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Chapter 2
Corporate Strategy: A Stakeholder Perspective
Test Bank
1.That need, toward which the organization strives, forms the basis of its:
A. Aspirations or vision.
B. Strategy.
C. Profits.
D. All the above.
2. The pursuit of ______, however, is so broad a mandate that it offers little guidance about where to begin or what to do:
A. Vision.
B. Strategy.
C. Profits.
D. None of the above.
3.The firm’s ______identifies what the organization is going to do in order to attain its ______:
A. Profits, Revenue.
B. Vision, Mission.
C. Tactics, Strategy.
D. Aspirations, Strategy.
4.“Ending hunger in the community” and “feeding the poor” illustrate the relationship between:
A. Strategy and tactics.
B. Profits and revenue.
C. Vision and mission.
D. Aspirations and strategy.
5.Strategy:
A. Defines the organization’s response to its competitive environment.
B. Explains how the firm will achieve its vision and mission.
C. Is not the day-to-day decisions made by operating supervisors.
D. Is all of the above.
6.Tactics:
A. Are the day-to-day management decisions that implement the strategy.
B. Are the actions people in the organization take every day.
C. Are flexible and can be altered more easily to reflect changes in operational context.
D. Are all of the above.
7.A SWOT analysis is a tool that allows a firm to identify its:
A. Internal Strengths and Weaknesses.
B. External Opportunities and Threats.
C. Both A and B.
D. Neither A nor B.
8.The firm’s most valuable resources or most innovative capabilities are:
A. Its people.
B. Its finances.
C. Its competencies.
D. All of the above.
9.An organizational competency should be:
A. Applicable in multiple different markets.
B. Valued by the consumer.
C. Difficult for a competitor firm to copy.
D. All of the above.
10.The resources perspective:
A. Ignores much of the context in which the firm operates.
B. Has been disproven through research.
C. Is too narrow, focusing only on assets, not processes.
D. All of the above.
11.Porter’s Five Forces Model does not include:
A. Suppliers.
B. Customers.
C. Competitor rivalry.
D. Tax rates.
12.______perspective assumes a zero sum game and a confrontational view:
A. A resource perspective.
B. A industry perspective.
C. A CSR perspective.
D. A focused perspective.
13. ______in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization’s objectives:
A. An employee.
B. A customer.
C A supplier.
D. A stakeholder.
14.Strategic CSR assumes all of the following except:
A. Firms incorporate a CSR perspective within their strategic planning process.
B. It incorporates a stakeholder perspective.
C. The firm pursues a short-term perspective to maximize profits.
D. Resources and stakeholders are long-term assets.
15.______argues that a CSR perspective should be integrated into the organization’s strategic planning processes and throughout day-to-day operations:
- Institutional theory.
- Stakeholder theory.
- Economic theory.
- Elementary theory.
16.Johnson & Johnson’s “Credo” places ______as its lowest priority:
A. Employees.
B. Customers.
C. Stockholders.
D. Johnson Johnson treats all its stakeholders equally.
17.The development of stock options and other compensation policies:
A. Address the principal-agent conflict.
B. Help align the interests of owners and managers.
C. Have produced negative consequences.
D. All of the above.
18.CSR is not a short-term issue because:
- Leaders must anticipate societal expectations.
- The effects of corporate actions may be cumulative.
- Affluence drives more socially responsible expectations among stakeholders.
- All the above.
19.Multiple stakeholder advocacy:
- Means management must maximize shareholder wealth.
- Is driven by rational and economic motives.
- Only occurs from outsider advocacy groups.
- Is primarily a short term phenomenon.
20. Globalization initially empowered:
- Stockholders.
- Suppliers.
- Buyers.
- Corporations.
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