MGT491 quiz ch 1
A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy a. analysis. b. implementation. c. control. d. formulation.
a
How has Walmart staked out a unique strategic position? a. by cutting costs to offer lower prices than competitors. b. by providing excellent customer service in a luxury setting. c. by investing 100% of profits in community development programs. d. by paying high wages to attract the most talented employees.
a
When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in a. trade-offs that work against each other. b. competitive parity with firms that have adopted either of the strategies. c. a competitive advantage through superior performance. d. an increase in the firm's economic contribution.
a
Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision? a. Quick Eats will not face any direct competition in the industry b. Quick Eats will face low profit potential. c. Quick Eats will be able to create higher value for its customers. d. Quick Eats will be better placed to gain a competitive advantage in the industry.
b
The greater the difference between value creation and cost, the a. less likely a firm will gain competitive advantage. b. greater a firm's economic contribution. c. less likely that a firm's strategic position will be competitive. d. greater a firm's competitive parity.
b
Which of the following has contributed to Tesla's competitive advantage in terms of stock appreciation? a. keeping its proprietary technologies secret b. reinvesting profits to continually design and produce better electric vehicles c. copying the most popular features of competitors' vehicles d. using inexpensive materials to keep costs low
b
Which of the following is a philanthropic responsibility of a firm? a. obeying government regulations b. exhibiting corporate citizenship c. providing products at appropriate prices d. not infringing on other firms' patents
b
A firm is likely to have a competitive advantage when it a. performs at a level similar to the other firms in the industry. b. provides goods similar to those of its competitors, but at a higher price. c. provides services that consumers will value more than those of its rivals. d. minimizes the difference between value creation and the costs involved.
c
Which of the following statements will effectively guide a strategist? a. Industry and firm effects that determine firm performance are independent of each other. b. It is necessary to isolate the key stakeholders and their needs when formulating a strategy. c. The principles of strategic management can be applied universally to all organizations. d. Strategy is all about competitive benchmarking and operational effectiveness.
c
Which of the following groups is most likely to be considered a firm's internal stakeholder? a. creditors b. alliance partners c. customers d. board members
d