Strategic Management Final
If you were asked to develop a low-cost provider strategy for a start-up ride-sharing business, what would you most likely not recommend? Multiple Choice -Offer low prices on long-distance rides and charge fees for any luggage. -Offer low prices on long-distance rides but hire only experienced drivers with a minimum of five years' service, pay them well above the minimum wage, and maintain peak pricing for rides during rush hour. -Offer low prices on short-distance rides and eliminate peak pricing for rides during rush hour. -Offer low prices on short-distance rides and improve fleet capacity by only using passenger vans or autonomous drive vehicles for customers. -Offer low prices on short-distance rides and pay all drivers a minimum wage.
-Offer low prices on long-distance rides but hire only experienced drivers with a minimum of five years' service, pay them well above the minimum wage, and maintain peak pricing for rides during rush hour. Correct
A company's profit formula consists of the following basic elements: Multiple Choice -C, the competitive strength of the company, multiplied by S, the company's sustainable competitive advantage potential, minus V, the value provided for the customer. -M, the company's market share, multiplied by C, the competitive strength of the company, divided by S, the company's sustainable competitive advantage potential. -P, the price charged to customers, minus C, the company's costs, multiplied by M, the company's market share. -P, the price charged to customers, minus C, the company's costs. -S, the sustainable competitive advantage potential plus V, the value provided for customers, minus C, the company's costs.
-P, the price charged to customers, minus C, the company's costs.
A cleverly crafted and well-executed strategy Multiple Choice -produces a mediocre financial performance. -precludes the capture of emerging opportunities. -can withstand the competitive challenges from rival firms. -immunizes a business from changing macroeconomic and market conditions. -provides direction only in terms of what the company should do.
-can withstand the competitive challenges from rival firms. Correct
Flipkart has come to epitomize the Indian e-commerce industry, achieving the top position among online shopping platforms in that country. Notably, Flipkart offered a no-questions-asked return/exchange policy, wherein customers could return goods that did not meet their expectations. Flipkart is now considering entering markets in South Africa and Kenya. What would you advise Flipkart to omit from consideration in crafting a strategy to enhance future profits in these two emerging markets? Multiple Choice Devise a marketing plan that aims at mass customer segments, consisting of attractive advertisements and offers on products. Create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs. Implement a diversification plan that aims at adding a mobile payments platform to its existing line of web commerce products. Chart an acquisition plan that aims at acquiring local small-scale manufacturers that are seeking funding and a larger customer base in those two emerging markets. Establish a supply chain plan to set up more supply outlets than any other rival currently operating in the two country locations.
Create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs. Correct
Gerard's Paella, a tapas bar and paella restaurant, offers healthy, sustainably sourced, as well as veggie and vegan, cuisine at higher prices than its competitors in the market and has a drive-through and indoor seating casual dining operation. What strategy is Gerard's Paella using to gain competitive advantage? Multiple Choice a low-cost provider strategy a focused differentiation strategy a best-cost provider strategy a broad differentiation strategy a focused low-cost strategy
a focused differentiation strategy Correct
A strategy to achieve and maintain sustainable competitive advantage is never associated with Multiple Choice actions taken by companies to gain sales and market share irrespective of product prices and costs. carefully considered moves to compete on dimensions like quality, cost, services, locations, and customers. competing differently from rivals—doing what competitors do not do or doing what they cannot do. direction and guidance, in terms of not only what the company should do, but also what it should not do. opportunities to enter strategic alliances and collaborative partnerships to strengthen a company's market position and competitiveness.
actions taken by companies to gain sales and market share irrespective of product prices and costs. Correct
A company's strategy consists of Multiple Choice offensive moves that a company deploys to develop a more appealing business model than its rivals. improving its existing product offering, irrespective of the changing and turbulent markets. actions to compete against rivals and establish a transitory competitive advantage. actions taken by managers in order to outperform competitors and achieve superior profitability. attitudes, values, beliefs, traits, routines, and behavioral norms that result in superior execution of day-to-day business operations.
actions to compete against rivals and establish a transitory competitive advantage. actions taken by managers in order to outperform competitors and achieve superior profitability. Correct
A company's strategy is shaped by Multiple Choice its capital reserves and future growth potential. its resources, capabilities, competitiveness, and market position. its core values, mission, and strategic vision. the market environment and the competitive pressure created by the rivalry within the industry. management analysis and choice in part, as well as by the necessity of adapting.
management analysis and choice in part, as well as by the necessity of adapting. Correct
The combination of a good strategy and good strategy execution Multiple Choice is the most telling sign of good management. signals the company's superiority in the industry. enables the company to become the industry leader. is the sign for achieving a sustainable competitive advantage. provides long-term growth for the company.
