MSM 6650 Final Exam Questions With
Verified Answers
Strategic Management - ANSWER an integrative management field that
combines analysis, formulation, and implementation in the quest for competitive
advantage
Strategy defined - ANSWER the set of goal-directed actions a firm takes to
achieve a competitive advantage
To achieve superior performance, companies compete for what? - ANSWER
Resources
A good strategy is based on what 3 elements? - ANSWER Competitive advantage
Guiding policy
Coherent actions
Competitive advantage is always ________, not absolute. - ANSWER Relative
To assess competitive advantage we compare a firm's performance to what? -
ANSWER A benchmark - performance of other firms or the industry average
sustainable competitive advantage - ANSWER outperforming competitors or the
industry average over a prolonged period of time
Apple iPhones are an example of what? - ANSWER Sustainable competitive
advantage
Competitive Disadvantage - ANSWER underperformance relative to other
competitors in the same industry or the industry average
Competitive Parity - ANSWER performance of two or more firms at the same
level
What are the rewards of superior value creation? - ANSWER Market share and
profitability
Strategic positioning - ANSWER Obtaining a unique position within an industry
while providing value to customers and controlling costs
The greater the difference between value creation and cost, then the greater the
___________ - ANSWER Economic contribution
,Strategic positioning requires what? - ANSWER Trade offs
A well devised strategy is based on what two things? - ANSWER What to do
What not to do
Internal stakeholders - ANSWER employees, stockholders, board members
External Stakeholders - ANSWER customers, suppliers, alliance partners,
creditors, unions, communities, governments, media
Stakeholder Strategy - ANSWER an integrative approach to managing a diverse
set of stakeholders effectively in order to gain and sustain competitive
advantage
A firm that successfully executes a strategy benefits society how? - ANSWER
Reinvesting profits and increasing employment
Creating value
Stakeholder strategy argues that focusing only on the needs of ______ places the
firm at risk of failure. - ANSWER Shareholders
Effective stakeholder management helps a firm do what? - ANSWER Build a
strong public reputation
Stakeholder Impact Analysis - ANSWER A decision tool with which managers
can recognize, prioritize, and address the needs of different stakeholders,
enabling the firm to achieve competitive advantage while acting as a good
corporate citizen
Stakeholder impact analysis focuses on what 3 stakeholder attributes? -
ANSWER Power
Legitimacy
Urgency
When does a stakeholder have power over a company? - ANSWER When it can
get the company to do something that it would not otherwise do
When does a stakeholder have a legitimate claim? - ANSWER when it is
perceived to be legally valid or otherwise appropriate
When does a stakeholder have an urgent claim? - ANSWER when it requires a
company's immediate attention and response
5 steps of stakeholder impact analysis - ANSWER Identify stakeholders
Identify stakeholder's interests
, Identify opportunities and threats
Identify social responsibilities
Address stakeholder concerns
When identifying stakeholders, a firm should focus on those stakeholders that
_________. - ANSWER currently have, or could potentially have, a material effect
on the firm
Which of the four corporate social responsibilities is considered first and
foremost for business enterprises - ANSWER Economic
Corporate Citizenship - ANSWER The idea that firms should voluntarily give back
to society when they are able to do so
Global Strategy Formulation - ANSWER managers examine where and how the
firm should compete around the world
Society expects ________ and _______ responisbilty - ANSWER Ethical and
philanthropical
Society requires ________ and _________ responsibility - ANSWER Economic and
legal
In a nutshell, strategy is the art and science of _________ - ANSWER Success and
failure
Business strategy formulation focuses on what? - ANSWER Deciding HOW the
firm should compete
Managers would examine how the firm should be structured in order to
implement the desired strategy in what step of the strategy implementation
phase? - ANSWER Organizational design
Strategic Leadership - ANSWER Executives' use of power and influence to direct
assets in the pursuit of an organization's goals
Power defined - ANSWER Strategic leader's ability to influence other
organizational members to do things, including things they wouldn't do
otherwise
CEOs spend most of their day doing what? - ANSWER Face to face meetings
upper-echelons theory - ANSWER organizational outcomes reflect the values of
