GBA 490- TEST 1 Chapter 1
Easy DriveIn, a fast food facility, offers products at lower prices than its competitors in the market and has a drive-through-only operation with no indoor seating. What strategy is Easy DriveIn using to gain competitive advantage?
A focused low-cost strategy
Which of the following airlines does NOT employ a low-cost provider strategy?
Airline 2 offers low prices on long-distance flights and has long service times for its planes between flights.
Winning a sustainable competitive edge over competitors does NOT hinge on which of the following?
Building products and distributing them at low prices to a broad customer base irrespective of manufacturing cost
A winning strategy must pass which three tests?
The Fit Test, the Competitive Advantage Test, and the Performance Test
Which of the following is NOT typically a trigger to an evolving strategy?
The need to respond to short-term swings in the stock market
Troopline Inc., an online laptop retailer, sells laptops of similar range and features as other online laptop retailers. Which of the value propositions would NOT benefit the company?
Establishing a comparison feature tab that allows customers to compare offerings from other online retailers
Telsteer Mobil, a smartphone manufacturer, is working on developing its next-generation products. It has decided on a strategy of focusing on a narrow buyer segment and outcompeting rivals by offering buyers customized product features for specialized needs and tastes. What basic strategic approach has Telsteer decided upon?
Focused differentiation
Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage?
Focusing on a broad buyer segment and offering buyers a very low cost and highly customized attributes that meet their specialized needs better than rivals' products
Which of the following is NOT one of the managerial considerations in determining how to compete successfully?
How can a company modify its entire product line to emphasize its internal service attributes?
Which of the following questions can be used to distinguish a winning strategy from a mediocre or losing strategy?
How well does the strategy fit the company's situation?
A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do a joint venture for the acquisition and involves a major automobile giant to fund the deal. After a rocky start, the companies now have a strong market position and generate good profits. Which of the following regarding the company's strategy is true?
It is a winning
Which of the following is true of a company's business model?
It zeroes in on the customer value proposition and its related profit formula.
A pharmaceutical company functioning in France for the last 10 years has moderate sales in a crowded market with competitors offering drugs with similar efficacy and safety precautions, but with better sales. The greatest challenge is to increase the prescription of their drugs. What would be the MOST effective strategy to improve sales performance in the existing market?
Modifying marketing communication to increase brand familiarity within key physician segments
In the course of crafting a strategy, which of the following is NOT a common management function?
Sharing the strategy with the public to gain additional customer and shareholder support
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:
Strategy
It is normal for a company's strategy to end up being:
a blend of proactive actions to improve the company's competitiveness and financial performance, and adaptive reactions to unanticipated developments and fresh market conditions.
Changing circumstances and ongoing managerial efforts to improve the strategy:
account for Why a Companys Strategy Evolves over time.
Adapting to new conditions like new innovations by competitors, fast-changing technological developments, and constantly evaluating what is working result in:
an emergent strategy.
The heart and soul of a company's strategy-making effort is determining how to:
come up with moves and actions that produce a durable competitive edge over rivals.
Crafting a deliberate strategy involves developing strategy elements that:
consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods.
The objectives of a well-crafted strategy require management to strive to:
develop lasting success that can support growth and secure the company's future over the long term.
A winning strategy is one that:
fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.
The pattern of actions and business approaches that would NOT define a company's strategy include actions to:
gain sales and market share with lower prices despite increased costs.
The most significant signs of a well-managed company are:
good strategy-making combined with good strategy execution.
A regional electric scooter manufacturer sells its scooter at a lower price than other two-wheeler manufacturers. What will make the product most attractive for customers?
high value
A company's business model:
is management's blueprint for how it will generate revenues sufficient to cover costs and yield an attractive profit.
What separates a powerful strategy from a run-of-the-mill or ineffective one is:
management's ability to forge a series of actions, both in the marketplace and internally, that sets the company apart from rivals, and produces sustainable competitive advantage.
In crafting a company's strategy, managers:
need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.
A company achieves a competitive advantage when it:
provides buyers with superior value compared to rival sellers or offers the same value at a lower cost.
Managers must be prepared to modify their strategy in response to all of the following EXCEPT:
public pronouncements from rivals about monthly profit margins.
A company's strategy in toto that tends to be a combination of proactive and reactive elements is known as its:
realized strategy
The customer value proposition lays out the company's approach to:
satisfying customer wants and needs at a price customers will consider a good value.
A company's strategy consists of the action plan management is taking to:
stake out a unique market position and achieve superior profitability.
A company's strategy is NOT concerned with management's choices about how to:
stake out the same market position as successful rival companies.
The difference between a company's strategy and a company's business model is that:
strategy relates broadly to a company's competitive moves and business approaches while its business model relates to whether the revenues flowing from the strategy are sufficient to cover costs and realize a profit.
A company's strategy is a "work in progress" and evolves over time because of:
the ongoing need of company managers to react and respond to changing market and competitive conditions.
A company's realized strategy evolves from one version to the next due to:
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.
