Question 1

Softlink Inc., a global computer software company, is involved in unique development initiatives in low-income countries. As part of this program, it developed model villages in a low-income country to ensure self-reliance in healthcare, infrastructure, and employment. In this scenario, which of the following best exemplifies Softlink's initiative?

Accepted Answer

Softlink's initiative to develop model villages in a low-income country to ensure self-reliance in healthcare, infrastructure, and employment exemplifies corporate social responsibility. This refers to the company's efforts to positively contribute to society through ethical and sustainable business practices.

Question 2

JustHog Inc. and FoodLite Inc. are major fast food chains. They attract a larger share of the fast food market due to their quality, prompt service, and affordability. Due to the recent marketing initiatives of JustHog, FoodLite experienced a drop in its market share. In the context of the value net model, which of the following best represents the relationship between JustHog and FoodLite?

Accepted Answer

JustHog and FoodLite are competitors in the same market, and the recent marketing initiatives of JustHog have caused a drop in the market share of FoodLite. Therefore, the best representation of the relationship between JustHog and FoodLite in the value net model is competitors.

Question 3

John purchases a laptop from an electronics store for his own use without any intention to resell it. In the context of the value net model, John's purchase intention reflects that of a _________.

Accepted Answer

John's intention to purchase a laptop for his own use identifies him as a customer in the value net model. A complementor provides complementary products or services that enhance the value of the primary product, a strategic supplier is a supplier who provides critical inputs for the primary product, and a competitor is a rival organization offering similar products or services in the same market. However, none of these roles apply to John's purchase intention.

Question 4

Peter, the founder of MilkWorld Inc., started his dairy company with the intent of creating a formidable supply-chain link and providing a lucrative source of income for the local dairy farmers in his country. Peter is most likely to be considered a(n)_________.

Accepted Answer

Peter's intention to provide a source of income for local dairy farmers and create a supply-chain link indicates that his business has a social mission beyond just profit-making. A social entrepreneur, therefore, is the most appropriate term to describe Peter's role. Venture capitalists invest in new and potentially profitable business ventures, while investment managers oversee investment portfolios for clients. Angel investors provide financial support to startups or early-stage businesses.

Question 5

Jason, a visually impaired employee of Melony Inc., believes that his workplace has given him independence and self-confidence, thereby increasing his morale. Which of the following has been exemplified by Melony in this scenario?

Accepted Answer

Melony Inc. has exemplified social value by creating an inclusive workplace that empowers a visually impaired employee, thereby enhancing his independence, self-confidence, and morale.

Question 6

James started a restaurant chain, Foodizza Inc., and specifically hired unemployed youth from the ghettos in the vicinity of his restaurants, thereby providing them with means of livelihood. James is most likely to be considered a(n)_________.

Accepted Answer

James is a social entrepreneur because he started a business with the intention of creating social impact and addressing a social problem (unemployment among youth in the ghettos).

Question 7

Foodoid Inc., a fast food restaurant, enters into a tie-up with SimplyBake Inc., a bakery chain, to procure croissants, garlic loafs, and other essential food ingredients. In the context of the value net model, SimplyBake assumes the role of a(n)_________.

Accepted Answer

SimplyBake is assuming the role of a complementor as it is providing essential food ingredients to Foodoid Inc. which complements the products and services offered by the fast food restaurant.

Question 8

Stacy starts a day care center and hires unemployed mothers from poor economic backgrounds as babysitters. In this scenario, Stacy's initiative is most likely to be creating _________.

Accepted Answer

Stacy's initiative is creating shared values by addressing social issues (unemployment among mothers from poor economic backgrounds) while also pursuing business objectives (running a day care center).

Question 9

Which of the following social responsibilities implies that a firm has an obligation to give back in some way and contribute to strengthening the fabric of its local communities, as well as the larger society?

Accepted Answer

Philanthropic responsibility implies that a firm has an obligation to give back in some way and contribute to strengthening the fabric of its local communities, as well as the larger society. This responsibility goes beyond legal and economic responsibilities and is considered voluntary. Ethical responsibility refers to the obligation to conduct business ethically and in the best interest of society. Economic responsibility refers to the obligation to be profitable and create value for shareholders, while legal responsibility refers to the obligation to comply with all relevant laws and regulations.

Question 10

Tim buys a new car to gift his son for his birthday. In the context of the value net model, Tim is most likely to be considered a ________.