the top management team
Verified Answers
Strategic Management - ANSWER an integrative management field that
combines analysis, formulation, and implementation in the quest for competitive
advantage
Strategy defined - ANSWER the set of goal-directed actions a firm takes to
achieve a competitive advantage
To achieve superior performance, companies compete for what? - ANSWER
Resources
A good strategy is based on what 3 elements? - ANSWER Competitive advantage
Guiding policy
Coherent actions
Competitive advantage is always ________, not absolute. - ANSWER Relative
To assess competitive advantage we compare a firm's performance to what? -
ANSWER A benchmark - performance of other firms or the industry average
sustainable competitive advantage - ANSWER outperforming competitors or the
industry average over a prolonged period of time
Apple iPhones are an example of what? - ANSWER Sustainable competitive
advantage
Competitive Disadvantage - ANSWER underperformance relative to other
competitors in the same industry or the industry average
Competitive Parity - ANSWER performance of two or more firms at the same
level
What are the rewards of superior value creation? - ANSWER Market share and
profitability
Strategic positioning - ANSWER Obtaining a unique position within an industry
while providing value to customers and controlling costs
The greater the difference between value creation and cost, then the greater the
___________ - ANSWER Economic contribution
,Strategic positioning requires what? - ANSWER Trade offs
A well devised strategy is based on what two things? - ANSWER What to do
What not to do
Internal stakeholders - ANSWER employees, stockholders, board members
External Stakeholders - ANSWER customers, suppliers, alliance partners,
creditors, unions, communities, governments, media
Stakeholder Strategy - ANSWER an integrative approach to managing a diverse
set of stakeholders effectively in order to gain and sustain competitive
advantage
A firm that successfully executes a strategy benefits society how? - ANSWER
Reinvesting profits and increasing employment
Creating value
Stakeholder strategy argues that focusing only on the needs of ______ places the
firm at risk of failure. - ANSWER Shareholders
Effective stakeholder management helps a firm do what? - ANSWER Build a
strong public reputation
Stakeholder Impact Analysis - ANSWER A decision tool with which managers
can recognize, prioritize, and address the needs of different stakeholders,
enabling the firm to achieve competitive advantage while acting as a good
corporate citizen
Stakeholder impact analysis focuses on what 3 stakeholder attributes? -
ANSWER Power
Legitimacy
Urgency
When does a stakeholder have power over a company? - ANSWER When it can
get the company to do something that it would not otherwise do
When does a stakeholder have a legitimate claim? - ANSWER when it is
perceived to be legally valid or otherwise appropriate
When does a stakeholder have an urgent claim? - ANSWER when it requires a
company's immediate attention and response
5 steps of stakeholder impact analysis - ANSWER Identify stakeholders
Identify stakeholder's interests
, Identify opportunities and threats
Identify social responsibilities
Address stakeholder concerns
When identifying stakeholders, a firm should focus on those stakeholders that
_________. - ANSWER currently have, or could potentially have, a material effect
on the firm
Which of the four corporate social responsibilities is considered first and
foremost for business enterprises - ANSWER Economic
Corporate Citizenship - ANSWER The idea that firms should voluntarily give back
to society when they are able to do so
Global Strategy Formulation - ANSWER managers examine where and how the
firm should compete around the world
Society expects ________ and _______ responisbilty - ANSWER Ethical and
philanthropical
Society requires ________ and _________ responsibility - ANSWER Economic and
legal
In a nutshell, strategy is the art and science of _________ - ANSWER Success and
failure
Business strategy formulation focuses on what? - ANSWER Deciding HOW the
firm should compete
Managers would examine how the firm should be structured in order to
implement the desired strategy in what step of the strategy implementation
phase? - ANSWER Organizational design
Strategic Leadership - ANSWER Executives' use of power and influence to direct
assets in the pursuit of an organization's goals
Power defined - ANSWER Strategic leader's ability to influence other
organizational members to do things, including things they wouldn't do
otherwise
CEOs spend most of their day doing what? - ANSWER Face to face meetings
upper-echelons theory - ANSWER organizational outcomes reflect the values of
the top management team
