STRATEGIC MANAGEMENT EXAM Q’S
AND A’S CHAPTER 1,2,3,4
Ethical Responsibility - answer- Doing what is right, fair and just represents the
_____________ level of Corporate Social Responsibility.
board of directors - answer- A company's __________ would be considered its
internal stakeholder(s).
strategy - answer- A company's __________ defines how it intends achieve a
sustainable competitive advantage over its competitors.
strategy formulation - answer- The element of strategy that provides a company's
guiding policy is accomplished through ____________ .
black swan event - answer- For most, the collapse of the housing market that led to
the great recession of 2007 was totally unexpected. Given its devastating impact on
our economy, it would clearly be considered a(n) _________________.
grocery, Whole Foods - answer- In a somewhat surprising move, Amazon decided to
enter the ____________ industry through the acquisition of _________________..
firm effects - answer- The actions that managers take to impact firm performance are
called ____________.
urgency - answer- In each step of the stakeholder impact analysis, managers must
pay attention to each stakeholder's legitimacy, power and ________________.
implementation - answer- The final task of the AFI Strategy Framework involves:
competitive disadvantage - answer- According to your text, Blackberry would be
considered to have a __________ relative to Apple.
Internal stakeholders - answer- In putting together its balanced scorecard, a
company should consider its stockholders to be:
analyzing and formulating - answer- Deciding an organization's structure is part of
the _____________ stage(s) of the strategy process.
Industry effect. - answer- Amazon's acquisition of Whole Foods is considered a
game changer in the retail industry and is likely to impact the profitability of the
various companies competing in retail. This new industry reality is therefore the
result of:
Management's actions. - answer- Research has shown that the most impactful factor
in determining firm performance is:
, True - answer- Having a competitive advantage doesn't always guarantee
competitive success.
Economic Responsibilities - answer- Volkswagen's decision to install technology in
its cars that fooled emissions testing equipment into believing that standards were
being met when they actually weren't resulted in a great deal of additional profit for
the company (until they got caught, of course) and its shareholders. As such, it is
clear that Volkswagen's leadership was most interested in the adhering to the
____________level of the Pyramid of Corporate Social Responsibility.
formulation - answer- Identifying key success factors is part of the _________ task in
the AFI framework.
firm effect - answer- Tanner, Inc. opened a factory on the shores of Lake Conan 5
years ago in order to provide the cooling water it needed for its manufacturing
process. Lake Conan had been polluted by runoff from other factories and had seen
its fish and other wildlife populations dwindle as a result. As part of its cooling
process, Tanner routinely filters incoming and outgoing water so the water flowing
back into Lake Conan is actually cleaner than the water coming out of it. As a result,
the fish population of the lake is actually recovering. The improved fishing would be
considered a(n) _____________.
Economic value creation - answer- Tanner, Inc. has managed to earn a healthy profit
in an industry that is generally considered unprofitable. The probable cause for
Tanner's outstanding performance is:
competitive parity - answer- Pepsi has worked long and hard to reach the point
where it can match Coke's domestic performance. As such, Pepsi has developed
a(n) ____________ in the domestic market.
business strategy - answer- Deciding how the production department will cut costs to
support the firm's cost leadership position represents:
Firm effects - answer- The threat of new entrants into the personal computer industry
is relatively low because the industry has become so mature and commoditized that
it's almost impossible to turn a profit, even for its current players. The dominant
forces determining performance in this industry appear to be:
corporate-level - answer- Microsoft's decision to enter the telephone hardware
business by acquiring Nokia's phone division was an example of a ______________
strategy.
Corporate social responsibility - answer- Milton Friedman's tenet that the only
appropriate role of a business is to maximize its shareholders' value runs directly
counter the core tenet of:
Legal, Ethica - answer- While __________ responsibilities have always been
required of businesses by both internal and external stakeholders, socio-cultural
AND A’S CHAPTER 1,2,3,4
Ethical Responsibility - answer- Doing what is right, fair and just represents the
_____________ level of Corporate Social Responsibility.
board of directors - answer- A company's __________ would be considered its
internal stakeholder(s).
strategy - answer- A company's __________ defines how it intends achieve a
sustainable competitive advantage over its competitors.
strategy formulation - answer- The element of strategy that provides a company's
guiding policy is accomplished through ____________ .
black swan event - answer- For most, the collapse of the housing market that led to
the great recession of 2007 was totally unexpected. Given its devastating impact on
our economy, it would clearly be considered a(n) _________________.
grocery, Whole Foods - answer- In a somewhat surprising move, Amazon decided to
enter the ____________ industry through the acquisition of _________________..
firm effects - answer- The actions that managers take to impact firm performance are
called ____________.
urgency - answer- In each step of the stakeholder impact analysis, managers must
pay attention to each stakeholder's legitimacy, power and ________________.
implementation - answer- The final task of the AFI Strategy Framework involves:
competitive disadvantage - answer- According to your text, Blackberry would be
considered to have a __________ relative to Apple.
Internal stakeholders - answer- In putting together its balanced scorecard, a
company should consider its stockholders to be:
analyzing and formulating - answer- Deciding an organization's structure is part of
the _____________ stage(s) of the strategy process.
Industry effect. - answer- Amazon's acquisition of Whole Foods is considered a
game changer in the retail industry and is likely to impact the profitability of the
various companies competing in retail. This new industry reality is therefore the
result of:
Management's actions. - answer- Research has shown that the most impactful factor
in determining firm performance is:
, True - answer- Having a competitive advantage doesn't always guarantee
competitive success.
Economic Responsibilities - answer- Volkswagen's decision to install technology in
its cars that fooled emissions testing equipment into believing that standards were
being met when they actually weren't resulted in a great deal of additional profit for
the company (until they got caught, of course) and its shareholders. As such, it is
clear that Volkswagen's leadership was most interested in the adhering to the
____________level of the Pyramid of Corporate Social Responsibility.
formulation - answer- Identifying key success factors is part of the _________ task in
the AFI framework.
firm effect - answer- Tanner, Inc. opened a factory on the shores of Lake Conan 5
years ago in order to provide the cooling water it needed for its manufacturing
process. Lake Conan had been polluted by runoff from other factories and had seen
its fish and other wildlife populations dwindle as a result. As part of its cooling
process, Tanner routinely filters incoming and outgoing water so the water flowing
back into Lake Conan is actually cleaner than the water coming out of it. As a result,
the fish population of the lake is actually recovering. The improved fishing would be
considered a(n) _____________.
Economic value creation - answer- Tanner, Inc. has managed to earn a healthy profit
in an industry that is generally considered unprofitable. The probable cause for
Tanner's outstanding performance is:
competitive parity - answer- Pepsi has worked long and hard to reach the point
where it can match Coke's domestic performance. As such, Pepsi has developed
a(n) ____________ in the domestic market.
business strategy - answer- Deciding how the production department will cut costs to
support the firm's cost leadership position represents:
Firm effects - answer- The threat of new entrants into the personal computer industry
is relatively low because the industry has become so mature and commoditized that
it's almost impossible to turn a profit, even for its current players. The dominant
forces determining performance in this industry appear to be:
corporate-level - answer- Microsoft's decision to enter the telephone hardware
business by acquiring Nokia's phone division was an example of a ______________
strategy.
Corporate social responsibility - answer- Milton Friedman's tenet that the only
appropriate role of a business is to maximize its shareholders' value runs directly
counter the core tenet of:
Legal, Ethica - answer- While __________ responsibilities have always been
required of businesses by both internal and external stakeholders, socio-cultural
