Question 1

Which of the following is not competitive strategy?

Accepted Answer

A)  strategic positioning 
B)  unique activities 
C)  product differentiation 
D)  operational effectiveness 
A)  strategic positioning 
B)  unique activities 
C)  product differentiation 
D)  operational effectiveness

Question 2

The society and the shareholders just expect,and do not mandatorily require,a firm to

Accepted Answer

A)  pay fair dividends and returns to the investors. 
B)  follow the employment laws of a country. 
C)  provide safe and quality products to the customers. 
D)  pay its workers more than the minimum living wage. 
A)  pay fair dividends and returns to the investors. 
B)  follow the employment laws of a country. 
C)  provide safe and quality products to the customers. 
D)  pay its workers more than the minimum living wage.

Question 3

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

Accepted Answer

A)  execute an integrated cost-leadership and differentiation position. 
B)  copy the strategies of other firms through competitive benchmarking. 
C)  provide goods or services similar to its competitors at higher prices. 
D)  stake out a unique position within the industry. 
A)  execute an integrated cost-leadership and differentiation position. 
B)  copy the strategies of other firms through competitive benchmarking. 
C)  provide goods or services similar to its competitors at higher prices. 
D)  stake out a unique position within the industry.

Question 4

Jake's Taxi Service is a new entrant to the taxi industry.It has achieved success by staking out a unique position in the industry.How did Jake's Taxi Service mostly likely achieve this position?

Accepted Answer

A)  providing long-distance cab fares at a higher rate than competitors; servicing a larger area than competitors 
B)  providing long-distance cab fares at a lower rate than competitors; servicing a smaller area than competitors 
C)  providing long-distance cab fares at a higher rate than competitors; servicing the same area as competitors 
D)  providing long-distance cab fares at a lower rate than competitors; servicing the same area as competitors 
A)  providing long-distance cab fares at a higher rate than competitors; servicing a larger area than competitors 
B)  providing long-distance cab fares at a lower rate than competitors; servicing a smaller area than competitors 
C)  providing long-distance cab fares at a higher rate than competitors; servicing the same area as competitors 
D)  providing long-distance cab fares at a lower rate than competitors; servicing the same area as competitors

Question 5

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 6

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. 
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.

Question 7

Which of the following forces is most closely related to industry effects within the automobile industry?

Accepted Answer

A)  the actions taken to improve employee productivity within a firm 
B)  the human resource strategy managers adopt to acquire the best talent from the industry 
C)  the types of products and the services offered within the industry 
D)  the decisions made within a firm regarding pricing of a product in the market 
A)  the actions taken to improve employee productivity within a firm 
B)  the human resource strategy managers adopt to acquire the best talent from the industry 
C)  the types of products and the services offered within the industry 
D)  the decisions made within a firm regarding pricing of a product in the market

Question 8

_____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

Accepted Answer

A)  Behavior modification 
B)  Strategy 
C)  Credo 
D)  Competency management 
A)  Behavior modification 
B)  Strategy 
C)  Credo 
D)  Competency management

Question 9

Which of the following groups is considered to be the primary stakeholder for public-stock companies?

Accepted Answer

A)  suppliers of capital 
B)  employees 
C)  suppliers 
D)  potential customers 
A)  suppliers of capital 
B)  employees 
C)  suppliers 
D)  potential customers

Question 10

In the pyramid of corporate social responsibility,_____ responsibilities are the foundational building block.

Accepted Answer

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

Question 11

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 12

_____ is best described as an integrative management field that combines analysis,formulation,and implementation in the quest for competitive advantage.

Accepted Answer

A)  Supply chain management 
B)  Integrated technology management 
C)  Strategic management 
D)  Inventory management 
A)  Supply chain management 
B)  Integrated technology management 
C)  Strategic management 
D)  Inventory management

Question 13

A firm always has a competitive disadvantage when its return on invested capital is

Accepted Answer

A)  below the industry average. 
B)  2 percent or lower in a declining industry. 
C)  about the same as its closest competitor. 
D)  declining steadily over two or more years. 
A)  below the industry average. 
B)  2 percent or lower in a declining industry. 
C)  about the same as its closest competitor. 
D)  declining steadily over two or more years.

Question 14

_____ is best described as a framework that helps firms recognize and address the economic,legal,social,and philanthropic expectations that society has of the business enterprise at a given point in time.

Accepted Answer

A)  Corporate social responsibility 
B)  Integrated social network 
C)  Strategic positioning 
D)  Strategy formulation 
A)  Corporate social responsibility 
B)  Integrated social network 
C)  Strategic positioning 
D)  Strategy formulation

Question 15

The best example of a firm's external stakeholder is a(n)

Accepted Answer

A)  government agency that regulates the prices of products manufactured by the firm. 
B)  board member from a wholly-owned foreign subsidiary of the firm. 
C)  shareholder who has invested money in the firm but is not employed by the firm. 
D)  employee of the firm who is responsible for a contract project. 
A)  government agency that regulates the prices of products manufactured by the firm. 
B)  board member from a wholly-owned foreign subsidiary of the firm. 
C)  shareholder who has invested money in the firm but is not employed by the firm. 
D)  employee of the firm who is responsible for a contract project.

