Question 1

What is the AFI strategy framework?

Accepted Answer

The AFI strategy framework is s model th

Question 2

Which of the following statements accurately describes corporate social responsibility (CSR)?

Accepted Answer

A)  CSR promotes the view that companies should single-mindedly focus on shareholders alone. 
B)  CSR is limited to the notion of encouraging businesses to "just be nice" to society. 
C)  CSR provides a conceptual model that more completely describes a society's expectations. 
D)  CSR is based on the tenet that the needs of both internal and external stakeholders are the same. 
A)  CSR promotes the view that companies should single-mindedly focus on shareholders alone. 
B)  CSR is limited to the notion of encouraging businesses to "just be nice" to society. 
C)  CSR provides a conceptual model that more completely describes a society's expectations. 
D)  CSR is based on the tenet that the needs of both internal and external stakeholders are the same.

Question 3

In stakeholder impact analysis, identifying the opportunities and threats presented by stakeholders is immediately followed by:

Accepted Answer

A)  recognizing the economic, legal, ethical, and philanthropic responsibilities of the firm to its stakeholders. 
B)  formulating the stakeholder strategy to address and effectively balance the different needs of various stakeholders. 
C)  identifying the interests and the claims of the stakeholders. 
D)  isolating the external stakeholders from the internal stakeholders. 
A)  recognizing the economic, legal, ethical, and philanthropic responsibilities of the firm to its stakeholders. 
B)  formulating the stakeholder strategy to address and effectively balance the different needs of various stakeholders. 
C)  identifying the interests and the claims of the stakeholders. 
D)  isolating the external stakeholders from the internal stakeholders.

Question 4

A firm's stakeholder strategy primarily allows the firm to:

Accepted Answer

A)  analyze and manage how various external and internal stakeholders interact to jointly create and trade value. 
B)  effectively isolate its internal stakeholders (like shareholders and employees) from its external stakeholders (like customers and media). 
C)  transfer the contributions external stakeholders make into benefits for the internal stakeholders. 
D)  facilitate the development of a competitive relationship between its internal and external stakeholders. 
A)  analyze and manage how various external and internal stakeholders interact to jointly create and trade value. 
B)  effectively isolate its internal stakeholders (like shareholders and employees) from its external stakeholders (like customers and media). 
C)  transfer the contributions external stakeholders make into benefits for the internal stakeholders. 
D)  facilitate the development of a competitive relationship between its internal and external stakeholders.

Question 5

In terms of the relationship between individual firms and society at large, why was HP not able to sustain its competitive advantage?

Accepted Answer

Once a leading technology company, Hewle

Question 6

Derek, a retired CEO, invests capital in a start-up company that creates mobile applications.He mentors the entrepreneur and the employees of the company because he wants the company to perform well and survive in the market.Thus, Derek is the start-up company's _____.

Accepted Answer

A)  headhunter 
B)  category captain 
C)  employee 
D)  stakeholder 
A)  headhunter 
B)  category captain 
C)  employee 
D)  stakeholder

Question 7

TakeFlight Airways is a new entrant to the airline industry.While most of its competitors are pursuing a cost-leadership strategy, TakeFlight Airways has decided to execute a differentiation strategy.Which of the following is the most likely implication of this decision?

Accepted Answer

A)  TakeFlight Airways will not gain a competitive advantage in the airline industry. 
B)  TakeFlight Airways will gain a competitive advantage by reducing its prices. 
C)  TakeFlight Airways will face low profit potential by pursuing a different strategy. 
D)  TakeFlight Airways will create value for customers by delivering unique features. 
A)  TakeFlight Airways will not gain a competitive advantage in the airline industry. 
B)  TakeFlight Airways will gain a competitive advantage by reducing its prices. 
C)  TakeFlight Airways will face low profit potential by pursuing a different strategy. 
D)  TakeFlight Airways will create value for customers by delivering unique features.

Question 8

Due to several black swan events in the past, the:

Accepted Answer

A)  shareholders of public companies have become more confident in investing their resources in businesses. 
B)  need for corporate governance and transparency has reduced within various industries. 
C)  nations around the globe have explicitly appreciated and accepted capitalism as an economic system. 
D)  implicit trust relationship between the corporate world and society at large has deteriorated. 
A)  shareholders of public companies have become more confident in investing their resources in businesses. 
B)  need for corporate governance and transparency has reduced within various industries. 
C)  nations around the globe have explicitly appreciated and accepted capitalism as an economic system. 
D)  implicit trust relationship between the corporate world and society at large has deteriorated.

