Question 1

________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

Accepted Answer

A)  Behavior modification 
B)  Strategy 
C)  Credo 
D)  Competency management 
A)  Behavior modification 
B)  Strategy 
C)  Credo 
D)  Competency management

Question 2

A positive relationship between vision statements and firm performance is more likely to exist when

Accepted Answer

A)  visions are product-oriented. 
B)  internal stakeholders are isolated from defining and revising the visions. 
C)  organizational structures are aligned with the firm's vision statement. 
D)  vision statements are equivalent to listening to the customers. 
A)  visions are product-oriented. 
B)  internal stakeholders are isolated from defining and revising the visions. 
C)  organizational structures are aligned with the firm's vision statement. 
D)  vision statements are equivalent to listening to the customers.

Question 3

Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?

Accepted Answer

A)  No firm would face direct competition from others in the industry; hence, profit potential would be high. 
B)  Each firm would be catering to a different customer segment. 
C)  The firms would eventually have no resources to invest in product and process improvements. 
D)  Each firm would be in a better position to gain a competitive advantage. 
A)  No firm would face direct competition from others in the industry; hence, profit potential would be high. 
B)  Each firm would be catering to a different customer segment. 
C)  The firms would eventually have no resources to invest in product and process improvements. 
D)  Each firm would be in a better position to gain a competitive advantage.

Question 4

A vision describes in broad, inspirational terms what an organization hopes to accomplish in the future.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of competitive parity?

Accepted Answer

A)  A firm manufactures higher-quality wall clocks than its competitors. 
B)  A firm provides wall clocks that its consumers value more than other wall clocks. 
C)  A firm sells wall clocks at a lower price than its competitors. 
D)  A firm produces a similar number of wall clocks at a similar cost as its competitors. 
A)  A firm manufactures higher-quality wall clocks than its competitors. 
B)  A firm provides wall clocks that its consumers value more than other wall clocks. 
C)  A firm sells wall clocks at a lower price than its competitors. 
D)  A firm produces a similar number of wall clocks at a similar cost as its competitors.

Question 6

Comment on the statement "Customer-oriented visions do not define how a customer need will be met."

Accepted Answer

It is important not to confuse customer-

Question 7

Which of the following is an element of good strategy?

Accepted Answer

A)  a summary of the firm's history within its industry 
B)  a guiding policy to address employee satisfaction 
C)  a set of coherent actions to implement the firm's guiding policy 
D)  an approach that underestimates the competition 
A)  a summary of the firm's history within its industry 
B)  a guiding policy to address employee satisfaction 
C)  a set of coherent actions to implement the firm's guiding policy 
D)  an approach that underestimates the competition

Question 8

Jake's Taxi Service is a new entrant to the taxi industry. It has achieved success by staking out a unique position in the industry. How did Jake's Taxi Service mostly likely achieve this position?

Accepted Answer

A)  providing long-distance cab fares at a higher rate than competitors; servicing a larger area than competitors 
B)  providing long-distance cab fares at a lower rate than competitors; servicing a smaller area than competitors 
C)  providing long-distance cab fares at a higher rate than competitors; servicing the same area as competitors 
D)  providing long-distance cab fares at a lower rate than competitors; servicing the same area as competitors 
A)  providing long-distance cab fares at a higher rate than competitors; servicing a larger area than competitors 
B)  providing long-distance cab fares at a lower rate than competitors; servicing a smaller area than competitors 
C)  providing long-distance cab fares at a higher rate than competitors; servicing the same area as competitors 
D)  providing long-distance cab fares at a lower rate than competitors; servicing the same area as competitors

Question 9

As the strategic manager of CutRite Scissors, you are tasked with producing a strategy for introducing a new line of premium scissors. Your competitor produces a line of similar scissors at a cost of $1 and sells them for $12. Because your company has inferior production capabilities, your scissors will cost $3 each to produce. However, your handle is proven to be more comfortable than your competitors'. Assuming you are guaranteed to sell the same number of units as your competitor, which of the following strategies is most likely to achieve a competitive advantage?

Accepted Answer

A)  Reduce the quality of materials used in CutRite scissors to bring unit costs down to $1, then sell the scissors for $12. 
B)  Continue to produce CutRite scissors for $3 but set the price at $10. 
C)  Offer a buy-one-get-one-free sale on CutRite scissors. 
D)  Market CutRite scissors as a higher-quality alternative and sell them for $15. 
A)  Reduce the quality of materials used in CutRite scissors to bring unit costs down to $1, then sell the scissors for $12. 
B)  Continue to produce CutRite scissors for $3 but set the price at $10. 
C)  Offer a buy-one-get-one-free sale on CutRite scissors. 
D)  Market CutRite scissors as a higher-quality alternative and sell them for $15.

Question 10

Which of the following is an example of a business acting upon an organizational core value?

Accepted Answer

A)  Pegasus Autos reduces engine emissions below federal guidelines to reduce pollution. 
B)  Pegasus Autos lowers its retail prices to gain an advantage over its closest competitor. 
C)  Pegasus Autos finances research for developing more powerful engines. 
D)  Pegasus Autos launches an ad campaign that promotes the company as being environmentally friendly. 
A)  Pegasus Autos reduces engine emissions below federal guidelines to reduce pollution. 
B)  Pegasus Autos lowers its retail prices to gain an advantage over its closest competitor. 
C)  Pegasus Autos finances research for developing more powerful engines. 
D)  Pegasus Autos launches an ad campaign that promotes the company as being environmentally friendly.

Question 11

The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and sells it for $7 per bottle. Which of the following statements is most likely true of StoreAll Inc. in this scenario?

Accepted Answer

A)  It has a competitive advantage in the industry. 
B)  It has a competitive disadvantage in the industry. 
C)  It has competitive parity with other firms in the industry. 
D)  It has formed a strategic alliance with other firms in the industry. 
A)  It has a competitive advantage in the industry. 
B)  It has a competitive disadvantage in the industry. 
C)  It has competitive parity with other firms in the industry. 
D)  It has formed a strategic alliance with other firms in the industry.

Question 12

Which of the following provides an example of what AFI strategy framework is used for?

Accepted Answer

A)  Using AFI, the Gasquet Motor Company was able to implement a strategy that produced high-quality cars more efficiently and thereby reduced costs. 
B)  Using AFI, the Chen Restaurant Group was able to improve employee benefits and thereby increase employee loyalty. 
C)  Using AFI, the Sanchez Clothing Company was able to implement a strategy that allowed them to give more money to charities and thereby gain good press. 
D)  Using AFI, the Richardson Tea Group was able to reduce the pollution it caused while processing tea and thereby receive an award. 
A)  Using AFI, the Gasquet Motor Company was able to implement a strategy that produced high-quality cars more efficiently and thereby reduced costs. 
B)  Using AFI, the Chen Restaurant Group was able to improve employee benefits and thereby increase employee loyalty. 
C)  Using AFI, the Sanchez Clothing Company was able to implement a strategy that allowed them to give more money to charities and thereby gain good press. 
D)  Using AFI, the Richardson Tea Group was able to reduce the pollution it caused while processing tea and thereby receive an award.

Question 13

Explain product-oriented vision statements with the help of an example.

Accepted Answer

Student answers may vary.
A product-orie

Question 14

Free Winds, Inc. is a company that manufactures a variety of generators that run on wind power. The company envisions that wind technology will replace all forms of exhaustible energy sources in the near future. Which of the following statements will make an accurate vision for Free Winds?