Strategy is about competing differently than rivals, thus strategy success is about:
the sources of sustained advantages and superior profitability.
Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage. Which of the following is most likely to use a low-cost provider strategy?
A baby products retailer sells unassembled baby furniture produced in China.
Which of the following companies would have the LEAST bargaining power with its suppliers?
A company that offers high-cost specialized products that could be used only by customers of a certain age group
A middle-class customer (target) base in a region is most concerned with quality and price of products. Which of the following would be considered a best value proposition for the customers?
A company that provides same quality of products at a much lower price than rivals, but leaves the final assembly of product pieces to customers with an easy assembly guide
Which of the following statements about a company's strategy is true?
A company's strategy is typically a blend of proactive and reactive strategy elements.
BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded market that caters to all kinds of consumers, this resort caters mainly to gays with guaranteed hassle-free holiday experience at a premium price. What strategy is BloomsJay using to gain competitive advantage?
A focused differentiation strategy
To which of the following firms is the term "repeatedly evolving strategy" MOST applicable?
A mobile company, established in a saturated market, that aims at quarterly release of new products
Which one of the following does NOT account for WHY a company's strategy evolves from one version to another?
A need to promote stability and retain the status quo
Which of the following firms uses a deliberate strategy?
A popular downtown theater that has been staging plays decides to begin booking rock and roll acts.
Consider the following three companies and their strategies. · Company A is an established database management company that acquires a well-reputed but small publishing house to enter the booming publishing industry. · Company B, a sports management house, declared bankruptcy during a recent recession but now has created a television network that airs regional sports events. · Company C, a package delivery business, is a startup based on delivery efficiency models created by a few students, and delivers almost all kinds of packages. Which of the following describes the use of strategies by these companies accurately?
All three companies employ deliberate strategies.
A search engine giant specializes in all types of search items; provides a free translation feature for 80 different languages; allows users to view ads on previously made related searches; provides suggestive search items to assist the user; allows users to view a collation of related web pages users might want to visit; and provides a faster load time and more accurate hits than its rivals. Which of the following is a profit formula used by the company?
Allowing users to view ads on previously made related searches
Why are crafting and executing business strategies the foremost tasks of any organization?
Because a good strategy coupled with a good strategy execution are the most telling signs of good management and allow a company to be a standout performer in the marketplace
Why is it important to craft a business model?
Because it 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 computer chip manufacturing giant decides to outsource its operations to a new geographical location with cheaper labor amidst ongoing labor strikes in a few of its existing locations (due to proposed job cuts). This draws criticism in its new market and affects its current market position and productivity. Which of the following would be an appropriate reactive (emergent) strategy while moving forward?
Canceling the job cuts till the market situation and entry operations stabilize
A multinational company enters a new geographical location, considered an emerging market, with its established product line: laptops and tablets. Which of the following would NOT serve as a good strategic move to enhance profits?
Creating a sales plan that aims to enhance initial sales and market share with low prices based on high operational costs
A luxury bathtub manufacturer offered scented bubble bath foams and massage coupons as a gimmick when their bathtubs did not sell. Their bubble foam became famous among some women and led to a line of exclusive bath products for women. They established shops in various regional locations and roped in celebrities to market their products to enhance sales. Now its products are sold through retail outlets and online sites throughout the world. Which of the following is accurate?
Creating a sub-brand that offered exclusive bath products for women was an emergent strategy.
FaberRoad, a respected courier brand, is fast losing its market share to competitors who do overnight deliveries of packages or offer lower prices. The company's research department has found that many customers care more about knowing exactly when a package will arrive than getting it the next day. Which strategy would best address the current state of FaberRoad and help it regain its market?
Developing radio tags that could be attached to packages to allow for real-time tracking by customers' PCs and mobile phones
Which of the following pizza firms competing in a crowded market likely offers the best value proposition to its customers, based on the following sales pitches?
Firm B: "Get fresh, hot pizza, delivered under 20 minutes-or it's free"
Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy?
Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance?
Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage?
Striving to be the industry's high-price provider
What is the foremost question in running a business enterprise?
What must managers do, and do well, to make a company a winner in the marketplace?
Every strategy needs:
a distinctive element that attracts customers and produces a competitive edge.
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:
best describes what is meant by a company's business model.
Giving customers more value for the money by satisfying their expectations on key quality features, performance, and/or service attributes while beating their price expectations is a:
best-cost provider strategy
To improve performance, there are many different avenues for outcompeting rivals such as:
confining operations to local or regional markets or developing product superiority or concentrating on a narrow product lineup.
A company's strategy and its quest for competitive advantage are tightly connected because:
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 and distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage:
is a company's most reliable ticket to above-average profitability.
Good strategy combined with good strategy execution:
is the clearest indicator of good management.
Crafting and executing a strategy is a top-priority managerial task because:
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 strategy stands a better chance of succeeding when:
it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.
Excellent execution of an excellent strategy is:
the best test of managerial excellence and the best recipe for making a company a standout performer.