Chapter 2 Elements of Strategic Management

What is a competitive advantage?

• Anything a firm does well compared to its rivals

• A firm's financial resources

• A company's marketing strategy

• The number of employees in a firm

Which of the following is NOT a type of organizational resource?

• Market trends

• Intangible resources

• Financial resources

• Human resources

What does a vision statement describe?

• The financial goals of a company

• What the organization wants to become

• The products offered by a firm

• The current operations of a firm

What is the primary focus of a mission statement?

• Future aspirations

• Long-term financial goals

• Market competition

• Current purpose and reason for existence

Which of the following is a characteristic of an effective objective?

• Flexible and adaptable

• Vague and open-ended

• Unquantifiable

• Measurable and specific

What is the resource-based view (RBV)?

• A strategy for cost leadership

• A method for employee management

• A view that emphasizes a firm's unique resources

• A focus on external market conditions

Which of the following is a component of a mission statement?

• Vision for the future

• Concern for employees

• Long-term financial projections

• Market competition

What is the purpose of conducting an environmental scan?

• To analyze employee performance

• To evaluate external opportunities and threats

• To determine financial stability

• To assess internal strengths

What is a primary stakeholder?

• A competitor in the same industry

• A group engaged in economic transactions with the firm

• A government regulatory body

• A group with indirect interest in the firm

What is a sustained competitive advantage?

• An advantage that can be easily replicated

• An advantage that is maintained over time

• An advantage that is only temporary

• An advantage that lasts indefinitely