Chap. 1 Quiz
A strategy to achieve and maintain sustainable competitive advantage is NEVER associated with
actions taken by companies to gain sales and market share irrespective of product prices and costs.
A company's strategy consists of
actions taken by managers in irder to outperform competitors and achieve superior profitability.
Why does a company's strategy tend to be a "work in progress" and evolve over time?
because of changing circumstances and ongoing management efforts to imporove the strategy
A cleverly crafted and well-executed strategy
can withstand the competitive challenges from rival firms.
A winning strategy must pass the
fit test, performance test, and competitive advantage test.
A company's ultimate success or failure is a function of
how well its management team charts direction, develops effective strategic moves, and pursues daily operating excellence.
Types of actions and approaches that often characterize a company's strategy do NOT include actions to
improve ethical standards, ensure employees' commitments, and contiuously develop new talents.
The heart and soul of a company's strategy-making effort
is the actions and moves in the marketpllace that managers take to gain a competitive advantage over rivals.
When evaluating proposed or existing strategies, managers should
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.
A company's strategy
tends to be a combination of both proactive and reactive elements, with certain elements being abandoned because they have become obsolete or ineffective.
