MGT 460 - Chapter 1 Quiz

mobile phone company, established in a saturated market, that plans its research and development activities to allow for quarterly releases of new products that match or overtake features of rivals' mobile phones.

A "repeatedly evolving strategy" best applies to a

a sufficiently large number of buyers have a lasting preference for its products or services as compared to the offerings of competitors.

A company achieves sustainable competitive advantage when

actions to strengthen competitiveness via strategic alliances and collaborative partnerships NOT THAT

A company's business strategy is not likely to include

stake out a unique market position and achieve superior profitability.

A company's strategy consists of the action plan management takes to

ongoing need of company managers to react and respond to changing market and competitive conditions.

A company's strategy is a "work in progress" and evolves over time because of the

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 creative, distinctive strategy that delivers a sustainable competitive advantage is important because

Creating a subbrand that offered exclusive bath products for women was an emergent strategy

A luxury bathtub manufacturer offered scented bubble bath foams and massage coupons as a gimmick when its bathtubs did not sell. The bubble foam became famous among some women and led to a line of exclusive bath products for women. The manufacturer established shops in various regional locations and hired celebrities to market its products to enhance sales. Now its products are sold through retail outlets and online sites throughout the world. Which of the following is accurate?

modifying marketing communication to increase brand familiarity within key physician segments

A pharmaceutical company selling prescription drugs in France for the past 10 years has had moderate sales in a crowded market, as its rivals manufacture and market drugs of similar efficacy and having similar safety precautions, but that have superior market share. This particular pharmaceutical company's greatest challenge is to increase French doctors' prescribing their drugs. What would be the most effective strategy to improve sales performance in the existing market?

high value

A regional electric scooter manufacturer sells its scooter at a lower price than other manufacturers of two-wheeler scooters. What will make the product most attractive for customers?

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

A salsa manufacturing company that enjoys the lest bargaining power with its suppliers would most likely be

allowing users to view ads on previously made related searches.

A search engine giant specializes in all types of search items; provides a free translation feature for 80 different languages; stores all passwords for commonly visited sites in encrypted form; allows users to view ads on previously made related searches; provides suggestive search items to assist the user; allows users to view a collection of related web pages users might want to visit; and provides a faster load time and more accurate hits than its rivals. This search engine company uses a profit formula that primarily consists of

Copying the attributes of a product or service

A seldom used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage is

Emergent Strategy

Adapting to new conditions like new innovations by competitors, fast-changing technological developments, and constantly evaluating what is working result in

an emergent strategy

Adapting to new conditions like new innovations by competitors, fast-changing technological developments, and constantly evaluating what is working result in

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

A winning strategy is one that

the fit test, the competitive advantage test, and the performance test

A winning strategy must pass which three tests?

a differentiation strategy

Amy's Drive-Thru, a fast food facility, offers healthy, sustainably grown veggie and vegan fast food at higher prices than its competitors in the market and has a drive-through and indoor seated casual dining operation. What strategy is Amy's Drive-Thru using to gain competitive advantage?

Fast n'Fresh Pizza: "Get fresh, hot pizza, delivered under 20 minutes-or it's free.

Based upon its advertising slogan, the pizza restaurant that likely offers the best value proposition to its customers is

What must managers do, and do well, to make a company a winner in the marketplace?

Ben Weprin is founder and CEO of Graduate Hotel, a growing chain of boutique hotels situated near college campuses and designed to cater to the nostalgia and local boosterism that are part of the culture of university towns. (Room keys are imprinted with the names of famous alumni, and public spaces are decorated with historical photos of campus life, vintage art and other collegiate artifacts). Mr. Weprin and his company are trying to create a brand that will find year-round business by catering to more than just alumni coming back for once-a-year football weekends or 10-year anniversaries of their graduating classes. What is the major question that Mr. Weprin and his team need to ask about his company's strategy?

a focused differentiation strategy

BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded market that caters to all kinds of consumers, this resort caters mainly to gays with a guaranteed hassle-free holiday experience at a premium price. What strategy is BloomsJay using to gain competitive advantage?

Company D

Consider the following five companies and their situations. Company A is an established online fantasy sports gaming company that has been accused of game-rigging, bribes and kickbacks. Company B, a ride share company, has delayed its planned initial public offering due to reports of having an inhospitable workplace characterized by sexual harassment and discrimination. Company C, a pharmaceutical manufacturer, charges higher prices for life-saving drugs in some countries than it charges in others. Company D, a manufacturer and marketer of high-end consumer electronics, has a strict Code of Conduct that requires its suppliers to comply with several standards regarding safe working conditions, fair treatment of workers, and environmentally safe manufacturing. Company E, a pizza delivery business, is a being boycotted by customers and losing sponsored tie-ins with professional sports due to racist comments by its founder and CEO. Which of the above companies is distinguished by an ethical strategy as opposed to an unethical or flawed strategy?

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

FaberRoad, a respected courier brand, is fast losing its market share to competitors who do overnight deliveries of packages or offer lower prices. The company's research department has found that many customers care more about knowing exactly when a package will arrive than getting it the next day. Which strategy would best address the current state of FaberRoad and help it regain its market?

is Primaplast management's prescription for doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance, especially in light of impending community and some food service outlets' bans on conventional plastic drinking straws.

For John Sidanta, CEO and founder of Primaplast, a manufacturer of biodegradable plastic drinking straws made from recycled material, crafting and executing a strategy is a top-priority managerial task because it

best-cost provider

Giving customers more value for the money by satisfying their expectations on key quality features, performance, and/or service attributes while beating their price expectations is a ________ strategy.

A baby products retailer sells unassembled baby furniture produced in China.

Identify the company with a low-cost provider strategy.

need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.

In crafting a company's strategy, managers

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.

In evaluating proposed or existing strategies managers should

a need to promote stability and retain the status quo.

It is incorrect to say that a company's strategy evolves due to

rivals announce their monthly profit margins in public.

Managers must be prepared to modify their strategy except when

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

Strategic approaches to set a company apart from rivals and achieve a sustainable competitive advantage are not likely to include

the sources of sustained advantages and superior profitability.

Strategy is about competing differently than rivals; thus, strategy success is about

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

The heart and soul of a company's strategy-making effort is determining how to

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

The pattern of actions and business approaches that would not define a company's strategy include actions to

How well does the strategy fit the company's situation?

To distinguish a winning strategy from a mediocre or losing strategy, a strategic manager should ask which question?

Is the strategy helping the company achieve a sustainable competitive advantage, and is it resulting in better company performance?

To test the merits of a firm's strategy and distinguish it as a winning strategy, which major question needs to be addressed?

establishing a comparison feature tab that allows customers to compare offerings from other online retailers

Troopline Inc., an online laptop retailer, sells laptops of similar range and features as other online laptop retailers. Which of the value propositions would not benefit the company?

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

Why are crafting and executing business strategies the foremost tasks of any organization?

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

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