MGT 4150- Exam 3: Chapters 9, 10 & 12

Which one of the following does NOT account for WHY a company's strategy evolves from one version to another? A) A need to promote stability and retain the status quo. B) The need to abandon some strategy elements that are no longer working well. C) A need to respond to changing customer requirements and expectations. D) A need to react to fresh strategic maneuvers on the part of rival firms. E) The proactive efforts of company managers to improve this or that aspect of the strategy.

A) A need to promote stability and retain the status quo.

Which of the following statements about a company's strategy is false? A) Normally, companies have a narrow window of strategic freedom in choosing the hows of strategy because all competitors are facing the same market conditions and competitive pressures and, therefore, have to cope with them using very similar strategies. B) A company's strategy results in achieving sustainable competitive advantage when an attractive number of buyers prefer its products or services over the offerings of competitors and when the basis for this preference is durable. C) A company's strategy is based partly on trial-and-error organizational learning about what has worked well and what hasn't. D) A company's strategy and strategic moves are only partly the result of proactive plotting and management design. E) A company's strategy is a work in progress, not a one-time management exercise.

A) Normally, companies have a narrow window of strategic freedom in choosing the hows of strategy because all competitors are facing the same market conditions and competitive pressures and, therefore, have to cope with them using very similar strategies.

Which of the following is not one of the central questions in evaluating a company's business prospects? A. What is the company's present situation? B. What are the key products or service attributes demanded by consumers? C. Where does the company need to go from here? D. How should it get there? E. All of these are pertinent in evaluating a company's business prospects.

B. What are the key products or service attributes

Which of the following is not one of the most frequently used strategic approaches to building competitive advantage? A) Striving for a competitive edge based on bigger profit margins B) Developing expertise and resource strengths that give the company competitive capabilities that rivals can't easily imitate or trump with capabilities of their own C) Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage over rivals D) Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche E) Outcompeting rivals based on differentiating features

A) Striving for a competitive edge based on bigger profit margins

Which of the following is NOT one of the basic reasons that a company's strategy evolves over time? A) The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture. B) The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy. C) An ongoing need to abandon those strategy features that are no longer working well D) The need to respond to the actions and competitive moves of rival firms. E) The need to keep strategy in step with changing market conditions and changing customer needs and expectations.

A) The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture.

What is the foremost question in running a business enterprise? A) What must managers do, and do well, to make a company a winner in the marketplace? B) What can employees do, and do well, to ensure customer satisfaction? C) What can shareholders do, and do well, to ensure a profitable company? D) None of these. E) All of these.

A) What must managers do, and do well, to make a company a winner in the marketplace?

Every strategy needs: A) a distinctive element that attracts customers and produces a competitive edge. B) to include similar characteristics to rival company strategies. C) to pursue conservative growth built on historical strengths. D) to employ diverse and sundry operating practices for producing greater control over sales growth targets. E) to mimic the plans of the industry's most successful companies.

A) a distinctive element that attracts customers and produces a competitive edge.

A company achieves a competitive advantage when: A) it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost. B) it has a profitable business model. C) it is able to maximize shareholder wealth. D) it is consistently able to achieve both its strategic and financial objectives. E) its strategy and its business model are well-matched and in sync.

A) it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost.

Excellent execution of an excellent strategy is: A) the best test of managerial excellence and the best recipe for making a company a standout performer. B) a solid indication that managers are maximizing profits and looking out for the best interests of shareholders. C) the best test of whether a company is a "true" industry leader. D) the best evidence that managers have a winning business model. E) the best test of whether a company enjoys sustainable competitive advantage.

A) the best test of managerial excellence and the best recipe for making a company a standout performer.

Strategy is about competing differently than rivals, thus strategy success is about: A) the sources of sustained advantages and superior profitability. B) those emergent, unplanned, reactive, and adaptive strategies that are more appropriate than deliberate or intended ones that drive the realized strategy. C) matching internal resources and capabilities to the industry environment. D) keeping the firm current with the rapid pace of change in the industry. E) All of these.

A) the sources of sustained advantages and superior profitability.

One of the frequently used successful and dependable strategic approaches is: A) to come up with a distinctive element that builds strong customer loyalty and yields a winning competitive edge. B) to aggressively pursue all of the growth opportunities the company can identify. C) to develop a product/service with more innovative performance features than what rivals are offering and to provide customers with better after-the-sale service. D) to come up with a business model that enables a company to earn bigger profits per unit sold than rivals. E) to charge a lower price than rivals and thereby win sales and market share away from rivals.

A) to come up with a distinctive element that builds strong customer loyalty and yields a winning competitive edge.

