Exam 1: What Is Strategy

You are the manager in charge of setting the strategy for a new frozen yogurt company. Which of the following questions would be appropriate for you to ask during the analysis phase of the AFI strategy framework?

Cobalt Sodas has seen its market share erode in recent years, as consumers increasingly turn toward healthier beverage choices such as unsweetened sparkling water. Hoping to rekindle interest in sugary sodas, Cobalt decides to produce a limited run of "throwback" cans using labeling first introduced in the 1980s. What is wrong with this strategy?

For a firm that operates in an industry where competition is high, which of the following practices will result in inferior performance?

Managers use the AFI strategy framework to

To be effective, firms need to

How do strong ethical values benefit a firm?

What is the relationship between economic contribution and competitive advantage?

The management of Toshi Manufacturing showed a commitment to ________ by increasing the salary of many female employees to meet its goal of having equal pay for women and men who perform comparable work.

Managers should create two sets of core values, one for employees and one for themselves.

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

During an AFI planning session, the managers of the Fukuhara Motorcycle Corporation decided to place various stages of production in different countries in order to implement the strategy of cutting overhead costs. By doing this, what issue did the firm address?

When do employees fail to adopt the organizational values of a firm?

Questions asked during the strategy analysis stage of the AFI framework include "How does the firm make money?" and "What effects do forces in the external environment have on the firm's potential to gain and sustain a competitive advantage?"

If a company wants to gain a competitive advantage in a highly competitive industry, it should ideally

Which of the following summarizes the difference between a firm's vision and mission?

In the AFI strategy framework, strategy analysis primarily involves

Rapida Inc. and Click Inc. are two companies that have been manufacturing typewriters for almost 30 years. Due to the reduced demand for typewriters today, both companies' average return on invested capital is approximately -5 percent. The current industry average is 2 percent. In this scenario, Rapida Inc. and Click Inc. most likely have

Which of the following is a customer-oriented vision?

Describe the three broad tasks of the AFI strategy framework and provide examples of the topics and questions that managers address in relation to each task.

Core values provide ethical guidelines for how individual employees will behave.