Chapter 1

c. what the company wants to ultimately accomplish

A company's vision primarily states: a. how the company plans to compete in its industry. b. how the company plans to accomplish its goals. c. what the company wants to ultimately accomplish. d. what the company actually does to generate revenues.

b. analysis

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy a. formulation. b. analysis. c. implementation. d. control.

d. provides services that consumers will value more than those of its rivals

A firm is likely to have a competitive advantage when it: a. minimizes the difference between value creation and the costs involved. b. provides goods similar to those of its competitors, but at a higher price. c. performs at a level similar to the other firms in the industry. d. provides services that consumers will value more than those of its rivals.

c. The company will tend to be more flexible when adapting to changing environments

If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision? a. The company will fail to establish a positive relationship between its vision statement and performance. b. The company will have a short-term, unidirectional focus. c. The company will tend to be more flexible when adapting to changing environments. d. The company will clearly define how it means to satisfy a customer need.

a. What commitments do we make to act both legally and ethically?

Organizational core values are the answer to which of the following questions? a. What commitments do we make to act both legally and ethically? b. Which of the value chain activities are primary? c. What is the company's customer lifetime value? d. What is the value added to a good or service at each step in the production?

a. goals to improve service

Product-oriented vision statements provide managers with: a. goals for employee development. b. goals to improve service. c. strategic flexibility. d. ways to solve customer problems.

c. It has a competitive advantage over the other firms

Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Revved Rider Inc. from this scenario? a. It has a direct investment in the other firms. b. It has an exchange relationship with the other firms. c. It has a competitive advantage over the other firms. d. It has competitive parity with the other firms.

d. trade-offs that work against each other

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in: a. a competitive advantage through superior performance. b. an increase in the firm's economic contribution. c. competitive parity with firms that have adopted either of the strategies. d. trade-offs that work against each other.

d. reinvesting profits to continually design and produce better electric vehicles

Which of the following has contributed to Tesla's competitive advantage in terms of stock appreciation? a. using inexpensive materials to keep costs low b. keeping its proprietary technologies secret c. copying the most popular features of competitors' vehicles d. reinvesting profits to continually design and produce better electric vehicles

d. A firm's competitive advantage is always absolute, not relative

Which of the following statements about competitive advantage is not true? a. A firm's past performance does not guarantee its future performance. b. A firm will have a sustainable competitive advantage when it outperforms its competitors over a prolonged period of time. c. A firm can gain a competitive advantage by providing goods similar to its competitors' goods at a lower price. d. A firm's competitive advantage is always absolute, not relative.

d. The principles of strategic management can be applied universally to all organizations

Which of the following statements will effectively guide a strategist? a. It is necessary to isolate the key stakeholders and their needs when formulating a strategy. b. Strategy is all about competitive benchmarking and operational effectiveness. c. Industry and firm effects that determine firm performance are independent of each other. d. The principles of strategic management can be applied universally to all organizations.

mission

An organization's _____ describes what the organization actually does—the products and services it plans to provide, and the markets in which it will compete. a. mission b. promissory note c. vision d. code of conduct