Session 1

What distinguishes stakeholders from stockholders?

Stakeholders can be internal or external, while stockholders own shares.

What are the three key attributes for stakeholder impact analysis?

Power, legitimacy, and urgency.

What type of stakeholder is Louise, who owns stock but is not employed by Sturdy Appliance?

External stakeholder.

What does Dimitre Corporation's approach illustrate?

Implementation of a stakeholder strategy.

What should Batt Packs do to meet ethical responsibilities after a chemical spill?

Design batteries without the harmful chemical.

Why did Earth Mother Leisure Wear's strategy fail?

It lacked strategic commitments.

What advantage did Dazzle Lighting maintain through its strategy?

Sustainable competitive advantage.

How can French Provincial Decor LLC determine its competitive advantage?

By comparing its return on invested capital to industry averages.

What does DuraLine Limited's situation indicate?

It has a competitive disadvantage.

What do Writer Button Incorporated and Horner Incorporated likely have in common?

Competitive parity with each other.

What is true about Forever Spring Incorporated's production costs?

It has a competitive advantage in the industry.

How has BuyNow Incorporated created superior customer value?

Through strategic positioning and lower costs.

What strategy should AlwaysSharp art knives pursue for competitive advantage?

Market them as a higher-quality alternative.

How did Yellow Ride Service achieve its unique position in the taxi industry?

By providing lower rates for long-distance fares.

What characterizes the tasks of the AFI strategy framework?

They are highly interdependent and often occur simultaneously.

What should Roberta reconsider about her strategy focused on competitive benchmarking?

It lacks detail and clarity.

Does Tony's Pizza Shop have a competitive advantage based on profitability?

False—competitive advantage requires above-average returns.

What effect did Lawrence experience when copying the competition?

Failure to gain advantage due to imitation.

Who qualifies as a firm's internal stakeholder?

Individuals directly involved in the firm's operations.

What is an example of a firm's external stakeholder?

Individuals or entities not employed by the firm but affected by it.

What is an economic responsibility of a firm?

Providing adequate returns to stockholders.

What responsibility is Prism Paints Corporation compromising by manufacturing polyethanal-free paints?

Economic responsibilities toward its shareholders.

What scenario illustrates a sustainable competitive advantage?

Maintaining market share over a prolonged period.

When does a firm have a competitive disadvantage?

When its return on invested capital is below the industry average.

Why have Giorgia’s and Florentine’s gained competitive advantage?

They pursued distinct strategic positions.

What happens if all firms pursue a low-cost position?

Resources for improvements would diminish.

What question should a manager ask during the analysis phase of the AFI strategy framework?

How have consumer preferences changed in the industry?