Strategic - Chapter 1, Chapter 2 Multiple Choice, MGMT 495 - Chapter 12, Chapt 2 martinov, MGMT425 CH4, GBA 490 Test 1 - Chapter 4, UCSC ECON 136 MIDTERM MC

Changing circumstances and ongoing managerial efforts to improve the strategy: A. account for why a company's strategy evolves over time. B. explain why a company's strategic vision undergoes almost constant change. C. make it very difficult for a company to have concrete strategic objectives. D. make it very hard to know what a company's strategy really is. E. All of these.

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

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

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

A company's business model: A. zeros in on the customer value proposition and its related profit formula. B. is management's storyline for how the strategy will result in achieving the targeted strategic objectives. C. details the ethical and socially responsible nature of the company's strategy. D. explains how it intends to achieve high profit margins. E. sets forth the actions and approaches that it will employ to achieve market leadership.

A. zeros in on the customer value proposition and its related profit formula.

Every strategy needs: A. a distinctive element that attracts customers and produces a competitive edge. B. to include similar characteristics to rival company strategies. C. to pursue conservative growth built on historical strengths. D. to employ diverse and sundry operating practices for producing greater control over sales growth targets. E. to mimic the plans of the industry's most successful companies.

A.a distinctive element that attracts customers and produces a competitive edge.

An engaging and convincing strategic vision: A. ought to be done in writing rather than orally so as to leave no room for company personnel to misinterpret what the strategic vision really is. B. should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction. C. tends to be more effective when top management avoids trying to capture the essence of the strategic vision in a catchy slogan. D. is most efficiently and effectively done by posting the strategic vision prominently on the company's website and encouraging employees to read it. E. should be explained after the company's strategic intent, strategy, and business model has been conveyed to company personnel.

B.

A winning strategy must pass which three tests? A. The Dominant Market Test, the Sustainable Advantage Test, and the Profit Test. B. The Fit Test, the Competitive Advantage Test, and the Performance Test. C. The Sustainable Advantage Test, the Fit Test, and the Profit Test. D. The Performance Test, the Dominant Market Test, and the Fit Test. E. The Fit Test, the Sustainable Advantage Test, and the Dominant Market Test.

B. The Fit Test, the Competitive Advantage Test, and the Performance Test.

Which of the following is NOT something a company's strategy is concerned with? A. Management's choices about how to attract and please customers. B.Management's choices about how quickly and closely to copy the strategies being used by successful rival companies. C. Management's choices about how to grow the business. D. Management's choices about how to compete successfully. E.Management's action plan for conducting operations and improving the company's financial and market performance

B.Management's choices about how quickly and closely to copy the strategies being used by successful rival companies.

Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? A. Striving to be the industry's low-cost provider, thereby aiming for a product-based competitive advantage. B.Outcompeting rivals on the basis of such differentiating features as same quality, narrower product selection, or same value for the money. C.Developing a best-cost provider strategy that gives the company competitive capabilities so that rivals can easily imitate with capabilities of their own to even the playing field. D. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche. E. All of these.

D. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche.

What separates a powerful strategy from a run-of-the-mill or ineffective one is: A. the ability of the strategy to keep the company profitable. B. the proven ability of the strategy to generate maximum profits. C. the speed with which it helps the company achieve its strategic vision. D.management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, and produces sustainable competitive advantage. E. whether it allows the company to maximize shareholder value in the shortest possible time.

D.management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, and produces sustainable

In the course of crafting a strategy, it is common for management to: A. abandon certain strategy elements that have grown stale or become obsolete. B.modify the current strategy when market and competitive conditions take an unexpected turn or some aspects of the company's strategy hit a stone wall. C. modify the current strategy in response to the fresh strategic maneuvers of rival firms. D. take proactive actions to improve this or that piece of the strategy. E. All of these.

E. All of these.

Managers must be prepared to modify their strategy in response to: A. changing circumstances that affect performance and their desire to improve the current strategy. B. competitor moves in the market and shifting needs of buyers. C. stagnating market and restrictive industrial opportunities. D. mounting evidence that the strategy is less effective. E. All of these.

E. All of these.

Which of the following are integral parts of the managerial process of crafting and executing strategy? A. Developing a strategic vision, setting objectives, and crafting a strategy. B. Developing a proven business model, deciding on the company's strategic intent, and crafting a strategy. C. Setting objectives, crafting a strategy, implementing and executing the chosen strategy, and deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage. D. Coming up with a statement of the company's mission and purpose, setting objectives, choosing what business approaches to employ, selecting a business model, and monitoring developments. E. Deciding on the company's strategic intent, setting financial objectives, crafting a strategy, and choosing what business approaches and operating practices to employ.

A

Which of the following is the best example of a well-stated financial objective? A. Increase earnings per share by 15 percent annually. B. Gradually boost market share from 10 percent to 15 percent over the next several years. C. Achieve lower costs than any other industry competitor. D. Boost revenues by a percentage margin greater than the industry average. E. Maximize total company profits and return on investment.

A

Which of the following tasks of the strategy-making, strategy-execution managerial process make up the company's strategic plan? A. Developing a strategic vision, mission, and core values. B. Executing the strategy. C. Monitoring developments, evaluating performance, and initiating corrective adjustments. D. All of these. E. None of these.

A

A company's strategy consists of the action plan management is taking to: A. grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve performance objectives. B. compete against rivals and establish a sustainable competitive advantage. C. make its product offering more distinctive and appealing to buyers. D. develop a more appealing business model than rivals. E. identify its strategic vision, its strategic objectives, and its strategic intent.

A. grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve performance objectives.

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

A. A need to promote stability and retain the status quo.

What is the foremost question in running a business enterprise? A. What must managers do, and do well, to make a company a winner in the marketplace? B. What can employees do, and do well, to ensure customer satisfaction? C. What can shareholders do, and do well, to ensure a profitable company? D. None of these. E. All of these

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

A company achieves a competitive advantage when: A. it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost. B. it has a profitable business model. C. it is able to maximize shareholder wealth. D. it is consistently able to achieve both its strategic and financial objectives. E. its strategy and its business model are well-matched and in sync.

A. it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost.

The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its: A. strategy. B. mission statement. C. strategic intent. D. business model. E. strategic vision.

A. strategy.

Strategy is about competing differently than rivals, thus strategy success is about: A. the sources of sustained advantages and superior profitability. B. those emergent, unplanned, reactive, and adaptive strategies that are more appropriate than deliberate or intended ones that drive the realized strategy. C. matching internal resources and capabilities to the industry environment. D. keeping the firm current with the rapid pace of change in the industry. E. All of these.

A. the sources of sustained advantages and superior profitability.

One of the frequently used successful and dependable strategic approaches is: A. to come up with a distinctive element that builds strong customer loyalty and yields a winning competitive edge. B. to aggressively pursue all of the growth opportunities the company can identify. C.to develop a product/service with more innovative performance features than what rivals are offering and to provide customers with better after-the-sale service. D. to come up with a business model that enables a company to earn bigger profits per unit sold than rivals. E. to charge a lower price than rivals and thereby win sales and market share away from rivals.

A. to come up with a distinctive element that builds strong customer loyalty and yields a winning competitive edge.

Which of the following is NOT one of the basic reasons that a company's strategy evolves over time? A.The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture. B. The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy. C. An ongoing need to abandon those strategy features that are no longer working well. D. The need to respond to the actions and competitive moves of rival firms. E.The need to keep strategy in step with changing market conditions and changing customer needs and expectations.

A.The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture.

A company exhibits strategic intent when: A. management crafts and adopts a strategic plan. B. it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective. C. it aggressively pursues financial objectives, establishing a priority on meeting the performance metrics and instilling a sense of urgency throughout the company. D. management establishes a comprehensive set of financial objectives that meet stockholder expectations. E. it capitalizes on its primary competitive advantage and ensures resources are allocated to maintain its strategy.

B

A company needs financial objectives to: A. spur company personnel to help the company overtake key competitors on such important measures as net profit margins and return on investment. B. communicate management's targets for financial performance and achieve strategic objectives. C. indicate to employees whether the emphasis should be on earnings per share, or return on investment, or return on assets, or positive cash flow. D. convince shareholders that top management is acting in their interests. E. counterbalance its pursuit of strategic objectives and have a balanced scorecard for judging the caliber of its overall performance.

B

A company should not couch its mission in terms of making a profit because a profit is more correctly: A. an obligation and a reason for what a company does. B. an objective and a result of what a company does. C. an outlay and a rationale for what a company does. D. an obligation and a responsibility for what a company does. E. an outflow and a right of what a company does.

