Quiz Chp 1
Which of the following is not an element of a company's realized business strategy? Multiple Choice Actions and approaches used in managing R&D, production, sales and marketing, finance, and other key activities Actions to strengthen competitiveness via strategic alliances and collaborative partnerships Actions to capture emerging market opportunities and defend against external threats to the company's business prospects Actions to enter new geographic or product markets Adhering to abandoned strategy elements
Adhering to abandoned strategy elements A company's realized strategy is a combination of deliberate planned elements and unplanned emergent elements. Some components of a company's deliberate strategy will fail in the marketplace and become abandoned strategy elements.
A winning strategy is one that Multiple Choice makes the company a market leader, is ethically and socially responsible, and maximizes profits. is highly profitable and boosts the company's market share. passes the profitability test, the ethics and social responsibility test, the customer satisfaction test, and the shareholder wealth test. fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance. passes the ethical standards test, the competitive advantage test, and the profitability test.
fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance. A winning strategy must fit the company's external and internal situation, build sustainable competitive advantage, and improve company performance.
Which of the following statements about a company's realized strategy is true? Multiple Choice A company's realized strategy is usually kept secret. A company's realized strategy is typically planned well in advance and usually deviates little from the planned set of actions. A company's realized strategy is typically a blend of deliberate and planned initiatives, and emergent and unplanned reactive strategy elements. A company's realized 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 realized strategy is developed mostly on a day-to-day basis because of the constant efforts of managers to keep rival companies at a disadvantage.
A company's realized strategy is typically a blend of deliberate and planned initiatives, and emergent and unplanned reactive strategy elements. A company's realized strategy tends to be a combination of deliberate planned elements and unplanned, emergent elements.
Which of the following questions ought to be used to distinguish a winning strategy from a so-so or flawed strategy? Multiple Choice Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction? Do a sufficient numbers of buyers believe the company has demonstrated a commitment to environmental sustainability? Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner? Is the strategy well matched to the company's situation, helping the company achieve a sustainable competitive advantage and resulting in better company performance? Does the strategy contain a sufficient number of emergent and/or reactive elements?
Is the strategy well matched to the company's situation, helping the company achieve a sustainable competitive advantage and resulting in better company performance? It is unwise to build a strategy upon the company's weaknesses or pursue a strategic approach that requires resources that are deficient in the company. Unless a strategy exhibits a tight fit with both the external and internal aspects of a company's overall situation, it is unlikely to produce respectable first-rate business results. Winning strategies enable a company to achieve a competitive advantage over key rivals that is long lasting. The bigger and more durable the competitive edge, the more powerful it is.
Which one of the following is not related to actions and approaches that comprise a company's strategy? Multiple Choice Proving to shareholders that the company's business model is viable Achieving a low-cost provider strategy Seeking a broad differentiation strategy Concentrating on a focused low-cost strategy Pursuing a best-cost provider strategy
Proving to shareholders that the company's business model is viable Five of the most frequently used and dependable strategic approaches to setting a company apart from rivals and winning a sustainable competitive advantage are: (1) a low-cost provider strategy, (2) a broad differentiation strategy, (3) a focused low-cost strategy, (4) a focused differentiation strategy, and (5) a best-cost provider strategy.
Which of the following is not one of the most frequently used strategic approaches to building a sustainable competitive advantage? Multiple Choice Sticking with an outdated business model Focusing on a narrow market niche within an industry Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage over rivals Developing an advantage based on offering more value for the money Creating a differentiation-based advantage over rivals
Sticking with an outdated business model At times, certain components of a company's deliberate strategy will fail in the marketplace and become abandoned strategy elements. If the business model is outdated, managers must always be willing to supplement or modify planned, deliberate strategy elements with as-needed reactions to unanticipated developments.
Which of the following statements about a company's strategy is true? Multiple Choice Crafting an excellent strategy is more important than executing it well. A company's strategy deals with whether the revenue-cost-profit economics of its business model demonstrate the viability of the business enterprise as a whole. Strategy at its essence is about competing differently—doing what rival firms do not do or cannot do. Masterful strategies come partly (maybe mostly) by doing things in much the same way as the industry leader but then being better than the leader in one particular area that counts heavily with buyers. Whether a company's strategy is ethical or not does not matter much because most customers and most suppliers are relatively unconcerned with whether a company they do business with engages in sleazy practices or turns a blind eye to below-board behavior on the part of its employees.
