Chapter One Quiz
What makes a competitive advantage sustainable or durable as opposed to temporary is
actions or elements in the strategy that cause an attractive number of buyers to have lasting reasons to purchase a company's products or services, despite competitors' best efforts to nullify or overcome those reasons
A company's strategy is a "work in progress" and evolves over time because of
the need to react and respond to changing market and competitive conditions and ongoing management efforts to improve this or that piece of the strategy
Based on Figure 1.1, which of the following is not something to look for in identifying a company's strategy?
Actions to raise or lower the company's performance targets and actions to pay down the company's long-term debt
Which one of the following questions helps distinguish a winning strategy from a mediocre or losing strategy?
Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in god company performance?
Which one of the following statements about whether a company's strategy can be considered ethical is true?
Just keeping a company's strategic actions within the bounds of what is legal does not mean the strategy is ethical
Which of the following is not something a company's strategy is concerned with?
Management's choice of which of several alternative business models to employ in delivering value to customers and to shareholders
Which of the following statements about a company's strategy is false?
Well-crafted company strategies rarely need to be changed unless one or more important rival firms launch unexpected strategic initiatives that endanger the company's strategy long-term profitability
It is normal for a company's strategy to end up being
a blend of proactive actions to improve the company's competitiveness and financial performance as-needed reactions to unanticipated developments and fresh market conditions
Good strategy and good strategy execution
are the most telling and trustworthy signs of good management
In choosing among strategy alternatives, company managers
are well-advised to embrace strategic actions that can pass the test of moral scrutiny- it is not enough to just stay within the bounds of what is legal and is in compliance with prevailing government regulations
A creative, distinctive strategy that sets a company apart from rivals and delivers superior value to customers
is a company's most reliable ticket for winning a competitive advantage over rivals
The two crucial elements of a company's business model are
its customer value proposition (the company's approach to satisfying buyer needs and requirements at a price they will consider a good value) and its "profit formula" (its business approach to generating sufficiently large revenues and controlling the costs of its value proposition, such that the company will be appealing profitable in delivering the intended value to customers)
A company's business model
sets forth how its strategy and operating approaches will create value for customers while at the same time generating ample revenues to cover costs and realize a profit
The difference between a company's strategy and a company's business model is that
strategy relates broadly to a company's competitive moves and business approaches (which may or may not lead to profitability) while its business model relates to whether the company can execute its customer value proposition profitability
A company's strategy is defined by
the specific market positioning, competitive moves, and business approaches that form management's answer to "What's our plan for running the company and producing good results?"
