BSG Chp1
1. In crafting a strategy, management is in effect saying:
"among all the many different approaches and ways of competing we could have chosen, we have decided to employ this particular combination of competitive and operating approaches in moving the company in the intended direction, strengthening its market position and competitiveness , and meeting or beating our performance objectives.
8. Which one on the following statements about a company's strategy is false?
A company's strategy is deliberately kept under wraps by top- level managers so as to catch rival companies by surprise and keep them off- balance.
7. A company's strategy:
Represents managerial commitment to undertake one set of actions rather than another in an effort to compete successfully and achieve good performance outcomes.
10. Based on figure 1.1, which of the following is not something to look for in identifying a company´s strategy?
Action to raise or lower the company´s performance targets and actions to pay down the company´s long term debt.
9. 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 people to have lasting reasons to purchase a company's product or service, despite competitors´ best efforts to nullify or overcome those reasons.
5. A company achieves sustainable competitive advantage when:
An attractive number of buyers are drawn to purchase its product and services rather than those of competitors, despite the efforts of competitors to nullify or overcome the appeal of its product offering.
13. Good Strategy combined with good strategy execution
Are strongly correlated with how well the company performs both financially and in the market place.
2. A company´s strategy involves from one version to the next:
Because ongoing pressures from shareholders for higher profits and bigger dividends force top management to institute new and bold strategic initiatives of varying kinds to produce better overall company performance.
3.Crafting an ethical strategy requires that managers:
Carefully and conscientiously consider weather each proposed strategy element can pass the test of moral scrutiny in the sense of not being shady, unconscionable, or injurious to others.
11. For a company´s strategy to be qualified as "ethical", it is important
For the strategy not to entail actions or behaviors that cross the moral line from "should do" to "should not do"( because such actions are unsavory, unconscionable, injurious to others, or unnecessarily harmful to the environment.
14. A winning strategy is one that
Helps the company achieve a sustainable competitive advantage, results in better company performance, and fits the company´s internal and external situation.
15. The difference between company´s business model and a company´s strategy is that
Its business model relates to management's blueprint for delivering a valuable product or service to customer in a manner that generate ample revenues to cover cost and yield an attractive profit while its strategy relates to the company´s competitive moves and business approaches ( which may or may not lead to profitability)
4. The two crucial elements of a company's business model are:
Its customer value proposition and its profit position or "profit formula"
6. The customer value proposition portion of a company´s business model concerns:
The company's approach to satisfying buyer needs and requirements at a price they will consider a good value.
12. Which of the following is not one of the reasons that a company´s strategy evolves over time?
The need on the part of company managers to make regular strategy adjustments so as to avoid the risk that rivals might soon find ways to weaken or defeat its present strategy with strategy improvements of their own.