B

One of the important benefits of a well-conceived and well-stated strategic vision is to: A. clearly delineate how the company's business model will be implemented and executed. B. clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction. C. set forth the firm's strategic objectives in clear and fairly precise terms. D. help create a "balanced scorecard" approach to objective-setting and not stretch the company's resources too thin across different products, technologies, and geographic markets. E. indicate what kind of sustainable competitive advantage the company will try to create in the course of becoming the industry leader.

B

Perhaps the most important benefit of a vivid, engaging, and convincing strategic vision is: A. helping gain managerial consensus on what resources must be developed to successfully achieve strategic objectives. B. uniting company personnel behind managerial efforts to get the company moving in the intended direction. C. helping justify the company's mission of making a profit. D. helping company personnel understand the logic of the company's business model. E. keeping company personnel well-informed.

B

Strategic objectives: A. are more essential in achieving a company's strategic vision than are financial objectives. B. relate to strengthening a company's overall marketing standing and competitive position. C. are more difficult to achieve and harder to measure than financial objectives. D. are generally less important than financial objectives. E. help managers track an organization's true progress better than financial objectives.

B

The primary difference between a company's mission statement and the company's strategic vision is that: A. the mission explains why it is essential to make a profit, whereas the strategic vision explains how the company will be a moneymaker. B. a mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going and why." C. a mission deals with how to please customers, whereas a strategic vision deals with how to please shareholders. D. a mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?" E. a mission statement addresses "how we are trying to make a profit today," while a strategic vision concerns "how will we make money in the markets of tomorrow?"

B

What a company's top executives are saying about where the company is headed long term and about what the company's future product-market-customer-technology mix will be: A. indicates what kind of business model the company is going to have in the future. B. constitutes their strategic vision for the company. C. signals what the firm's strategy will be. D. serves to define the company's mission. E. indicates what the company's long-term strategic plan is.

B

Which of the following is NOT a common shortcoming when wording a company's vision statement? When the statement is somewhat: A. vague or incomplete—short on specifics. B. flexible—allowing for adjustments to reflect changing circumstances. C. bland or uninspiring—short on inspiration. D. generic—could apply to most any company (or at least several others in the same industry). E. reliant on superlatives (best, most successful, recognized leader, global or worldwide leader, first choice of customers).

B

Which one of the following is NOT an accurate attribute of an organization's strategic vision? A. Providing a panoramic view of "where we are going". B. Outlining how the company intends to implement and execute its business model. C. Pointing an organization in a particular direction and charting a strategic path for it to follow. D. Helping mold an organization's character and identity. E. Describing the company's future product-market-customer-technology focus.

B

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

B. How can the company modify its entire product line to emphasize their internal service attributes?

Management's blueprint for how and why the company's business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment: A. best describes what is meant by a company's strategy. B. best describes what is meant by a company's business model. C. accounts for why a company's financial objectives are at the stated level. D. portrays the essence of a company's business purpose or mission. E. is what is meant by the term strategic intent

B. best describes what is meant by a company's business model.

Crafting and executing strategy are top-priority managerial tasks because: A. they are necessary ingredients of a sound business model. B.good strategy coupled with good strategy execution are the most telling signs of good management and greatly raises the chances that a company will be a standout performer in the marketplace. C.the management skills of top executives are sharpened as they work their way through the strategymaking, strategy-executing process. D.doing these tasks helps executives develop an appropriate strategic vision, strategic intent, and a set of strategic objectives. E. of the contribution they make to maximizing value for shareholders.

B. good strategy coupled with good strategy execution are the most telling signs of good management and greatly raises the chances that a company will be a standout performer in the marketplace.

A company's business model: A.concerns the actions and business approaches that will be used to grow the business, conduct operations, please customers, and compete successfully. B. is management's blueprint for how it will generate revenues sufficient to cover costs and yield an attractive profit. C. concerns what combination of moves in the marketplace it plans to make to outcompete rivals. D. deals with how it can simultaneously maximize profits and operate in a socially responsible manner that keeps its prices as low as possible. E. concerns how management plans to pursue strategic objectives, given the larger imperative of meeting or beating its financial performance targets

B. is management's blueprint for how it will generate revenues sufficient to cover costs and yield an attractive profit

A company's realized strategy evolves from one version to the next due to: A. changing management direction because of understanding several appealing strategy alternatives. B.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. C. ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy). D. pressures from shareholders to boost profit margins and pay higher dividends. E. the importance of keeping the company's business model fresh and up-to-date.

B.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.

