Question 1

Strategic analysis of external conditions is valuable because leaders:&#10;A)Effectively use the Value Net and Porter's 5 Forces frameworks.&#10;B)Create organizational purpose and unify members is pursuing that purpose.&#10;C)More fully understand the industry structure and competitive dynamics.&#10;D)Achieve operational excellence in individual functions and activities.

Accepted Answer

Strategic analysis of external conditions helps leaders to understand the industry structure and competitive dynamics, which is essential for making informed business decisions, identifying potential threats and opportunities, and developing competitive strategies to gain a sustainable advantage in the market. The Value Net and Porter's Five Forces frameworks are useful tools for conducting this analysis. However, creating organizational purpose, unifying members in pursuing that purpose, and achieving operational excellence are all important aspects of leadership, but they are not directly related to strategic analysis of external conditions.

Question 2

Any effort to minimize the negative environmental impact of a firm's products or conduct:&#10;A)Corporate responsibility&#10;B)Environmental management&#10;C)Functional strategy&#10;D)Operational effectiveness

Accepted Answer

Environmental management refers to the efforts a firm takes to minimize its negative environmental impact. This includes sustainable production processes, reducing waste and pollution, and implementing environmentally friendly products and services. Corporate responsibility is a broader concept that encompasses a firm's ethical and social obligations to stakeholders, including the community and the environment. Functional strategy and operational effectiveness are important considerations for businesses but are not direct solutions for minimizing negative environmental impact.

Question 3

To identify a firm's strategy:&#10;A)Research executive statements and news articles.&#10;B)Analyze past decisions the company has taken.&#10;C)Read mission, values, and vision statements.&#10;D)All of the above.

Accepted Answer

To identify a firm's strategy, it is best to use all of the above methods. Researching executive statements and news articles can provide insight into the company's current focus and direction. Analyzing past decisions can reveal patterns and priorities that inform the overall strategy. Reading mission, values, and vision statements can help to understand the company's overarching goals and principles. Using all of these methods together can give a more holistic understanding of a firm's strategy.

Question 4

Which of the following is not an impact of a firm or industry's age and location on strategy:&#10;A)Ease of gathering information about competitors and macro-environment.&#10;B)Level of uncertainty within the organization or industry&#10;C)Consideration of unique institutional arrangements in international markets.&#10;D)Focus on process improvements rather than new product development.

Accepted Answer

The answer of Which of the following is not an...

Question 5

The means for obtaining unusual returns compared to competitors is a(n):&#10;A)Return on Investment&#10;B)Operational Effectiveness&#10;C)Functional Strategy&#10;D)Competitive Advantage

Accepted Answer

The means for obtaining unusual returns compared to competitors is a competitive advantage, which is the ability for a company to outperform its competitors by providing superior products and/or services, lower prices, or other unique advantages. Options A, B, and C all contribute to a company's overall competitive advantage, but on their own they are not the means for obtaining unusual returns compared to competitors.

Question 6

Corporate strategy can be best described by:&#10;A)Positioning and activities for LOB in single industry or market.&#10;B)Focused on multiple LOB, defining various markets and coordination.&#10;C)Coordination and motivation of economic activity to achieve goals.&#10;D)Essence of a company's existence that is strongly correlated to success.

Accepted Answer

Corporate strategy involves planning and coordinating multiple lines of business (LOB) and defining various markets. It's about creating a long-term roadmap for the company's growth and success by leveraging all its resources, capabilities, and opportunities. A single industry or market positioning belongs to business-level strategy, while coordination and motivation of economic activity to achieve goals is more about functional-level strategy. The essence of a company's existence that is strongly correlated to success may be its mission or vision statement, but it's not a complete definition of corporate strategy.

Question 7

Firms can develop strategies with input from:&#10;A)Objective data&#10;B)Economic efficiencies&#10;C)Stakeholder perceptions&#10;D)All of the above

Accepted Answer

Firms should consider input from objective data, economic efficiencies, and stakeholder perceptions when developing strategies. Objective data can provide insights into market trends and competitive analysis, economic efficiencies can help firms optimize resources and manage costs, and stakeholder perceptions can help firms understand the needs and preferences of their customers, employees, and other stakeholders. By incorporating input from multiple sources, firms can develop more comprehensive and effective strategies.

Question 8

Strategic thinking involves a(n):&#10;A)Allocation of company resources and investments&#10;B)Creation and implementation of strategic goals&#10;C)Guided process to analyze past and current situation&#10;D)Focused procedure to identify competitive opportunities

Accepted Answer

The answer of Strategic thinking involves a(n):&#10;A)Allocation of company resources...

Question 9

Effective strategies can be described as all of the following except:&#10;A)Agreed upon by board of directors&#10;B)Clear focus and direction&#10;C)Informed through external analysis&#10;D)Able to be implemented

Accepted Answer

Effective strategies do not necessarily need to be agreed upon by the board of directors. While it may be helpful for organizational alignment and support, it is not a requirement for a strategy to be effective.

Question 10

Which of the following is TRUE:&#10;A)Strategic process guarantees competitive success.&#10;B)Firms should focus on competition rather than cooperation.&#10;C)All firms have a strategy whether they realize it or not.&#10;D)Internal analysis is more important than external analysis.

Accepted Answer

All firms have a strategy whether they realize it or not. This statement is true as every firm has a direction and plans for achieving their goals, even if it is not formally written and documented as a strategy.

Deck 4: Strategy With an Environmental Lens