Management 428 Quiz 1
Revved Rider Inc, a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be conducted about Revved Rider Inc from this scenario? A) It has a direct investment in the other firms. B) It has a competitive advantage over the other firms. C) It has an exchange relationship with the other firms. D) It has a competitive parity with the other firms.
B
Which of the following actions of an automobile firm will be considered as a strategic commitment? A) The firm launching an existing model of a car in red as a limited edition for 6 months. B) The firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future. C) The firm spending $100,000 on renting a manufacturing facility to meet the temporary demand for its cars D) The firm providing its new model of coupe through a free European trip worth $15,000 to be won as an early-bird offer.
B
Which of the following has contributed to Tesla's competitive advantage in terms of stock appreciation? A) Copying the most popular features of competitors' vehicles B) Reinvesting profits to continually design and produce better electric vehicles C) Keeping its proprietary technologies secret D) Using inexpensive materials to keep costs low
B
Which of the following statements about competitive advantage is NOT true? A) A firm will have a sustainable competitive advantage when it outperforms its competitors over a prolonged period of time. B) A firm can gain a competitive advantage by providing goods similar to its competitors' goods at a lower price. C) A firm's competitive advantage is always absolute, not relative. D) A firm's past performance does not guarantee its future performance.
C
How has Walmart staked out a unique strategic position?
by cutting costs to offer lower prices than competitors
The greater the difference between value creation and cost, the _______.
greater a firm;s economic contribution
A firm is likely to have a competitive advantage when it _______________.
provides services that consumers will value more than those of its rivals
A company's vision primarily states ___________.
what the company wants to ultimately accomplish
An organization's ____________ describes what the organization actually does- the products and services it plans to provide, and the markets in which it will compete.
mission
If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision?
The company will tend to be more flexible when adapting to changing environments
Which of the following statements is true of strategy? A) Statements of desire, on their own, are strategy. B) Tactical tools that are a part of a firm's functional and global initiatives are strategy. C) Operational effectiveness and competitive benchmarking are strategy. D) Actions that allow a firm to address a competitive challenge are strategy.
D
Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision? A) Quick Eats will face low profit potential B) Quick Eats will be able to create higher value for its customers C) Quick Eats will be better placed to gain a competitive advantage in the industry D) Quick Eats will not face any direct competition in the industry
A
Product-oriented vision statements provide managers with ________.
goals to improve service
Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time? A) consistent power position B) long-term capital gain C) strategic positioning D) sustainable competitive advantage
D
A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy ___________.
analysis
Organizational core values are the answer to which of the following questions? A) What commitments do we make to act both legally and ethically B) Which of the value chain activities are primary? C) What is the value added to a good or service at each step in the production? D) What is the company's customer lifetime value?
A
Which of the following statements is true of customer-oriented visions? A) They tend to force managers to take a myopic view of the business environment B) They define a business in terms of providing solutions to people's needs C) They are inflexible with regard to adapting to changing environments D) They state an organization's goals in terms of a good or service provided to customers
B
Which of the following statements will effectively guide a strategist? A) It is necessary to isolate the key stakeholders and their needs when formulating a strategy. B) Industry and firm effects that determine firm performance are independent of each other. C) Strategy is all about competitive benchmarking and operational effectiveness D) The principles of strategic management can be applied universally to all organizations
D
which of the following statements accurately brings out the difference between an organization's vision and mission? A) Mission is the organization's aspirations for the future and vision is about how these aspirations can be made true over time B) Vision is short-term: oriented and related to the organization's presents, whereas the mission is futuristic. C) Vision is valid at the functional level of the organization, whereas mission covers the entire organization. D) Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.
D
When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in _______________.
trade-offs that work against each other