Question 16

Which of the following would be considered a weak stakeholder strategy?

Accepted Answer

A)  putting shareholder interests above the interests of other stakeholders 
B)  addressing the concerns of all stakeholders, including employees 
C)  always using fair and ethical practices to satisfy stakeholders 
D)  ensuring that the primary stakeholders achieve their objectives 
A)  putting shareholder interests above the interests of other stakeholders 
B)  addressing the concerns of all stakeholders, including employees 
C)  always using fair and ethical practices to satisfy stakeholders 
D)  ensuring that the primary stakeholders achieve their objectives

Question 17

As the legal owners,_____ have the most legitimate claim on a company's profits.

Accepted Answer

A)  creditors 
B)  employees 
C)  shareholders 
D)  board members 
A)  creditors 
B)  employees 
C)  shareholders 
D)  board members

Question 18

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 the companies have

Accepted Answer

A)  executed integrated strategies. 
B)  entered into a cartel arrangement. 
C)  pursued distinct strategic positions. 
D)  engaged in direct imitation and substitution. 
A)  executed integrated strategies. 
B)  entered into a cartel arrangement. 
C)  pursued distinct strategic positions. 
D)  engaged in direct imitation and substitution.

Question 19

_____ are incidents that describe highly improbable but highly impactful events.

Accepted Answer

A)  Miracle events 
B)  Wild card events 
C)  Black swan events 
D)  Fat tail risk events 
A)  Miracle events 
B)  Wild card events 
C)  Black swan events 
D)  Fat tail risk events

Question 20

Shortly after the small island of Balamia experienced multiple unexpected high-intensity earthquakes that caused massive destruction,many banks and insurance companies filed for bankruptcy.This left the economy of the country in a poor state.The natural calamity in Balamia best exemplifies

Accepted Answer

A)  a black swan event. 
B)  a wild card event. 
C)  skewness risk. 
D)  kurtosis risk. 
A)  a black swan event. 
B)  a wild card event. 
C)  skewness risk. 
D)  kurtosis risk.

Which of the following is not competitive strategy?

The society and the shareholders just expect,and do not mandatorily require,a firm to

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

Jake's Taxi Service is a new entrant to the taxi industry.It has achieved success by staking out a unique position in the industry.How did Jake's Taxi Service mostly likely achieve this position?

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

The past black swan events in the United States demonstrate that

Which of the following forces is most closely related to industry effects within the automobile industry?

_____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

Which of the following groups is considered to be the primary stakeholder for public-stock companies?

In the pyramid of corporate social responsibility,_____ responsibilities are the foundational building block.

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

_____ is best described as an integrative management field that combines analysis,formulation,and implementation in the quest for competitive advantage.

A firm always has a competitive disadvantage when its return on invested capital is

_____ is best described as a framework that helps firms recognize and address the economic,legal,social,and philanthropic expectations that society has of the business enterprise at a given point in time.

The best example of a firm's external stakeholder is a(n)

Which of the following would be considered a weak stakeholder strategy?

As the legal owners,_____ have the most legitimate claim on a company's profits.

_____ are incidents that describe highly improbable but highly impactful events.

Shortly after the small island of Balamia experienced multiple unexpected high-intensity earthquakes that caused massive destruction,many banks and insurance companies filed for bankruptcy.This left the economy of the country in a poor state.The natural calamity in Balamia best exemplifies

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

Which of the following is not competitive strategy?

The society and the shareholders just expect,and do not mandatorily require,a firm to

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

Jake's Taxi Service is a new entrant to the taxi industry.It has achieved success by staking out a unique position in the industry.How did Jake's Taxi Service mostly likely achieve this position?

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

The past black swan events in the United States demonstrate that

Which of the following forces is most closely related to industry effects within the automobile industry?

_____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

Which of the following groups is considered to be the primary stakeholder for public-stock companies?

In the pyramid of corporate social responsibility,_____ responsibilities are the foundational building block.

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

_____ is best described as an integrative management field that combines analysis,formulation,and implementation in the quest for competitive advantage.

A firm always has a competitive disadvantage when its return on invested capital is

_____ is best described as a framework that helps firms recognize and address the economic,legal,social,and philanthropic expectations that society has of the business enterprise at a given point in time.

The best example of a firm's external stakeholder is a(n)

Which of the following would be considered a weak stakeholder strategy?

As the legal owners,_____ have the most legitimate claim on a company's profits.

_____ are incidents that describe highly improbable but highly impactful events.

Shortly after the small island of Balamia experienced multiple unexpected high-intensity earthquakes that caused massive destruction,many banks and insurance companies filed for bankruptcy.This left the economy of the country in a poor state.The natural calamity in Balamia best exemplifies

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