Question 1

Essentially, the _________ has become one of the world's largest markets with 700 million potential consumers.

Accepted Answer

The answer of Essentially, the _________ has become one of...

Question 2

The economic interdependence among countries as reflected in the flow of goods, services, financial capital and knowledge across country borders is defined as

Accepted Answer

Globalization is the process by which the economies of countries around the world become increasingly integrated and interdependent. This is reflected in the flow of goods, services, financial capital, and knowledge across national borders, as well as in the growth of international trade, investment, and communication. Hypercompetition, boundaryless retailing, and strategic intensity are all concepts related to business strategy, but they do not capture the breadth and complexity of economic interdependence among countries.

Question 3

Although organizational cultures vary considerably, one cannot make an objective judgment that some organizational cultures are more or less functional than others.

Accepted Answer

The answer of Although organizational cultures vary considerably, one cannot...

Question 4

The Chapter 1 Strategic Focus about Huawei illustrates

Accepted Answer

The chapter focuses on the challenge of the global economy where emerging market companies, such as Huawei, are moving aggressively into international markets. The chapter does not mention Huawei's ease of entry into the US market, their success at building good relations with the US government, or their successful acquisition of several US companies.

Question 5

Corporate-level strategy in a diversified organization requires a common business strategy for each component business.

Accepted Answer

The answer of Corporate-level strategy in a diversified organization requires...

Question 6

A competitive advantage

Accepted Answer

The answer of A competitive advantage
...

Question 7

Six years ago, Colette Smith founded a successful catering company that specializes in providing a wide assortment of miniature cheesecakes for corporate and social events. Although Ms. Smith is no longer active in the actual production of the cheesecakes, she continues as president of the catering company. Ms. Smith could be considered a strategic leader of this firm.

Accepted Answer

As the president of the catering company, Ms. Smith is responsible for making strategic decisions, developing vision and mission statements, setting goals, and allocating resources, making her a strategic leader.

Question 8

Profit pools allow strategic leaders to predict the outcomes of their decisions before taking efforts to implement them.

Accepted Answer

Profit pools provide a framework for strategic leaders to analyze the profitability of various industries, segments, or value chains. This helps them to identify opportunities and risks, and to make informed decisions about how to allocate resources, optimize operations, and capture value. By understanding the dynamics of profit pools, strategic leaders can assess the potential impact of their decisions on revenue, margin, market share, and other key performance indicators.

Question 9

An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values.

Accepted Answer

An organization's core values serve as the foundation for its culture and actions. If the organization's core values do not prioritize ethical behavior, then it may tolerate or even encourage unethical behavior among its employees. On the other hand, if an organization's core values prioritize integrity and ethical conduct, then it is more likely to have a culture that discourages unethical behavior.

Question 10

A firm has achieved ____ when it successfully formulates and implements a value-creating strategy.

Accepted Answer

The answer of A firm has achieved ____ when it...

Question 11

When the firm earns lower-than-average returns, the highest priority is given to satisfying the needs of capital market stakeholders over the needs of product market and organizational shareholders.

Accepted Answer

When a firm earns lower-than-average returns, the highest priority should be given to satisfying the needs of product market and organizational shareholders over the needs of capital market stakeholders. This is because meeting the needs of product market and organizational shareholders can help improve the firm’s performance in the long run, whereas satisfying the needs of capital market stakeholders may provide only temporary relief.

Question 12

Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape.

Accepted Answer

Strategic leaders must be able to think and plan strategically to navigate the competitive landscape, while also being adaptable and embracing change in order to respond to new challenges and opportunities.

Question 13

Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders.

Accepted Answer

Hourly workers on the production line of a chicken-processing plant are employees of the organization and therefore are considered stakeholders. They have a direct stake in the success of the organization and its actions can impact their livelihood.

Question 14

Above-average returns are

Accepted Answer

Above-average returns refer to returns that are higher than what an investor expects to earn from other investments with a similar level of risk. It is not necessarily related to profits earned by the firm or industry averages. It is a measure of how well the investment performs compared to the alternatives available.

Question 15

Organizational culture refers to the core values shared by the firm's top-level managers but not necessarily accepted by lower-level employees who are often transitory and not committed to the organization.

Accepted Answer

Organizational culture refers to the shared values, beliefs, attitudes and behaviors that are accepted and practiced by all employees within an organization, including lower-level employees. It is not just limited to top-level managers.

Question 16

The strategic management process is

Accepted Answer

The definition given in option D encompasses all the key elements of the strategic management process, including commitments, decisions, and actions required to achieve above-average returns and strategic competitiveness. The process is not independent of the conditions in the external environment as mentioned in option B. While top-management plays a crucial role in directing the process, other stakeholders may also have input. Option A is partly correct, but it does not capture the full scope of the strategic management process.

Question 17

Customers, suppliers, unions, and local governments are examples of capital market stakeholders.

Accepted Answer

Customers, suppliers, unions, and local governments are actually examples of non-capital market stakeholders, as they are not directly involved in the buying and selling of financial instruments such as stocks and bonds. Capital market stakeholders are typically investors, lenders, and issuers of securities.

Question 18

The primary drivers of hypercompetition are

Accepted Answer

The emergence of a global economy and rapid technological change are the primary drivers of hypercompetition. This is because these factors increase the likelihood of new competitors entering a market, disrupt existing business models, and accelerate the pace of innovation and change. A and C are not accurate as hypercompetition is not solely driven by socio-economic instability, inflation, or tariffs. D is partially true, as increased competition is a driver, but increased availability of capital is not necessarily a primary driver of hypercompetition.

Question 19

All of the following are characteristic of the global economy EXCEPT

Accepted Answer

The use of tariffs to protect industries goes against the idea of free movement of goods and services across borders, which is a key characteristic of the global economy.

Question 20

According to the Chapter 1 Opening Case, Borders did not

Accepted Answer

The opening case highlights that Borders failed to achieve above-average returns, strategic competitiveness, and did not properly use the strategic management process. Therefore, all of these answers are correct.

Quiz 1: Strategic Management and Competitiveness