Strategic Management: Analysis, Formulation,
and Leadership in Business Strategy UPDATED
ACTUAL Questions and CORRECT Answers
What is the AFI Strategy Framework? A model that links three interdependent strategic
management tasks: Analysis, Formulation, and
Implementation.
What does strategic management To gain and sustain competitive advantage.
aim to achieve?
What are the three parts of the AFI Analysis, Formulation, Implementation.
Strategy Framework?
What is the definition of strategy? The set of goal-directed and integrated actions a
firm takes to gain and sustain superior
performance relative to competitors.
What are the three key elements of a Diagnosis of the competitive challenge, a guiding
good strategy? policy, and coherent actions for implementation.
What is competitive advantage? Superior performance relative to other
competitors in the same industry or the industry
average.
What is sustainable competitive Outperforming competitors or the industry
advantage? average over a prolonged period of time.
, What is the Red Queen Effect in A situation where competitors run faster but do not
business competition? change their relative strategic positions, resulting in
zero-sum competition.
What is stakeholder strategy? An approach to strategy formulation that considers
all of the company's stakeholders, not just its
shareholders.
What is value creation in strategic Occurs when companies provide products or
management? services at an affordable price while keeping costs
in check, benefiting both the company and
consumers.
What are external stakeholders? Entities such as customers, suppliers, alliance
partners, creditors, unions, communities,
governments, and media that can affect or are
affected by a firm's actions.
What are internal stakeholders? Entities such as employees, stockholders, and
board members who are directly involved in the
firm.
What does stakeholder impact Recognize, prioritize, and address the needs of
analysis help managers do? different stakeholders to achieve competitive
advantage.
What are the four responsibilities in Economic, legal, ethical, and philanthropic
stakeholder impact analysis? responsibilities.
What is the role of strategic leaders? To use power and influence to direct the activities
of others in pursuing an organization's goals.
and Leadership in Business Strategy UPDATED
ACTUAL Questions and CORRECT Answers
What is the AFI Strategy Framework? A model that links three interdependent strategic
management tasks: Analysis, Formulation, and
Implementation.
What does strategic management To gain and sustain competitive advantage.
aim to achieve?
What are the three parts of the AFI Analysis, Formulation, Implementation.
Strategy Framework?
What is the definition of strategy? The set of goal-directed and integrated actions a
firm takes to gain and sustain superior
performance relative to competitors.
What are the three key elements of a Diagnosis of the competitive challenge, a guiding
good strategy? policy, and coherent actions for implementation.
What is competitive advantage? Superior performance relative to other
competitors in the same industry or the industry
average.
What is sustainable competitive Outperforming competitors or the industry
advantage? average over a prolonged period of time.
, What is the Red Queen Effect in A situation where competitors run faster but do not
business competition? change their relative strategic positions, resulting in
zero-sum competition.
What is stakeholder strategy? An approach to strategy formulation that considers
all of the company's stakeholders, not just its
shareholders.
What is value creation in strategic Occurs when companies provide products or
management? services at an affordable price while keeping costs
in check, benefiting both the company and
consumers.
What are external stakeholders? Entities such as customers, suppliers, alliance
partners, creditors, unions, communities,
governments, and media that can affect or are
affected by a firm's actions.
What are internal stakeholders? Entities such as employees, stockholders, and
board members who are directly involved in the
firm.
What does stakeholder impact Recognize, prioritize, and address the needs of
analysis help managers do? different stakeholders to achieve competitive
advantage.
What are the four responsibilities in Economic, legal, ethical, and philanthropic
stakeholder impact analysis? responsibilities.
What is the role of strategic leaders? To use power and influence to direct the activities
of others in pursuing an organization's goals.
