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Groups or individuals who can significantly affect an organization's activities are called

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stakeholders

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Strategic management is a process where organizations analyze and learn from the

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internal and external environment

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Compared to the strategic management process strategic thinking is

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flexible

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Which strategic management perspective relies on an economic view of the firm?

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traditional

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The perspective that the most successful organization will be the one that best adapts to existing forces is called

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environmental determinism

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The perspective that firms can influence their environments is called

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enactment

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Which approach to strategic management consists of analyzing the internal and external environments of a company to arrive at organizational strengths, weaknesses, opportunities and threats?

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The traditional approach

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The resource-based approach to strategic management theorizes that firms can gain competitive advantage by possessing

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superior resources

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An emergent strategy is

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one that is not planned or intended

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The resources of a firm include all of the following except

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industry

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Most of the resources that firms can acquire are directly linked to a company's

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stakeholders financial strength

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What is typically the first step in the strategic management process?

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situation analysis

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The approach to strategic management that envisions the firm at the center of a network of constituencies is know as the

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stakeholder approach

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Management theory in the United States historically has focused on

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internal stakeholders

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What defines the purposes for which a company exists and operates?

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strategic direction

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Which of the following expresses what the organization wants to be in the future?

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The vision statement

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How many different levels of strategy formulation are there?

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Three

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Defining a company's domain for activity by selecting business areas in which the company will compete is called

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corporate-level strategy formulation

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Determining how business should compete in the areas they have selected is called

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business-level strategy formulation

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Developing the details of how resource areas should be used to implement competitive strategies and achieve competitive advantage is

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functional-level strategy formulation

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Managing stakeholder relationships and organizational resources in a manner that moves business toward the successful execution of its strategies, consistent with its strategic direction is

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strategy implemention

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The four processes associated with strategic management include all of the following except

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strategy insight

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The analytical process aimed at carrying out strategies that have already been identified is

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strategic planning

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Industry revolutionaries are

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firms that invent new business concepts

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The intuitive, creative process that synthesizes stimuli from the environment to create "an integrated perspective of the enterprise" is known as

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strategic thinking

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Strategic intent is similar to the concept of

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strategic vision

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Elements of strategic thinking include all of the following except

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resource based view

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One's view of how the world works is often referred to as

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a mental model

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A mental model should include

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an understanding of both the internal and external organization

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Thinking in time refers to

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recognizing that the past, present, and future are all relevant to making good strategic decisions

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The means to encourage strategic thinking include all the following except

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demoting or firing those employees who do not demonstrate strategic thinking

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The travel and tourism industry is composed of

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traditional hospitality businesses and a broad range of businesses

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Forces that are outside the traditional boundaries of the firm are called

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the external environment

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The external environment can divided into these two smaller categories

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the broad environment and the operating environment

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The context in which the firm exists is called the

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the operating environment

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Sociocultural environments have meaning because

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well-educated people find them meaningful

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Influences and trends associated with domestic or global economies are called the

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economic environment

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Organizations should consider forecasts of economic growth in determining when to

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make critical resource allocation decisions

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A major source of economic uncertainty for global organizations is

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foreign exchange rates

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The _________ is among the most significant determinant of organizational success, both at home and abroad.

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political environment

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When an innovation has an impact on more than on industry it is preferred to as a

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basic innovation

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Major innovations that influence more than one business or industry are referred to as

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radical innovations

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Which environment consists of stakeholders with whom organizations interact on a regular basis

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the operating environment

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Economic power that allows a firm or group of firms to influence the nature of business arrangements is commonly referred to as

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bargaining power

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All of the following characteristics make "customers" in the five forces model strong except when

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the products they are buying are differentiated

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A firm that is involved in more than one stage of the industry supply chain is considered to be

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vertically integrated

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Suppliers in the five forces model are powerful when the following characteristics are present except when they

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sell products and services that can be substituted with other products and services

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Costs associated with leaving a business or industries are commonly referred to as

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exit barriers

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Which of the following industry characteristics leads to greater rivalry?

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A slow growth industry

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An industry in which one firm is the only significant provider of a good or service is called a

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monopoly

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An industry characterized by the existence of a few very large firms is called an

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oligopoly

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Forces that keep new competitors out and provide a level of protection for existing competitors are called

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entry barriers

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Cost savings that occur when it is more efficient to produce a product in a large facility at a higher volume are

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economies of scale

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Costs associated with starting a business are

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capital requirements

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Attributes associated with a product or service that cause customers to prefer it rather than competing products or services are

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product/service differentiation

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Entry barriers are caused by all of the following except

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low switching costs

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Resources that are possessed by industry participants but are difficult or impossible to completely duplicate are

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inimitable resources

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Substitute products form a

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ceiling on prices

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The interest that a group takes in assuring that an organization behaves in a manner that is socially responsible is referred to as a

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social stake

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Having a legal right to make decisions for some part of the company is referred to as a

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formal power

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Techniques that firms use to win market share and increase revenues and profits are

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competitive tactics

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The best example which illustrates the competitive force of substitute products is

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Coca-cola for Pepsi

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A group of firms oriented towards problem solving and technology development is referred to as a

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consortia

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What is the primary advantage of interlocking directorates

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The potential to draw resources from other firms to achieve stability

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The bargaining power of suppliers is great when

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one or more suppliers pose a credible threat of moving into the business of the buyer

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The mission, vision and values statement of the Mandarin Oriental Hotel Group is an excellent example of the major components of

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strategic direction

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The central components of strategic direction are

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vision, definition and values

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Strategic direction is established and communicated through tools including all of those below except

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formal strategic plans

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The power of various stakeholders is impacted by all of the following except

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profitability power

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The term for forces at work to maintain the status quo is

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structural intertia

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One of the most common means to communicate strategic direction is in the

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written mission statement

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As organizations are founded

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they often have mission statements that are simple and not written down

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The first step in creating a clear sense of mission is to

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define the business

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Typically, the first step in creating a clear sense of mission is to

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understand the nature of the business

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Marriott's International mission statement

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is broadly defined

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An organization with a vision has

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a sense of what it wants to be in the future

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The component parts of social responsibility include all of the following except

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personal survival responsibility

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Firms that pursue social responsibility are

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no significant difference in performance from firms with less social responsibility

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Enterprise strategy refers to

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the combining of ethical and strategic thinking in firms

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The Universalist theory of ethics

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focuses of the intent of the decision

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The utilitarian theory of ethics

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focuses of the outcome of the decision

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The economic theory of ethics

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views the purpose of business organizations is to maximize profits

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Examining ethics around the world

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there can be significant differences among workers in different parts of the world

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As organizations grow larger and internationalize

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tend to adopt values that are friendlier to a wider set of international constituents

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A code of ethics is concerned with

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communicating values to employees and other stakeholders

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Which of the following sentences is true?

answer

"Ethical" is pertaining to what is right or wrong

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Ethical consonance

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what we believe matches our behavior

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A proactive manager is

answer

listening empathetically to employees in order to take care of their needs.

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A proactive manager is

answer

listening empathetically to employees in order to take care of their needs.

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