Strategy at its essence is about competing differently—doing what rival firms do not do or cannot do. A strategy stands a chance of succeeding only when it is predicated on actions, business approaches, and competitive moves aimed at appealing to buyers in ways that set a company apart from its rivals.
Which of the following is not typically a trigger to an evolving strategy? Multiple Choice The need to respond to the newly initiated actions and competitive moves of rival firms The need to abandon some strategy features that are no longer working well The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy as conditions warrant The need to respond to short-term swings in the stock market The need to keep strategy in step with changing circumstances, market conditions, and changing customer needs and expectations
The need to respond to short-term swings in the stock market Most of the time, a company's strategy evolves incrementally as management fine-tunes various pieces of the strategy and adjusts the strategy to respond to unfolding events. Adapting to new conditions and constantly evaluating what is working well enough to continue and what needs to be improved are normal parts of the strategy-making process, resulting in an evolving strategy. Strategy features that work with evolving markets would not trigger evolution as long as the firm's fundamentals are sound.
When can a company achieve sustainable competitive advantage? Multiple Choice Whenever it possesses the most profitable business model in the industry and can satisfy shareholder expectations better than its competitors When elements of the strategy give buyers lasting reasons to prefer a company's products or services over those of competitors When it is able to produce better products for lower costs than its rivals When it consistently achieves both its long-term and short-term strategic and financial objectives If it can translate its vision, mission, and values into a well-crafted strategy
When elements of the strategy give buyers lasting reasons to prefer a company's products or services over those of competitors A company achieves sustainable competitive advantage when it gives its buyers lasting reasons to prefer its products or services over those provided by competitors—reasons that competitors are unable to nullify or overcome despite their best efforts.
It is normal for a company's realized strategy to end up Multiple Choice left unchanged from management's original planned set of actions and business approaches since making on-the-spot changes is too risky. entailing a combination of defensive moves to protect the company's market share and offensive initiatives to set the company's product offering apart from that of its rivals. mimicking the strategies of other industry members since all companies are confronting much the same market conditions and competitive pressures. becoming a mirror image of its business model, so as to avoid impairing company profitability. blending deliberate actions to improve the company's competitiveness and financial performance and unplanned reactions to changing circumstances and fresh market conditions.
blending deliberate actions to improve the company's competitiveness and financial performance and unplanned reactions to changing circumstances and fresh market conditions. A company's realized strategy tends to be a combination of deliberate planned elements and unplanned, emergent elements. Inevitably, there will be occasions when market and competitive conditions take unexpected turns that call for some kind of strategic reaction.
In answering the question "How well does the strategy fit the company's situation," management must be willing and ready to address such issues as Multiple Choice developing a sound business model and customer base. emergent strategy elements, deliberate strategy elements, and abandoned strategy elements. changing market conditions, development of internal capabilities and competencies, and allocation of financial resources. determining where the company is now and where does the company want to go. how to develop copy-cat strategies.
changing market conditions, development of internal capabilities and competencies, and allocation of financial resources. Managers of every company must be willing and ready to modify the strategy in response to the unexpected moves of competitors, shifting buyer needs and preferences, emerging market opportunities, new ideas for improving the strategy, and mounting evidence that the strategy is not working well.
A creative, distinctive strategy that delivers a sustainable competitive advantage is important because Multiple Choice 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. a competitive advantage is what enables a company to achieve its strategic objectives. without a competitive advantage a company cannot become the industry leader. without a competitive advantage a company is likely to fall into bankruptcy.
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 company might tailor a strategy to compete profitably in a new market that has few rivals for its business. But when rivals are already entrenched in a market, sustainable competitive advantage provides buyers with lasting reasons to prefer a company's products or services over its rivals' offerings—reasons that competitors are unable to nullify or overcome despite their best efforts.
Nothing affects a company's ultimate success or failure more fundamentally than Multiple Choice abandoning markets as conditions change. how well the strategy fits the company's business model. developing multiple differentiating features in comparison to rivals. how well its management team charts direction, develops effective strategic moves, and pursues daily operating excellence. the creation of shareholder value.
how well its management team charts direction, develops effective strategic moves, and pursues daily operating excellence. A company that lacks clear-cut direction, has a flawed strategy, or cannot execute its strategy competently is a company whose financial performance is probably suffering, whose business is at long-term risk, and whose management is sorely lacking.