A strategic vision has enormous motivational value and can usually be stated adequately in one to two paragraphs, and managers should be able to personally: A. explain the vision and its rationale to company personnel and outsiders easily in several hours. B. present their vision and its rationale in a bland and uninspiring manner to ensure stakeholders of its seriousness. C. paint a convincing and inspiring picture of the company's journey and destination effectively. D. communicate and distribute the vision to interested parties and to top executives only. E. None of these.

C

The managerial task of effectively conveying the essence of the strategic vision is made easier by: A. having operating strategies that are easy for company personnel to understand and execute. B. combining the strategic vision and the company's values statement into a single document. C. adopting a catchy slogan and then using it repeatedly to illuminate the direction and purpose of "where we are headed and why." D. waiting until the company realizes its mission and ensures the existing corporate culture is compatible with the new vision and direction. E. All of these.

C

The real purpose of the company's strategic vision: A. is management's story line for how it plans to implement and execute a profitable business model. B. sets forth what business the company is presently in and why it uses particular operating practices in trying to please customers. C. serves as management's tool for giving the organization a sense of direction. D. defines "who we are and what we do." E. spells out a company's strategic intent, its strategic and financial objectives, and the business approaches and operating practices that will underpin its efforts to achieve sustainable competitive advantage.

C

The strategy-making, strategy-executing process: A. is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives. B. includes establishing a company's mission, developing a business model aimed at making the company an industry leader, and crafting a strategy to implement and execute the business model. C. embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities. D. is principally concerned with sizing up an organization's internal and external situation, so as to be prepared for the challenges of developing a sound business model. E. is primarily the responsibility of top executives and the board of directors; very few managers below this level are involved in the process.

C

Well-conceived visions are ________ and ____________ to a particular organization and they avoid generic, feel-good statements that could apply to hundreds of organizations. A. widespread; unique B. recurring; customary C. distinctive; specific D. customary; familiar E. universal; established

C

What does a company specifically exhibit when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective? A. Competitive edge. B. Sustainable advantage. C. Strategic intent. D. Financial strength. E. All of these.

C

Which of the following ARE common shortcomings of company vision statements? A. Too specific, too inflexible, and can't be achieved in five years. B. Unrealistic, unconventional, and un-businesslike. C. Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives. D. Too broad, too narrow, and too risky. E. Not customer-driven, out of step with emerging technological trends, and too ambitious.

C

Which of the following are characteristics of an effectively worded strategic vision statement? A. Balanced, responsible, and rational. B. Challenging, competitive, and "set in concrete". C. Graphic, directional, and focused. D. Realistic, customer-focused, and market-driven. E. Achievable, profitable, and ethical.

C

Which of the following is an integral part of the managerial process of crafting and executing strategy? A. Developing a proven business model. B. Deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage. C. Setting objectives and using them as yardsticks for measuring the company's performance and progress. D. Communicating the company's values and code of conduct to all employees. E. Deciding on the company's strategic intent.

C

Which of the following is the best example of a well-stated strategic objective? A. Increase revenues by more than the industry average. B. Be among the top five companies in the industry in customer service. C. Overtake key competitors on product performance or quality within three years. D. Improve manufacturing performance by 5 percent within 12 months. E. Obtain 150 new customers during the current fiscal year.

C

Which one of the following is NOT an advantage of setting "stretch" objectives? A. Helping to avoid mediocre results. B. Pushing company personnel to be more inventive and innovative. C. Helping clarify the company's strategic vision and strategic intent. D. Helping a company be more focused and intentional in its actions. E. Spurring exceptional performance and helping build a firewall against contentment with modest performance gains.

C

Which one of the following questions is NOT pertinent to company managers in thinking strategically about what directional path should be taken by the company and about developing a strategic vision? A. Is the outlook for the company promising if it continues with its present product offerings? B. Are changing market and competitive conditions acting to enhance or weaken the company's prospects? C. What business approaches and operating practices should we consider in trying to implement and execute our business model? D. What strategic course offers attractive opportunity for growth and profitability? E. What, if any, new customer groups and/or geographic markets should the company get in position to serve?

C

Breaking down resistance to a new strategic vision typically requires that management, on and as needed basis: A. institute a balanced scorecard approach to measuring company performance, with the "balance" including a mixture of both old and new performance measures. B. inform company personnel about forthcoming changes in the company's strategy. C. reiterate the company's need for the new direction, while addressing employee concerns head-on, calming fears, lifting spirits, and providing them with updates and progress reports as events unfold. D. explain all updates and merits of the company's business model to align strategy with employee concerns. E. raise wages and salaries to win the support of company personnel for the company's new direction.

C.

Which of the following is NOT a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? A. Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage. B.Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority, or unusually good value for the money. C. Striving to be more profitable than rivals and aiming for a competitive edge based on bigger profit margins. D.Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of satisfying the needs and tastes of buyers comprising the niche. E. Developing an advantage based on offering more value for the money

C. Striving to be more profitable than rivals and aiming for a competitive edge based on bigger profit margins.

Adapting to new conditions and constantly evaluating what is working and what needs to be improved are normal parts of the strategy-making process which result in: A. a profitability-driven strategy. B. a broad market entry strategy. C. an evolving strategy. D. unlimited revenue generation. E. None of these.

C. an evolving strategy.

Crafting a deliberate strategy involves developing strategy elements that: A. imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage. B.comprise a five-year strategic plan and then fine-tuning it during the remainder of the plan period; big changes in strategy are thus made only once every five years. C. consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods. D.doing everything possible (in the way of price, quality, service, warranties, advertising, and so on) to make sure the company's product/service is very clearly differentiated from the product/service offerings of rivals. E. All of these accurately characterize the managerial process of crafting a company's strategy.

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

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

C. good strategy-making combined with good strategy execution.

A company's strategies stand a better chance of succeeding when: A.it is developed through a collaborative process involving all managers and staff from all levels of the organization. B.managers employ conservative strategic moves based on past experience and form an underlying basis of control. C. it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals. D. managers copy the strategic moves of successful companies in its industry. E. managers focus on meeting or beating shareholder expectations

C. it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.

A company's strategy concerns: A. the market focus and plans for offering a more appealing product than rivals. B. how it plans to make money in its chosen business. C. management's action plan for outperforming competitors and achieving superior profitability. D. the long-term direction that management believes the company should pursue. E.whether it is employing an aggressive offense to gain market share or a conservative defense to protect its market position.

C. management's action plan for outperforming competitors and achieving superior profitability.

Which of the following is NOT a primary focus of a company's strategy? A. How to attract and please customers. B. How best to respond to changing economic and market conditions. C.How to achieve above-average gains in the company's stock price and thereby meet or beat shareholder expectations. D. How to compete successfully. E. How to grow the business.

C.How to achieve above-average gains in the company's stock price and thereby meet or beat shareholder expectations.

A company's strategy and its quest for competitive advantage are tightly connected because: A. without a competitive advantage a company cannot become the industry leader. B. without a competitive advantage a company cannot have a profitable business model. C.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. D. a competitive advantage is what enables a company to achieve its strategic objectives. E.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.

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

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

A creative distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage: A. is a reliable indicator that the company has a profitable business model. B. is every company's strategic vision. C.is a company's most reliable ticket to above-average profitability and a competitive advantage, despite the best efforts of competitors to match or surpass this advantage. D.signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives. E. is the best indicator that the company's strategy and business model are well-matched and properly synchronized.

C.is a company's most reliable ticket to above-average profitability and a competitive advantage, despite the best efforts of

Crafting and executing strategy are top-priority managerial tasks because: A. it helps management create tight fits between a company's strategic vision and business model. B.it allows all company personnel, and especially senior executives, to know the answer to "who are we, what do we do, and where are we headed?" C.it is management's prescription for doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance. D.it provides clear guidance as to what the company's business model and strategic intent are, and helps keep managerial decision-making from being rudderless. E. it establishes how well executives perform these tasks and are the key determinants of executive compensation

C.it is management's prescription for doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance.

A company's strategic vision describes: A. "who we are and what we do." B. why the company does certain things in trying to please its customers. C. management's storyline of how it intends to make a profit with the chosen strategy. D. management's aspirations for the future and delineates the company's strategic course and long-term direction. E. what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.

D

A company's values or core values concern: A. whether and to what extent it intends to operate in an ethical and socially responsible manner. B. how aggressively it will seek to maximize profits and enforce high ethical standards. C. the beliefs and operating principles built into the company's "balanced scorecard" for measuring performance. D. the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission. E. the beliefs, principles, and ethical standards that are incorporated into the company's strategic intent and business model.