Which one of the following does not account for why a company's strategy evolves from one version to another? A. A desire on the part of company managers to develop new strategy elements on the fly B. The need to abandon some strategy elements that are no longer working well C. A need to respond to changing customer requirements and expectations D. A need to react to fresh strategic maneuvers on the part of rival firms E. The proactive efforts of company managers to improve this or that aspect of the strategy

A. A desire on the part of company managers to develop new strategy elements on the fly

Changing circumstances and ongoing managerial efforts to improve the strategy A. account for why a company's strategy evolves over time. B. explain why a company's strategic vision undergoes almost constant change. C. make it very difficult for a company to have concrete strategic objectives. D. make it very hard to know what a company's strategy really is. E. All of the above.

A. account for why a company's strategy evolves over time.

The most important aspect(s) of a company's business strategy A. are the actions and moves in the marketplace that managers take to gain a sustainable competitive advantage. B. is figuring out how to maximize profits and shareholder value. C. concerns how to improve the efficiency of its business model. D. deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner. E. is figuring out how to become the industry's low-cost provider.

A. are the actions and moves in the marketplace that managers take to gain a sustainable competitive advantage.

Crafting a strategy involves A. blending deliberate/planned initiatives with emergent/unplanned reactive responses to changing circumstances, while abandoning planned strategy elements that have failed in the marketplace. B. developing a five-year strategic plan and then fine-tuning it during the remainder of the plan period. C. trying to imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage. D. doing everything possible (in the way of price, quality, service, warranties, advertising, and so on) to make sure the company's product/service is very clearly differentiated from the product/service offerings of rivals. E. All of these accurately characterize the managerial process of crafting a company's strategy.

A. blending deliberate/planned initiatives with emergent/unplanned reactive responses to changing circumstances, while abandoning planned strategy elements that have failed in the marketplace.

The elements of a company's business model are A. its customer value proposition as well as the company's profit formula. B. its business strategy, its collection of competitively valuable resources, and a strong management team. C. its deliberate strategy, its emergent strategy, and its realized strategy. D. its actions to capture emerging market opportunities and defend against threats to the company's business prospects, its actions to strengthen competitiveness via strategic alliances, and its actions to enter new geographic or product markets. E. management's answers to "Where are we now?" "Where do we want to go?" and "How are we going to get there?"

A. its customer value proposition as well as the company's profit formula.

The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attract and please customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its A. strategy. B. mission statement. C. strategic intent. D. business model. E. strategic vision.

A. strategy.

A company's strategy is a "work in progress" and evolves over time because of A. the ongoing need of company managers to react and respond to changing industry and competitive conditions. B. the ongoing need to imitate the new strategic moves of the industry leaders. C. the need to make regular adjustments in the company's strategic vision. D. the importance of developing a fresh strategic plan every year. E. the frequent need to modify key elements of the company's business model.

A. the ongoing need of company managers to react and respond to changing industry and competitive conditions.

One of the keys to successful strategy-making is A. to come up with one or more strategy elements that act as a magnet to draw customers and yield a lasting competitive edge. B. to aggressively pursue all of the growth opportunities the company can identify. C. to develop a product/service with more innovative performance features than what rivals are offering and to provide customers with better after-the-sale service. D. to come up with a business model that enables a company to earn bigger profits per unit sold than rivals. E. to charge a lower price than rivals and thereby win sales and market share away from rivals.

A. to come up with one or more strategy elements that act as a magnet to draw customers and yield a lasting competitive edge.

A company's business model A. zeros in on how and why the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment. B.is management's storyline for how the strategy will result in achieving the targeted strategic objectives. C.details the ethical and socially responsible nature of the company's strategy. D.explains how it intends to achieve high profit margins. E.sets forth the actions and approaches that it will employ to achieve market leadership.

A. zeros in on how and why the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment.

Which of the following is NOT one of the managerial considerations in determining how to compete successfully? A) How can a company attract, keep, and please customers? B) How can the company modify its entire product line to emphasize their internal service attributes? C) How should the company respond to changing economic and market conditions? D) How should the company be competitive against rivals? E) How should the company position itself in the marketplace?

B) How can the company modify its entire product line to emphasize their internal service attributes?

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) Managers at all companies face three central questions in thinking strategically about their company's present circumstances and prospects: What's the company's present situation? Where does the company need to go from here? How should it get there? 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) Managers at all companies face three central questions in thinking strategically about their company's present circumstances and prospects: What's the company's present situation? Where does the company need to go from here? How should it get there?

