GBA 490
Managements action plan for running the business and conducting operations...
1. (p. 4) A company's strategy concerns A. Its market focus and plans for offering a more appealing product than rivals B. How it plans to make money in its chosen business C. Management's action plan for running the business and conducting operations—its commitment to pursue a particular set of actions in growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations and achieving targeted objectives D. The long-term direction that management believes the company should pursue E. Whether it is employing an aggressive offense to gain market share or a conservative defense to protect its market position
An attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors.
A company achieves sustainable competitive advantage when A. It has a profitable business model B. An attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors 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
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
Is management's storyline for how it will generate revenues ample to cover costs and produce a profit-absent the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt
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 storyline for how it will generate revenues ample to cover costs and produce a profit—absent the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt 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
Zeros in on how and why the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment
A company's business model A. Details the ethical and socially responsible nature of the company's strategy B. Is management's storyline for how the strategy will result in achieving the targeted strategic objectives C. Zeros in on how and why the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment 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
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
B
A company's strategy can be considered "ethical" A. As long as its actions and maneuvers in the marketplace positively affect the well-being of customers B. If it does not entail actions or behaviors that cross the moral line from "can do" to "should not do" (because such actions are unsavory, unconscionable, injurious to others or unnecessarily harmful to the environment) C. Provided its actions and behaviors contribute positively to the well-being of society as a whole D. Provided it keeps its prices as low as possible and its product quality as high as possible E. So long as none of the company's strategic actions adversely affect the business of rival firms
All of the above
A company's strategy can be considered "unethical" or shady A. If any of its actions constitute "unfair competition." B. If the company engages in actions or behaviors that are contrary to the general public interest C. If the company's actions/behaviors are harmful to its stakeholders—customers, employees, shareholders, suppliers and the communities in which the company operates D. If it entails actions or behaviors that cross the moral line from "can do" to "should not do" (because such actions are "unsavory" or unconscionable or unnecessarily harmful to the environment) E. All of the above call the company's actions/behaviors into question from an ethical standpoint
The competitive moves and business approaches that managers are employing to grow the business, stake out the market position, attract and please customers, compete successfully, conduct operations and achieve targeted objectives.
A company's strategy consists of A. The actions it is taking to develop a more appealing business model than rivals B. The plans it has to outcompete rivals and establish a sustainable competitive advantage C. The offensive moves it is employing to make its product offering more distinctive and appealing to buyers D. The competitive moves and business approaches that managers are employing to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations and achieve targeted objectives E. Its strategic vision, its strategic objectives and its strategic intent
The ongoing need of company managers to react and respond to changing market and competitive conditions.
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 market 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 (which also has the benefit of keeping employees from becoming bored with executing the same strategy year after year after year) E. The frequent need to modify key elements of the company's business model
B
A company's strategy is most accurately defined as A. Management's approaches to building revenues, controlling costs and generating an attractive profit B. Management's commitment to pursue a particular set of actions in growing the business, attracting and pleasing customers, competing successfully, conducting operations and improving the company's financial and market performance C. Management's concept of "who we are, what we do and where we are headed." D. The business model that a company's board of directors has approved for outcompeting rivals and making the company profitable E. The choices management has made regarding what financial plan to pursue
Fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance
A winning strategy is one that A. Builds strategic fit, is socially responsible and maximizes shareholder wealth B. Is highly profitable and boosts the company's market share C. Results in a company becoming the dominant industry leader D. Fits the company's internal and external situation, builds sustainable competitive advantage and improves company performance E. Can pass the ethical standards test, the strategic intent test and the profitability test
Account for why a company's strategy evolves over time
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
Best describes what is meant by a company's business model
Management's story line 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. 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
D
One of the keys to successful strategy-making is A. To come up with a business model that enables a company to earn bigger profits per unit sold than rivals 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 one or more differentiating strategy elements that act as a magnet to draw customers and yield a lasting competitive edge E. To charge a lower price than rivals and thereby win sales and market share away from rivals
Strategy
The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations and achieve organizational objectives is referred to as its A. Strategy B. Mission statement C. Strategic intent D. Business model E. Strategic vision
D
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
Involves coming up with moves and actions that produce a durable competitive edge over rivals
The heart and soul of a company's strategy-making effort A. Involves coming up with moves and actions that produce a durable competitive edge over rivals 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. Is figuring out how to become the industry's low-cost provider
B
What separates a powerful strategy from a run-of-the-mill or ineffective one is A. The ability of the strategy to keep the company profitable B. Management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, tilts the playing field in the company's favor and produces sustainable competitive advantage over rivals C. The speed with which it helps the company achieve its strategic vision D. The proven ability of the strategy to generate maximum profits E. Whether it allows the company to maximize shareholder value in the shortest possible time
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, technological superiority or unusually good value for the money C. Developing expertise and resource strengths that give the company competitive capabilities that rivals can't easily imitate 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
Which of the following is not a primary focus of a company's strategy? A. How to attract and please customers B. How each functional piece of the business will be operated C. How to grow the business D. How to compete successfully E. How to achieve above-average gains in the company's stock price and thereby meet or beat shareholder expectations
How quickly and closely to copy the strategies being used by successful rival companies.
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
E
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. Actions to strengthen competitiveness via strategic alliances and collaborative partnerships 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. Management actions to revise the company's financial and strategic performance targets
All of the above
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
Is the strategy helping the company achieve sustainable competitive advantage and is it resulting in better company performance?
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?
