Midterm Strategy

A strategy that achieves ____________ is likely to help a company excel for an extended period of time.

a sustainable competitive advantage

A(n) _________strategy element is the result of a failure of part or all of a deliberate strategy in the marketplace.

abandoned

Strategy measures that are implemented in response to surprise developments in the market are known as __________ moves.

adaptive

A realized business strategy is typically a combination of deliberate and emergent strategy initatives.

...

Strategy measures that seek to improve a firm's finances or achieve a competitive advantage are known as proactive moves.

.....

The three tests of a winning strategy

1. How well does the strategy fit the company's situation? 2. Is the strategy helping the company achieve a sustainable competitive advantage? 3. Is the strategy producing good company performance?

Which of the following statements about a company's realized strategy is true? 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.

Which of the following strategies enhances fit with the company's situation?

A strategy that works well with a company's existing strengths and resources a strategy that addresses existing market conditions

Which of the following is not an element of a company's realized business strategy? 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

Which one of the following is not related to actions and approaches that comprise a company's strategy? A) How to attract and please customers. B) How to prove to shareholders that the company's business model is viable C) How to compete against rivals. D) How to capitalize on attractive opportunities to grow the business. E) How to achieve the company's performance targets.

B) How to prove to shareholders that the company's business model is viable

Which of the following statements about a company's strategy is true? A) Crafting an excellent strategy is more important than executing it well. B) The objective of a well-crafted strategy is not merely temporary competitive success and profits in the short run, but rather the sort of lasting success that can support growth and secure the company's future over the long C) 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. D) 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. E) Whether a company's strategy is ethical or not does not matter a lot because most customers and most suppliers are relatively unconcerned 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.

B) The objective of a well-crafted strategy is not merely temporary competitive success and profits in the short run, but rather the sort of lasting success that can support growth and secure the company's future over the long

A company's business model A) determines whether its strategy will be ethical or not and meet government regulations. B) is management's storyline for how the strategy will result in achieving sustainable competitive advantage and delivering superior customer satisfaction over the long-term. C) is management's blueprint for delivering a valuable product or service to customers in a manner that will generate revenues sufficient to cover costs and yield an attractive profit D) identifies how the company plans to outmaneuver and outcompete key rivals and become a market leader. E) sets forth the actions and approaches that it will rely on to earn the best profit margins in the industry.

C) is management's blueprint for delivering a valuable product or service to customers in a manner that will generate revenues sufficient to cover costs and yield an attractive profit

Company strategies evolve because A) it is a bad idea to do too much strategizing until a company has been in business long enough to know what strategies will work best. B) most managers like to develop the strategy in bits and pieces rather than all at once. C) of changing circumstances and ongoing management efforts to improve the strategy D) many managers are conservative, preferring to carefully contemplate the best responses to new developments and avoiding the risks associated with developing a complete strategy too quickly. E) a strategy does not really transition to a well-crafted stage until a company has been trying to execute it for a number of years and has learned what works and what doesn't.

C) of changing circumstances and ongoing management efforts to improve the strategy

The heart and soul of any strategy is A) to identify actions and operating approaches that will validate the company's business model work. B) to identify business approaches that will produce good bottom-line results. C) the actions and moves in the marketplace that managers are taking to improve the company's financial performance, strengthen its long-term competitive position, and gain a competitive edge over rivals. D) the actions a company takes to steal substantial sales and market share away from rivals. E) pursuing competitive maneuvers that will make the company a market leader.

C) the actions and moves in the marketplace that managers are taking to improve the company's financial performance, strengthen its long-term competitive

A company's strategy is most likely to be successful when it

Captures consumer interest in ways that distinguish the company from its competitors. is based on doing what competitors can't or won't do.

Which of the following statement(s) are true regarding the evolution of a company's strategy?

Crafting strategy is always a work in progress. Most of the time, changes in strategy are small adjustments rather than major shifts.

Which one of the following is not something to look for in identifying a company's strategy? A) Its actions to enter new geographic or product markets or exit existing ones and its actions to form strategic alliances and collaborative partnerships B) Its actions to merge with or acquire another company in order to strengthen the company's business position C) Its actions to capture emerging market opportunities and defend against external threats to the company's business prospects D) The company's actions to validate and improve upon its business model E) The actions and approaches that define how a company manages such functions as R&D, production, sales and marketing, and finance

D) The company's actions to validate and improve upon its business model

A winning strategy is one that A) makes the company a market leader, is ethically and socially responsible, and maximizes profits. B) is highly profitable and boosts the company's market share. C) passes the profitability test, the ethics and social responsibility test, the customer satisfaction test, and the shareholder wealth test. D) fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance. E) passes the ethical standards test, the competitive advantage test, and the profitability test.

D) fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance.

The most trustworthy signs of a well-managed company are A) a strong emphasis on offensive strategies rather than defensive strategies. B) a strategy matched to fast-evolving market conditions and bigger profit margins than rivals and a steady upward trend in net income. C) attractive bottom-line performance and a proven business model. D) good strategy and good strategy execution. E) having a profitable business model, a willingness to change the company's business model whenever circumstances warrant, and having a sustainable competitive advantage.

D) good strategy and good strategy execution.

Competing differently from rivals—doing what competitors don't do or, even better, doing what they can't do is referred to as its A) strategic offensive for becoming a market leader. B) business model. C) long-term strategic direction. D) mission statement. E) strategy.

E) strategy.

A company achieves sustainable competitive advantage when A) it has a low-cost business model. B) it is able to increase shareholder value. C) sufficient numbers of buyers believe the company has demonstrated a commitment to environmental sustainability. D) it is consistently able to achieve both its strategic and financial objectives. E) when it provide buyers with lasting reasons to prefer its products or services over those of competitors.

E) when it provide buyers with lasting reasons to prefer its products or services over those of competitors.

Which of the following are choices that managers must make in crafting their company's strategy?

How to create products or services that will attract and please customers. How to position the company in the industry. How to operate each functional area of the business.

A strategy that is well-suited to address external market conditions by taking advantage of a company's resources and strengths meets which of the following tests for a winning strategy?

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

Which of the following most accurately describes a best-cost provider strategy?

It is a hybrid of low-cost provider and differentiation strategies.

Big Box Stores enjoys a competitive advantage because their competitors find it very difficult to match Big Box's prices and remain profitable given their higher costs. Big Box is most likely using a ____________________ strategy.

Low-cost provider

Which one of the following is not related to actions and approaches that comprise a company's strategy? 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

Which of the following is not one of the most frequently used strategic approaches to building a sustainable competitive advantage? 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

Which of the following is not typically a trigger to an evolving strategy? 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

A company's management should be prepared to modify strategy in response to which of the following events?

The strategy is not achieving the company's objectives. The firm has identified new market opportunities Buyer taste and preferences in the company's target market have evolved.

A company's managers should be prepared to modify strategy in response to which of the following events?

The strategy is not achieving the company's objectives. The firm has identified new market opportunities. Buyer tastes and preferences in the company's target market have evolved.

When can a company achieve sustainable competitive advantage? 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

a significant number of customers develop a strong and lasting preference for its products or services.

A company achieves sustainable competitive advantage when:

a significant number of customers develop a strong and lasting preference for its products or services.

A company's strategy should

be a work in progress

A ______________________ strategy seeks to distinguish a company's product or services from competitors by adding innovative features or developing a reputation that appeals to a wide range of consumers

broad differentiation

A __________ outlines the ways in which a company will deliver a valuable product or service to consumers while remaining profitable.

business model

In answering the question "How well does the strategy fit the company's situation," management must be willing and ready to address such issues 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.

A creative, distinctive strategy that delivers a sustainable competitive advantage is important because 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 __________ strategy is based on a combination of ongoing successful initiatives and proactive attempts at improving financial performance and building a competitive advantage.

deliberate

Small Tech Inc. decided to develop new product features in order to respond to an innovative product that was unexpectedly introduced by their closest competitor. This is an example of an ____________ strategy.

emergent

The three tests of a winning strategy can be used to evaluate which of the following?

existing strategies proposed strategies

A company using a __________ strategy seeks to satisfy the needs of niche customers by offering unique and innovative product features that are not easily copied by rivals.

focused differentiation

In a _________ strategy, a company seeks to satisfy the needs of a narrow group of customers by offering affordable prices on goods produced at a lo cost.

focused low-cost provider

Which two kinds of improvements in performance provide the best information about whether a strategy is producing good company performance?

growing profitability and financial strength improved competitive strength and market standing

Companies using a _____________ strategy compete by attempting to have lower costs than competitors.

low-cost provider

Mimicking a competitor's strategies by copying its products or marketing approach is

one of the least effective strategies for achieving sustained profitability.

As part of a company's business model, the _______ describes the costs a company is willing to accept in producing a good or service given the pricing model described in the customer value proposition.

profit formula

Which two of the following are the key elements of a company's business model?

profit formula customer value proposition

Together, deliberate strategy elements and emergent strategy elements make up a company's __________ strategy.

realized

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. is part and parcel of a company's strategic vision.

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 company's _______ consists of the actions the company takes to use its resources and capabilities to create superior value for customers

strategy

Excellent execution of a successful strategy is: 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.

How well a company performs is directly attributable to

the strength of its strategy and how well it is executed.