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.