is the most telling sign of good management. Correct
Under what circumstances would it be unwise for the managers of Double Decker Lanes, a local bowling alley, to drastically modify their company's strategy? Multiple Choice advancing technology shifting customer needs mounting evidence that the current strategy is not working well changing market conditions desiring to mimic the strategy of Epicenter, a recent local entrant in bowling and gaming
desiring to mimic the strategy of Epicenter, a recent local entrant in bowling and gaming Correct
Unanticipated developments and fresh market conditions require a[n] __________ strategy. Multiple Choice market-driven deliberate emergent proactive customer-oriented
emergent Correct
A winning strategy must pass the Multiple Choice cost-advantage test, ethical standard test, and performance test. competitive advantage test, profitability test, and revenue generation test. ethical standard test, fit test, and performance test. fit test, performance test, and competitive advantage test. strategy execution test, fit test, and profitability test.
fit test, performance test, and competitive advantage test. Correct
A company's ultimate success or failure is a function of Multiple Choice how well the strategy fits the company's business model. how quickly it can abandon markets as conditions change. how well it creates shareholder value. how well it creates multiple differentiating features in comparison to rivals. how well its management team charts direction, develops effective strategic moves, and pursues daily operating excellence.
how well its management team charts direction, develops effective strategic moves, and pursues daily operating excellence. Correct
Types of actions and approaches that often characterize a company's strategy do not include actions to Multiple Choice enter new product or geographic markets or exit existing ones. improve ethical standards, ensure employees' commitments, and continuously develop new talents. capture emerging market opportunities and defend against external threats to the company's business prospects. strengthen market standing and competitiveness by acquiring or merging with other companies. upgrade, build, or acquire competitively important resources and capabilities.
improve ethical standards, ensure employees' commitments, and continuously develop new talents. Correct
The heart and soul of a company's strategy-making effort Multiple Choice is the actions and moves in the marketplace that managers take to gain a competitive advantage over rivals. is figuring out how to develop a winning customer value proposition and profit formula. is figuring out how to become the industry's best-cost provider. concerns how to improve the efficiency of business operations. deals with how management plans to operate in a socially responsible manner, while keeping the company's prices as low as possible.
is the actions and moves in the marketplace that managers take to gain a competitive advantage over rivals. Correct
Apple's strategic approach to setting the company apart from rivals, building strong customer loyalty, and winning a competitive advantage includes Multiple Choice focusing on a narrow market niche within an industry. striving to be the industry's highest-cost provider, thereby aiming for a differentiation-based competitive advantage over rivals. outcompeting rivals on the basis of differentiating features, such as higher quality, wider product selection, added performance, value-added services, more attractive styling, and technological superiority. developing an advantage based on offering inferior value for the money. mimicking the strategies of the industry leaders to gain a strong market position.
outcompeting rivals on the basis of differentiating features, such as higher quality, wider product selection, added performance, value-added services, more attractive styling, and technological superiority. Correct
When evaluating proposed or existing strategies, managers should Multiple Choice scrutinize their company's existing strategies on a regular basis to ensure that they offer a good strategic fit, create a competitive advantage, and result in above-average performance initiate new strategies even though they don't seem to match the company's internal and external situation. ensure core capabilities are incorporated synergistically for establishing a competitive advantage. evaluate the firm's business model at least every three years. align existing strategies with new strategies to emphasize incremental gains.
scrutinize their company's existing strategies on a regular basis to ensure that they offer a good strategic fit, create a competitive advantage, and result in above-average performance Correct
A company's strategy Multiple Choice generally consists of new strategy elements and strategic moves that emerge as changing conditions warrant. consists of initial and developing approaches aiming to ensure long-term growth. is mainly affected by a reactive approach because uncertainty is high. is mostly proactive and consists of strategy elements that are both planned and realized as planned. tends to be a combination of both proactive and reactive elements, with certain elements being abandoned because they have become obsolete or ineffective.
tends to be a combination of both proactive and reactive elements, with certain elements being abandoned because they have become obsolete or ineffective.
When can a company achieve sustainable competitive advantage? Multiple Choice if it can translate its vision, mission, and values into a well-crafted strategy when it consistently achieves both its long-term and short-term strategic and financial objectives whenever it possesses the most profitable business model in the industry and can satisfy shareholder expectations better than its competitors when elements of the strategy give buyers lasting reasons to prefer a company's products or services over those of competitors when it is able to produce better products for fewer costs than its rivals
when elements of the strategy give buyers lasting reasons to prefer a company's products or services over those of competitors Correct
