CH 1/ Quiz 1

Product-oriented vision statements provide managers with... A.) goals for employee development B.) goals to improve service C.) strategic flexibility D.) ways to solve customer problems

B.) goals to improve service

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 concluded 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 an exchange relationship with the other firms

B.) it has a competitive advantage over the other firms

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in: A.) a competitive advantage through superior performance B.) trade-offs that work against each other C.) an increase in the fir's economic contribution D.) competitive parity with firms that have adopted either of the strategies

B.) trade-offs that work against each other

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 fir'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.) actions that allow a firm to address a competitive challenge are strategy

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.) the principles of strategic management can be applied universally to all organizations

Organizational core values are the answer to which of the following questions? A.) how do we accomplish our goals? 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.) how do we accomplish our goals?

If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision? A.) the company will tend to be more flexible when adapting to changing environments B.) the company will clearly define how it means to satisfy a customer need C.) the company will fail to establish a positive relationship between its vision statement and performance D.) the company will have a short-term, unidirectional focus

A.) the company will tend to be more flexible when adapting to changing environments

Which of the following statements about competitive advantage is NOT true? A.) a firm will have sustainable competitive advantage wen it outperforms its competitors over time B.) a firm can gain a competitive advantage by providing goods similar to its competitors' goods and services C.) a firm's competitive advantage is always absolute, not relative D.) a firm's past performance does not guarantee its future performance

C.) a firm's competitive advantage is always absolute, not relative

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy... A.) implementation B.) formulation C.) analysis D.) control

C.) analysis

A company's vision primarily states... A.) how the company plans to accomplish its goals B.) what the company actually does to generate revenues C.) what the company wants to ultimately accomplish D.) how the company plans to compete in its industry

C.) what the company wants to ultimately accomplish