A winning strategy must pass which three tests? A) The Dominant Market Test, the Sustainable Advantage Test, and the Profit Test B) The Fit Test, the Competitive Advantage Test, and the Performance Test C) The Sustainable Advantage Test, the Fit Test, and the Profit Test D) The Performance Test, the Dominant Market Test, and the Fit Test E) The Fit Test, the Sustainable Advantage Test, and the Dominant Market Test

B) The Fit Test, the Competitive Advantage Test, and the Performance Test

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

Management's blueprint for how and why the company's business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment: A) best describes what is meant by a company's strategy. B) best describes what is meant by a company's business model. C) accounts for why a company's financial objectives are at the stated level. D) portrays the essence of a company's business purpose or mission. E) is what is meant by the term strategic intent.

B) best describes what is meant by a company's business model.

Crafting and executing strategy are top-priority managerial tasks because: A) they are necessary ingredients of a sound business model. B) good strategy coupled with good strategy execution are the most telling signs of good management and greatly raises the chances that a company will be a standout performer in the marketplace. C) the management skills of top executives are sharpened as they work their way through the strategymaking, strategy-executing process. D) doing these tasks helps executives develop an appropriate strategic vision, strategic intent, and a set of strategic objectives. E) of the contribution they make to maximizing value for shareholders.

B) good strategy coupled with good strategy execution are the most telling signs of good management and greatly raises the chances that a company will be a standout performer in the marketplace.

A company's business model: A) concerns the actions and business approaches that will be used to grow the business, conduct operations, please customers, and compete successfully. B) is management's blueprint for how it will generate revenues sufficient to cover costs and yield an attractive profit. C) concerns what combination of moves in the marketplace it plans to make to outcompete rivals. D) deals with how it can simultaneously maximize profits and operate in a socially responsible manner that keeps its prices as low as possible. E) concerns how management plans to pursue strategic objectives, given the larger imperative of meeting or beating its financial performance targets.

B) is management's blueprint for how it will generate revenues sufficient to cover costs and yield an attractive profit.

A company's realized strategy evolves from one version to the next due to: A) changing management direction because of understanding several appealing strategy alternatives. B) the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms. C) ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy). D) pressures from shareholders to boost profit margins and pay higher dividends. E) the importance of keeping the company's business model fresh and up-to-date.

B) the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms.

Which of the following is not something a company's strategy is concerned with? A. Management's choices about how to attract and please customers B. How quickly and closely to copy the strategies being used by successful rival companies C. Management's choices about how to grow the business D. Management's choices about how to compete successfully E. Management's action plan for conducting operations and improving the company's financial and market performance

B. How quickly and closely to copy the strategies being used by successful rival companies

Which of the following is not something to look for in identifying a company's strategy? A. Actions to respond to changing market conditions or other external factors. B. Management actions to revise the company's financial and strategic performance targets. C. Actions to strengthen competitive capabilities and correct competitive weaknesses. D. Actions to capture emerging market opportunities and defend against external threats to the company's business prospects. E. Actions to gain sales and market share via lower prices, more performance features, more appealing design, or other such actions.

B. Management actions to revise the company's financial and strategic performance targets.

Which of the following is not something a company's strategy is concerned with? A. Management's choices about how to attract and please customers B. Management's choices about how quickly and closely to copy the strategies being used by successful rival companies C. Management's choices about how to grow the business D. Management's choices about how to outcompete rivals E. Management's action plan for conducting operations and improving the company's strategic and financial performance

B. Management's choices about how quickly and closely to copy the strategies being used by successful rival companies

Managers must be prepared to modify their strategy in response to: A) changing circumstances that affect performance and their desire to improve the current strategy. B) competitor moves in the market and shifting needs of buyers. C) stagnating market and restrictive industrial opportunities. D) mounting evidence that the strategy is less effective. E) All of these.

E) All of these.

1. A company's corporate culture is BEST defined and identified by: A. the integration of the strategy and business model that a company has adopted. B. by the company's shared values, ingrained attitudes, core beliefs and company traditions that determine norms of behavior, accepted work practices of "how we do things around here," and styles of operating. C. its ingrained statement of core values and its internal code of ethics. D. its internal politics that influence the dedication to ethical conduct and accepted work practices. E. the formal traditions that company executives are committed to maintaining to ensure the company strategy-supportive culture is change resistant.

B. by the company's shared values, ingrained attitudes, core beliefs and company traditions that determine norms of behavior, accepted work practices of "how we do things around here," and styles of operating.

A company's strategy evolves from one version to the next because of A. changing management conclusions about which of several appealing strategy alternatives is actually best. B. management's ongoing efforts to fine-tune the strategy and to adjust certain strategy elements in response to new learning and unfolding events. C. ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy). D. pressures from shareholders to boost profit margins and pay higher dividends. E. the importance of keeping the company's business model fresh and up-to-date.

B. management's ongoing efforts to fine-tune the strategy and to adjust certain strategy elements in response to new learning and unfolding events.