Question 9

Which of the following scenarios best illustrates a good stakeholder strategy?

Accepted Answer

A)  VP Inc. follows a strategy in which maximization of the shareholders wealth is the primary concern of the managers. 
B)  Carrvero Inc. ensures that its employees are paid the least in the industry so that its external stakeholders can get the best price. 
C)  PA Corp. distributes only 70 percent of its annual profit after tax to shareholders, while the remaining is distributed among employees and the local community, and invested for further research. 
D)  Gen Pharma Corp. ensures that it fully exploits free natural resources, so that most of its profits go to shareholders in the form of dividends. 
A)  VP Inc. follows a strategy in which maximization of the shareholders wealth is the primary concern of the managers. 
B)  Carrvero Inc. ensures that its employees are paid the least in the industry so that its external stakeholders can get the best price. 
C)  PA Corp. distributes only 70 percent of its annual profit after tax to shareholders, while the remaining is distributed among employees and the local community, and invested for further research. 
D)  Gen Pharma Corp. ensures that it fully exploits free natural resources, so that most of its profits go to shareholders in the form of dividends.

Question 10

Which of the following statements is true of the social responsibilities of a business?

Accepted Answer

A)  A firm's ethical responsibilities go beyond its legal responsibilities. 
B)  Shareholders mandatorily require a firm to perform its ethical and philanthropic responsibilities. 
C)  Ethical responsibilities are the foundational building block of a firm's social responsibility. 
D)  Legal responsibilities are often subsumed under the idea of corporate citizenship, reflecting the notion of voluntarily giving back to society. 
A)  A firm's ethical responsibilities go beyond its legal responsibilities. 
B)  Shareholders mandatorily require a firm to perform its ethical and philanthropic responsibilities. 
C)  Ethical responsibilities are the foundational building block of a firm's social responsibility. 
D)  Legal responsibilities are often subsumed under the idea of corporate citizenship, reflecting the notion of voluntarily giving back to society.

Question 11

FindFor Inc.is an e-commerce retail firm that sells a variety of merchandise online.Through services like cash on delivery, easy return, and online tracking, the company has created more customer value than its competitors (brick-and-mortar businesses)at the same price.Also, the company's costs are substantially low due to minimal investment in operation and administration.In this scenario, FindFor Inc.has most likely been able to provide superior value and cost control through _____.

Accepted Answer

A)  strategic parity 
B)  strategic profiling 
C)  strategic liquidation 
D)  strategic positioning 
A)  strategic parity 
B)  strategic profiling 
C)  strategic liquidation 
D)  strategic positioning

Question 12

In the final step of the stakeholder impact analysis, a firm:

Accepted Answer

A)  identifies its stakeholders' interests and claims. 
B)  differentiates its internal stakeholders from its external stakeholders. 
C)  recognizes the opportunities and threats stakeholders present. 
D)  decides a course of action to address the stakeholders' concerns. 
A)  identifies its stakeholders' interests and claims. 
B)  differentiates its internal stakeholders from its external stakeholders. 
C)  recognizes the opportunities and threats stakeholders present. 
D)  decides a course of action to address the stakeholders' concerns.

Question 13

Which of the following factors most effectively contributed to the success of JetBlue airlines in comparison to other airlines like Delta, United, or American?

Accepted Answer

A)  Its point-to-point business model 
B)  Its reliance on outsourcing 
C)  Its hub-and-spoke system 
D)  Its shorter distances 
A)  Its point-to-point business model 
B)  Its reliance on outsourcing 
C)  Its hub-and-spoke system 
D)  Its shorter distances

Question 14

How can a firm gain and sustain competitive advantage.Elaborate.

Accepted Answer

To gain a competitive advantage, a firm

Question 15

Which of the following is an example of a firm's external stakeholder?

Accepted Answer

A)  Employees 
B)  Customers 
C)  Shareholders 
D)  Board members 
A)  Employees 
B)  Customers 
C)  Shareholders 
D)  Board members

Question 16

A firm is said to gain a competitive advantage when it can:

Accepted Answer

A)  exceed its own previous performances. 
B)  provide products similar to its competitors, but at lower prices. 
C)  perform at the same level as that of its competitors. 
D)  minimize the difference between value creation and cost. 
A)  exceed its own previous performances. 
B)  provide products similar to its competitors, but at lower prices. 
C)  perform at the same level as that of its competitors. 
D)  minimize the difference between value creation and cost.

