Question 1

A customer-oriented vision statement focuses employees to think about how best to

Accepted Answer

A)  make a product easier to use. 
B)  increase their efficiency to benefit consumers. 
C)  improve a popular product. 
D)  solve a problem for a consumer. 
A)  make a product easier to use. 
B)  increase their efficiency to benefit consumers. 
C)  improve a popular product. 
D)  solve a problem for a consumer. D

Question 2

FindFor Inc. is an e-commerce retail firm that sells a variety of merchandise online. Through services like cash on delivery, easy return, and online tracking, the company has created more customer value than its competitors (brick-and-mortar businesses) at the same price. Also, the company's costs are substantially lower than its competitors because of minimal investments in operation and administration. In this scenario, FindFor Inc. has most likely been able to provide superior value and cost control through

Accepted Answer

A)  strategic parity. 
B)  strategic profiling. 
C)  strategic liquidation. 
D)  strategic positioning. 
A)  strategic parity. 
B)  strategic profiling. 
C)  strategic liquidation. 
D)  strategic positioning. D

Question 3

Which of the following strategies does Tesla need to implement or achieve to gain a competitive advantage?

Accepted Answer

A)  imitate the features of the most popular SUVs on the market 
B)  reinvest profits to build successively better electric automobiles 
C)  sell advertising space on their cars' digital displays 
D)  substitute less-expensive components to keep costs low 
A)  imitate the features of the most popular SUVs on the market 
B)  reinvest profits to build successively better electric automobiles 
C)  sell advertising space on their cars' digital displays 
D)  substitute less-expensive components to keep costs low B

Question 4

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

Accepted Answer

A)  Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000. 
B)  CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's sales of 5,000 units, though the industry average is 10,000 units. 
C)  Zhang Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years. 
D)  Peak Inc. was able to outperform its competitors with its new production system, in terms of revenue, for a brief period of four months. 
A)  Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000. 
B)  CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's sales of 5,000 units, though the industry average is 10,000 units. 
C)  Zhang Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years. 
D)  Peak Inc. was able to outperform its competitors with its new production system, in terms of revenue, for a brief period of four months.

Question 5

Fuller Apparel's core value statement reads we will ensure our clothing is made with the highest respect toward human rights and environmental protection. Which of the following actions exemplifies how Fuller's core values drive its strategic decision making?

Accepted Answer

A)  demanding that textile suppliers pay livable wages and maintain safe production facilities 
B)  introducing an online customer service unit to keep customers happy 
C)  investing in more efficient machinery to reduce costs and lower prices for consumers 
D)  purchasing a full-page advertisement in a major newspaper touting the company's values 
A)  demanding that textile suppliers pay livable wages and maintain safe production facilities 
B)  introducing an online customer service unit to keep customers happy 
C)  investing in more efficient machinery to reduce costs and lower prices for consumers 
D)  purchasing a full-page advertisement in a major newspaper touting the company's values

Question 6

What are customer-oriented vision statements? Explain with the help of an example.

Accepted Answer

Student answers may vary.
A customer-ori

Question 7

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n)

Accepted Answer

A)  competitive advantage. 
B)  balanced scorecard. 
C)  power position. 
D)  equity leverage. 
A)  competitive advantage. 
B)  balanced scorecard. 
C)  power position. 
D)  equity leverage.

Question 8

During strategy implementation, managers primarily focus on deciding the

Accepted Answer

A)  type of corporate governance that is most effective and ways in which it can put the formulated strategy into practice. 
B)  industries and markets the firm should compete in to be able to gain and sustain a competitive advantage. 
C)  relationship between competitive advantage and firm performance. 
D)  role strategic leaders should play in gaining and sustaining a competitive advantage. 
A)  type of corporate governance that is most effective and ways in which it can put the formulated strategy into practice. 
B)  industries and markets the firm should compete in to be able to gain and sustain a competitive advantage. 
C)  relationship between competitive advantage and firm performance. 
D)  role strategic leaders should play in gaining and sustaining a competitive advantage.

Question 9

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Accepted Answer

A)  Customer-oriented visions tend to have a more short-range view of changing environments. 
B)  Customer-oriented visions tend to have a more myopic view of changing environments. 
C)  Customer-oriented visions tend to be more flexible when adapting to changing environments. 
D)  Customer-oriented visions tend to be more stable when dealing with changing environments. 
A)  Customer-oriented visions tend to have a more short-range view of changing environments. 
B)  Customer-oriented visions tend to have a more myopic view of changing environments. 
C)  Customer-oriented visions tend to be more flexible when adapting to changing environments. 
D)  Customer-oriented visions tend to be more stable when dealing with changing environments.

Question 10

Powell Lighting was the first company to start selling LED light bulbs in its country-a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of LED bulbs, thereby giving Powell Lighting ample competition. In response, Powell Lighting decided to limit its LED light bulbs to outdoor models. However, it ensured that these models were the longest-lasting and lowest-priced on the market. With this innovation, Powell Lighting consistently outperformed its competitors for ten years. In this scenario, Powell Lighting maintained a ________ through its innovative strategy.

Accepted Answer

A)  balanced scorecard 
B)  fiduciary responsibility 
C)  consistent power position 
D)  sustainable competitive advantage 
A)  balanced scorecard 
B)  fiduciary responsibility 
C)  consistent power position 
D)  sustainable competitive advantage

Question 11

Visionary companies are able to outperform their competitors because

Accepted Answer

A)  their vision statements are more product-oriented. 
B)  they provide more aspirational visions. 
C)  their visions are primarily financial. 
D)  they isolate internal stakeholders in defining their visions. 
A)  their vision statements are more product-oriented. 
B)  they provide more aspirational visions. 
C)  their visions are primarily financial. 
D)  they isolate internal stakeholders in defining their visions.

Question 12

As manager of a major producer of automobile airbags, you have recently introduced the following vision statement: to protect the health of every driver and passenger. How can you ensure that your employees feel invested in and inspired by the firm's vision?

Accepted Answer

A)  Include a "vision adherence assessment" in each employee's annual performance review. 
B)  Hang banners around the production facility touting the new vision statement. 
C)  Ask employees for feedback on the vision statement and revise based on their input. 
D)  Give a speech explaining why everyone should support the new vision. 
A)  Include a "vision adherence assessment" in each employee's annual performance review. 
B)  Hang banners around the production facility touting the new vision statement. 
C)  Ask employees for feedback on the vision statement and revise based on their input. 
D)  Give a speech explaining why everyone should support the new vision.

Question 13

Define organizational core values with the help of an example.

Accepted Answer

Student examples will vary. A sample ans

Question 14

Toy sales have declined by 10 percent each year, forcing many retailers to exit the industry. To eliminate its remaining competition, Bleaker Toys sells all of its product at a loss and relies on its significant cash holdings to cover costs until its competition is forced to exit the industry. Is this an example of a successful strategy? Why or why not?

Accepted Answer

A)  Yes. Any strategy that forces competition from the market is by definition successful. 
B)  Yes. Bleaker has achieved a sustainable competitive advantage by selling its toys at a lower price than competitors. 
C)  No. Bleaker has failed to create value for its customers. 
D)  No. Bleaker's strategy and competitive advantage are unsustainable. 
A)  Yes. Any strategy that forces competition from the market is by definition successful. 
B)  Yes. Bleaker has achieved a sustainable competitive advantage by selling its toys at a lower price than competitors. 
C)  No. Bleaker has failed to create value for its customers. 
D)  No. Bleaker's strategy and competitive advantage are unsustainable.

Question 15

Which of the following statements is true of customer-oriented visions?

Accepted Answer

A)  Customer-oriented visions identify how a customer need will be met. 
B)  Customer-oriented vision statements are not the same as listening to your customer. 
C)  Customer-oriented visions reduce a company's ability to adapt to a changing environment. 
D)  Customer-oriented visions define a business in terms of goods or services provided. 
A)  Customer-oriented visions identify how a customer need will be met. 
B)  Customer-oriented vision statements are not the same as listening to your customer. 
C)  Customer-oriented visions reduce a company's ability to adapt to a changing environment. 
D)  Customer-oriented visions define a business in terms of goods or services provided.

Question 16

In ________, a firm frames a guiding policy to address the competitive challenge.

Accepted Answer

A)  strategy control 
B)  strategy implementation 
C)  strategy formulation 
D)  strategy analysis 
A)  strategy control 
B)  strategy implementation 
C)  strategy formulation 
D)  strategy analysis

Question 17

Strategic commitments are actions that are

Accepted Answer

A)  inexpensive. 
B)  long-term oriented. 
C)  easy to reverse. 
D)  easy to imitate. 
A)  inexpensive. 
B)  long-term oriented. 
C)  easy to reverse. 
D)  easy to imitate.

Question 18

Pioneer Pharma Inc. and GH Medicines Corp. are two competing firms in the pharmaceutical industry. While Pioneer Pharma Inc.'s vision is "to be a preeminent drug manufacturer in the industry," GH Medicines Corp.'s vision is "to make good health a reality for everyone around the world." Which of the following is an implication of these different visions?

Accepted Answer

A)  GH Medicines' vision is more product-oriented than the vision of Pioneer Pharma. 
B)  Pioneer Pharma is more likely to have a positive relationship between its vision and firm performance than GH Medicines. 
C)  Pioneer Pharma's vision is more long-term and futuristic than GH Medicines' vision. 
D)  GH Medicines will be more flexible than Pioneer Pharma when adapting to changing environments. 
A)  GH Medicines' vision is more product-oriented than the vision of Pioneer Pharma. 
B)  Pioneer Pharma is more likely to have a positive relationship between its vision and firm performance than GH Medicines. 
C)  Pioneer Pharma's vision is more long-term and futuristic than GH Medicines' vision. 
D)  GH Medicines will be more flexible than Pioneer Pharma when adapting to changing environments.

Question 19

Organizational core values are the ________ that govern the behavior of individuals within a firm or organization.

Accepted Answer

A)  economic measures 
B)  ethical standards and norms 
C)  political principles and policies 
D)  social beliefs and actions 
A)  economic measures 
B)  ethical standards and norms 
C)  political principles and policies 
D)  social beliefs and actions

Question 20

Why is it important for a business to have a vision?

Accepted Answer

A company's vision captures its aspirati

A customer-oriented vision statement focuses employees to think about how best to

Which of the following strategies does Tesla need to implement or achieve to gain a competitive advantage?

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

Fuller Apparel's core value statement reads we will ensure our clothing is made with the highest respect toward human rights and environmental protection. Which of the following actions exemplifies how Fuller's core values drive its strategic decision making?

What are customer-oriented vision statements? Explain with the help of an example.

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n)

During strategy implementation, managers primarily focus on deciding the

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Visionary companies are able to outperform their competitors because

As manager of a major producer of automobile airbags, you have recently introduced the following vision statement: to protect the health of every driver and passenger. How can you ensure that your employees feel invested in and inspired by the firm's vision?

Define organizational core values with the help of an example.

Which of the following statements is true of customer-oriented visions?

In ________, a firm frames a guiding policy to address the competitive challenge.

Strategic commitments are actions that are

Organizational core values are the ________ that govern the behavior of individuals within a firm or organization.

Why is it important for a business to have a vision?

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters

Exam 1: What Is Strategy

A customer-oriented vision statement focuses employees to think about how best to

Which of the following strategies does Tesla need to implement or achieve to gain a competitive advantage?

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

Fuller Apparel's core value statement reads we will ensure our clothing is made with the highest respect toward human rights and environmental protection. Which of the following actions exemplifies how Fuller's core values drive its strategic decision making?

What are customer-oriented vision statements? Explain with the help of an example.

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n)

During strategy implementation, managers primarily focus on deciding the

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Visionary companies are able to outperform their competitors because

As manager of a major producer of automobile airbags, you have recently introduced the following vision statement: to protect the health of every driver and passenger. How can you ensure that your employees feel invested in and inspired by the firm's vision?

Define organizational core values with the help of an example.

Which of the following statements is true of customer-oriented visions?

In ________, a firm frames a guiding policy to address the competitive challenge.

Strategic commitments are actions that are

Organizational core values are the ________ that govern the behavior of individuals within a firm or organization.

Why is it important for a business to have a vision?

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters