BUS 485 Test 1

strategic plan

According to your textbook, a(n) ____________maps out where a company is headed, establishes strategic and financial targets, and outlines the basic business model, competitive moves, and approaches to be used in achieving the desired business results annual plan strategic vision strategic plan mission statemen

False

According to your textbook, best-cost producers always need to offer the highest end products and services. True False

True

According to your textbook, differentiation can be based on tangible or intangible attributes. True False

False

According to your textbook, easy-to-copy differentiating features can produce sustainable competitive advantage. True False

True

According to your textbook, for all types of generic strategies, success in sustaining the competitive edge depends on having resources and capabilities that rivals have trouble duplicating and for which there are no good substitute True False

True

According to your textbook, in most companies crafting and executing strategy is a collaborative team effort in which every manager has a role for the area he or she heads; True False

False

According to your textbook, it is very unlikely for a company's strategy to change over time. True False

a. Gain buyer loyalty to its brand. c. Increase unit sales. d. Command a premium price for its product.

According to your textbook, successful differentiation can allow a firm to do which of the following? (Select all that apply.) a. Gain buyer loyalty to its brand. b. Revamp the firm's overall value chain to eliminate or bypass some cost-producing activities. c. Increase unit sales. d. Command a premium price for its product.

values

According to your textbook, the company's _________ are 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. strategic initiatives objectives values standards

Best-cost strategy

According to your textbook, this competitive approach is a hybrid strategy that blends elements of the previous four options in a unique and often effective way. Best-cost strategy Low-cost strategy Broad differentiation strategy Focused strategy

True

According to your textbook, unethical strategies can cause substantial financial and reputational damage. True False

The Fit Test

According to your textbook, which of the tests considers whether a strategy is well matched to industry and competitive conditions, a company's best market opportunities, and other pertinent aspects of the business environment in which the company operates? The Fit Test The Competitive Advantage Test The Market Positioning Test The Performance Test

Technical innovation

Which of the following is NOT part of a company's immediate industry and competitive environment, according to your textbook? Rival firms Technical innovation New entrants Substitute products

d. It includes generic, feel-good statements.

Which of the following is NOT true of a well-conceived strategic vision, according to your textbook? a. It is specific to a particular organization. b. It provides managers at all organizational levels with a reference point in making strategic decisions and preparing the company for the future c. It is distinctive to a particular organization. d. It includes generic, feel-good statements.

a. Customers have strong brand preferences and high degrees of loyalty to seller.

Which of the following statements describes a situation where entry barriers are high, according to your textbook? a. Customers have strong brand preferences and high degrees of loyalty to seller. b. There are minimal economies of scale in production, distribution, advertising or other activities. c. Capital requirements are low. d. There are permissive regulatory policies.

c. Rivalry decreases as the products of rival sellers become less strongly differentiated.

Which of the following statements is false regarding competitive pressures, according to your textbook. a. Rivalry increases as it becomes less costly for buyers to switch brands. b. Rivalry is more intense when industry members have too much inventory. c. Rivalry decreases as the products of rival sellers become less strongly differentiated. d. Rivalry is stronger when high exit barriers keep unprofitable firms from leaving the industry

Best Cost Provider Strategy

Which strategy is at a disadvantage that it may difficult to maintain a hybrid strategic approach

strategic group

According to your textbook, a(n) _______________ is a cluster of industry rivals that have similar competitive pressures and market positions. industry group strategic group competitive group market group

True

According to your textbook, a company achieves a competitive advantage when it provides buyers with superior value compared to rival sellers or produces its products or services more efficiently. The advantage is sustainable if it persists despite the best efforts of competitors to match or surpass this advantage.. True False

mission statement

According to your textbook, a company's _________ describes the scope and purpose of its present business ("who we are, what we do, and why we are here"). strategic plan mission statement annual plan strategic vision

value chain

According to your textbook, a company's ___________ identifies the primary activities and related support activities that create customer value. resource bundle value chain SWOT analysis dynamic capabilities

strategic plan

According to your textbook, a company's _____________lays out its direction, business model, competitive strategy, and performance targets for some specified period of time. business strategy strategic plan business plan vision statement

its customer value proposition & its profit formula

According to your textbook, a company's business model includes ___________. its strategy & its profit formula its market positioning & its profit formula its customer value proposition & its profit formula its customer value proposition & its strateg

competitive assets

According to your textbook, a company's resources and capabilities represent its ____________. intangible assets resource bundle tangible assets competitive assets

False

According to your textbook, a low-cost strategy means that a producer always strives to achieve the absolutely lowest possible cost. True False

strategic vision

According to your textbook, a(n) ___________ describes management's aspirations for the company's future and the course and direction charted to achieve them. annual plan strategic plan strategic vision mission statement

core competence

According to your textbook, a(n) ________________ is an activity that a company performs proficiently and that is also central to its strategy and competitive success.. asset strength core competence distinctive competence

competitive advantage

According to your textbook, a(n) ___________ is essential for realizing greater marketplace success and higher profitability over the long term. competitive advantage strong positioning innovative marketing strategy excellence leadership team

strategy

According to your textbook, a(n) _____________ is the set of coordinated actions that its managers take in order to outperform the company's competitors and achieve superior profitability. strategy corporate game plan annual plan operational plan

True

According to lecture, every manager is responsible for strategy execution True False

Low-Cost Provider Strategy

According to lecture, which strategy has a disadvantage that may lead to a price war

value drivers

According to your textbook, __________ are a set of factors that are particularly effective in creating differentiation. value drivers cost drivers market position drivers differentiation drivers

focused differentiation strategies

According to your textbook, __________ involve offering superior products or services tailored to the unique preferences and needs of a narrow, well-defined group of buyers focused differentiation strategies best cost provider strategies focused low-cost strategies broad differentiation strategies

Gross profit margin

According to your textbook, __________ is calculated using the following formula: Gross profit margin Free cash flow Working capital Debt-to-equity ratio

key success factors

According to your textbook, ___________ are the strategy elements, product and service attributes, operational approaches, resources, and competitive capabilities that are essential to surviving and thriving in the industry. competitive factors complementors driving forces key success factors

driving forces

According to your textbook, ______________ are the major underlying causes of change in industry and competitve conditions. key success factors complementors competitive pressures driving forces

working capital

According to your textbook, ______________ is calculated by the formula: Current assets − Current liabilities current ratio gross profit free cash flow working capital

operating profit margin

According to your textbook, ______________ shows the profitability of current operations without regard to interest charges and income taxes. gross profit margin working capital operating profit margin free cash flow

weakness

According to your textbook, a ___________ is a competitive deficiency. strength weakness opportunity threat

resource

According to your textbook, a ______________ is a productive input or competitive asset that is owned or controlled by the firm, key success factor competence resource capability

focused low-cost strategy

According to your textbook, a _____________aims at securing a competitive advantage by serving buyers in the target market niche at a lower cost (and usually lower price) than those of rival competitors focused low-cost strategy broad low-cost strategy focused-differentiation strategy best-cost strategy

best practice

According to your textbook, a __________is a method of performing an activity or business process that consistently delivers superior results compared to other approaches competence benchmark value chain best practice

a. Maintain the present price, be content with the present market share, and use the lower-cost edge to raise total profits by earning a higher profit margin on each unit sold c. Use the lower-cost edge to underprice competitors and attract price-sensitive buyers in great enough numbers to increase total profits.

According to your textbook, which of these are options a company has for translating a low-cost advantage over rivals into superior profit performance? (Select all that apply.) a. Maintain the present price, be content with the present market share, and use the lower-cost edge to raise total profits by earning a higher profit margin on each unit sold b. Emphasize human resource management activities that improve the skills, expertise, and knowledge of company personnel c. Use the lower-cost edge to underprice competitors and attract price-sensitive buyers in great enough numbers to increase total profits. d. Create product features and performance attributes that appeal to a wide range of buyers.

False

Every company has the same opportunity in every industry True False

a. political, economic, sociocultural, technological, environmental, legal/regulatory

Which of the following correctly lists the components of a PESTEL analysis, according to your textbook? a. political, economic, sociocultural, technological, environmental, legal/regulatory b. political, economic, sociocultural, technological, ethical, legal/regulatory c. political, economic, sociocultural, textual, environmental, legal/regulatory d. political, economic, strategic, technological, environmental, legal/regulatory

d. Buyers pose a credible threat of integrating backward into the business of sellers.

Which of the following describes a situation in which buyer barganing power is stronger, according to your textbook? a. Buyer demand is strong in relation to the available supply. b. Buyers' costs of switching to competing brands or substitutes are relatively high. c. Industry goods are highly differentiated. d. Buyers pose a credible threat of integrating backward into the business of sellers.

a. Corporate Strategy, Business Strategy, Functional Areas Strategies, Operating Strategies

Which of the following has a company's strategy-making hierarchy in the correct order according to your textbook? a. Corporate Strategy, Business Strategy, Functional Areas Strategies, Operating Strategies b. Business Strategy, Corporate Strategy, Functional-Area Strategies, Operating Strategies c. Corporate Strategy, Business Strategy, Operating Strategies, Functional Area Strategies d. Corporate Strategy, Operating Strategies, Business Strategy, Functional Area Strategies

a. The supplier industry is comprised of many small compnies and is less concentrated than the industry it sells to.

Which of the following is NOT a situation in which supplier power is stronger, according to your textbook? a. The supplier industry is comprised of many small compnies and is less concentrated than the industry it sells to. b. Industry members are not major customers of suppliers. c. Industry members are incapable of integrating backward to self-manufacture items they have been buying from suppliers. d. Demand for suppliers' products is high and the products are in short supply

d. Good substitutes have a premium price.

Which of the following is NOT a situation where competitive pressures are stronger, according to your textbook? a. The costs that buyers incur in switching to the substitutes are low. b. Good substitutes have a premium price. c. Buyers view the substitutes as comparable or better in terms of quality, performance, and other relevant attributes. d. Good substitutes are readily available.

How to create new products

Which of the following is NOT one of the components that a strategy should address, according to your textbook? How to respond to changing economic and market conditions How to create new products How to achieve the company's performance targets How to attract customers

Market

Which of the following is NOT one of the dimensions of Balanced Scorecard, according to your textbook? Market Financial Internal Process Customer

Good-value strategy

Which of the following is NOT one of the frequently used strategic approaches identified in your textbook? Good-value strategy Best-cost provider strategy Low-cost provider strategy Broad differentiation strategy

a. Technological change is fast-paced and competition revolves around rapidly evolving product features.

Which of the following is NOT one of the situations when a focused strategy is attractive, according to your textbook? a. Technological change is fast-paced and competition revolves around rapidly evolving product features. b. The target market niche is big enough to be profitable and offers good growth potential. c. Few if any rivals are attempting to specialize in the same target segment. d. It is costly or difficult for multisegment competitors to meet the specialized needs of niche buyers and at the same time satisfy the expectations of their mainstream customers

c. Is the resource or capability important?

Which of the following is NOT one of the specific tests that measures the competitive power of a resource or capability, according to your textbook? a. Is the resource or capability rare? b. Is the resource or organizational capability competitively valuable? c. Is the resource or capability important? d. Is the resource or capability inimitable?

a. Creating a comprehensive marketing plan that aligns with desired customer benefits and the company's long-term positioning.

Which of the following is NOT one of the strategic management process steps according to your textbook? a. Creating a comprehensive marketing plan that aligns with desired customer benefits and the company's long-term positioning. b. Developing a strategic vision that charts the company's long-term direction, a mission statement that describes the company's purpose, and a set of core values to guide the pursuit of the vision and mission. c. Executing the chosen strategy efficiently and effectively. d. Setting objectives for measuring the company's performance and tracking its progress in moving in the intended long-term direction.

The Market Positioning Test

Which of the following is NOT one of the tests that a company's strategy should past to determine whether it is a winning strategy? The Fit Test The Market Positioning Test The Performance Test The Competitive Advantage Test