strategic positions?

Accepted Answer

In strategic positioning, firms stake ou...

Question 16

The past black swan events in the United States demonstrate that:

Accepted Answer

A)   managerial actions can affect the economic well-being of large numbers of people around the globe.
B)   decisions and strategies implemented within a firm will only affect the firm and not the entire industry.
C)   corporate governance is unnecessary as firms are becoming socially responsible.
D)   industry effects are more important than firm effects in determining firm performance.E) B) and C)
F) C) and D)

Question 17

Pure Food Inc., a multinational company, relies on its media partner Radio Ex to regularly advertise its offers, sales, and new products.Radio Ex is invested in this relationship because it generates most of its revenue from advertising Pure Food's products.In this scenario, Radio Ex is Pure Food Inc.'s _____.

Accepted Answer

A)   stockholder
B)   workforce
C)   internal stakeholder
D)   external stakeholderE) A) and B)
F) A) and C)

Question 18

According to AFI strategy framework, in which of the following tasks of strategic management is a firm's vision, mission, and values identified?

Accepted Answer

A)   Strategy control
B)   Strategy analysis
C)   Strategy formulation
D)   Strategy implementationE) A) and B)
F) None of the above

Question 19

Which of the following was a key driver in the Occupy movement of 2011?

Accepted Answer

A)   The need for a capitalist economic system
B)   The issue of income disparity
C)   The need to reduce government intervention in businesses
D)   The issue related to dumping of cheap foreign productsE) A) and B)
F) A) and C)

Question 20

RedSteel Corp.has been able to gain and sustain a competitive advantage due to its strong relationship with its employees, customers, suppliers, and local communities.The company believes in lifetime employment and ensures that its employees grow along with the company.Investors are more than satisfied with the returns on their investments.Also, 3 percent of the company's profit is spent on community development.With initiatives like these, customers feel privileged to associate themselves with RedSteel products.This scenario best illustrates the implementation of a _____.

Accepted Answer

A)   strategic analysis
B)   stakeholder strategy
C)   wild card event
D)   black swan eventE) B) and C)
F) B) and D)

Exam 1: What Is Strategy

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n) _____.

Correct Answer
verified

The U.S.government legitimized claims by thousands of businesses and individuals in the aftermath of the BP oil spill in the Gulf of Mexico, causing the claims to become of great urgency to BP.This best represents the process of _____.

Correct Answer
verified

How can effective stakeholder management benefit firm performance?

Correct Answer
verified
Effective stakeholder management can ben...
View Answer

Correct Answer
verified

Sun Inc., a vendor, regularly supplies pallets to Octangle Corp.for its shipping business.Therefore, Sun Inc.is Octangle Corp.'s _____.

Correct Answer
verified

If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

Correct Answer
verified

Rachel owns a large portion of GM Cube Inc.'s stocks.However, she is not employed by the company.In this scenario, Rachel is the company's _____.

Correct Answer
verified

Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following was a key driver in the Occupy movement of 2011?

Correct Answer
verified

Through _____, a firm puts its guiding policy into practice by employing a set of coherent actions.

Correct Answer
verified

What is the relationship between economic contribution and competitive advantage?

Correct Answer
verified
Strategy is about creating superior valu...
View Answer

According to AFI strategy framework, in which of the following tasks of strategic management is a firm's vision, mission, and values identified?

Correct Answer
verified

Which of the following is NOT a stakeholder attribute that managers consider during stakeholder impact analysis?

Correct Answer
verified

In a firm, a strategist's job should be to:

Correct Answer
verified

Why is it important for firms in the same industry to choose distinct but different strategic positions?

Correct Answer
verified
In strategic positioning, firms stake ou...
View Answer

The past black swan events in the United States demonstrate that:

Correct Answer
verified

During strategy implementation, managers primarily focus on deciding the:

Correct Answer
verified

For a strategist, which of the following is NOT an implication of effective strategic management?

Correct Answer
verified

Exam 1: What Is Strategy

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n) _____.

Correct AnswerverifiedShow Answer

The U.S.government legitimized claims by thousands of businesses and individuals in the aftermath of the BP oil spill in the Gulf of Mexico, causing the claims to become of great urgency to BP.This best represents the process of _____.

Correct AnswerverifiedShow Answer

How can effective stakeholder management benefit firm performance?

Correct AnswerverifiedEffective stakeholder management can ben...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Sun Inc., a vendor, regularly supplies pallets to Octangle Corp.for its shipping business.Therefore, Sun Inc.is Octangle Corp.'s _____.

Correct AnswerverifiedShow Answer

If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

Correct AnswerverifiedShow Answer

Rachel owns a large portion of GM Cube Inc.'s stocks.However, she is not employed by the company.In this scenario, Rachel is the company's _____.

Correct AnswerverifiedShow Answer

Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following was a key driver in the Occupy movement of 2011?

Correct AnswerverifiedShow Answer

Through _____, a firm puts its guiding policy into practice by employing a set of coherent actions.

Correct AnswerverifiedShow Answer

What is the relationship between economic contribution and competitive advantage?

Correct AnswerverifiedStrategy is about creating superior valu...View AnswerShow Answer

According to AFI strategy framework, in which of the following tasks of strategic management is a firm's vision, mission, and values identified?

Correct AnswerverifiedShow Answer

Which of the following is NOT a stakeholder attribute that managers consider during stakeholder impact analysis?

Correct AnswerverifiedShow Answer

In a firm, a strategist's job should be to:

Correct AnswerverifiedShow Answer

Why is it important for firms in the same industry to choose distinct but different strategic positions?

Correct AnswerverifiedIn strategic positioning, firms stake ou...View AnswerShow Answer

The past black swan events in the United States demonstrate that:

Correct AnswerverifiedShow Answer

During strategy implementation, managers primarily focus on deciding the:

Correct AnswerverifiedShow Answer

For a strategist, which of the following is NOT an implication of effective strategic management?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Effective stakeholder management can ben...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Strategy is about creating superior valu...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In strategic positioning, firms stake ou...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified