Integrated Business policy Chapter 1

Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage? outcompeting rivals on the basis of differentiating features that will appeal to a broad spectrum of buyers striving to be the industry's high-price provider striving to be the industry's low-cost provider developing a best-cost provider strategy that gives customers more value for the money focusing on a narrow market niche and serving buyers' special needs and tastes

striving to be the industry's high-price provider

Which of the following statements about a company's strategy is true? A company's strategy is typically planned well in advance and usually deviates little from the planned set of actions and business approaches because of the risks of making on-the-spot changes. A company's strategy generally changes very little over time unless a newly appointed CEO decides to take the company in a new direction with a new strategy. A company's strategy is typically a blend of proactive and reactive strategy elements. A company's strategy is developed mostly on the fly because of the constant efforts of managers to come up with fresh moves to keep the company's product offering clearly different and set apart from the product offerings of rival companies. A company's strategy is mostly hidden to outside view and is deliberately kept under wraps by top-level managers (so as to catch rival companies by surprise when the strategy is launched).

A company's strategy is typically a blend of proactive and reactive strategy elements.

__________ is the set of actions that its managers take to outperform the company's competitors and achieve superior profitability. A strategy Strategic intent A market vision A mission statement A cost-price framework

A strategy

Which of the following pizza firms competing in a crowded market likely offers the best value proposition to its customers, based on the following sales pitches? Firm E: "Open you pizza box and find a free gift. Hurry! Free gifts for 100 lucky customers." Firm C: "Get your pizza at your doorstep-absolutely free delivery, anywhere." Firm D: "One pizza, 5 points: to be redeemed with a pan pizza upon reaching 50 points." Firm A: "The Tastiest Pizza You've Ever Had." Firm B: "Get fresh, hot pizza, delivered under 20 minutes—or it's free."

Firm B: "Get fresh, hot pizza, delivered under 20 minutes—or it's free."

Which of the following is NOT one of the managerial considerations in determining how to compete successfully? How should a company be competitive against rivals? How should a company position itself in the marketplace? How can a company attract, keep, and please customers? How can a company modify its entire product line to emphasize its internal service attributes? How should a company respond to changing economic and market conditions?

How can a company modify its entire product line to emphasize its internal service attributes?

A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do a joint venture for the acquisition and involves a major automobile giant to fund the deal. After a rocky start, the companies now have a strong market position and generate good profits. Which of the following regarding the company's strategy is true? It fails the Competitive Advantage and the Fit tests. It is a winning strategy. Correct It fails the Fit test, but passes the Competitive advantage and Performance tests. It fails in all three tests. It fails the Performance test.

It is a winning strategy.

A middle-class customer (target) base in a region is most concerned with quality and price of products. Which of the following would be considered a best value proposition for the customers? a company that offers copycat products at low cost but an average quality compared to rivals a company that offers the same quality of products as rivals but at a high cost based on greater market share and higher brand value a company that identifies unique features of its products without comparing it with a rival's products a company that sells an average quality product compared to rivals with a meager difference in price a company that provides same quality of products at a much lower price than rivals, but leaves the final assembly of product pieces to customers with an easy assembly guide

a company that provides same quality of products at a much lower price than rivals, but leaves the final assembly of product pieces to customers with an easy assembly guide

Which one of the following does NOT account for WHY a company's strategy evolves from one version to another? a need to respond to changing customer requirements and expectations the proactive efforts of company managers to improve obsolete aspects of the strategy a need to react to fresh strategic maneuvers on the part of rival firms a need to promote stability and retain the status quo the need to abandon some strategy elements that are no longer working well

a need to promote stability and retain the status quo

Changing circumstances and ongoing managerial efforts to improve the strategy make it very hard to know what a company's strategy really is. are consistent with a planned strategy approach. account for why a company's strategy evolves over time. make it very difficult for a company to have concrete strategic objectives. explain why a company's strategic vision undergoes almost constant change.

account for why a company's strategy evolves over time.

Adapting to new conditions like new innovations by competitors, fast-changing technological developments, and constantly evaluating what is working result in a proactive strategy. an emergent strategy. unlimited revenue generation. a broad market entry strategy. an assured profitability strategy.

an emergent strategy.

Winning a sustainable competitive edge over competitors does NOT hinge on which of the following? having "hard-to-beat" capabilities and impressive product innovation having a distinctive competitive product offering building competitively valuable expertise and capabilities not readily matched, and offering distinctive products building products and distributing them at low prices to a broad customer base irrespective of manufacturing cost building experience, know-how, and specialized capabilities that have been perfected over a long period of time

building products and distributing them at low prices to a broad customer base irrespective of manufacturing cost

The heart and soul of a company's strategy-making effort is determining how to become the industry's low-cost provider. maximize profits and shareholder value. maximize profits while simultaneously operating in a socially responsible manner that keeps the company's prices as low as possible. improve the efficiency of its business model. come up with moves and actions that produce a durable competitive edge over rivals.

come up with moves and actions that produce a durable competitive edge over rivals.

