CHAP 1: QTCL

A good strategy is a set of actions that enables a firm to achieve its own internal goals

without regard to the external environment.

• True

• False

The following statement by the chief executive of GoFlix movie studio is an effective

strategy: “We will produce the greatest films of the 21st century.”

• True

• False

The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer,

and Incorporate feedback.

• True

• False

Questions asked during the strategy analysis stage of the AFI framework include “How

does the firm make money?” and “What effects do forces in the external environment have on

the firm’s potential to gain and sustain a competitive advantage?

• True

• False

Once a strategy has been formulated and implemented, it is important that the firm sticks

to it no matter what happens.

• True

• False

Because they are a crucial component of a firm’s success, customers are considered

internal stakeholders.

• True

• False

A firm is required by society and its shareholders to meet its ethical and philanthropic

responsibilities.

• True

• False

Under the strategy as a planned emergence model, even entry-level employees can help

generate strategic initiatives.

• True

• False

Tommy wants to open his own food truck but doesn’t know anything about business. He

needs help determining who his competition is, how he should craft his strategy to compete andhow he’ll implement his strategy to achieve a competitive advantage. He’s hired you to help himget started. As a result, you know that you will probably use the

• AFI strategy framework.

• business model analysis.

• Six Sigma tool.

• Stakeholder Impact analysis.

Jill is interested in the concept of strategy and decides to create her own. As a result, Jill

says that her strategy is to focus on growth and marketing to achieve competitive advantage.

How would you evaluate Jill’s statement?

• Jill’s strategy makes sense and she should move forward with it

• Jill’s strategy reveals a clear strategic position and tradeoff, so she should proceed.

• Jill should reevaluate her statement because it fails to mention human resources and

  finance.

• Jill should reevaluate her statement because it fails to meet the principles of what a

  strategy should be.