Deck 14: Strategy and Society

Question 1

Rended Inc., a publishing house, launches a unique initiative that involves educating children from poor economic backgrounds.For every product that a customer purchases, Rended would contribute $10 toward this cause.Which of the following best exemplifies Rended's initiative?

A) Incremental innovation
B) Corporate social responsibility
C) Competition response strategy
D) Strategic alliance

Answer 1

B

Question 2

Ruth works for an electronics manufacturing company, Zeeway Inc., whose employees volunteer over 1 million hours per year on initiatives that include environmental conservation, economic empowerment, and literacy programs.Which of the following best represents Zeeway's initiative?

A) Incremental innovation
B) Competition response strategy
C) Corporate social responsibility
D) Strategic alliance

Answer 2

C

Question 3

Which of the following statements is true of the value net model?

A) It describes how an organization interacts with others in its environment to create value.
B) It treats a particular stakeholder as a "single-role player" to facilitate effective decision making.
C) It typically focuses on large-scale social problems that have proven difficult for governments or other social actors to solve.
D) It focuses on improving the value of each of the stakeholders in a value chain by assigning them rigid goals and tasks.

Answer 3

A

Question 4

Inde Air Inc., a major airline, launches promotional schemes at regular intervals to increase its market share and counter the schemes launched by another airline, FlySky Inc.In the context of the value net model, which of the following best represents the relationship between Inde Air and FlySky?

A) Suppliers
B) Competitors
C) Complementors
D) Principal investors

Question 5

Which of the following social responsibilities implies that a firm has an obligation to give back in some way and contribute to strengthening the fabric of its local communities, as well as the larger society?

A) Legal responsibility
B) Philanthropic responsibility
C) Ethical responsibility
D) Economic responsibility

Question 6

John purchases a laptop from an electronics store for his own use without any intention to resell it.In the context of the value net model, John's purchase intention reflects that of a _____.

A) complementor
B) customer
C) strategic supplier
D) competitior

Question 7

Peter, the founder of MilkWorld Inc., started his dairy company with the intent of creating a formidable supply-chain link and providing a lucrative source of income for the local dairy farmers in his country.Peter is most likely to be considered a(n):

A) venture capitalist.
B) investment manager.
C) social entrepreneur.
D) angel investor.

Question 8

Stacy starts a day care center and hires unemployed mothers from poor economic backgrounds as babysitters.In this scenario, Stacy's initiative is most likely to be creating:

A) institutional change.
B) shared values.
C) economic responsibility.
D) joint ventures.

Question 9

JustHog Inc.and FoodLite Inc.are major fast food chains.They attract a larger share of the fast food market due to their quality, prompt service, and affordability.Due to the recent marketing initiatives of JustHog, FoodLite experienced a drop in its market share.In the context of the value net model, which of the following best represents the relationship between JustHog and FoodLite?

A) Competitors
B) Customers
C) Suppliers
D) Complementors

Question 10

Emily works as a consultant in a firm that provides consulting and business solutions to global organizations to enhance their productivity and drive corporate performance and value.In the context of the value net model, Emily's firm is most likely to be considered a _____.

A) competitor
B) principal investor
C) supplier
D) customer

Question 11

Foodoid Inc., a fast food restaurant, enters into a tie-up with SimplyBake Inc., a bakery chain, to procure croissants, garlic loafs, and other essential food ingredients.In the context of the value net model, SimplyBake assumes the role of a(n) _____.

A) principal investor
B) competitor
C) complementor
D) franchisor

Question 12

Softlink Inc., a global computer software company, is involved in unique development initiatives in low-income countries.As part of this program, it developed model villages in a low-income country to ensure self-reliance in healthcare, infrastructure, and employment.In this scenario, which of the following best exemplifies Softlink's initiative?

A) Corporate social responsibility
B) Competitor response strategy
C) Strategic alliance
D) Incremental innovation

Question 13

Gama Inc., a cell phone manufacturer, procures lithium batteries from Zipcharge Inc.These batteries are used in the smart phones manufactured by Gama.In the context of the value net model, Gama is most likely to be considered a _____.

A) supplier
B) competitor
C) principal
D) customer

Question 14

George Inc., a construction firm, bags a multibillion dollar deal from the federal government for the purpose of infrastructural development.This deal resulted in a sustainable stakeholder advantage and an increase in the firm's annual turnover.Which of the following best describes the social obligation exemplified by George in this scenario?

A) Philanthropic responsibilities
B) Ethical responsibilities
C) Economic responsibilities
D) Legal responsibilities

Question 15

Tim buys a new car to gift his son for his birthday.In the context of the value net model, Tim is most likely to be considered a:

A) competitor.
B) customer.
C) strategic supplier.
D) complementor.

Question 16

Which of the following statements is true of shared values?

A) Profit and social welfare are substitutes that managers must trade off to create shared values.
B) Shared values entail transferring the ability to effectively perform tasks from one organization to another.
C) Shared values focus on the improvement of both the economic and social welfare of a firm.
D) Shared values focus solely on the income and wealth outcomes of an organization.

