Question 1

In _____,a firm frames a guiding policy to address the competitive challenge.

Accepted Answer

A)   strategy control
B)   strategy implementation
C)   strategy formulation
D)   strategy analysisE) B) and D)
F) B) and C)

Question 2

The Scoop,Ltd.is a magazine publishing company whose average return on invested capital is approximately 5 percent.Because magazine publishing is a declining industry,the industry average has been negative (-5 percent) for the last few years.In this scenario,The Scoop Ltd.has a

Accepted Answer

A)   competitive advantage.
B)   balanced scorecard.
C)   competitive disadvantage.
D)   power position.E) B) and D)
F) B) and C)

Question 3

Why is strategy considered to be the science of success and failure?

Accepted Answer

A)   Strategies can ensure the exact outcome of all business ventures undertaken.
B)   Strategies use extensive research by a variety of scientists.
C)   Strategies require a large amount of thinking and planning.
D)   Strategies use principles that can be applied universally to all organizations.E) None of the above
F) B) and C)

Question 4

Underperformance relative to other firms in the same industry or the industry average results in a(n) _____ for a firm.

Accepted Answer

A)   sustainable competitive advantage
B)   increased power distance
C)   diseconomies of scope
D)   competitive disadvantageE) None of the above
F) B) and D)

Question 5

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) All of the above
F) None of the above

Question 6

After a firm has identified its key stakeholders in stakeholder impact analysis,the immediate next step is to

Accepted Answer

A)   recognize the opportunities and threats the stakeholders present.
B)   identify stakeholders' interests and claims.
C)   formulate a stakeholder strategy.
D)   address the stakeholders' concerns.E) A) and D)
F) All of the above

Question 7

A firm's economic responsibilities are primarily directed toward

Accepted Answer

A)   minimizing shareholders' wealth.
B)   acting as a good corporate citizen.
C)   doing what is right, just, and fair.
D)   gaining and sustaining competitive advantage.E) All of the above
F) B) and D)

Question 8

Which of the following statements should ideally reflect a firm's strategy for competitive advantage?

Accepted Answer

A)   Our strategy is to win at any cost.
B)   We will be number one in the industry.
C)   Our aim is to create superior customer value while controlling costs.
D)   We want to be the market leader by replicating our competitor's strategy.E) A) and B)
F) B) and D)

Question 9

_____ provides a decision tool that enables a firm to act as a good corporate citizen by allowing its managers to recognize,prioritize,and address the needs of different groups of individuals who take personal interest in the firm's performance and survival.

Accepted Answer

A)   Strategy analysis
B)   Stakeholder impact analysis
C)   The SWOT analysis
D)   Strategic positioningE) B) and D)
F) C) and D)

Question 10

Which of the following is an example of a firm's internal stakeholders?

Accepted Answer

A)   customers
B)   creditors
C)   stockholders
D)   suppliersE) A) and D)
F) B) and D)

Question 11

Which of the following tasks in the AFI strategy framework involves putting the formulated strategy into practice through organizational structure,culture,and controls?

Accepted Answer

A)   strategy formulation
B)   strategy implementation
C)   strategy analysis
D)   strategy evaluationE) A) and B)
F) A) and C)

Question 12

The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7.StoreAll Inc.manufactures the same product for $3 per bottle and sells it for $7 per bottle.Which of the following statements is most likely true of StoreAll Inc.in this scenario?

Accepted Answer

A)   It has a competitive advantage in the industry.
B)   It has a competitive disadvantage in the industry.
C)   It has competitive parity with other firms in the industry.
D)   It has formed a strategic alliance with other firms in the industry.E) None of the above
F) C) and D)

Question 13

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 D)
F) C) and D)

Question 14

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 C)
F) A) and C)

Question 15

Stakeholder strategy is an integrative approach to managing a diverse set of stakeholders effectively in order to

Accepted Answer

A)   single-mindedly focus on the stockholders alone.
B)   gain and sustain competitive advantage.
C)   minimize the joint value created.
D)   minimize the difference between value creation and cost.E) A) and C)
F) None of the above

Question 16

The society and shareholders mandatorily require a firm to perform its _____ responsibilities.

