1. Competitive advantages that are unique, valuable, and difficult for rivals to copy are likely to make these advantages Focused Popular Sustainable Targeted Managers need to determine how a firm is to compete so that it can obtain advantages that are sustainable over a lengthy period of time. That means focusing on how they can create competitive advantages in the marketplace that are unique, valuable, and difficult for rivals to copy or substitute. That is, managers need to make such advantages sustainable, instead of temporary. 2. Management innovations such as total quality, benchmarking, and business process reengineering can lead to sustainable competitive advantage. True False The popular management innovations of the last two decades like total quality, just-in-time, benchmarking, business process reengineering, and outsourcing are all about operational effectiveness. Operational effectiveness means performing similar activities better than rivals. Each of these is important, but none lead to sustainable competitive advantage because everyone is doing them. 3. The four key attributes of strategic management include: Including multiple stakeholders in decision making. Directing the organization toward overall goals and objectives. Needing to incorporate short-term and long-term perspectives. All of these. Exhibit 1.1 provides a definition and the four attributes of strategic management: directing the organization toward overall goals and objectives, including multiple stakeholders in decision making, needing to incorporate short-term and long-term perspectives, and recognizing tradeoffs between efficiency and effectiveness. 4. Ambidexterity in a strategic context refers to a manager's challenge to: Align resources to take advantage of existing products and explore new opportunities. Balance one's natural instinct to think short-term with a firm's long-term sustainability. Balance the constraints of low-cost with differentiation. Create a synergy between personal and professional goals. Some authors have developed the concept of "ambidexterity" which refers to a manager's challenge to both align resources to take advantage of existing product markets as well as proactively explore new opportunities. 5. A good manager can be flexible when it comes to sticking to the original plan; to get good results the intended strategy does not have to become the realized strategy. True False The intended strategy rarely survives in its original form. Unforeseen environmental developments, unanticipated resource constraints, or changes in managerial preferences may result in at least some parts of the intended strategy remaining unrealized. On the other hand, good managers will want to take advantage of a new opportunity presented by the environment, even if it was not part of the original set of intentions. 6. Stakeholder symbiosis is in direct contrast with ________ thinking. Crowdsource Emergent strategic Entrepreneurial Zero sum In the "zero sum" view, the role of management is to look upon the various stakeholders as competing for the organization's resources. In essence, the gain of one individual or group is the loss of another individual or group. Organizations can achieve mutual benefit through stakeholder symbiosis, which recognizes that stakeholders are dependent upon each other for their success. 7. The three components of the __________ approach to corporate accounting include financial, environmental, and social performance measures. Stakeholder Triple bottom line Triple dimension Triple efficiency Many companies are now measuring what has been called a "triple bottom line." This involves assessing financial, social, and environmental performance. 8. Where should the strategic management perspective be emphasized? At the middle of the organization At the top of the organization From the bottom up in an organization Throughout the organization To develop and mobilize people and other assets, leaders are needed throughout the organization. No longer can organizations be effective if the top "does the thinking" and the rest of the organization "does the work." Everyone must be involved in the strategic management process. 9. Among the necessary leaders needed for an effective strategic management process are ________, who, although they have little positional power and formal authority, generate their power through the conviction and clarity of their ideas. Executive leaders Internal networkers Local line leaders Triple bottom line advocates Everyone must be involved in the strategic management process. There is a critical need for three types of leaders, including internal networkers who, although they have little positional power and formal authority, generate their power through the conviction and clarity of their ideas. 10. What is the hierarchy of organizational goals (least specific to most specific)? Mission statements, vision statements, strategic objectives Strategic objectives, mission statements, vision statements Vision statements, strategic objectives, mission statements Vision statements, mission statements, strategic objectives Organizations express priorities best through stated goals and objectives that form a hierarchy of goals, which includes its vision, mission, and strategic objectives. 11. ________ tend to be quite enduring and seldom change. Mission statements Strategic objectives Vision statements All of these Vision statements tend to be quite enduring and seldom change. However, a firm's mission can and should change when competitive conditions dramatically change or the firm is faced with new threats or opportunities.