MGT 527 Midterm Exam questions
and answers 2025-2026 latest update
What is the overall purpose of strategic management?-ANS >Gain competitive advantage
Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many
competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that
uses locally sourced, organic ingredients. These ideas are Burger Bomb's ______.-ANS >strategy
What must a firm do after diagnosing its specific competitive challenge?-ANS >Create an effective
guiding policy
A competitive advantage ______.-ANS >is assessed relative to other competitors in the industry
When a firm implements a strategy that leads to superior performance relative to other
companies in the same industry, it is said to have achieved ______.-ANS >a competitive advantage
A competitive advantage that lasts for a long period of time is said to be ______.-ANS >sustainable
The Bright Bulb light bulb company produces a line of LED bulbs that customers consider very
similar to competitors' LED bulbs. Which of the following conditions must be true for Bright Bulb
to have a competitive advantage?-ANS >The bulbs must have a lower cost than competitors'
bulbs.
Andrew's Home Center has created a unique situation for itself in its industry that allows the
company to not only provide excellent value to its customers but also control its costs. This is
known as ______.-ANS >strategic positioning
Which statement about strategies is true?-ANS >A statement of desire on its own often leads to
goal conflict.
Which of the following are the relationships that a firm has with stakeholders?-ANS >-
Stakeholders can affect the firm's actions.
- The actions of the firm can affect stakeholders.
Which of the following are aims of stakeholder strategy? (Select all that apply.)-ANS >To gain and
sustain competitive advantage
To manage various stakeholders effectively
he third step of stakeholder impact analysis requires managers to identify the ______ presented
by internal and external stakeholders.-ANS >opportunities and threats
True or false: A statement such as, "We will be the biggest company in the world," is an example
of strategy.-ANS >False
A firm's attempts to manage the web of relationships between internal and external stakeholders
in order to create value is known as ______.-ANS >stakeholder strategy
, What is strategy?-ANS >the set of actions a firm takes to achieve a competitive advantage
Stakeholder impact analysis is a ______-step process that allows managers to better understand
and address stakeholders' needs.-ANS >five
When a stakeholder has power over a company that stakeholder is ______.-ANS >able to
influence the company to do something it would otherwise not do
Place the five steps of the stakeholder impact analysis in order, with the first step at the top.-ANS
>- Who are our stakeholders?
- What are our stakeholders' interests?
- What opportunities and threats do our stakeholders present?
- What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders?
- What should we do to effectively address the stakeholder concerns?
In which step of a stakeholder impact analysis do firms identify those stakeholders that currently
have, or potentially can have, a material effect on the company?-ANS >first
In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders'
interests and claims according to the power, legitimacy, and urgency framework.-ANS >second
In the ______ step of the stakeholder impact analysis, firms identify their various social
responsibilities to stakeholders.-ANS >fourth
In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and
threats that stakeholders present to the firm.-ANS >third
The concept, or framework, of corporate social ______ guides firms in identifying and addressing
their economic, legal, ethical, and philanthropic obligations to society.-ANS >responsibility
Which of the four corporate social responsibilities is considered first and foremost for business
enterprises?-ANS >economic
Which of the following elements of the pyramid of corporate social responsibilities are result from
a society's expectations toward business?-ANS >ethical responsibilities
philanthropic responsibilities
Which of the following statements regarding tasks in the AFI strategy framework is true?-ANS
>The tasks are very interdependent.
In the external analysis phase of the AFI strategy framework, what should managers ask?-ANS
>"How do external forces affect our strategy and competitive advantage?"
To which types of organizations can we apply the principles of strategic management?-ANS >all
types of organizations
Effective guiding policy is supported by and stays consistent through the use of ______.-ANS
>strategic commitments
The third step of stakeholder impact analysis requires managers to identify the ______ presented
by internal and external stakeholders.-ANS >opportunities and threats
and answers 2025-2026 latest update
What is the overall purpose of strategic management?-ANS >Gain competitive advantage
Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many
competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that
uses locally sourced, organic ingredients. These ideas are Burger Bomb's ______.-ANS >strategy
What must a firm do after diagnosing its specific competitive challenge?-ANS >Create an effective
guiding policy
A competitive advantage ______.-ANS >is assessed relative to other competitors in the industry
When a firm implements a strategy that leads to superior performance relative to other
companies in the same industry, it is said to have achieved ______.-ANS >a competitive advantage
A competitive advantage that lasts for a long period of time is said to be ______.-ANS >sustainable
The Bright Bulb light bulb company produces a line of LED bulbs that customers consider very
similar to competitors' LED bulbs. Which of the following conditions must be true for Bright Bulb
to have a competitive advantage?-ANS >The bulbs must have a lower cost than competitors'
bulbs.
Andrew's Home Center has created a unique situation for itself in its industry that allows the
company to not only provide excellent value to its customers but also control its costs. This is
known as ______.-ANS >strategic positioning
Which statement about strategies is true?-ANS >A statement of desire on its own often leads to
goal conflict.
Which of the following are the relationships that a firm has with stakeholders?-ANS >-
Stakeholders can affect the firm's actions.
- The actions of the firm can affect stakeholders.
Which of the following are aims of stakeholder strategy? (Select all that apply.)-ANS >To gain and
sustain competitive advantage
To manage various stakeholders effectively
he third step of stakeholder impact analysis requires managers to identify the ______ presented
by internal and external stakeholders.-ANS >opportunities and threats
True or false: A statement such as, "We will be the biggest company in the world," is an example
of strategy.-ANS >False
A firm's attempts to manage the web of relationships between internal and external stakeholders
in order to create value is known as ______.-ANS >stakeholder strategy
, What is strategy?-ANS >the set of actions a firm takes to achieve a competitive advantage
Stakeholder impact analysis is a ______-step process that allows managers to better understand
and address stakeholders' needs.-ANS >five
When a stakeholder has power over a company that stakeholder is ______.-ANS >able to
influence the company to do something it would otherwise not do
Place the five steps of the stakeholder impact analysis in order, with the first step at the top.-ANS
>- Who are our stakeholders?
- What are our stakeholders' interests?
- What opportunities and threats do our stakeholders present?
- What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders?
- What should we do to effectively address the stakeholder concerns?
In which step of a stakeholder impact analysis do firms identify those stakeholders that currently
have, or potentially can have, a material effect on the company?-ANS >first
In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders'
interests and claims according to the power, legitimacy, and urgency framework.-ANS >second
In the ______ step of the stakeholder impact analysis, firms identify their various social
responsibilities to stakeholders.-ANS >fourth
In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and
threats that stakeholders present to the firm.-ANS >third
The concept, or framework, of corporate social ______ guides firms in identifying and addressing
their economic, legal, ethical, and philanthropic obligations to society.-ANS >responsibility
Which of the four corporate social responsibilities is considered first and foremost for business
enterprises?-ANS >economic
Which of the following elements of the pyramid of corporate social responsibilities are result from
a society's expectations toward business?-ANS >ethical responsibilities
philanthropic responsibilities
Which of the following statements regarding tasks in the AFI strategy framework is true?-ANS
>The tasks are very interdependent.
In the external analysis phase of the AFI strategy framework, what should managers ask?-ANS
>"How do external forces affect our strategy and competitive advantage?"
To which types of organizations can we apply the principles of strategic management?-ANS >all
types of organizations
Effective guiding policy is supported by and stays consistent through the use of ______.-ANS
>strategic commitments
The third step of stakeholder impact analysis requires managers to identify the ______ presented
by internal and external stakeholders.-ANS >opportunities and threats