Which of the following is not an aspect of a company's strategy? A) Striving for a competitive edge over rivals B) How to achieve targeted objectives C) Making a profit D) How to respond to changing market conditions E) How to manage each functional piece of the business and develop needed organizational capabilities

C) Making a profit

Adapting to new conditions and constantly evaluating what is working and what needs to be improved are normal parts of the strategy-making process which result in: A) a profitability-driven strategy. B) a broad market entry strategy C) an evolving strategy. D) unlimited revenue generation. E) None of these.

C) an evolving strategy.

Crafting a deliberate strategy involves developing strategy elements that: A) imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage. B) comprise a five-year strategic plan and then fine-tuning it during the remainder of the plan period; big changes in strategy are thus made only once every five years. C) consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods. D) doing everything possible (in the way of price, quality, service, warranties, advertising, and so on) to make sure the company's product/service is very clearly differentiated from the product/service offerings of rivals. E) All of these accurately characterize the managerial process of crafting a company's strategy.

C) consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods.

The most telling signs of a well-managed company are: A) the eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision. B) aggressive pursuit of new opportunities and a willingness to change the company's business model whenever circumstances warrant. C) good strategy-making combined with good strategy execution. D) a visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies. E) a profitable business model and a balanced scorecard approach to measuring the company's performance.

C) good strategy-making combined with good strategy execution.

Proven approaches to winning a sustainable competitive advantage include which of the following? A. Strategies keyed to developing a low-cost-based advantage. B. Strategies keyed to creating a broad differentiation-based advantage. C. Focusing on a narrow market niche within an industry. D. Developing a best-cost provider strategy. E. All of these.

E. All of these.

A creative distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage: A) is a reliable indicator that the company has a profitable business model. B) is every company's strategic vision. C) is a company's most reliable ticket to above-average profitability and a competitive advantage, despite the best efforts of competitors to match or surpass this advantage. D) signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives. E) is the best indicator that the company's strategy and business model are well-matched and properly synchronized.

C) is a company's most reliable ticket to above-average profitability and a competitive advantage, despite the best efforts of competitors to match or surpass this advantage.

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

Crafting and executing strategy are top-priority managerial tasks because: A) it helps management create tight fits between a company's strategic vision and business model. B) it allows all company personnel, and especially senior executives, to know the answer to "who are we, what do we do, and where are we headed?" C) it is management's prescription for doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance. D) it provides clear guidance as to what the company's business model and strategic intent are, and helps keep managerial decision-making from being rudderless. E) it establishes how well executives perform these tasks and are the key determinants of executive compensation.

C) it is management's prescription for doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance.

A company's strategies stand a better chance of succeeding when: A) it is developed through a collaborative process involving all managers and staff from all levels of the organization. B) managers employ conservative strategic moves based on past experience and form an underlying basis of control. C) it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals. D) managers copy the strategic moves of successful companies in its industry. E) managers focus on meeting or beating shareholder expectations.

C) it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.

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

The nitty-gritty issue surrounding a company's business model is whether A) the strategy is capable of producing sustainable competitive advantage. B) it matches the company's external and internal situation. C) the chosen strategy makes good business sense from a money-making perspective. D) the company's strategy and strategic moves are mostly proactive. E) the company's strategy stands a really good chance of hitting a home-run in the marketplace.

C) the chosen strategy makes good business sense from a money-making perspective.

Managers in all types of businesses must address the central strategic question A. Where are we now? B. Where do we want to go from here? C. How are we going to get there? D. When will we know we are there? E. All of these

C. How are we going to get there?

Which of the following is not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? A. Aiming for a cost-based competitive advantage B. Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, or more attractive styling C. Striving to be more profitable than rivals by aiming for a competitive edge based on bigger profit margins D. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of satisfying the needs and tastes of buyers comprising the niche E. Developing expertise and resources that give the company competitive capabilities that rivals can't easily imitate or trump with capabilities of their own

C. Striving to be more profitable than rivals by aiming for a competitive edge based on bigger profit margins

Which of the following is not one of the basic reasons that a company's strategy evolves over time? A. An ongoing need to abandon those strategy features that are no longer working well B. The proactive efforts of company managers to improve the company's financial performance and secure a competitive advantage C. The need on the part of company managers to make regular adjustments in the company's business model D. The need to respond to the actions and competitive moves of rival firms E. The need to keep strategy in step with changing industry and competitive conditions

C. The need on the part of company managers to make regular adjustments in the company's business model

A company's business model A. details the manner in which the company will pass the three tests of a winning strategy. B. indicates how the strategy will result in achieving the targeted strategic objectives. C. clarifies (1) how the business will provide customers with value, and (2) why the business will generate revenues sufficient to cover costs and produce attractive profits. D. explains how it intends to achieve high profit margins. E. sets forth the actions and approaches that it will employ to achieve market leadership.

C. clarifies (1) how the business will provide customers with value, and (2) why the business will generate revenues sufficient to cover costs and produce attractive profits.

A company's strategy and its quest for competitive advantage are tightly connected because A. without a competitive advantage a company cannot become the industry leader. B. without a competitive advantage a company cannot have a profitable business model. C. 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. D. a competitive advantage is what enables a company to achieve its strategic objectives. E. how a company goes about trying to please customers and outcompete rivals is what enables senior managers choose an appropriate strategic vision for the company.

C. 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 creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage A. is a reliable indicator that the company has a profitable business model. B. is every company's strategic vision. C. is a company's most reliable ticket to above-average profitability—indeed, the tight connection between competitive advantage and profitability means that the quest for sustainable competitive advantage always ranks center stage in crafting a strategy. D. signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives. E. is the best indicator that the company's strategy and business model are well-matched and properly synchronized.

C. is a company's most reliable ticket to above-average profitability—indeed, the tight connection between competitive advantage and profitability means that the quest for sustainable competitive advantage always ranks center stage in crafting a strategy.

A company's strategy stands a better chance of succeeding when A. it is developed through a collaborative process involving managers from all levels of the organization. B. managers employ conservative strategic moves. C. it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals. D. managers copy the strategic moves of successful companies in its industry. E. managers focus on meeting or beating shareholder expectations.

C. it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.

A viable business model includes a valuable customer value proposition that A. is always partly deliberate/planned and partly emergent/reactive. B. is an essential component of pursuing the company's strategic intent. C. suggests the greater the value provided and the lower the price, the more attractive the value proposition. D. lays out the approach to satisfying buyer wants and needs at a premium price. E. must set forth management's long-term action plan for achieving market leadership.

C. suggests the greater the value provided and the lower the price, the more attractive the value proposition

Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? A) Striving to be the industry's low-cost provider, thereby aiming for a product-based competitive advantage B) Outcompeting rivals on the basis of such differentiating features as same quality, narrower product selection, or same value for the money C) Developing a best-cost provider strategy that gives the company competitive capabilities so that rivals can easily imitate with capabilities of their own to even the playing field D) Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche E) All of these.

D) Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche

Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy? A) Is the company's strategy ethical and socially responsible and does it put enough emphasis on good product quality and good customer service? B) Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner? C) Is the strategy resulting in the development of additional competitive capabilities? D) Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance? E) Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

D) Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance?

Which one of the following is not something to look for in trying to identify and understand what a company's strategy is? A) Actions to strengthen the firm's bargaining position with suppliers, distributors, and others. B) Actions to gain sales and market share via more performance features, more appealing design, better quality or customer service, wider product selection, or other such actions. C) Actions to gain sales and market share with lower prices based on lower costs. D) Its actions to revise the company's strategic vision and business model E) Actions to enter new product or geographic markets or to exit existing ones

D) Its actions to revise the company's strategic vision and business model

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

It is normal for a company's strategy to end up being A) little different from management's original planned set of actions and business approaches since making on-the-spot changes is too risky. B) a combination of defensive moves to protect the company's market share and offensive initiatives to set the company's product offering apart from rivals. C) pretty much like the strategies of other industry members since all companies are confronting much the same market conditions and competitive pressures. D) a blend of proactive actions to improve the company's competitiveness and financial performance and as-needed reactions to unanticipated developments and fresh market conditions. E) a mirror image of its business model, so as to avoid impairing company profitability.

D) a blend of proactive actions to improve the company's competitiveness and financial performance and as-needed reactions to unanticipated developments and fresh market conditions.

The pattern of actions and business approaches that would NOT define a company's strategy include: A) actions to strengthen market standing and competitiveness by acquiring or merging with other companies. B) actions to strengthen competitiveness via strategic coalitions and partnerships. C) actions to upgrade competitively important resources and capabilities. D) actions to gain sales and market share with lower prices despite increased costs. E) actions to strengthen the bargaining position of suppliers and distributors with rivals.

D) actions to gain sales and market share with lower prices despite increased costs.

Good strategy combined with good strategy execution: A) offers a surefire guarantee for avoiding periods of weak financial performance. B) are the two best signs that a company is a true industry leader. C) are more important management functions than forming a strategic vision and setting objectives. D) are the most telling signs of good management. E) signal that a company has a superior business model.

D) are the most telling signs of good management.

To improve performance, there are many different avenues for outcompeting rivals such as: A) realizing a higher cost structure and lower operating profit margins than rivals in order to drive sales growth. B) achieving products analogous with competitors so as to be competitive in the same markets. C) pursing similar personalized customer service or quality dimensions as rivals. D) confining their operations to local or regional markets or developing product superiority or even concentrating on a narrow product lineup. E) None of these.

D) confining their operations to local or regional markets or developing product superiority or even concentrating on a narrow product lineup.

The objectives of a well-crafted strategy require management to strive to: A) match rival businesses products and quality dimensions in the marketplace. B) build profits for short-term success. C) realign the market to provoke change in rival companies. D) develop lasting success that can support growth and secure the company's future over the long term. E) re-create their business models regularly.

D) develop lasting success that can support growth and secure the company's future over the long term.

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.

In crafting a company's strategy: A) management's biggest challenge is how closely to mimic the strategies of successful companies in the industry. B) managers have comparatively little freedom in choosing the "hows" of strategy. C) managers are wise not to decide on concrete courses of action in order to preserve maximum strategic flexibility. D) managers need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals. E) managers are well-advised to be risk-averse and develop a "conservative" strategy—"dare-to-bedifferent" strategies rarely are successful.

D) managers need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.

The customer value proposition lays out the company's approach to: A) meeting profitability guidelines without the risk of losing customers. B) operating efficiently given the current level of customers. C) embracing rival company approaches to gaining customers. D) satisfying buyer wants and needs at a price customers will consider a good value. E) None of the above.

D) satisfying buyer wants and needs at a price customers will consider a good value.

A company's business model: A) sets forth management's game plan for maximizing profits for shareholders. B) details exactly how management's strategy will result in the achievement of the company's strategic intent. C) explains how it will achieve high profit margins while at the same time charging relatively low prices to customers. D) sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner. E) sets forth management's long-term action plan for achieving market leadership.

D) sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner.

A company's strategy is a "work in progress" and evolves over time because of: A) the importance of developing a fresh strategic plan every year (which also has the benefit of keeping employees from becoming bored with executing the same strategy year after year). B) the ongoing need to imitate the new strategic moves of the industry leaders. C) the need to make regular adjustments in the company's strategic vision. D) the ongoing need of company managers to react and respond to changing market and competitive conditions. E) the frequent need to modify key elements of the company's business model.

D) the ongoing need of company managers to react and respond to changing market and competitive conditions.

Which of the following statements about a company's realized strategy is true? A. A company's realized strategy is mostly hidden to outside view and is deliberately kept under wraps by top-level managers. B. A company's realized strategy is typically planned well in advance and usually deviates little from the planned set of actions. C. 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. D. A company's realized strategy is typically a blend of deliberate/planned initiatives and emergent/unplanned reactive strategy elements. E. A company's realized strategy is developed mostly on the fly because of the constant efforts of managers to keep rival companies at a disadvantage.

D. A company's realized strategy is typically a blend of deliberate/planned initiatives and emergent/unplanned reactive strategy elements.

Winning a sustainable competitive edge over competitors generally hinges on which of the following? A) Having a distinctive competitive product offering. B) Building competitively valuable expertise and capabilities not readily matched, and offering a distinctive product offering. C) Building experience, know-how, and specialized capabilities that have been perfected over a long period of time. D) Having "hard to beat" capabilities and impressive product innovation. E) All of these.

E) All of these.

Which of the following statements about a company's strategy is true? A. A company's strategy is mostly hidden to outside view and is deliberately kept under wraps by top-level managers (so as to catch rival companies by surprise when the strategy is launched). B. A company's strategy is typically planned well in advance and usually deviates little from the planned set of actions and business approaches because of the risks of making on-the-spot changes. C. A company's 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. D. A company's strategy is typically a blend of proactive and reactive strategy elements. E. A company's strategy is developed mostly on the fly because of the constant efforts of managers to come up with fresh moves to keep the company's product offering clearly different and set apart from the product offerings of rival companies.

D. A company's strategy is typically a blend of proactive and reactive strategy elements.

A company's realized strategy is made up of A. deliberate/planned initiatives that have proven themselves in the marketplace and newly launched initiatives aimed at further boosting performance. B. emergent/reactive adjustments to unanticipated strategic moves by rivals, unexpected changes in customer preferences, and new market opportunities. C. tactical plans to imitate the key elements of the strategies employed by rivals. D. Both A and B. E. All of these.

D. Both A and B.

Which of the following questions ought to be used to test the merits of one strategy over another and distinguish a winning strategy from a mediocre or losing strategy? A. Is the company's strategy ethical and socially responsible and does it put enough emphasis on good product quality and good customer service? B. Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner? C.Is the strategy resulting in the development of additional competitive capabilities? D. Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance? E.Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

D. Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting inbetter company performance?

Which of the following questions ought to be used to distinguish a winning strategy from a so-so or flawed strategy? A. Does the strategy contain a sufficient number of emergent/reactive elements? B. Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner? C. Is the strategy resulting in the development of additional competitive capabilities? D. Is the strategy well-matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance? E. Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

D. Is the strategy well-matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance?

It is normal for a company's strategy to end up being A. a blend of offensive actions and defensive moves to counteract changing market conditions to improve the company's profitability. B. a combination of conservative moves to protect the company's market share and somewhat more risky initiatives to set the company's product offering apart from rivals. C. a close imitation of the strategy employed by the recognized industry leader. D. a blend of deliberate planned actions to improve the company's competitiveness and financial performance and as-needed unplanned reactions to unanticipated developments and fresh market conditions. E. more a product of clever entrepreneurship than of efforts to clearly set a company's product/service offering apart from the offerings of rivals.

D. a blend of deliberate planned actions to improve the company's competitiveness and financial performance and as-needed unplanned reactions to unanticipated developments and fresh market conditions.

Good strategy combined with good strategy execution A. offers a surefire guarantee for avoiding periods of weak financial performance. B. are the two best signs that a company is a true industry leader. C. are more important management functions than forming a strategic vision and setting objectives. D. are the most trustworthy signs of good management. E. signal that a company has a superior business model.

D. are the most trustworthy signs of good management.

A company's strategy consists of A. actions to develop a more appealing business model than rivals. B. plans involving alignment of organizational activities and strategic objectives. C. offensive and defensive moves to generate revenues and increase profit margins. D. competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives. E. its strategic vision, its strategic objectives, and its strategic intent.

D. competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives.

A company's business model A. sets forth management's game plan for maximizing profits for shareholders. B. details exactly how management's strategy will result in the achievement of the company's strategic intent. C. explains how it will achieve high profit margins while at the same time charging relatively low prices to customers. D. sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner. E. sets forth management's long term action plan for achieving market leadership.

D. sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner.

The difference between a company's strategy and a company's business model is that A. a company's strategy is management's game plan for achieving strategic objectives while its business model is management's game plan for achieving financial objectives. B. the strategy concerns how to compete successfully and the business model concerns how to operate efficiently. C. a company's strategy is management's game plan for realizing the strategic vision whereas a company's business model is the game plan for accomplishing the business purpose or mission. D. strategy relates broadly to a company's competitive moves and business approaches (which may or may not lead to profitability) while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to earn satisfactory profits and returns on investment. E. a company's strategy concerns how to please customers while its business model concerns how to please shareholders.

D. strategy relates broadly to a company's competitive moves and business approaches (which may or may not lead to profitability) while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to earn satisfactory profits and returns on investment.

A company's strategy: A) is shaped partly by management analysis and choice and partly by the necessity of adapting and learning by doing. B) is fluid, representing the temporary outcome of an ongoing process that, on the one hand, involves reasoned and creative management efforts to craft an effective strategy and, on the other hand, involves ongoing responses to market change and constant experimentation and tinkering. C) stands a better chance of succeeding when it is predicated on actions, business approaches, and competitive moves aimed at appealing to buyers in ways that set a company apart from rivals and carving out its own market position. D) is revealed in part by its actions to gain sales and market share via lower prices, more performance features, more appealing design, better quality or customer service, wider product selection, and other competitive tactics. E) All of the above.

E) All of the above.

A company's strategy evolves over time as a consequence of: A) the need to keep strategy in step with changing circumstances, market conditions, and changing customer needs and expectations. B) the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy. C) the need to abandon some strategy features that are no longer working well. D) the need to respond to the newly initiated actions and competitive moves of rival firms. E) All of these.

E) All of these.

Which one of the following questions can be used to distinguish a winning strategy from a mediocre or losing strategy? A) How good is the company's business model? B) Is the company a technology leader? C) Does the company have low prices in comparison to rivals? D) Is the company putting too little emphasis on behaving in an ethical and socially responsible manner? E) How well does the strategy fit the company's situation?

E) How well does the strategy fit the company's situation?

A company's strategy and its quest for competitive advantage are tightly related because A) a company's strategy determines whether it will have lower or higher costs than rivals and thus be at a competitive advantage or disadvantage. B) competitive advantage is essential to having a profitable business model. C) choosing a competitive advantage to pursue also helps a company choose which business model is most appropriate. D) competitive advantage enables a company to achieve its strategic objectives. E) a company is almost certain to have better profits and financial performance when its strategy produces a competitive advantage over rivals.

E) a company is almost certain to have better profits and financial performance when its strategy produces a competitive advantage over rivals.