Crafting a deliberate strategy involves developing strategy elements that consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods. imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage. deliberately eliminate the ongoing strategic elements and implement new planned initiatives. consist of adaptive change plans to new market situations along with abandoned redundant ongoing elements. comprise a five-year strategic plan that is then fine-tuned during the remainder of the plan period; big changes in strategy are thus made only once every five years.

consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods.

A creative, distinctive strategy that delivers a sustainable competitive advantage is important because without a competitive advantage a company is likely to fall into bankruptcy. a competitive advantage is what enables a company to achieve its strategic objectives. how a company goes about trying to please customers and outcompete rivals is what enables senior managers to choose an appropriate strategic vision for the company. crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance. without a competitive advantage a company cannot become the industry leader.

crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance.

A winning strategy is one that fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance. is highly profitable and boosts the company's market share. results in a company becoming the dominant industry leader. builds strategic fit, is socially responsible, and maximizes shareholder wealth. can pass the ethical standards test, the strategic intent test, and the profitability test.

fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.

The pattern of actions and business approaches that would NOT define a company's strategy include actions to strengthen market standing and competitiveness by acquiring or merging with other companies. strengthen competitiveness via strategic coalitions and partnerships. gain sales and market share with lower prices despite increased costs. upgrade competitively important resources and capabilities. strengthen the firm's bargaining position with suppliers and distributors.

gain sales and market share with lower prices despite increased costs.

The most significant signs of a well-managed company are aggressive pursuit of new opportunities and a willingness to change the company's business model whenever circumstances warrant. a visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies. a profitable business model and a balanced scorecard approach to measuring the company's performance. the eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision. good strategy-making combined with good strategy execution.

good strategy-making combined with good strategy execution.

Good strategy combined with good strategy execution is the clearest indicator of good management. is the best sign that a company is a true industry leader. is a more important management function than forming a strategic vision combined with setting objectives. offers a surefire guarantee for avoiding periods of weak financial performance. signals that a company has the best business model in a market.

is the clearest indicator of good management.

The customer value proposition lays out the company's approach to assuring that the company makes enough profits based on its per-unit cost. embracing rival company approaches to gaining customers. meeting profitability guidelines without the risk of losing customers. satisfying customer wants and needs at a price customers will consider a good value. operating efficiently given the current level of customers.

satisfying customer wants and needs at a price customers will consider a good value.

In evaluating proposed or existing strategies managers should Initiate new initiatives even though they don't seem to match the company's internal and external situation. scrutinize the company's existing strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage, and result in above-average performance. ensure core capabilities are incorporated for establishing a competitive advantage. align existing strategies with new strategies to emphasize incremental gains. evaluate the firm's business model at least every three years.

scrutinize the company's existing strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage, and result in above-average performance.

A company's strategy consists of the action plan management takes stake out a unique market position and achieve superior profitability. develop a more appealing business model than rivals. concentrate on improving the existing product offering irrespective of the changing and turbulent markets. compete against rivals and establish a transitory competitive advantage. identify its strategic vision, its strategic objectives, and its strategic intent. stake out a unique market position and achieve superior profitability. develop a more appealing business model than rivals. concentrate on improving the existing product offering irrespective of the changing and turbulent markets. compete against rivals and establish a transitory competitive advantage. identify its strategic vision, its strategic objectives, and its strategic intent.

stake out a unique market position and achieve superior profitability.

A company's strategy is NOT concerned with management's choices about how to grow the business. compete successfully. attract and please customers. stake out the same market position as successful rival companies. conduct operations and improve the company's financial and market performance.

stake out the same market position as successful rival companies.

To improve performance, there are many different avenues for outcompeting rivals such as pursuing similar personalized customer service or quality dimensions as rivals. strengthening competitiveness by pursuing strategic alliances and collaborative partnerships. creating products analogous with competitors so as to be competitive in the same markets. being undecided whether or not to concentrate operations on local versus global markets. realizing a higher cost structure and lower operating profit margins than rivals in order to drive sales growth.

strengthening competitiveness by pursuing strategic alliances and collaborative partnerships.

Excellent execution of an excellent strategy is: A) the best test of managerial excellence and the best recipe for making a company a standout performer. B) a solid indication that managers are maximizing profits and looking out for the best interests of shareholders. C) the best test of whether a company is a "true" industry leader. D) the best evidence that managers have a winning business model. E) the best test of whether a company enjoys sustainable competitive advantage.

the best test of managerial excellence and the best recipe for making a company a standout performer.

A company's realized strategy evolves from one version to the next due to ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy). the importance of keeping the company's business model fresh and up-to-date. the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms. changing management direction because of understanding several appealing strategy alternatives. pressures from shareholders to boost profit margins and pay higher dividends.

the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms.