Exam 1: Strategic Management: Creating Competitive Advantages

The Higgs Index enables companies to compare environmental performance outcomes in order to improve their environmental impact and is an example of how rivals work together to resolve complex problems.

Strategic management should only include short-term objectives.Long-term objectives are covered in the vision statement of the organization.

When formulating strategic objectives,managers need to remember that too many objectives can result in a lack of focus and diminished results.

Focusing on a single stakeholder is a good strategic principle for managers to follow.

The three participants in corporate governance are the shareholders,

Successful executives do not reward honesty and input and do not show their interest in learning what others are thinking.

Fortune Brands states they will cut corporate overhead costs by $30 million a year.This is an example of a

Community stakeholders are concerned primarily with

Strategy formulation involves decisions made by firms regarding investments,commitments,and other aspects of operations that create and sustain competitive advantage.

Some benefits of sustainability projects include

Effective organizational design means that firms must have ________ that are consistent with their strategy.

Local line leaders have little profit-and-loss responsibility.

A CEO made a lot of mistakes in assessing the market and the competitive conditions and improperly redesigning the organization into numerous business units.Such errors led to significant performance declines.According to the text,this example illustrates the __________ perspective of leadership.

Both the internal and external environments of a firm must be analyzed as well as the goals of the firm before managers can formulate and implement appropriate strategies.