A viable business model A) is derived from the company's strategic vision. B) lays out a compelling case for how the strategy will yield competitive advantage. C) should explain how the company will achieve high profit margins while at the same time charging relatively low prices to customers. D) must be closely linked to the company's business strategy. E) must generate revenues sufficient to cover costs and deliver good profitability.

E) must generate revenues sufficient to cover costs and deliver good profitability.

The actual strategy a company employs is A) is known only to top-level managers and is kept hidden from outside view for reasons of competitive sensitivity. B) usually deviates little from management's planned set of actions and business approaches since making on-the-spot changes is too risky. C) pretty much like the strategies of other industry members since all companies are confronting much the same market conditions and competitive pressures. D) seldom consistent with its business model because of ongoing changes in market conditions and competitive pressures. E) partly proactive (in the sense of reflecting management's plans and intentions)and partly reactive to changing circumstances.

E) partly proactive (in the sense of reflecting management's plans and intentions)and partly reactive to changing circumstances.

Management's storyline for how and why the company's product offerings and competitive approaches will generate a revenue stream and have an associated cost structure that produces attractive earnings and returns on investment is A) called a company's strategy. B) referred to as a company's strategic intent. C) referred to as a company's primary financial objective. D) what a company's mission statement is all about. E) referred to as a company's business model.

E) referred to as a company's business model.

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 is something to look for in identifying a company's strategy? A. Actions to gain sales and market share. B. Actions to strengthen marketing standing and competitiveness by merging with or acquiring rival companies. C. Actions to enter new geographic or product markets or exit existing ones. D .Actions and approaches used in managing R&D, production, sales and marketing, finance, and other key activities. E. All of above are pertinent in identifying a company's strategy

E. All of above are pertinent in identifying a company's strategy

A well-conceived strategy is value creating producing excellence in company performance and is best when the gains are achieved A. in profitability and financial strength B. in competitive strength and market standing C. in developing distinctive competencies and sustainability D. in developing a desirable competitive edge E. All of these

E. All of these

2. The character of a company's corporate culture is a product of: A. the shared values and core business principles and beliefs that management preaches and practices. B. its standards of what is ethically acceptable and what is not and the stories that get told over and over to illustrate and reinforce the company's shared values, business practices, and traditions. C. the company's approach to people management and the "chemistry" and "personality" that permeates its work environment. D. the work practices and behaviors that define "how we do things around here." E. All of these.

E. All of these.

A company may develop an emergent strategy due to A. strategic moves by rival firms. B. unexpected shifts in customer preferences. C. fast-changing technological developments. D. new market opportunities. E. All of these.

E. All of these.

A company's strategy evolves over time as a consequence of A. the need to keep strategy in step with changing market conditions and changing customer needs and expectations. B. the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy. C. the need to abandon some strategy features that are no longer working well. D. the need to respond to the newly-initiated actions and competitive moves of rival firms. E. All of these.

E. All of these.

In the course of crafting a strategy, it is common for management to A. decide to abandon certain strategy elements that have grown stale or become obsolete. B. modify the current strategy when market and competitive conditions take an unexpected turn or some aspects of the company's strategy hit a stone wall. C. modify the current strategy in response to the fresh strategic maneuvers of rival firms. D. take proactive actions to improve this or that piece of the strategy. E. All of these.

E. All of these.

Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? A. Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage. B. Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, or technological superiority. C. Developing competitively valuable resources and capabilities that rivals can't easily match, copy, or trump with capabilities of their own. D. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche. E. All of these.

E. All of these.

Winning a competitive edge over competitors generally hinges on which of the following? A. Having a competitive product offering. B. Building valuable expertise and capabilities not readily matched and offering a distinctive product. C. Building experience, know-how, and specialized capabilities that have been perfected over a long period of time. D. Having "hard to beat" capabilities and impressive product innovation. E. All of these.

E. All of these.

Which of the following is not an element of a company's business strategy? A. Actions to respond to changing market conditions or other external factors B. Actions to strengthen competitiveness via strategic alliances and collaborative partnerships C. Actions to strengthen internal capabilities and competitively valuable resources D. Actions to manage the functional areas of the business E. Management actions to revise the company's financial and strategic performance targets

E. Management actions to revise the company's financial and strategic performance targets

The heart and soul of a company's strategy-making effort A. is figuring out how to become the industry's low-cost provider. B. is figuring out how to maximize the profits and shareholder value. C. concerns how to improve the efficiency of its business model. D. deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner that keeps the company's prices as low as possible. E. involves coming up with moves and actions that produce a durable competitive edge over rivals.

E. involves coming up with moves and actions that produce a durable competitive edge over rivals.