Bus Strategy Ch. 1 & 2
A company's approach to meeting or exceeding its customers' needs at a price they consider a good value is called the a) customer value proposition b) profit formula c) value-price-cost strategy. d) business model
A
The actions that a company takes in accordance with its established business practices make up its ___________ strategy, in contrast with actions the company takes in response to changing market conditions. A) deliberate B) Realized C) Emergent D) Differentiation
A
What is a company's strategy? A) it is a set of actions B) It is an analytical framework C) It is a set of managerial rules D) It is a set of guidelines
A
Components of a fit test, used to evaluate how well a company's strategy matches its situation, include which of the following? Check all that apply. A) Internal fit B) External fit C) Dynamic fit D) Aesthetic fit
A B C
Which three companies have broad differentiation strategies that have allowed them to maintain long-term competitive advantages? Check all that apply A) Johnson and Johnson B) Apple C) BMW D) Walmart
A B C
Broadly speaking, a company strategy is designed to do which three of the following? check all that apply. A) support growth B) outperform rivals C) reduce the role of management D) achieve superior profitability
A B D
Which of the following are impediments to a company's long term industry success? A) inadequate attempts to improve B) imitative strategies C) proactive strategy making D) illogical strategies
A B D
Why are crafting and executing strategy important managerial tasks? A) they lay out the means for pleasing customers. B) They define a company's best practices. C) They provide a path to competitive advantage D) They establish a formula for improving performance.
A C D
A blueprint that outlines the means for a company to deliver value to customers in a suitably profitable manner is known as its A) Proactive strategy B) Business model C) Strategic reaction D) Emergent strategy
B
What is one key characteristic of a focused low-cost strategy? A) it seeks to sell a broad market segment. B) it seeks to sell to a narrow market niche. C) It seeks to give customers the most value for their money by meeting key quality features or performance. D) It seeks to differentiate its products from those of rivals.
B
What performance indicators reveal the most about the merits of a company's strategy? A) Short-term competitive advantage B) Profitability and financial strength C) competitive strength and market standing D) resources and capabilities
B C
The general profit formula for fast food restaurants as invented by McDonald's involves which of the following? Check all that apply. A. commitment to corporate responsibility B. Standardized store design C. Strict specifications for ingredients D. Advertising and in-store promotions
B C D
What are some of the ways that companies typically implement a competitive strategy? A) By isolating the managerial staff B) By delivering superior customer service C) By focusing on quality D) By diversifying product lines
B C D
Which circumstances commonly require the modification of a company's strategy? A) Meeting financial targets B) Technological advances C) New market opportunities. D) A shift in buyer needs
B C D
A strategy that changes in response to new market conditions and challenges is known as A. A proactive strategy B. A static strategy C. An evolving strategy D. A differentiation strategy
C
Actions taken in response to new strategic maneuvers by rival firms or other unanticipated market circumstanes make up a company's _______ strategy. A) Proactive B) Deliberate C) Emergent D) abandoned
C
Which statement about the connection between good strategy and good execution is true? A) A company can enjoy long-term success with a weak strategy if the execution is strong and aggressive. B) The marker of good management is a solid strategy that focuses on customer value above all else. C) good management consists of good strategy and good strategy execution. D) As long as a company has a strong strategy, successful execution is a sure thing.
C
What are two basic approaches in company strategy to improve chances of success in competing against rivals? check all that apply. A. Soften ethical guidelines B. Always aim for a low-cost strategy. C. Clearly differentiate a company from its rivals. D. Establish a position in a uncrowded market.
C D
A typical company's strategy is often both ________, meaning that it plans ways to improve the company's competitiveness, and ______, meaning that it responds to unforeseen market conditions. A) emergent; proactive B) Reactive, proactive C) Reactive; deliberate D) Proactive; reactive
D
the key for a company to achieve competitive advantage is either to provide superior value to customers or to deliver value more A) collaboratively B) Subtly C) Forcefully D) effectively
D
True or false: It is easier for rivals to imitate a company's product line than it is for them to duplicate its capabilities.
