Question 1

Industry effects describe the underlying _____ structure of the industry.

Accepted Answer

A)  demographic 
B)  economic 
C)  psychographic 
D)  ethnographic 
A)  demographic 
B)  economic 
C)  psychographic 
D)  ethnographic

Question 2

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

Accepted Answer

A)  Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000. 
B)  CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's sales of 5,000 units, though the industry average is 10,000 units. 
C)  Zhang Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years. 
D)  Peak Inc. was able to outperform its competitors with its new production system, in terms of revenue, for a brief period of four months. 
A)  Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000. 
B)  CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's sales of 5,000 units, though the industry average is 10,000 units. 
C)  Zhang Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years. 
D)  Peak Inc. was able to outperform its competitors with its new production system, in terms of revenue, for a brief period of four months.

Question 3

Which of following practices of a firm satisfies its ethical responsibilities?

Accepted Answer

A)  using plastic as the packaging material though it is harmful to the environment, yet legal 
B)  outsourcing production to a less developed country and paying wages that are below its own country's accepted minimum wages 
C)  using advertising and other forms of promotion to endorse luxurious lifestyles 
D)  selling vaccines at a subsidized price in a less developed country even though this results in reduced shareholder returns 
A)  using plastic as the packaging material though it is harmful to the environment, yet legal 
B)  outsourcing production to a less developed country and paying wages that are below its own country's accepted minimum wages 
C)  using advertising and other forms of promotion to endorse luxurious lifestyles 
D)  selling vaccines at a subsidized price in a less developed country even though this results in reduced shareholder returns

Question 4

Which of the following is the most accurate description of stakeholder impact analysis?

Accepted Answer

A)  a decision tool with which managers can recognize the needs of different stakeholders 
B)  a decision tool with which managers can recognize black swans 
C)  a decision tool that emphasizes competitive advantage over corporate citizenship 
D)  a decision tool that emphasizes using the three-step process 
A)  a decision tool with which managers can recognize the needs of different stakeholders 
B)  a decision tool with which managers can recognize black swans 
C)  a decision tool that emphasizes competitive advantage over corporate citizenship 
D)  a decision tool that emphasizes using the three-step process

Question 5

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 6

Which of the following is not an example of a software company's external stakeholder?

Accepted Answer

A)  creditors 
B)  customers 
C)  alliance partners 
D)  project managers 
A)  creditors 
B)  customers 
C)  alliance partners 
D)  project managers

Question 7

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

Accepted Answer

A)  choosing a distinct but different strategic position in the industry 
B)  working toward increasing the difference between value creation and cost 
C)  trying to be everything to everybody by combining different competitive strategies 
D)  focusing on creating value for customers rather than destroying rivals 
A)  choosing a distinct but different strategic position in the industry 
B)  working toward increasing the difference between value creation and cost 
C)  trying to be everything to everybody by combining different competitive strategies 
D)  focusing on creating value for customers rather than destroying rivals

Question 8

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. 
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.

Question 9

Which of the following is step 3 in the five-step process of stakeholder impact analysis?

Accepted Answer

A)  identifying the most powerful stakeholders (both internal and external) and their needs 
B)  identifying the stakeholders' interests and claims 
C)  identifying the opportunities and threats the stakeholders present 
D)  identifying the social responsibilities of the firm toward its stakeholders 
A)  identifying the most powerful stakeholders (both internal and external) and their needs 
B)  identifying the stakeholders' interests and claims 
C)  identifying the opportunities and threats the stakeholders present 
D)  identifying the social responsibilities of the firm toward its stakeholders

Question 10

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 strategy. 
A)  addressing stakeholder concerns. 
B)  identifying stakeholders. 
C)  establishing competitive parity. 
D)  implementing a cost-leadership strategy.

Question 11

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

Accepted Answer

A)  VP Inc. follows a strategy in which maximization of the shareholder's 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 taxes 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 shareholder's 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 taxes 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 12

Silver Screen Cinemas Inc.and Digi Now Inc.are two companies that own and run movie theaters in malls and other commercial areas.While Silver Screen Cinemas Inc.pursues a cost-leadership strategy,Digi Now Inc.adopts a differentiation strategy.Which of the following statements is most likely true of this scenario?

Accepted Answer

A)  Silver Screen Cinemas will charge a premium price for its customers, while Digi Now will implement everyday low pricing. 
B)  Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little. 
C)  Digi Now will keep its customer service at an acceptable level, while Silver Screen Cinemas will provide superior customer service. 
D)  Silver Screen Cinemas and Digi Now will use a similar approach to create value for customers by attempting to offer everything to everybody. 
A)  Silver Screen Cinemas will charge a premium price for its customers, while Digi Now will implement everyday low pricing. 
B)  Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little. 
C)  Digi Now will keep its customer service at an acceptable level, while Silver Screen Cinemas will provide superior customer service. 
D)  Silver Screen Cinemas and Digi Now will use a similar approach to create value for customers by attempting to offer everything to everybody.

Question 13

In 2010,an explosion of a BP oil drill resulted in the deaths of 11 workers and the largest environmental disaster in U.S.history.The BP CEO was fired because of his ineffective handling of the crisis.The CEO lost his job because he failed to uphold _____ responsibilities.