Question 17

KD Inc.has decided to integrate a cost-leadership strategy with a differentiation strategy.The management believes this will help the company provide the best value to its customers and shareholders.Why is this decision to combine different business strategies NOT an effective way to gain and sustain a competitive advantage?

Accepted Answer

Strategic positioning requires trade-off

Question 18

The board at Unicore Systems Corp.has decided to allocate 20 percent of the company's shares to its workforce, at a discounted price.Apart from being a valued investment, the plan will allow the employees to take personal responsibility for the firm's performance.Which of the following employee incentive schemes does this best illustrate?

Accepted Answer

A)  Employee provident fund 
B)  Employee gratuity fund 
C)  Employee stock ownership plan 
D)  Employee emergency loan program 
A)  Employee provident fund 
B)  Employee gratuity fund 
C)  Employee stock ownership plan 
D)  Employee emergency loan program

Question 19

Which of the following best qualifies as a firm's internal stakeholder?

Accepted Answer

A)  An auditor assigned to the firm by a federal government agency 
B)  A labor union with whom the firm's employees can affiliate 
C)  A manager taking care of the firm's operations in a foreign market 
D)  A competitor manufacturing the same products as that of the firm 
A)  An auditor assigned to the firm by a federal government agency 
B)  A labor union with whom the firm's employees can affiliate 
C)  A manager taking care of the firm's operations in a foreign market 
D)  A competitor manufacturing the same products as that of the firm

Question 20

What are the factors that determine firm performance?

Accepted Answer

Firm performance is determined primarily

What is the AFI strategy framework?

Which of the following statements accurately describes corporate social responsibility (CSR)?

In stakeholder impact analysis, identifying the opportunities and threats presented by stakeholders is immediately followed by:

A firm's stakeholder strategy primarily allows the firm to:

In terms of the relationship between individual firms and society at large, why was HP not able to sustain its competitive advantage?

Derek, a retired CEO, invests capital in a start-up company that creates mobile applications.He mentors the entrepreneur and the employees of the company because he wants the company to perform well and survive in the market.Thus, Derek is the start-up company's _____.

TakeFlight Airways is a new entrant to the airline industry.While most of its competitors are pursuing a cost-leadership strategy, TakeFlight Airways has decided to execute a differentiation strategy.Which of the following is the most likely implication of this decision?

Due to several black swan events in the past, the:

Which of the following scenarios best illustrates a good stakeholder strategy?

Which of the following statements is true of the social responsibilities of a business?

In the final step of the stakeholder impact analysis, a firm:

Which of the following factors most effectively contributed to the success of JetBlue airlines in comparison to other airlines like Delta, United, or American?

How can a firm gain and sustain competitive advantage.Elaborate.

Which of the following is an example of a firm's external stakeholder?

A firm is said to gain a competitive advantage when it can:

Which of the following best qualifies as a firm's internal stakeholder?

What are the factors that determine firm performance?

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

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Exam 1: What Is Strategy

What is the AFI strategy framework?

Which of the following statements accurately describes corporate social responsibility (CSR)?

In stakeholder impact analysis, identifying the opportunities and threats presented by stakeholders is immediately followed by:

A firm's stakeholder strategy primarily allows the firm to:

In terms of the relationship between individual firms and society at large, why was HP not able to sustain its competitive advantage?

Derek, a retired CEO, invests capital in a start-up company that creates mobile applications.He mentors the entrepreneur and the employees of the company because he wants the company to perform well and survive in the market.Thus, Derek is the start-up company's _____.

TakeFlight Airways is a new entrant to the airline industry.While most of its competitors are pursuing a cost-leadership strategy, TakeFlight Airways has decided to execute a differentiation strategy.Which of the following is the most likely implication of this decision?

Due to several black swan events in the past, the:

Which of the following scenarios best illustrates a good stakeholder strategy?

Which of the following statements is true of the social responsibilities of a business?

In the final step of the stakeholder impact analysis, a firm:

Which of the following factors most effectively contributed to the success of JetBlue airlines in comparison to other airlines like Delta, United, or American?

How can a firm gain and sustain competitive advantage.Elaborate.

Which of the following is an example of a firm's external stakeholder?

A firm is said to gain a competitive advantage when it can:

Which of the following best qualifies as a firm's internal stakeholder?

What are the factors that determine firm performance?

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters