Question 1

A major assumption about the strategic management process is that it is:

Accepted Answer

The strategic management process is often based on a rational approach, involving analysis, decision-making and action planning to achieve organizational goals. While teamwork and inclusivity may play a role in the process, they are not the major assumptions underlying it. "Inspired" is vague and subjective, so it is not a reliable answer.

Question 2

In a diversified firm, corporate-level strategy is concerned with:

Accepted Answer

Corporate-level strategy in a diversified firm involves determining the scope of the business portfolio and how resources will be allocated between businesses. It involves decisions regarding which businesses the firm will compete in, how to manage the portfolio of businesses, and how to create value through synergies between businesses. Operating each individual business under the corporate umbrella is more related to business-level strategy, while determining how each functional department will operate is related to functional-level strategy. Coordinating the vision and mission of each subsidiary firm is more related to subsidiary-level strategy.

Question 3

A retail outlet can attempt several remedies to improve profitability to meet the expectations of its _______ stakeholders, including closing stores, changing the top management team, and seeking potential buyers.

Accepted Answer

The answer of A retail outlet can attempt several remedies...

Question 4

Capital market stakeholders include:

Accepted Answer

The answer of Capital market stakeholders include:
...

Question 5

Organizational stakeholders are usually satisfied when

Accepted Answer

Organizational stakeholders are individuals or groups that have an interest in the success of an organization, such as employees, management, investors, and customers. While some stakeholders, such as investors, may prioritize maximizing return on investment, the most effective way to satisfy all stakeholders is to provide a dynamic, stimulating, and rewarding work environment where employees are motivated to provide high-quality goods and services to customers at a fair price. This approach can lead to increased customer loyalty, satisfied employees, and ultimately, increased profits for investors.

Question 6

:A business-level strategy describes

Accepted Answer

A business-level strategy is focused on the actions taken by a specific business unit to gain a competitive advantage over its rivals. It is not focused on overall company policies or resources, nor does it necessarily dictate the businesses in which the company competes.

Question 7

Before liquidating during a bankruptcy, a company will take several actions to try to satisfy its ______ stakeholders.

Accepted Answer

The answer of Before liquidating during a bankruptcy, a company will...

Question 8

The Chambers of Commerce of cities and towns often implore citizens to buy from local businesses.  This is because the organization's role as a taxpayer is most important to ______ as stakeholders.

Accepted Answer

The Chambers of Commerce often work closely with the local government and community leaders to advocate for the interests of the local business community. As such, their role as a taxpayer is most important to the host community stakeholders, who benefit from the economic activity and job creation that local businesses provide.

Question 9

The strategic leader's work is characterized by:

Accepted Answer

The strategic leader's work is characterized by facing ambiguous decision situations where the best course of action is not always easy to identify, as they are required to make decisions that impact the long-term success of the organization. Strategic leaders need to be able to navigate complex environments and make decisions in the presence of uncertainty.

Question 10

The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to:

Accepted Answer

The global economy, globalization, rapid technological change, and the increasing importance of knowledge require organizations to be more responsive and adaptable. Delegating strategic responsibilities to employees who are closer to the action can enable organizations to respond more effectively to changing circumstances.

Question 11

Generally speaking, product market stakeholders are satisfied when:

Accepted Answer

Product market stakeholders, such as customers and suppliers, are generally satisfied when a firm achieves a balance between profit margins, costs paid to suppliers, and prices set for customers, as this ensures fair pricing and sustainable business relationships.

Question 12

PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. It is important to consider that the decision:

Accepted Answer

The decision to shut down a coal mine has ethical implications for organizational stakeholders such as employees, investors, and the local community. It is important to consider the impact on these stakeholders and ensure that the decision is made with their best interests in mind. Factors such as the environmental impact of the mine and the responsibility of PGG Mining to these stakeholders should be considered when making the decision.

Question 13

The interests of an organization's stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. The ______ is the most critical criterion in prioritizing stakeholders.

Accepted Answer

The power of each stakeholder is the most critical criterion because stakeholders with more power can significantly influence the organization's actions and outcomes.

Question 14

Greenleaf Property Management has been earning below-average returns for the last three years. Which one of the following statements is true?

Accepted Answer

Greenleaf's below-average returns suggest that the company is not generating enough profits to meet the demands of all stakeholders. As a result, the company may not be able to minimally satisfy all stakeholders. Prioritizing the demands of certain stakeholders over others based on political influence is not an ethical or sustainable approach, and stakeholders committed to the firm's strategic mission may not be enough to overcome financial challenges.

Question 15

Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is:

Accepted Answer

The customers' principal concern is to obtain reliable products at the lowest possible price. They want to ensure that they are getting value for their money and that the products meet their expectations in terms of quality, reliability, and usability. Customers are often price-sensitive, and they tend to compare prices and features of products before making a purchase. Therefore, firms need to understand their customers' needs and preferences to create products that meet or exceed their expectations and offer them at competitive prices.

Question 16

Dissatisfied capital market stakeholders may:

Accepted Answer

All three options are correct for dissatisfied capital market stakeholders. Selling their stock can put pressure on the company to improve performance, tightening loan covenants can limit the company's ability to borrow and increase accountability, and seeking to increase their power can give stakeholders more influence over company decisions. Depending on the specific situation, one or more of these options may be the best choice for dissatisfied stakeholders.

Question 17

A prominent national website services company runs Super Bowl advertisements showing a small business owner working alone in the office on a project, during the big game. The message of the ad is that the company understands the sacrifices of its customers. This ad seeks to convey a sense of the organization's ____ to the product market stakeholders.

Accepted Answer

The ad emphasizes the company's mission to support small businesses, highlighting their understanding of the sacrifices made by small business owners.

Question 18

Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years, providing its investors higher returns than those earned by its direct competitors' investors. RNH has a reputation for providing high-paying managerial and hourly-employee jobs. However, recent investigations have revealed that the nursing home residents have been provided substandard care, including non-nutritious and unappetizing meals, non-functional medical equipment, and inadequate patient-care staffing. Which statement best describes the situation?

Accepted Answer

The situation described indicates that RNH has prioritized the demands of capital market stakeholders (investors) and organizational stakeholders (employees) over the demands of product market stakeholders (nursing home residents). This has led to substandard care for the residents, despite RNH's profitability and reputation for providing high-paying jobs.

Question 19

Organizational stakeholders include:

Accepted Answer

The answer of Organizational stakeholders include:
...

Question 20

Product market stakeholders include

Accepted Answer

Product market stakeholders are those who are directly involved in the production and distribution of a company's products, such as suppliers.

Quiz 1: Strategic Management and Strategic Competitiveness