Accepted Answer

In the value net model, Tim is the customer as he is buying the car to gift it to his son.

Question 11

Emily works as a consultant in a firm that provides consulting and business solutions to global organizations to enhance their productivity and drive corporate performance and value. In the context of the value net model, Emily's firm is most likely to be considered a _________.

Accepted Answer

In the value net model, a supplier is an entity that provides goods or services to another company, enhancing its operations, productivity, or value creation. Emily's firm, by offering consulting and business solutions to improve productivity and corporate performance, acts as a supplier to its client organizations.

Question 12

Gama Inc., a cell phone manufacturer, procures lithium batteries from Zipcharge Inc. These batteries are used in the smart phones manufactured by Gama. In the context of the value net model, Gama is most likely to be considered a _________.

Accepted Answer

Gama Inc. is considered a customer in the value net model because it purchases lithium batteries from Zipcharge Inc. for use in its smartphones, indicating a buyer-seller relationship.

Question 13

In the context of the value net model, an individual or organization that makes customers value an organization's output more because of its product or service is known as a(n)_________.

Accepted Answer

A complementor is an individual or organization that enhances the value of an organization's product or service by offering complementary products or services. This can lead to increased demand and value for the organization's offering.

Question 14

Rended Inc., a publishing house, launches a unique initiative that involves educating children from poor economic backgrounds. For every product that a customer purchases, Rended would contribute $10 toward this cause. Which of the following best exemplifies Rended's initiative?

Accepted Answer

Rended's initiative is an example of corporate social responsibility, as it involves using company resources to support a social cause.

Question 15

Linz Inc., a global automobile manufacturing company, exports its automobiles to distributors in seven countries. The manufacturer incurs expenses of $1,000 per car as export duties and diligently pays its duties within the stipulated time frame. In this scenario, Linz is seen fulfilling its _________.

Accepted Answer

Linz is fulfilling its legal responsibility by paying its export duties within the stipulated time frame.

Question 16

Which of the following statements is true of the value net model?

Accepted Answer

The value net model is a strategic management tool that describes how an organization interacts with others in its environment to create value. It considers multiple stakeholders and their interdependencies, rather than treating them as isolated entities.

Question 17

Ruth works for an electronics manufacturing company, Zeeway Inc., whose employees volunteer over 1 million hours per year on initiatives that include environmental conservation, economic empowerment, and literacy programs. Which of the following best represents Zeeway's initiative?

Accepted Answer

Corporate social responsibility refers to a company's voluntary actions to address social and environmental issues beyond its legal obligations, and Zeeway Inc.'s commitment to encouraging and supporting employee volunteerism in areas such as environmental conservation, economic empowerment, and literacy programs aligns with this concept.

Question 18

Which of the following statements is true of shared values?

Accepted Answer

Shared values refer to a set of beliefs and principles that guide the behavior and decisions of individuals within an organization. These values are not only focused on financial outcomes but also on the improvement of the social welfare of the company. Therefore, option C is the correct statement. Option A is incorrect as shared values do not entail trading off profit and social welfare. Option B is incorrect as shared values are not primarily concerned with the transfer of the ability to perform tasks. Option D is incorrect as shared values are not solely focused on income and wealth outcomes.

Question 19

Inde Air Inc., a major airline, launches promotional schemes at regular intervals to increase its market share and counter the schemes launched by another airline, FlySky Inc. In the context of the value net model, which of the following best represents the relationship between Inde Air and FlySky?

Accepted Answer

Inde Air and FlySky are competitors as they are vying for the same market share and launching promotional schemes to counter each other. The value net model considers competitors as companies that are in direct competition with each other, influencing each other's strategies and decisions.

Question 20

George Inc., a construction firm, bags a multibillion dollar deal from the federal government for the purpose of infrastructural development. This deal resulted in a sustainable stakeholder advantage and an increase in the firm's annual turnover. Which of the following best describes the social obligation exemplified by George in this scenario?

Accepted Answer

George Inc. has fulfilled its economic responsibility by securing a multibillion dollar deal from the federal government. The firm has generated revenue and ensured profitability for shareholders, which is one of the primary responsibilities of any business. The other options (philanthropic, ethical, and legal responsibilities) are important, but not directly applicable in this scenario.

Quiz 14: Strategy and Society