Question 1

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

Tim is the customer because he is buying the car to give to his son as a gift.

Question 2

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

Zeeway's initiative is best represented by corporate social responsibility, which refers to a company's commitment to acting in a socially responsible and sustainable manner. This includes engaging in activities that benefit society and the environment, such as volunteering, environmental conservation, and community service. Zeeway's emphasis on volunteer work and social programs demonstrate their commitment to corporate social responsibility.

Question 3

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 output by providing complementary products or services that make customers value the organization's output more. Complementors can have a positive impact on an organization's profitability and competitive advantage, as they provide additional value to the customers that the organization cannot provide alone. This concept is a key element of the value net model.

Question 4

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 development initiatives in low-income countries can be categorized as corporate social responsibility (CSR), which refers to a company's voluntary actions to improve economic, social, and environmental well-being of the society where it operates. The company is taking responsibility beyond its stakeholders and making positive impacts on the community. The development of model villages aimed at improving healthcare, infrastructure, and employment in the low-income country can be seen as a CSR initiative.

Question 5

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 as he started a business with the specific intention of addressing a social problem (unemployment in the ghettos) and helping the local community.

Question 6

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 refers to the social responsibility of giving back to the community and contributing to its betterment. This includes charitable donations, volunteer work, and other forms of community support.

Question 7

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 context of the value net model, Emily's firm would be considered a supplier, as they provide consulting and business solutions to global organizations. The value net model identifies four key players in a business ecosystem - customers, suppliers, competitors, and complementors.

Question 8

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

The value net model identifies four key players in any business ecosystem: customers, competitors, complementors, and suppliers. In this scenario, Inde Air and FlySky are both airlines operating in the same market and competing with each other through promotional schemes. Therefore, they are best classified as competitors.

Question 9

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 Inc.'s initiative of contributing towards educating children from poor economic backgrounds for every product a customer purchases exemplifies corporate social responsibility where the company takes responsibility for the well-being of society and gives back to the community.

Question 10

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 diligently paying its export duties as required by law.

Question 11

Which of the following statements is true of shared values?

Accepted Answer

Shared values focus on aligning the economic and social goals of a firm, with an emphasis on improving both aspects. This means that the goal is not solely to maximize profits, but also to consider how the organization's actions impact society as a whole. This approach recognizes that both economic and social welfare are important and can be mutually beneficial. Choices A and D are incorrect because they imply that shared values only focus on economic outcomes, which is not the case. Choice B is incorrect because it does not accurately describe what shared values are - transferring skills between organizations is a separate concept.

Question 12

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 demonstrated social value by providing a workplace that has given independence and self-confidence to a visually impaired employee, thereby increasing his morale. This shows that the company is committed to promoting societal good beyond just legal obligations.

Question 13

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 is the customer in this scenario as he is purchasing the laptop for his own use, without the intention of reselling it.

Question 14

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 fast food market as they are vying for the same set of customers with similar offerings. The drop in market share of FoodLite is a result of JustHog's marketing initiatives which have created a competitive edge for itself. Therefore, the best representation of their relationship in the value net model is as competitors.

Question 15

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 purchasing lithium batteries from Zipcharge Inc. for use in their own products, which makes them a customer in the value net model.

Question 16

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 intent to create a supply-chain link and provide income for local dairy farmers suggests a social entrepreneurship approach, which is focused on creating social or environmental value rather than solely financial profits. Venture capitalists and angel investors typically invest in businesses with potential for high financial returns, while investment managers manage assets on behalf of others.

Question 17

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

The answer of Stacy starts a day care center and...

Question 18

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 focuses on analyzing the relationships and interactions among stakeholders and how these interactions can be optimized to create value for all parties involved. It is not specific to large-scale social problems, does not treat stakeholders as single-role players, and does not assign rigid goals and tasks to stakeholders.

Question 19

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

The social obligation exemplified by George Inc. in this scenario is economic responsibility as they have undertaken a construction contract for the government and are generating revenue through it. While they may have legal and ethical responsibilities to fulfill, their primary obligation in this scenario is to ensure the successful completion of the contract and the sustainable growth of their business through it. Philanthropic responsibilities, on the other hand, involve voluntary acts of giving back to society, which may not be directly relevant in this scenario.

Question 20

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 assumes the role of a complementor in this scenario as they provide essential food ingredients that add value to the products offered by Foodoid Inc.

Quiz 14: Strategy and Society