True
A blueprint that outlines the means for a company to deliver value to customers in a suitably profitable manner is known as its
business model
A company's approach to meeting or exceeding its customers' needs at a price they consider a good value is called the
customer value proposition
The actions that a company takes in accordance with its established business practices make up its________strategy, in contrast with actions the company takes in response to changing market conditions?
deliberate
Actions taken in response to new strategic maneuvers by rival firms or other unanticipated market circumstances make up a company's
emergent strategy
A company's realized strategy is a combination of what?
proactive and reactive elements
value
-Achieve superior profitability -When a firm's profitability is greater than the profitability and profit growth of other companies fighting for the same customers
which three companies have broad differentiation strategies that have allowed them to maintain long-term competitive advantages?
-Apple -Johnson and Johnson -BMW
who is ultimately responsible for the results that a company strategy produces
-CEO
ability
-Set of actions to outperform competitors -A firms resources and capabilities that enable it to overcome the competitive forces in its industries
what is a company slogan
-a brief phrase that summarizes the company's vision
what is competitive advantage
-a firm's ability to create value in a way that rivals cannot -ability and value
what is a stretch objective?
-a performance target that will require significant effort to achieve
when management discovers that there are strategic conflicts among the various levels of an organization what should management do?
-adapt high level strategies to incorporate more appealing ideas from lower levels -consider which low level strategies might be changed to accommodate high level strategies -ensure all conflicts are resolved
when a company faces sudden market changes or obstacles managers should
-adapt quickly -be innovative
within the hierarchy of a company a number of strategies are likely to have been developed and implemented by various people. under what circumstances will the company perform most effectively?
-all employees understand the company's long term direction -all the strategies are unified -top executives clearly communicate a companys strategy to company personnel
within the hierarchy of a company, a number of strategies are likely to have been developed and implemented by various people. under what circumstances will the company perform most effectively
-all employees understand the companys long term direction -top executives clearly communicate a companys strategy to company personnel -all the strategies are unified
what will a typical strategic plan accomplish?
-allocate resources that will help implement the plan -establish a time period for accomplishing goals
a strategy that changes in response to new market conditions and challenges is known as
-an evolving strategy
which of the following are short term objectives
-annual objectives -quarterly objectives
a measurement system that links financial performance goals with strategic goals is called a
-balanced scorecard
which elements form part of a company's strategic plan?
-basic business model -intended competitive moves -company direction
what are some ways that companies typically implement a competitive strategy?
-by delivering superior customer service -by focusing on quality -by diversifying product lines
a sound company strategy is essentially about _____ in comparison to company rivals
-competing differently
to produce a value statement for a new company management will typically
-consider feedback from employees -write an initial draft and have employees read it
honor integrity teamwork superior customer service and innovation are examples of company
-core values
what is involved in corporate strategy?
-deciding which new markets to enter -deciding which businesses to keep or divest -improving the performance of all businesses owned by the company
to implement a strategic plan what must a manager be able to do?
-direct organizational change -motivate employees -build and strengthen competitive capabilities
to implement a strategic plan, what must a manager be able to do?
-direct organizational change -motivate employees -build and strengthen competitive capabilities
the key for a company to achieve competitive advantage is either to provide superior value to customers or to deliver value more _____
-effectively
organizing and guiding a new business activity is called
-entrepreneurship
what are the obligations of a companys board of directors?
-evaluating the strategic leadership abilities of the CEO -ensuring that the companys financial reports are accurate -evaluating the companys direction and strategy
who is the target audience of an organizations strategic vision statement
-everyone in the organization
at companies where core values are taken seriously...
-executives demonstrate the values in their own behavior -executives attempt to make the values an integral part of the corporate culture
a well crafted vision statement should
-explain where top executives plan to take the company in the future
what are the best tactics to convince lower level managers and employees to support the companys strategic vision
-explaining why the company is taking a particular direction -sharing updates and progress reports
true or false the crafting and implementing of company strategy is exclusively a function of the top management of an organization
-false
a toy making business is part of a larger corporation that owns various other businesses. the toy making firm develops a marketing strategy for its board games. this is an example of
-functional area strategy
if a companys board of directors is strong and independent what should it be able to do
-guide and judge the CEO and other executives -certify to shareholders that the CEO is performing as the board expects -stop management from taking actions that are too risky or inappropriate
the most demanding and lengthy part of the strategy management process is
-implementing the strategy
A company's strategy...