Question 17

Linz Inc., a global automobile manufacturing company, exports its automobiles to distributors in seven countries.The manufacturer incurs expenses of $1,000 per car as export duties and diligently pays its duties within the stipulated time frame.In this scenario, Linz is seen fulfilling its _____.

A) philanthropic responsibility
B) legal responsibility
C) shared responsibility
D) ethical responsibility

Question 18

In the context of the value net model, an individual or organization that makes customers value an organization's output more because of its product or service is known as a(n) _____.

A) competitor
B) customer
C) supplier
D) complementor

Question 19

James started a restaurant chain, Foodizza Inc., and specifically hired unemployed youth from the ghettos in the vicinity of his restaurants, thereby providing them with means of livelihood.James is most likely to be considered a(n):

A) investment manager.
B) angel investor.
C) venture capitalist.
D) social entrepreneur.

Question 20

Jason, a visually impaired employee of Melony Inc., believes that his workplace has given him independence and self-confidence, thereby increasing his morale.Which of the following has been exemplified by Melony in this scenario?

A) Legal responsibility
B) Social value
C) Superordinate goal
D) Capacity building

Question 21

Erina, an investment banker, quit her job to start her own financial institution to help the poor in her community who were trapped in a vicious cycle of debt to moneylenders.She began following a strategy that contradicted prevailing practice and provided small loans to poor women.Erina saw the potential to change long-held beliefs about gender imbalances through her social initiative.In this scenario, Erina best represents a _____.

A) social bricoleur
B) social complementor
C) social constructionist
D) social competitor

Question 22

Jack and Michael work as strategic consultants in a consulting firm in London.Jack is of the opinion that organizations focused on institutional change are most likely to be led by social bricoleurs, while Michael believes that it is a social engineer who adds value to organizations focused on capacity building.Which of the following statements, if true, would weaken Jack's opinion?

A) Organizations focused on capacity building need a leader who is a social constructionist who can successfully combine diverse and different elements to create something new.
B) Social entrepreneurial organizations working to create larger, institutional changes succeed when led by a social engineer.
C) Social entrepreneurship that focuses on bringing new, social-value products or services to markets require the skills of a social constructionist.
D) Social entrepreneurship that focuses on institutional changes and innovative strategies which did not exist before require the skills of a social engineer.

Question 23

Walter Inc., an engineering firm, follows stringent rules related to safety such as wearing helmets, sporting safety goggles, and dust masks while working on-site.In this scenario, which of the following responsibilities is fulfilled by Walter?

A) Hybrid responsibility
B) Ethical responsibility
C) Philanthropic responsibility
D) Economic responsibility

Question 24

Kevin works for a consulting firm that strictly follows a 40 hours-per-week work schedule as prescribed in the employment terms laid out by the labor tribunal.In this scenario, Kevin's firm is diligently fulfilling its _____.

A) philanthropic responsibilities
B) hybrid responsibilities
C) legal responsibilities
D) superordinate responsibilities

Question 25

Dominic works as a trainer in a content analyst firm, Revel Inc., which specializes in corporate training programs.He trains employees on the various skill sets required to perform their job effectively thereby resulting in the transfer of knowledge and skills.This is an example of _____.

A) incremental innovation
B) corporate social responsibility
C) institutional change
D) capacity building

Question 26

Tracy, an employee of an online retailing firm, is the member of the employee engagement committee in her firm and is entrusted with the task of organizing a cultural event.The proceeds of this cultural event will go toward providing free and affordable healthcare to the backward sections of the community.In this scenario, Tracy's firm is fulfilling its:

A) economic responsibilities.
B) philanthropic responsibilities.
C) institutional responsibilities.
D) legal responsibilities.

Question 27

Katie works for an electronics manufacturing company that contributes 10% of employees' performance-linked bonuses toward the education of children with autism.Which of the following social responsibilities is best reflected in this scenario?

A) Economic responsibility
B) Legal responsibility
C) Hybrid responsibility
D) Philanthropic responsibility

Question 28

Nick and Juliet work in an online retailing firm in Chicago.Nick believes that a company's primary social responsibility is economic in nature while Juliet believes that its primary responsibility is to contribute to the enhancement of the community in which it operates.Which of the following statements, if true, strengthens Nick's belief?

A) To thrive and grow, a firm must meet its philanthropic responsibilities.
B) Economic responsibility can be viewed as an obligation only if we view the firm as a contributing citizen to the communities in which it operates.
C) Unless a firm produces profitable products and becomes a sustainable contributor in society, all its other responsibilities fade away.
D) To survive a firm must meet its legal and ethical obligations before fulfilling the other obligations.

Question 29

Jacob, an automobile engineer, works at an automobile manufacturing firm that receives an order for 3,000 cars from a major client.This contract resulted in a high turnover and bonuses for its employees.Jacob's firm is fulfilling its _____.