Accepted Answer

A)   ethical
B)   philanthropic
C)   legal
D)   politicalE) C) and D)
F) B) and D)

Question 17

The _____ is a model that links strategy analysis,strategy formulation,and strategy implementation,which together helps managers plan and implement a strategy that can improve performance and result in competitive advantage.

Accepted Answer

A)   Ansoff's growth strategy matrix
B)   AFI strategy framework
C)   Sarbanes-Oxley Act
D)   stakeholder impact analysisE) A) and C)
F) A) and B)

Question 18

In the United States,which of the following was born out of dissatisfaction with the capitalist system in 2011?

Accepted Answer

A)   the Sarbanes-Oxley Act
B)   the Occupy movement
C)   the Tea Party movement
D)   the Taft-Hartley ActE) None of the above
F) All of the above

Question 19

Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?

Accepted Answer

A)   No firm would face direct competition from others in the industry; hence, profit potential would be high.
B)   Each firm would be catering to a different customer segment.
C)   The firms would eventually have no resources to invest in product and process improvements.
D)   Each firm would be in a better position to gain a competitive advantage.E) A) and D)
F) A) and B)

Question 20

Which of the following factors most effectively contributed to the success of Threadless in comparison to other companies with T-shirt designs,including American Eagle,Old Navy,and Urban Outfitters?

Accepted Answer

A)   its reliance on crowdsourcing
B)   its point-to-point business model
C)   its hub-and-spoke system
D)   its shorter distancesE) B) and D)
F) A) and B)

Exam 1: What Is Strategy

Which of the following is an example of a firm's internal stakeholders?

Correct AnswerverifiedShow Answer

The _____ is a model that links strategy analysis,strategy formulation,and strategy implementation,which together helps managers plan and implement a strategy that can improve performance and result in competitive advantage.

Correct AnswerverifiedShow Answer

In _____,a firm frames a guiding policy to address the competitive challenge.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm's economic responsibilities are primarily directed toward

Correct AnswerverifiedShow Answer

Which of the following tasks in the AFI strategy framework involves putting the formulated strategy into practice through organizational structure,culture,and controls?

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

Which of the following factors most effectively contributed to the success of Threadless in comparison to other companies with T-shirt designs,including American Eagle,Old Navy,and Urban Outfitters?

Correct AnswerverifiedShow Answer

_____ provides a decision tool that enables a firm to act as a good corporate citizen by allowing its managers to recognize,prioritize,and address the needs of different groups of individuals who take personal interest in the firm's performance and survival.

Correct AnswerverifiedShow Answer

Which of the following statements should ideally reflect a firm's strategy for competitive advantage?

Correct AnswerverifiedShow Answer

Stakeholder strategy is an integrative approach to managing a diverse set of stakeholders effectively in order to

Correct AnswerverifiedShow Answer

The Scoop,Ltd.is a magazine publishing company whose average return on invested capital is approximately 5 percent.Because magazine publishing is a declining industry,the industry average has been negative (-5 percent) for the last few years.In this scenario,The Scoop Ltd.has a

Correct AnswerverifiedShow Answer

The society and shareholders mandatorily require a firm to perform its _____ responsibilities.

Correct AnswerverifiedShow Answer

The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7.StoreAll Inc.manufactures the same product for $3 per bottle and sells it for $7 per bottle.Which of the following statements is most likely true of StoreAll Inc.in this scenario?

Correct AnswerverifiedShow Answer

In the United States,which of the following was born out of dissatisfaction with the capitalist system in 2011?

Correct AnswerverifiedShow Answer

Underperformance relative to other firms in the same industry or the industry average results in a(n) _____ for a firm.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

After a firm has identified its key stakeholders in stakeholder impact analysis,the immediate next step is to

Correct AnswerverifiedShow Answer

Why is strategy considered to be the science of success and failure?

Correct AnswerverifiedShow Answer

Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?

Correct AnswerverifiedShow Answer

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