MGMT 490: Chapter 1 - Learnsmart, Activity and Quiz Questions

Which performance indicators are signs of a winning strategy? - Growing number of employees - Gains in competitive position - Above-average financial performance - Increased market share

- Gains in competitive position - Above-average financial performance - Increased market share

Components of a fit test, used to evaluate how well a company's strategy matches its situation, include which of the following? - Internal fit -Aesthetic fit -External fit -Dynamic fit

- Internal fit -External fit -Dynamic fit

What are the two basic ways that companies achieve competitive advantage over their business rivals? - Produce products or services at a lower cost. -Design more effective advertisements. -Appeal to a larger target market. -Deliver higher perceived value to customers.

- Produce products or services at a lower cost. -Deliver higher perceived value to customers.

Why are crafting and executing strategy important managerial tasks? - They lay out the means for pleasing customers. -They establish a formula for improving performance. -They define a company's best practices. -They provide a path to competitive advantage.

- They lay out the means for pleasing customers. -They establish a formula for improving performance. -They provide a path to competitive advantage.

Which three companies have broad differentiation strategies that have allowed them to maintain long-term competitive advantages? - Apple -Johnson & Johnson -Walmart -BMW

- apple - johnson and johnson - BMW - the reason why walmart isn't is because it purses a low-cost provider strategy

What are some of the ways that companies typically implement a competitive strategy? - by isolating the managerial staff - by diversifying product lines -by focusing on quality -by delivering superior customer service

- by diversifying product lines -by focusing on quality -by delivering superior customer service

What are two characteristics of a broad differentiation strategy? -Offering products at the lowest possible prices -Appealing to a wide range of consumers -Offering products or services that are difficult to imitate -Appealing to a niche market

-Appealing to a wide range of consumers -Offering products or services that are difficult to imitate

What are two basic approaches in company strategy to improve chances of success in competing against rivals? (two answers) - Always aim for a low-cost strategy. - Soften ethical guidelines. -Clearly differentiate a company from its rivals. - Establish a position in an uncrowded market.

-Clearly differentiate a company from its rivals. - Establish a position in an uncrowded market.

A business strategy becomes unethical when it involves what elements? -deceitfulness -unusual competitive advantage -unreasonable damage to the environment -disreputable behavior

-deceitfulness -unreasonable damage to the environment -disreputable behavior

It is easier for rivals to imitate a company's product line than it is for them to duplicate its capabilities. True False

True

Which one of the five competitive strategies discussed in Chapter 1 most closely approximates the competitive approach apple inc. is employing a. focused low-cost provider b. broad differentiation c. focused differentiation d. low-cost provider e. best-cost provider

b. broad differentiation

Which statement about the connection between good strategy and good execution is true? a. A company can enjoy long-term success with a weak strategy if the execution is strong and aggressive. b. Good management consists of good strategy and good strategy execution. c. As long as a company has a strong strategy, successful execution is a sure thing. d. The marker of good management is a solid strategy that focuses on customer value above all else.

b. goo management consist of good strategy and good strategy execution

What is one key characteristic of a focused low-cost strategy? a. It seeks to sell to a broad market segment. b. It seeks to sell to a narrow market niche. c. It seeks to give customers the most value for their money by meeting key quality features or performance. d. It seeks to differentiate its products from those of rivals

b. it seeks to sell to a narrow market niche - the reason why C isn't correct: This describes a best-cost provider strategy.

In the video, business strategy was identified as a decision to choose "a different set of activities to deliver a unique mix of value." Which of the automative firms follows this proposition most closely? a. toyota b. tesla c. general motors d. ford e. hyundai

b. tesla

What is the purpose of the fit test? a. to identify which employees are qualified for a specific project b. to determine how well a strategy matches the company's situation c. to weed out managers who fail to meet the company's standards d. to identify products that will most likely perform well in the company's target market

b. to determine how well a strategy matches the company's situation

The key for a company to achieve competitive advantage is either to provide superior value to customers or to deliver value more a. subtly. b. forcefully. c. efficiently. d. collaboratively.

c. efficiently

Strategic approaches to set a company apart from rivals and achieve a sustainable competitive advantage are not likely to include a. striving to be the industry's low-cost provider b. focusing on a narrow market niche and serving buyer's special needs and tastes c. outcompeting rivals on the basis of differentiating features that will appeal to a broad spectrum of buyers d. striving to be the industry's high price provider e. developing a best cost provider strategy that gives customers more value for the money

d. striving to be the industry's high price provider

The profit _____is the company's approach to determining a cost structure that will allow for acceptable profits, given the pricing tied to its customer value proposition.

formula

What choices must managers consider when committing to a company strategy for competing against rival companies? (can me multiple answers) - how to hide the company's structural weaknesses - how to attract customers - how to capitalize on growth opportunities - how to respond to market conditions

- how to attract customers - how to capitalize on growth opportunities - how to respond to market conditions

Which of the following are impediments to a company's long-term industry success? - inadequate attempts to improve -proactive strategy making -illogical strategies -imitative strategies

- inadequate attempts to improve -illogical strategies -imitative strategies

What are three of the most reliable ways a company can distinguish itself in the marketplace, build customer loyalty, and achieve a competitive advantage? (Select all that apply.) - low cost provider - focused low cost strategy - board imitation strategy -board differentiation strategy

- low cost provider - focused low cost strategy - broad differentiation strategy

Which strategic actions fall into the "should not do" category and are probably unethical? -They cause the company to capture so much market share that business rivals can barely compete. -They cause a public backlash and accusations of being irresponsible. -They make the company look bad. -They have a negative effect on customers, employees, and the surrounding community.

-They cause a public backlash and accusations of being irresponsible. -They make the company look bad. -They have a negative effect on customers, employees, and the surrounding community.

A company's ultimate success or failure is fundamentally tied to how well its management team does which of the following? -develops competitively effective strategies -charts the company's direction -facilitates internal operating excellence -copies other companies' successful strategies

-develops competitively effective strategies -charts the company's direction -facilitates internal operating excellence

In what ways does a competitive advantage benefit a business?(two answers) - smaller payroll -larger profits -greater success in the marketplace -more extensive product line

-larger profits -greater success in the marketplace

Which circumstances commonly require the modification of a company's strategy? -meeting financial targets -new market opportunities -technological advances - shift in buyer needs

-new market opportunities -technological advances - shift in buyer needs

What performance indicators reveal the most about the merits of a company's strategy? -resources and capabilities -short-term competitive advantage -profitability and financial strength -competitive strength and market standing

-profitability and financial strength -competitive strength and market standing

The general profit formula for fast-food restaurants as invented by McDonald's involves which of the following? -strict specifications for ingredients -standardized store design -commitment to corporate responsibility -advertising and in-store promotions

-strict specifications for ingredients -standardized store design -advertising and in-store promotions

A company's business model is comprised of which of the following? -the cost of goods sold -the profit formula -the competitive assets -the customer value proposition

-the profit formula -the customer value proposition

The group of runners that finished behind Usain Bolt was closely bunched and were said to have competitive parity. Burger king and wendy's have a similar market share in the 5% range. Which of the following likely underlies the comparative parity of these firms? a. they have similar strategic resources and strategies b. their drive-through performance is poor c. they both target a similar customer base d. they both compete against McDonald's e. they are primarily focused on hambrgers

a. they have similar strategic resources and strategies

Apple's strategy has proven successful, largely due to a. Apple's ability to bring the best user experience to its customers through products and solutions with innovative design, superior ease-of-use and seamless integration across platforms b. competing head-on in the existing technology market c. limiting store growth to maintain the "exclusivity' of the brand image d. keeping price competitive with rivals e. being an early mover is essentially creating a distinctive new market segment and using a differentiation strategy to build demand for its brand

a. Apple's ability to bring the best user experience to its customers through products and solutions with innovative design, superior ease-of-use and seamless integration across platforms

What aspect of a company's operations is usually the easiest thing for competitors to duplicate? a. Attributes of the company's products or services b. Expertise of the company's personnel c. Specialized capabilities that the company has developed d. The company's experience

a. Attributes of the company's products or services

Company's profit formula consists of the following basic elements: a. P, the price charged to customers, minus C, the company's costs b. A, the sustainable competitive advantage potential plus V, the value provided for customers minus C, the company's costs c. C the competitive strength of the company, multiplied by S, the company's sustainable competitive potential, minus C, the value provided for the customer d. the company's market share, multiplied by C, the competitive strength of the company, divided by A, the company's sustainable competitive advantage potential

a. P, the price charged to customers, minus C, the company's costs

A sound company strategy is essentially about ______ in comparison to company rivals. a. competing differently b. being faster to market c. carrying less debt d. having a better trained workforce

a. competing differently

Patagonia, a multinational sports apparel company, is planning to launch its extreme weather gear product line in Nepal and the Kingdom of Bhutan; both are considered to be emerging markets. What would you advise Patagonia to omit from consideration in crafting a strategy to enhance future profits in these two emerging markets? a. create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs b. devise a marketing plan that aims at mass customer segments, consisting of attractive advertisements and offers on products c. implement a diversification plan that aims at adding health and fitness centers to its existing line of products d. chart an acquisition plan that aims on acquiring local smaller-scale sports apparel manufacturers that seek funding and offer a complementary product lineup e. establish a distribution plan to set up more supply outlets than an other rivals in the location

a. create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs

A strategy that changes in response to new market conditions and challenges is known as a. a differentiation strategy. c. a proactive strategy. c. a static strategy. d.an evolving strategy.

a. en evolving strategy - the reason B isn't correct: Proactive strategy elements are both planned and executed as planned, not responding to new market conditions.

A salsa manufacturing company that enjoys the lest bargaining power with its suppliers would most likely be a. offering high-cost specialized salsa that could be consumed only by customers with specific food allergies b. actively catering to a broad, price sensitive customer base c, selling sales and related products demand to be highly popular and easily available across most supermarkets d. involved in mass production of its products to cater to an expanding customer base e. manufacturing high-quality salsa and related products from readily available raw materials for a broad customer base

a. offering high-cost specialized salsa that could be consumed only by customers with specific food allergies

In the "art of war" sun Tzu emphasized the fluid nature of competitive situations and the need for the strategist to recognize and incorporate that reality into their strategic planning. Which of the following has created the greatest uncertainty in the business environment across industries over the later 20 years? a. the internet b. the european union c. the U.S. government d. the federal reserve e. tax policy

a. the internet

What company invented the business model for fast food restaurants? a. Kentucky Fried Chicken b. McDonald's c. Pizza Hut d. Burger King

c. McDonald's

What is the purpose of the fit test? a. to determine how well a strategy matches the company's situation b. to identify which employees are qualified for a specific project c. to identify products that will most likely perform well in the company's target market d. to weed out managers who fail to meet the company's standards

a. to determine how well a strategy matches the company's situation

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

b. good strategy making combined with good strategy execution

i/f you were asked to develop a low-cost provider strategy for a startup ridesharing business, what would you most likely not recommend? a. offer low prices on short-distance rides and eliminate peak pricing for rides during rush hour b. offer low prices on long-distance rides but hire only experienced drivers with a minimum of five years service, pay them well above the minimum wage, and maintain peak during pricing for rides during rush hour. c. offer low prices on short-distance rides and improve fleet capacity by only using passenger vans or autonomous drive vehicles for customers d. offer low prices in short-distance rides and pay all drivers a minimum wage e. offer low prices on long-distance rides and charge fees for any luggage

b. offer low prices on long-distance rides but hire only experienced drivers with a minimum of five years service, pay them well above the minimum wage, and maintain peak during pricing for rides during rush hour.

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

b. stake out a unique market position and achieve superior profitability

A company's strategy a. is mostly proactive and consists of strategy elements that are both planned and realized as planned b. tends to be a combination of both proactive and reactive elements, with certain elements being abandoned because they have become absolute or ineffective c. consists of initial and developing approaches aiming to ensure long-term growth d. is mainly affected by a reactive approach because uncertainty is high e. generally consists of new strategy elements and strategic moves the emerge as changing conditions warrant

b. tends to be a combination of both proactive and reactive elements, with certain elements being abandoned because they have become absolute or ineffective

The video explains the military origins of the term strategy, but then goes on to explain how Michael porter closed the gap between military and business thinking with his definition of business strategy. Select the option that best defines strategy in the context of business. a. general are trying to win battles, against enemy combatants. Business leaders are trying to win market share against competitors b. battle plans often need to be changed by field commanders due to shifting battlefield realities. Business strategies often have to adapt to changing competitive conditions c. Generals win wars by degrading to enemy's ability and willingness to fight. Businesses win market share by degrading a competitors ability and willingness to compete d. generals can be so removed from the front lines that they lose touch with the common soldiers. Senior executives can be so insulated by the organizations hierarchy that they don't understand the realities of the common worker e. Generals make battle plans based upon the forces available to them and their understanding of the enemies forces. Business leaders create strategies based up their firm's capability and their understanding of the competitors capabilities

c. Generals win wars by degrading to enemy's ability and willingness to fight. Businesses win market share by degrading a competitors ability and willingness to compete

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

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

Why are crafting and executing business strategies the foremost tasks of any organizations? a. because of the contribution they make to maximizing value for shareholders b. because they are necessary ingredients of a sound operational business model c. because a good strategy coupled with a good strategy execution are the most telling aligns of good. management and allow a company to be standout performer in the marketplace d. because doing these tasks helps executives develop an appropriate strategic vision, strategic intent, and set of strategic objectives e. because the management skills of top executives are sharpened as they work their way through the strategy-making, strategy-executing processes

c. because a good strategy coupled with a good strategy execution are the most telling aligns of good. management and allow a company to be standout performer in the marketplace

A blueprint that outlines the means for a company to deliver value to customers in a suitably profitable manner is known as its a. proactive strategy. b. strategic reaction. c. business model. d. emergent strategy.

c. business model

The actions that a company takes in accordance with its established business practices make up its ______ strategy, in contrast with actions the company takes in response to changing market conditions. a. differentiation b. emergent c. deliberate d. realized

c. deliberate

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

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

A company's realized strategy is a combination of a. deliberate and proactive elements. b. predictive and responsive strategies. c. proactive and reactive elements. d. emergent and reactive strategies.

c. proactive and reactive elements.

A typical company's strategy is often both ______, meaning that it plans ways to improve the company's competitiveness, and ______, meaning that it responds to unforeseen market conditions. a. reactive; proactive b. proactive; reactive c. emergent; proactive d. reactive; deliberate

c. proactive, reactive

You have been asked to advise Waltham furniture, a company that seeks to serve a target middle-class customer demographic obsessed with the quality and price of products. Your proposed value proposition for this company to offer to its customers would be to a. offer copycat furniture at low cost but an average quality compared to your client's rivals b. identify the unique features of your client's furniture without comparing it with a rival's products c. provide comparable quality furniture at a much lower price than your rivals but lease the final assembly or purchased furniture to customers accompanied by an easy-to-follow assembly guide d. offer the same quality of furniture as do your client's rivals but at a high cost based on greater market share and higher brand value e. market and sell only average quality furniture compared to you rivals at an imperceptible difference in price

c. provide comparable quality furniture at a much lower price than your rivals but lease the final assembly or purchased furniture to customers accompanied by an easy-to-follow assembly guide

Managers must be prepared to modify their strategy expect when a. encountering stagnating market conditions and increasingly restrictive new customer acquisition opportunities b. evidence in mounting that the current strategy is becoming less effective c. rivals announce their monthly profit margins in public d. rivals make or adjust moves in the market due to the shifting needs of buyers e. changing circumstances affect performance and the desire to improve the current strategy

c. rivals announce their monthly profit margins in public

An evolving strategy fr a ride-share business like Uber and Lyft is not likely to be triggered by a. the proactive efforts of their managers to fine-tune and improve one or more pieces of the strategy b. their need to respond to the newly initiated actions and competitive moves of manufacturers out autonomous vehicles c. their need to respond to short term swings in the stock market that impact timing of an initial public offerings (IPO) d. their need to keep strategy in step with changing circumstances, market conditions and changing customer needs and expectations e. their need to abandon some strategy features that have been faltering or are no longer working well

c. their need to respond to short term swings in the stock market that impact timing of an initial public offerings (IPO)

Which of the following is most accurate regarding Apple's ability to maintain a sustainable competitive advantage in the desktop and laptop computer, smartphone, and entertainment technology industry? a. apple's customer value proposition and profit formula do not allow it to maintain a sustainable competitive advantage long term b. apple must lower its prices dramatically if it is to effectively compete against lower-priced rivals in the long run c. Apple's strategy is virtually impossible to imitate and its highly unlikely that any competitors could grab market share away from it d. Apple can maintain a sustainable competitive advantage to the extent that it can continue offering a differentiated product and customer experience that customers are willing to pay for e. competitors would find it relatively easy to imitate Apple's strategy and take substantial market share from it

d. Apple can maintain a sustainable competitive advantage to the extent that it can continue offering a differentiated product and customer experience that customers are willing to pay for

Sustainable competitive advantage means a firm outperforms its peers over a sustained period of time. such superior performance is noticed by the peer group that attempts to identify the source of the performance and copy it. This concept is called "benchmarking." Which of the following demonstrates a benchmarking process? a. bolt completed in the 100-meter dash against a group of other runners to see which among them was the fastest b. Sogelau tuvalu switched the shot put to the 100 meter-dash c. Bolt's naturally athletic gifts and hard training drive him to be the best d. When bolt was younger, he trained against other great runners, comparing his training program and performance to theirs e. winning the 100-meter and 200-meter races in two olympics will likely never be repeated

d. When bolt was younger, he trained against other great runners, comparing his training program and performance to theirs

It is normal for a company's strategy to end up being a. a blend of offensive actions on the part of managers to improve the company's profitability and defensive moves to counteract changing market conditions b. a close imitation of the strategy employed by the recognized industry leader c. more a product of clever entrepreneurship than of efforts to clearly set a company's product/service offering apart from the offering of rivals d. a blend of proactive actions to improve the company's competitiveness and financial performance, and adaptive reactions to unanticipated developments and fresh market conditions e. a combination of conservative moves to protect the company's market share and somewhat more risky initiative to set the company's product offering apart from rivals

d. a blend of proactive actions to improve the company's competitiveness and financial performance, and adaptive reactions to unanticipated developments and fresh market conditions

Which is not a hallmark of a cleverly crafted and well-executed strategy? a. a strategy that facilitates the capture of emerging opportunities b. a strategy that produces enduringly good performance c. a strategy that is adaptable to changing business and market conditions d. a strategy that provides direction only in terms of what the company should do e. a strategy that can withstand the competitive challenges from rival firms

d. a strategy that provides direction only in terms of what the company should do

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

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

When a business is more successful than its rivals at attracting customers and handling competition, it is said to have a(n) ______ advantage. a. marketing b. organizational c. long-term d. competitive

d. competitive

A company's approach to meeting or exceeding its customers' needs at a price they consider a good value is called the a. profit formula. b. value-price-cost strategy c. business model. d. customer value proposition.

d. customer value proposition - the reason why B is not correct: The value-price-cost framework uses customer value and the profit formula to reveal how efficiently a company can deliver on the value proposition.

FaberRoad, a respected courier brand, is fast long its market share to competitors who do overnight deliveries of packages of offer lower prices. the company's research department has found that many customers care more about knowing exactly when a package will arrive then getting it next day. Which strategy would best address the current statement of FaberRoad and help it regain its market? a. engaging in expensive advertising with new tag lines and famous celebrities to enhance its brand image in the market b. employing right delivery drivers at a high cost and maintenance changes c. diversifying the different types of packages that can be transported and enabling booking through calls d. developing radio tags that could be attached to packages to allow for real-time tracking by customers PCs and mobile phones e. acquiring small transportation companies with cheaper trucks and tempos, rebranding and using them for deliveries

d. developing radio tags that could be attached to packages to allow for real-time tracking by customers PCs and mobile phones

The key for a company to achieve competitive advantage is either to provide superior value to customers or to deliver value more a. collabortively b. subtly c. forcefully d. efficiently

d. efficiently

unanticipated developments and fresh market conditions require a(n) ______ strategy a. deliberate b. market-driven c. customer-oriented d. emergent e. proactive

d. emergent

Actions taken in response to new strategic maneuvers by rival firms or other unanticipated market circumstances make up a company's ______ strategy. a. deliberate b. abandoned c. proactive d. emergent

d. emergent - the reason why C isn't correct: Proactive strategy elements, which compose a company's deliberate strategy, are planned initiatives and ongoing strategies.

A company's business strategy is not likely to include a. actions to strengthen competitiveness via strategic alliances and collaborative partnerships b. actions to strengthen internal capabilities and competitively valuable resources c. actions to respond to changing market conditions or other external factors d. management's actions to revise the company's financial and strategic performance targets e. actions to manager the functional areas of the business

d. management's actions to revise the company's financial and strategic performance targets

As you saw in the video, one of the measures used to demonstrate Usain Bolt's competitive advantage in running is the number of golds medals he won during the Olympics. Which of the following measures, as described in the video, similarly demonstrates McDonald's competitive advantage in the fast-food industry? a. all-day breakfast b. number of menu options c. brand recognition d. market share e. a strong leadership team

d. market share

Apple's strategy of corporate responsibility is illustrated by a. Continuously investing in R&D and frequently introducing products b. aggressively expanding their company owned stores globally c. designing and developing its own operating system, hardware, application software and services d. requiring suppliers to comply with established standards for safe working conditions, fair treatment of workers and environmentally sage manufacturing e. cultivating a diverse work force rooted in transparency

d. requiring suppliers to comply with established standards for safe working conditions, fair treatment of workers and environmentally sage manufacturing

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

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

In evaluating proposed or existing strategies managers should a. ensure core capabilities are incorporated fr establishing a competitive advantage b. evaluate the firm's business model at least every three years c. initiate new initiatives even through they don't seem to match the company's internal and external situation d. 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 e. align existing strategies with new strategies to emphasize incremental gains

d. 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 strategy to achieve and maintain sustainable competitive advantage in never associated with a. opportunities to enter strategic alliances and collaborative partnerships to strengthen a company's market position and competitiveness b. direction and guidance, in terms of not only what the company should do, but also what it should not do c. carefully considered moves to compete on dimensions like quality, cost, services, locations, and customers d. competing differently from rivals - doing what competitors do not do or doing what they cannot do e. actions taken by companies to gain sales and market share irrespective of product prices and costs

e. actions taken by companies to gain sales and market share irrespective of product prices and costs

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

e. an emergent strategy

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

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

Why would managers not consider drastically modifying their company's strategy? a. changing market conditions b. advancing technology c. shifting buyer needs d. mounting evidence that the strategy is not working well e. employee demands for better working conditions

e. employee demands for better working conditions

The heart and soul of a company's strategy-making effort a. in figuring out how to become the industry's best-cost provider b. is figuring out how to develop a winning customer value proposition and profit formula c. concerns how to improve the efficiency of business operations d. deals with how management plans to operate in a socially responsible manner, while keeping the company's prices as low as possible e. is the actions and moves in the marketplace that managers take to gain a competitive advantage over rivals

e. is the actions and moves in the marketplace that managers take to gain a competitive advantage over rivals

A pharmaceutical giant acquires a manufacturer of rare speciality drugs to improve its falling share prices and invests all its wealth into the deal. Due to deficit, it agrees to do a join 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. How would you characterize this company's strategy? a. it falls the fit test but passes the competitive advantage and performance tests b. it fails the performance tests c. it fails in all three tests d. it fails the competitive advantage and the fits test s e. it is a winning strategy

e. it is a winning strategy

A company's strategy is shaped by a. the market environment and the competitive pressure created by the rivalry within the industry b. its core value, mission and strategic vision c. its resources, capabilities, competitiveness and market position d. its capital reserves and future growth potential e. management analysis and choice in part, as well as by the necessity of adapting

e. management analysis and choice in part, as well as by the necessity of adapting

The different between a company's strategy and a company's business model is that a. the strategy concerns how to compete successfully and the business model concerns how to operate efficiently b. a company's strategy is management's game plan for realizing the strategic vision, whereas a company's business model is the game plan for accomplishing its corporate responsibility goals c. a company's strategy is solely concerned with how to please customers while its business model is solely concerned with how to please shareholders d. a company's strategy is management's game plan for achieving strategic objectives while its business model is management's game plan for achieving financial objective s e. strategy relates broadly to a company's competitive moves and business approaches while its business model relates to whether the revenues following from the strategy are sufficient to cover costs and realize a profit

e. strategy relates broadly to a company's competitive moves and business approaches while its business model relates to whether the revenues following from the strategy are sufficient to cover costs and realize a profit