A strategy that distinguishes a company from its rivals and provides a sustainable competitive advantage Multiple Choice is a company's most reliable ticket to above-average profitability. is based heavily upon the emergent elements of its strategy. is a reliable indicator that the company has a profitable business model. is logical because the strategies of rival companies are often predicated on strikingly different business models. is the best indicator that the company's strategy and business model are well matched and properly synchronized.
is a company's most reliable ticket to above-average profitability. Two kinds of performance improvements tell the most about the caliber of a company's strategy: (1) above-average profitability and financial strength, and (2) advances in the company's competitive strength and market standing.
The heart and soul of any strategy Multiple Choice is its ability to increase shareholder value. is the actions and moves to gain a competitive edge over rivals in the marketplace. deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner. is the day-to-day demands of delivering a service or producing goods to be sold. is its linkage with its business model.
is the actions and moves to gain a competitive edge over rivals in the marketplace. The heart and soul of any strategy is the actions and moves in the marketplace that managers are taking to gain a competitive edge over rivals.
When evaluating proposed or existing strategies, managers should Multiple Choice evaluate the firm's business model at least every three years. scrutinize their company's existing strategies on a regular basis to ensure that they offer a good strategic fit, create a competitive advantage, and result in above-average performance. ensure that core capabilities are incorporated synergistically for establishing a competitive advantage. align existing strategies with new strategies to emphasize incremental gains. initiate new strategies even though they do not seem to match the company's internal and external situation.
scrutinize their company's existing strategies on a regular basis to ensure that they offer a good strategic fit, create a competitive advantage, and result in above-average performance. New initiatives that don't seem to match the company's internal and external situation should be scrapped before they come to fruition, while existing strategies must be scrutinized on a regular basis to ensure they offer a good strategic fit with the company's internal and external situation, create a competitive advantage, and contribute to above-average performance or performance improvements.
A viable business model Multiple Choice sets forth how both strategy and operating approaches will create value for customers and simultaneously generate ample revenues to cover costs to realize a profit. lays out a compelling case for how the strategy will yield competitive advantage. explains how high profit margins will be achieved despite charging relatively low prices to customers. is always closely linked to the company's business strategy.
sets forth how both strategy and operating approaches will create value for customers and simultaneously generate ample revenues to cover costs to realize a profit. A viable business model is established by the company's overall strategy and lays out the company's approach to satisfying buyer wants and needs at a price customers will consider a good value, i.e., the customer value proposition. The greater the value provided and the lower the price, the more attractive the value proposition is to customers. The profit formula describes the company's approach to determining a cost structure that will allow for acceptable profits given the pricing tied to its customer value proposition. The lower the costs given the customer value proposition, the greater the ability of the business model to be a moneymaker.
A company's business model Multiple Choice determines whether its strategy will be ethical or not. is management's story line for how the strategy will result in achieving sustainable competitive advantage. specifies a customer value proposition and develops a profit formula. identifies how the company plans to outmaneuver and outcompete key rivals and become a market leader. sets forth the actions and approaches that it will rely on to earn the best profit margins in the industry.
specifies a customer value proposition and develops a profit formula. The two elements of a company's business model are (1) its customer value proposition and (2) its profit formula.
Excellent execution of a successful strategy is Multiple Choice the best test of whether a company is a "true" industry leader. the best evidence that the company has a sustainable competitive advantage. the best evidence that managers have an emerging business model. a solid indication that managers are maximizing profits and looking out for the best interests of shareholders. the best test of managerial excellence and the best recipe for making a company a standout performer.
the best test of managerial excellence and the best recipe for making a company a standout performer. The formulation of a truly successful strategy requires managers to consider not only these primary factors involved in crafting a strategy but also an organization's ability to execute whatever strategy it chooses.
Strategies that yield sustainable competitive advantage are important because Multiple Choice a competitive advantage is what enables a company to achieve its strategic objectives. these enable a company to attract sufficiently large numbers of buyers who have a lasting preference for its products or services over those offered by rivals, despite the efforts of competitors to offset that appeal and overcome the company's advantage. competitive advantage forms the underpinnings of a company's strategic vision. increases in shareholder value are contingent on a sustainable competitive advantage. None of these choices are correct.
these enable a company to attract sufficiently large numbers of buyers who have a lasting preference for its products or services over those offered by rivals, despite the efforts of competitors to offset that appeal and overcome the company's advantage. The customer value proposition is established by the company's overall strategy and lays out the company's approach to satisfying buyer wants and needs at a price customers will consider a good value. The greater the value provided and the lower the price, the more attractive the value proposition is to customers.