-is the set of actions that its managers take to outperform the company's competitors and achieve superior profitability.
what is one key characteristic of a focused low-cost strategy?
-it seeks to sell to a narrow market niche
strategic objectives are goals concerned primarily with an organizations
-market standing -competitive position
strategic objectives are goals concerned primarily with an organizations _____
-market standing -competitive position
top executives can unify the various strategies within a company by telling lower managers and other personnel about the organizations
-objectives -vision -major components of the corporate strategy
broadly speaking, a company strategy is designed to do which of the following?
-outperform rivals -support growth -achieve superior profitability
what are lagging indicators
-performance measurements resulting from decisions and activities in the past
what are lagging indicators?
-performance measurements resulting from decisions and activities in the past
in a small privately owned company the strategic plan is most likely something that the owner has
-pondered without writing down
which actions are often helpful for a company when it adopts a value statement
-posting the finished values statement on the companys website -combining its values vision and mission in one document
a company's mission statement describes the organizations
-present purpose -present business
a companys mission statement describes the organizations ____
-present purpose -present business
final objectives are important for achieving ____
-profits -shareholder satisfaction -financial strength
long term objectives are intended to do which of the following?
-prompt action now to improve the organizations performance later -prevent a nearsighted management philosophy
employees at various levels within an organization are best served by performance objectives that
-relate specifically to what their departments are doing
an adjustment of strategy is most likely needed if the company is experiencing
-repeated failure to achieve performance goals -a drop in its market position
who orchestrates a corporate strategy?
-senior executives -the CEO
to measure how well a company is moving in the intended direction, it is important to _____
-set objectives
operating strategies are designed to manage ____
-specific activities such as internet sales -key units such as distribution centers
when setting objectives, which types of performance targets must be established?
-strategic -financial
a sense of where are we going is called the companys_____
-strategic vision
business strategy in contrast to corporate strategy involves which of the following?
-strengthening the market position of individual business units -improving the performance of individual business units
strategic management
-the analysis, decisions and actions (ADA) an organization undertakes in order to create and sustain competitive advantage
who is primarily responsible for business strategy within a multibusiness corporation
-the head of each business unit
strategy
-the ideas, decisions and actions that enable a firm to achieve a competitive advantage over the competition; a clear coherent path to competitive advantage
why do some companies state their core values but make little effort to ensure that individual personnel and the company in general will abide by them?
-the statement about values serves only to make the company look good
when charting a companys direction, why do managers set objectives?
-to establish performance targets that the managers hope to achieve, using the company's mission and vision
what is the role of a company's board of directors?
-to oversee top executives and ensure that they craft and implement an effective strategy -to ensure that the company is operating in the best interests of shareholders and other stakeholders
what is the purpose of a companys strategic vision
-to steer the company toward long term growth and profits
what is strategic intent?
-using all of a companys abilities to achieve an ambitious goal
as a company strategy is implemented, it will typically
-work well in some areas and not so well in others
What are some of the ways that companies typically implement a competitive strategy?
1) by focusing on quality 2) by delivering superior customer service 3) by diversifying product lines
What are two basic approaches in company strategy to improve changes of success in competing against rivals?
1) clearly differentiate a company from its rivals 2) establish a position in an uncrowded market
A company's ultimate success or failure is fundamentally tied to how well its management team does which of the following
1) develops competitively effective strategies 2) charts the company's direction 3) facilitates internal operating excellence
Which of the following are impediments to a company's long-term industry success?
1) illogical strategies 2) imitative strategies 3) inadequate attempts to improve
Components of a fit test, used to evaluate how well a company's strategy matches its situation, include what?
1) internal fit 2) external fit 3) dynamic fit
What are three of the most reliable ways a company can distinguish itself in the marketplace, build customer loyalty, and achieve a competitive advantage?
1) low-cost provider strategy 2) focused low-cost strategy 3) broad differentiation strategy
Which circumstances commonly require the modification of a company's strategy?
1) new market opportunities 2) a shift in buyer needs 3) technological advances
Broadly speaking, a company strategy is designed to do what?
1) outperform rivals 2) achieve superior profitability 3) support growth
Why are crafting and executing stratgey important managerial tasks?
1) they lay out the means for pleasing customers 2) they provide a path to competitive advantage 3) they establish a formula for improving performance
