SEVI 3013 test 1 UPDATED Exam Questions
and CORRECT Answers
To better achieve a competitive advantage, firms must now adopt a holistic approach towards
satisfying multiple stakeholders opposed to focusing on the needs of their shareholders. What
term is used for this approach? - CORRECT ANSWER - stakeholder strategy
All of the following are external stakeholders except which of the following?
Customers, creditors, alliance partners, competitors - CORRECT ANSWER - competitors
Which of the following three important stakeholder attributes should managers pay special close
attention to in order to better understand stakeholder impact analysis? - CORRECT
ANSWER - power, legitimacy, and urgency
Most consumers and investors today want the firms they do business with to look beyond just the
profit motive. In fact, they want firms that behave legally and ethically while also giving back to
their communities via philanthropic activities. The framework that attempts to reconcile these
wants is known as - CORRECT ANSWER - corporate social responsibility
Which of the following terms describes the guiding policy to address the competitive challenge,
and uses corporate- and business-level strategy? - CORRECT ANSWER - formulation
In strategic management, strategists engage in three pillars. These three pillars include the
________Blank of major goals and objectives. - CORRECT ANSWER - implementation
The goal of a good strategy is focused primarily on - CORRECT ANSWER - creating
superior value while containing costs
A successful strategy details a set of goal-directed actions that managers make to gain and
sustain a competitive advantage; in order to create this strategy, managers must focus on three
pillars. Which of the following below is not one of these pillars?
Formulation, execution, implementation, analysis - CORRECT ANSWER - execution
, The ________Blank effect involves studying and copying the competition, which results in
unsuccessful efforts to gain a competitive advantage. - CORRECT ANSWER - Red Queen
Sean, a retired CEO, invests capital in a start-up company that creates budgeting software. He
mentors the entrepreneur and the employees of the company because he wants the company to
perform well and survive in the market. Thus, Sean is the start-up company's - CORRECT
ANSWER - stakeholder
The best example of a firm's external stakeholder is a(n) - CORRECT ANSWER -
government agency that regulates the prices of products manufactured by the firm
As the legal owners, ________Blank have the most legitimate claim on a company's profits. -
CORRECT ANSWER - shareholders
In ________Blank, a firm frames a guiding policy to address the competitive challenge. -
CORRECT ANSWER - strategy formulation
Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?
- CORRECT ANSWER - Bill and Ted Corp. was able to hold its market share of 68 percent in
the social networking industry for more than three years.
Underperformance relative to other firms in the same industry or the industry average results in
a(n) ________Blank for a firm. - CORRECT ANSWER - competitive disadvantage
A firm is said to gain a competitive advantage when it accomplishes which of the following? -
CORRECT ANSWER - provides products similar to its competitors, but at lower prices
For a firm that operates in an industry where competition is high, which of the following
practices will result in inferior performance? - CORRECT ANSWER - trying to be everything
to everybody by combining different competitive strategies
and CORRECT Answers
To better achieve a competitive advantage, firms must now adopt a holistic approach towards
satisfying multiple stakeholders opposed to focusing on the needs of their shareholders. What
term is used for this approach? - CORRECT ANSWER - stakeholder strategy
All of the following are external stakeholders except which of the following?
Customers, creditors, alliance partners, competitors - CORRECT ANSWER - competitors
Which of the following three important stakeholder attributes should managers pay special close
attention to in order to better understand stakeholder impact analysis? - CORRECT
ANSWER - power, legitimacy, and urgency
Most consumers and investors today want the firms they do business with to look beyond just the
profit motive. In fact, they want firms that behave legally and ethically while also giving back to
their communities via philanthropic activities. The framework that attempts to reconcile these
wants is known as - CORRECT ANSWER - corporate social responsibility
Which of the following terms describes the guiding policy to address the competitive challenge,
and uses corporate- and business-level strategy? - CORRECT ANSWER - formulation
In strategic management, strategists engage in three pillars. These three pillars include the
________Blank of major goals and objectives. - CORRECT ANSWER - implementation
The goal of a good strategy is focused primarily on - CORRECT ANSWER - creating
superior value while containing costs
A successful strategy details a set of goal-directed actions that managers make to gain and
sustain a competitive advantage; in order to create this strategy, managers must focus on three
pillars. Which of the following below is not one of these pillars?
Formulation, execution, implementation, analysis - CORRECT ANSWER - execution
, The ________Blank effect involves studying and copying the competition, which results in
unsuccessful efforts to gain a competitive advantage. - CORRECT ANSWER - Red Queen
Sean, a retired CEO, invests capital in a start-up company that creates budgeting software. He
mentors the entrepreneur and the employees of the company because he wants the company to
perform well and survive in the market. Thus, Sean is the start-up company's - CORRECT
ANSWER - stakeholder
The best example of a firm's external stakeholder is a(n) - CORRECT ANSWER -
government agency that regulates the prices of products manufactured by the firm
As the legal owners, ________Blank have the most legitimate claim on a company's profits. -
CORRECT ANSWER - shareholders
In ________Blank, a firm frames a guiding policy to address the competitive challenge. -
CORRECT ANSWER - strategy formulation
Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?
- CORRECT ANSWER - Bill and Ted Corp. was able to hold its market share of 68 percent in
the social networking industry for more than three years.
Underperformance relative to other firms in the same industry or the industry average results in
a(n) ________Blank for a firm. - CORRECT ANSWER - competitive disadvantage
A firm is said to gain a competitive advantage when it accomplishes which of the following? -
CORRECT ANSWER - provides products similar to its competitors, but at lower prices
For a firm that operates in an industry where competition is high, which of the following
practices will result in inferior performance? - CORRECT ANSWER - trying to be everything
to everybody by combining different competitive strategies