A) economic responsibility
B) philanthrophic responsibility
C) legal responsibility
D) superordinate responsibility

Question 30

Robin, a social entrepreneur, founded the Center of Business Excellence, a not-profit organization, and Fydil Investments Inc., a profit-oriented firm.Robin's motive is to provide a focused solution to poverty by helping the poor with a desire to succeed at business.His knowledge and expertise gathered over the years from working on different assignments ensured sustainability of the new ventures.Which of the following types of entrepreneurship corresponds to the skill sets of Robin?

A) Sustainable stakeholder
B) Social bricoleur
C) Philanthropist
D) Competitor

Question 31

Which of the following describes those living in conditions of extreme poverty around the world, usually defined as less than $2 per day?

A) Line of sight
B) Value net
C) Backward integration
D) Base of the pyramid

Question 32

Which of the following statements is true of institutional change?

A) Institutional change is most effective in organizations pursuing multiple goals of equal importance.
B) Institutional change makes customers value an organization's output more because of its product or service.
C) Institutional change entails transferring the ability to effectively perform tasks from one organization to another.
D) Institutional change agents typically focus on large-scale social problems that have proven difficult for governments or other social actors to solve.

Question 33

Which of the following statements best defines a social engineer?

A) A social entrepreneur who builds something that did not exist before
B) A social entrepreneur who designs and creates new social systems to create large-scale change
C) A social entrepreneur who creates something new through the combination of diverse and different elements
D) A social entrepreneur who focuses primarily on capacity building and products or services

Question 34

Jude works for a food-processing unit that sells processed food at rates as low as 25% of its selling price to orphanages, old-age homes, missionaries, and charitable institutions.Jude's organization can be classified as a(n) _____.

A) incremental organization
B) transactional organization
C) hybrid organization
D) traditional organization

Question 35

John works for Roth Inc., a mining firm, which strictly adheres to the employment rules as prescribed by the labor commission.The firm employs individuals only above the age of 23 for occupations that could pose safety hazards.In this scenario, which of the following social responsibilities is fulfilled by Roth?

A) Philanthropic responsibility
B) Economic responsibility
C) Legal responsibility
D) Superordinate responsibility

Question 36

Elvis works as a dentist at Prince Inc., a premier dentist clinic.The clinic conducts free checkups every month in remote places of the country to create more awareness on good dental hygiene.Which of the following social responsibilities is best reflected in this scenario?

A) Economic responsibilities
B) Philanthropic responsibilities
C) Institutional responsibilities
D) Legal responsibilities

Question 37

Which of the following statements is true of the skills of social entrepreneurs?

A) A social constructor agitates for change and focuses on designing more effective social systems.
B) A social engineer focuses primarily on developing new products or services with the intent of building capacity.
C) A social bricoleur is of primary importance in organizations focusing on capacity building.
D) A social constructor combines existing resources for value creation with the intent of institutional change.

Question 38

Which of the following examples best represent an in-kind donation?

A) Amanda, a social activist, donates 1/10?? of her annual income amount to a retirement home in her locality.
B) Stalin, a sales manager at a global consumer electronics firm, contributes $500 in cash toward the medical expenditure of his ailing colleague.
C) Nerden Inc., a food-processing unit, donates relief materials to victims of an earthquake in its country of operation.
D) Niron Inc., an online retailer, contributes 10% of its annual turnover to adopt model villages.

Question 39

Which of the following statements best defines philanthropy?

A) It involves creating new social systems to create large-scale change.
B) It involves acting in a way that promotes the good or well-being of others in the form of a gift.
C) It involves creating something by combining diverse and different elements into a new setting.
D) It involves transferring the ability to effectively perform tasks from one organization to another.

Question 40

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

A) In order to survive, a firm must primarily focus on fulfilling its ethical responsibility over other responsibilities.
B) In order to thrive and grow, a firm must prioritize its philanthropic responsibility above all other responsibilities.
C) Firms must fill their ethical responsibilities only in limited and specific ways that conform to the legal statutes in that country.
D) Philanthropic responsibility of a firm only appears as an obligation if the firm is viewed as an active member and contributing citizen of the community in which it operates.

Question 41

Discuss the four roles played by stakeholders in the value net.

Question 42

_____entails transferring the ability to effectively perform tasks from one organization to another.

Question 43

_____ refers to a social entrepreneur who creates something new through the combination of diverse and different elements.

Question 44

_____ refers to the simultaneous creation of economic value and social value for the larger community in which a business operates.

Question 45

Discuss the four fundamental social responsibilities of a business.

Question 46

Discuss the role of a social entrepreneur in the creation of shared value.

Question 47

The ability of an organization to consistently gather resources from, or provide services to, key stakeholders such as donors, volunteers, students, or clients is referred to as _____.

Question 48

_____ means that entrepreneurs strive to change the way people and groups think about problems, and they work to create or change social institutions-from government policies to social values and norms.

Question 49

Differentiate between institutional change and capacity building.

Question 50

Differentiate between a social bricoleur and a social engineer.