D

Company managers connect values to the chosen strategic vision and mission by: A. integrating the company's values into its vision and mission/business purpose into one single statement. B. using a values-based balanced scorecard to measure the company's progress in achieving the vision. C. making achievement of the values a prominent part of the company's strategic objectives. D. making it clear that company personnel are expected to live up to the values in conducting the company's business and pursuing its strategic vision. E. making adherence to the company's values the centerpiece of the company's strategy.

D

The difference between the concept of a company mission statement and the concept of a strategic vision is that: A. a mission concerns what to do to achieve short-term objectives, while a strategic vision concerns what to do to achieve long-term performance targets. B. the mission is to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit. C. a mission statement deals with what to accomplish on behalf of shareholders, while a strategic vision concerns what to accomplish on behalf of customers. D. a mission statement typically concerns a company's purpose and its present business scope ("who we are and what we do and why we are here"), whereas the principal concern of a strategic vision portrays a company's aspirations for its future ("where are we going"). E. a mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?"

D

The managerial task of developing a strategic vision for a company: A. concerns deciding what approach the company should take to implement and execute its business model. B. entails coming up with a fairly specific answer to "who are we, what do we do, and why are we here?". C. is chiefly concerned with addressing what a company needs to do to successfully outcompete rivals in the marketplace. D. involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense. E. entails coming up with a persuasive storyline of how the company intends to make money.

D

Which one of the following is NOT a characteristic of an effectively worded strategic vision statement? A. Directional (is forward-looking, describes the strategic course that management has charted that will help the company prepare for the future). B. Easy to communicate (is explainable in 5-10 minutes, and can be reduced to a memorable slogan). C. Graphic (paints a picture of the kind of company management is trying to create and the market position(s) the company is striving to stake out). D. Consensus-driven (commits the company to a "mainstream" directional path that almost all stakeholders will enthusiastically support). E. Focused (provides guidance to managers in making decisions and allocating resources).

D

Which one of the following is NOT one of the five basic tasks of the strategy-making, strategy-executing process? A. Developing a strategic vision of where the company needs to head and what its future business makeup will be. B. Setting objectives to convert the strategic vision into specific strategic and financial performance outcomes for the company to achieve. C. Crafting a strategy to achieve the objectives and get the company where it wants to go. D. Developing a profitable business model. E. Executing the chosen strategy efficiently and effectively.

D

Which of the following statements about a company's strategy is true? A. 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). B.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. C.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. D. A company's strategy is typically a blend of proactive and reactive strategy elements. E.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.

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

. Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy? A.Is the company's strategy ethical and socially responsible and does it put enough emphasis on good product quality and good customer service? B.Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner? C. Is the strategy resulting in the development of additional competitive capabilities? D. Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance? E.Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

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

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 combination of conservative moves to protect the company's market share and somewhat more risky initiatives to set the company's product offering apart from rivals. C. a close imitation of the strategy employed by the recognized industry leader. 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.more a product of clever entrepreneurship than of efforts to clearly set a company's product/service offering apart from the offerings 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.

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

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

Good strategy combined with good strategy execution: A. offers a surefire guarantee for avoiding periods of weak financial performance. B. are the two best signs that a company is a true industry leader. C. are more important management functions than forming a strategic vision and setting objectives. D. are the most telling signs of good management. E. signal that a company has a superior business model.

D. are the most telling signs of good management.

6. To improve performance, there are many different avenues for outcompeting rivals such as: A. realizing a higher cost structure and lower operating profit margins than rivals in order to drive sales growth. B. achieving products analogous with competitors so as to be competitive in the same markets. C. pursing similar personalized customer service or quality dimensions as rivals. D. confining their operations to local or regional markets or developing product superiority or even concentrating on a narrow product lineup. E. None of these.

D. confining their operations to local or regional markets or developing product superiority or even concentrating on a narrow product lineup.

5. The objectives of a well-crafted strategy require management to strive to: A. match rival businesses products and quality dimensions in the marketplace. B. build profits for short-term success. C. realign the market to provoke change in rival companies. D. develop lasting success that can support growth and secure the company's future over the long term. E. re-create their business models regularly.

D. develop lasting success that can support growth and secure the company's future over the long term

The customer value proposition lays out the company's approach to: A. meeting profitability guidelines without the risk of losing customers. B. operating efficiently given the current level of customers. C. embracing rival company approaches to gaining customers. D. satisfying buyer wants and needs at a price customers will consider a good value. E. None of these.