Accepted Answer

A)  economic 
B)  legal 
C)  ethical 
D)  philanthropic 
A)  economic 
B)  legal 
C)  ethical 
D)  philanthropic

Question 14

Hewlett-Packard was not able to maintain its competitive advantage because it did not

Accepted Answer

A)  produce high-quality products at a low price. 
B)  allow the freedom to explore new ideas. 
C)  provide lifetime employment and generous benefits for employees. 
D)  effectively address the challenges of mobile computing. 
A)  produce high-quality products at a low price. 
B)  allow the freedom to explore new ideas. 
C)  provide lifetime employment and generous benefits for employees. 
D)  effectively address the challenges of mobile computing.

Question 15

A company wants to determine how industry effects have affected its profitability.Which of the following elements should the company focus on?

Accepted Answer

A)  the barriers to entry and exit within the industry 
B)  the pricing method opted by the managers to face competition within the industry 
C)  the brand strategy the managers adopt to establish the firm in the industry 
D)  the strategic position the firm pursues within the industry 
A)  the barriers to entry and exit within the industry 
B)  the pricing method opted by the managers to face competition within the industry 
C)  the brand strategy the managers adopt to establish the firm in the industry 
D)  the strategic position the firm pursues within the industry

Question 16

Which of the following is not one of the three interdependent tasks of strategic management?

Accepted Answer

A)  analyze 
B)  formulate 
C)  estimate 
D)  implement 
A)  analyze 
B)  formulate 
C)  estimate 
D)  implement

Question 17

State-level government agencies that check whether firms are meeting statutory safety measures in their production units are considered to be the firms'

Accepted Answer

A)  stockholders. 
B)  shareholders. 
C)  internal stakeholders. 
D)  external stakeholders. 
A)  stockholders. 
B)  shareholders. 
C)  internal stakeholders. 
D)  external stakeholders.

Question 18

Which of the following provides an example of what AFI strategy framework is used for?

Accepted Answer

A)  Using AFI, the Gasquet Motor Company was able to implement a strategy that produced high-quality cars more efficiently and thereby reduced costs. 
B)  Using AFI, the Chen Restaurant Group was able to improve employee benefits and thereby increase employee loyalty. 
C)  Using AFI, the Sanchez Clothing Company was able to implement a strategy that allowed them to give more money to charities and thereby gain good press. 
D)  Using AFI, the Richardson Tea Group was able to reduce the pollution it caused while processing tea and thereby receive an award. 
A)  Using AFI, the Gasquet Motor Company was able to implement a strategy that produced high-quality cars more efficiently and thereby reduced costs. 
B)  Using AFI, the Chen Restaurant Group was able to improve employee benefits and thereby increase employee loyalty. 
C)  Using AFI, the Sanchez Clothing Company was able to implement a strategy that allowed them to give more money to charities and thereby gain good press. 
D)  Using AFI, the Richardson Tea Group was able to reduce the pollution it caused while processing tea and thereby receive an award.

Question 19

What part of the AFI strategy framework does the question "How does the firm make money?" relate to?

Accepted Answer

A)  strategic leadership and the strategy process 
B)  competitive advantage, firm performance, and business models 
C)  external analysis 
D)  internal analysis 
A)  strategic leadership and the strategy process 
B)  competitive advantage, firm performance, and business models 
C)  external analysis 
D)  internal analysis

Question 20

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)  customer. 
A)  external stakeholder. 
B)  internal stakeholder. 
C)  creditor. 
D)  customer.

Industry effects describe the underlying _____ structure of the industry.

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

Which of following practices of a firm satisfies its ethical responsibilities?

Which of the following is the most accurate description of stakeholder impact analysis?

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

Which of the following is not an example of a software company's external stakeholder?

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

During strategy implementation,managers primarily focus on deciding the

Which of the following is step 3 in the five-step process of stakeholder impact analysis?

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

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

In 2010,an explosion of a BP oil drill resulted in the deaths of 11 workers and the largest environmental disaster in U.S.history.The BP CEO was fired because of his ineffective handling of the crisis.The CEO lost his job because he failed to uphold _____ responsibilities.

Hewlett-Packard was not able to maintain its competitive advantage because it did not

A company wants to determine how industry effects have affected its profitability.Which of the following elements should the company focus on?

Which of the following is not one of the three interdependent tasks of strategic management?

State-level government agencies that check whether firms are meeting statutory safety measures in their production units are considered to be the firms'

Which of the following provides an example of what AFI strategy framework is used for?

What part of the AFI strategy framework does the question "How does the firm make money?" relate to?

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

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 and Entrepreneurship

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

Exam 1: What Is Strategy

Industry effects describe the underlying _____ structure of the industry.

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

Which of following practices of a firm satisfies its ethical responsibilities?

Which of the following is the most accurate description of stakeholder impact analysis?

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

Which of the following is not an example of a software company's external stakeholder?

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

During strategy implementation,managers primarily focus on deciding the

Which of the following is step 3 in the five-step process of stakeholder impact analysis?

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

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

In 2010,an explosion of a BP oil drill resulted in the deaths of 11 workers and the largest environmental disaster in U.S.history.The BP CEO was fired because of his ineffective handling of the crisis.The CEO lost his job because he failed to uphold _____ responsibilities.

Hewlett-Packard was not able to maintain its competitive advantage because it did not

A company wants to determine how industry effects have affected its profitability.Which of the following elements should the company focus on?

Which of the following is not one of the three interdependent tasks of strategic management?

State-level government agencies that check whether firms are meeting statutory safety measures in their production units are considered to be the firms'

Which of the following provides an example of what AFI strategy framework is used for?

What part of the AFI strategy framework does the question "How does the firm make money?" relate to?

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

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 and Entrepreneurship

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