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

A company's strategy is a "work in progress" and evolves over time because of: A.the importance of developing a fresh strategic plan every year (which also has the benefit of keeping employees from becoming bored with executing the same strategy year after year). B. the ongoing need to imitate the new strategic moves of the industry leaders. C. the need to make regular adjustments in the company's strategic vision. D. the ongoing need of company managers to react and respond to changing market and competitive conditions. E. the frequent need to modify key elements of the company's business model.

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

In crafting a company's strategy: A. management's biggest challenge is how closely to mimic the strategies of successful companies in the industry. B. managers have comparatively little freedom in choosing the "hows" of strategy. C.managers are wise not to decide on concrete courses of action in order to preserve maximum strategic flexibility. D.managers need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals. E.managers are well-advised to be risk-averse and develop a "conservative" strategy—"dare-to-bedifferent" strategies rarely are successful.

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

A company's business model: A. sets forth management's game plan for maximizing profits for shareholders. B. details exactly how management's strategy will result in the achievement of the company's strategic intent. C. explains how it will achieve high profit margins while at the same time charging relatively low prices to customers. D.sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner. E. sets forth management's long-term action plan for achieving market leadership

D.sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner.

The heart and soul of a company's strategy-making effort: A. is figuring out how to become the industry's low-cost provider. B. is figuring out how to maximize the profits and shareholder value. C. concerns how to improve the efficiency of its business model. D.deals with how management plans to maximize profits while simultaneously operating in a socially responsible manner that keeps the company's prices as low as possible. E. involves coming up with moves and actions that produce a durable competitive edge over rivals.

E. involves coming up with moves and actions that produce a durable competitive edge over rivals.

A company's strategy is most accurately defined as: A. management's approaches to building revenues, controlling costs and generating an attractive profit. B. the choices management has made regarding what financial plan to pursue. C. management's concept of "who we are, what we do, and where we are headed." D.the business model that a company's board of directors has approved for outcompeting rivals and making the company profitable. E.management's commitment to provide direction and guidance, in terms of not only what the company should do but also what it should not do.

E.management's commitment to provide direction and guidance, in terms of not only what the company should do but also what it should not do.

Which one of the following questions can be used to distinguish a winning strategy from a mediocre or losing strategy? A. How good is the company's business model? B. Is the company a technology leader? C. Does the company have low prices in comparison to rivals? D. Is the company putting too little emphasis on behaving in an ethical and socially responsible manner? E. How well does the strategy fit the company's situation?

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

12. Management's strategic vision for an organization: A. charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense. B. describes in fairly specific terms the organization's strategic intent, strategic objectives, and strategy. C. spells out how the company will become a big moneymaker and boost shareholder value. D. addresses the critical issue of "why our business model needs to change and how we plan to change it." E. spells out the organization's strategic intent and the actions and moves that will be undertaken to achieve it.

A

A company's mission statement typically addresses which of the following questions? A. Who are we and what do we do? B. What objectives and level of performance do we want to achieve? C. Where are we going and what should our strategy be? D. What approach should we take to achieve sustainable competitive advantage? E. What business model should we employ to achieve our objectives and our vision?

A

A strategic vision constitutes management's view and conclusions about the company's: A. long-term direction and what product-market-customer mix seems optimal. B. business model and the kind of value that it is trying to deliver to customers. C. story line of why the business will be a moneymaker. D. defined challenge to understand "who they are and what they do." E. long-term plan for outcompeting rivals and achieving a competitive advantage.

A

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of: A. inspiring company personnel to unite behind managerial efforts to get the company moving in the intended direction. B. helping company personnel understand why "making a profit" is so important. C. making it easier for top executives to set stretch objectives. D. helping lower-level managers and employees better understand the company's business model. E. All of these.

A

Managers can deliberately set challenging performance targets at levels high enough to promote outstanding company performance by establishing: A. stretch objectives which challenge the organization to deliver stretch gains in performance. B. mainstay objectives that although are easily attainable, and the company is obligated to meet, they are designed to spur motivation in the workforce. C. financial objectives that drive standardization of cost-efficiency and unify stringent operating specifications. D. a specifically detailed and integrated model of operating policies, practices, and procedures. E. All of these.

A

The defining characteristic of a well-conceived strategic vision is: A. what it says about the company's future strategic course—"the direction we are headed and what our future product-market-customer-technology focus will be." B. that it not stretch the company's resources too thin across different products, technologies, and geographic markets. C. clarity and specificity about "who we are, what we do, and why we are here." D. that it be flexible and in the mainstream. E. that it be within the realm of what the company can reasonably expect to achieve within four years.

A

Well-stated objectives are: A. quantifiable or measurable, and contain deadlines for achievement. B. clear, succinct, and concise so as to identify the company's risk and return options. C. historical probability of success determinants in meeting customer-product goals. D. directly related to the dividend payout ratio for stockholder returns. E. All of these.

A

A company's strategic plan: A. maps out the company's history. B. links the company's financial targets to control mechanisms. C. outlines the competitive moves and approaches to be used in achieving the desired business results. D. challenges the company to maintain invariable objectives. E. All of these.

C

A company's values relate to such things as: A. how it will balance its pursuit of financial objectives against the pursuit of its strategic objectives. B. how it will balance the pursuit of its business purpose/mission against the pursuit of its strategic vision. C. fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship. D. whether it will emphasize stock price appreciation or higher dividend payments to shareholders, and whether it will put more emphasis on the achievement of short-term performance targets or long-range performance targets. E. All of these.

C

A sound, well-communicated strategic vision matters, and the related payoffs occur in several respects, except in connection with: A. reducing the risks of rudderless decision-making. B. helping the organization prepare for the future. C. avoiding strategic inflection points and management's reaction in aligning decision choices. D. helping to crystallize top management's own view about the firm's long-term direction. E. providing a tool for winning the support of organizational members for internal changes that will help make the vision a reality.

C

A company's strategy evolves over time as a consequence of: A.the need to keep strategy in step with changing circumstances, market conditions, and changing customer needs and expectations. B. the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy. C. the need to abandon some strategy features that are no longer working well. D. the need to respond to the newly initiated actions and competitive moves of rival firms. E. All of these.

E. All of these.

The difference between a company's strategy and a company's business model is that: A.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 objectives. B. the strategy concerns how to compete successfully and the business model concerns how to operate efficiently. C.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 the business purpose or mission. D.strategy relates broadly to a company's competitive moves and business approaches while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to generate revenues sufficient to cover costs and realize a profit. E.a company's strategy is concerned with how to please customers while its business model is concerned with how to please shareholders.

D.strategy relates broadly to a company's competitive moves and business approaches while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to generate revenues sufficient to cover costs and realize a profit.

A company's mission statement should be sufficiently descriptive and should: A. identify the company's services and products. B. specify the buyer's needs that the company seeks to satisfy. C. identify the customer or market that the company intends to serve. D. give the company its own identity. E. All of these.

E

Adopting a set of "stretch" financial and "stretch" strategic objectives: A. pushes the company to strive for lesser but adequate profitability levels, because the stretch objectives are considered unattainable. B. is a widely held method for creating a "scorecard" for moderating company performance. C. helps convert the mission statement into meaningful company values. D. challenges company personnel to execute the strategy with greater enthusiasm, proficiency, and understanding. E. is an effective tool for pushing the company to perform at its full potential and deliver the best possible results.

E

The managerial purpose of setting objectives includes: A. converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve. B. using the objectives as yardsticks for tracking the company's progress and performance. C. challenging and helping stretch the organization to perform at its full potential and deliver the best possible results. D. pushing company personnel to be more inventive and to exhibit more urgency in improving the company's financial performance and business position. E. All of these.

E

Which of the following is the result of a well-conceived and communicated strategic vision? A. Senior executives solidify their own view of the firm's long-term direction. B. The risk of rudderless decision-making is minimized. C. Organizational members support the changes internally that will help make the vision a reality. D. Assists the organization in preparing for the future. E. All of these.

E

Which one of the following questions is NOT something that company managers should consider in choosing to pursue one strategic course or directional path versus another? A. Are changing market and competitive conditions acting to enhance or weaken the company's business outlook? B. Is the company stretching its resources too thinly by trying to compete in too many markets or segments, some of which are unprofitable? C. Will our present business generate sufficient growth and profitability in the years ahead to please shareholders? D. What market opportunities should the company pursue and which ones should not be pursued? E. Do we have a better business model than key rivals?

E

Winning a sustainable competitive edge over competitors generally hinges on which of the following? A. Having a distinctive competitive product offering. B.Building competitively valuable expertise and capabilities not readily matched, and offering a distinctive product offering. C.Building experience, know-how, and specialized capabilities that have been perfected over a long period of time. D. Having "hard to beat" capabilities and impressive product innovation. E. All of these

E. All of these