Accepted Answer

A)  We make products that run on wind energy. 
B)  All nations around the globe should be able to provide energy produced by sustainable sources. 
C)  The company aims to make working fun and pleasurable for its employees. 
D)  We provide energy-efficient sources and services by investing in research and innovation. 
A)  We make products that run on wind energy. 
B)  All nations around the globe should be able to provide energy produced by sustainable sources. 
C)  The company aims to make working fun and pleasurable for its employees. 
D)  We provide energy-efficient sources and services by investing in research and innovation.

Question 15

The pharmaceutical company Merck's new drug Vioxx was a blockbuster, generating revenues of $2.5 billion a year by 2002 and growing fast. When allegations that the drug caused heart attacks and strokes began to appear in the medical community, and that Merck had suppressed evidence about Vioxx's dangerous side effects from early clinical trials, Merck announced the voluntary withdrawal of Vioxx from the market. In this example, Merck provides an example of what can happen if a company deviates from its

Accepted Answer

A)  voluntary responsibilities. 
B)  realized strategy. 
C)  core values. 
D)  strategic decisions. 
A)  voluntary responsibilities. 
B)  realized strategy. 
C)  core values. 
D)  strategic decisions.

Question 16

The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and Incorporate feedback.

Accepted Answer

A) True 
 B)False

Question 17

How is competitive advantage different from competitive parity?

Accepted Answer

A firm that achieves superior performanc

Question 18

What part of the AFI strategy framework does the question "How does the firm make money?" relate to?

Accepted Answer

A)  strategic leadership and the strategy process 
B)  competitive advantage, firm performance, and business models 
C)  external analysis 
D)  internal analysis 
A)  strategic leadership and the strategy process 
B)  competitive advantage, firm performance, and business models 
C)  external analysis 
D)  internal analysis

Question 19

Why is it important for firms in the same industry to choose distinct but different strategic positions?

Accepted Answer

In strategic positioning, firms stake ou

Question 20

Underperformance relative to other firms in the same industry or the industry average results in a(n) ________ for a firm.

Accepted Answer

A)  sustainable competitive advantage 
B)  increased power distance 
C)  diseconomies of scope 
D)  competitive disadvantage 
A)  sustainable competitive advantage 
B)  increased power distance 
C)  diseconomies of scope 
D)  competitive disadvantage

________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

A positive relationship between vision statements and firm performance is more likely to exist when

Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?

A vision describes in broad, inspirational terms what an organization hopes to accomplish in the future.

Which of the following is an example of competitive parity?

Comment on the statement "Customer-oriented visions do not define how a customer need will be met."

Which of the following is an element of good strategy?

Jake's Taxi Service is a new entrant to the taxi industry. It has achieved success by staking out a unique position in the industry. How did Jake's Taxi Service mostly likely achieve this position?

Which of the following is an example of a business acting upon an organizational core value?

The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and sells it for $7 per bottle. Which of the following statements is most likely true of StoreAll Inc. in this scenario?

Which of the following provides an example of what AFI strategy framework is used for?

Explain product-oriented vision statements with the help of an example.

Free Winds, Inc. is a company that manufactures a variety of generators that run on wind power. The company envisions that wind technology will replace all forms of exhaustible energy sources in the near future. Which of the following statements will make an accurate vision for Free Winds?

The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and Incorporate feedback.

How is competitive advantage different from competitive parity?

What part of the AFI strategy framework does the question "How does the firm make money?" relate to?

Why is it important for firms in the same industry to choose distinct but different strategic positions?

Underperformance relative to other firms in the same industry or the industry average results in a(n) ________ for a firm.

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

________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

A positive relationship between vision statements and firm performance is more likely to exist when

Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?

A vision describes in broad, inspirational terms what an organization hopes to accomplish in the future.

Which of the following is an example of competitive parity?

Comment on the statement "Customer-oriented visions do not define how a customer need will be met."

Which of the following is an element of good strategy?

Jake's Taxi Service is a new entrant to the taxi industry. It has achieved success by staking out a unique position in the industry. How did Jake's Taxi Service mostly likely achieve this position?

Which of the following is an example of a business acting upon an organizational core value?

The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and sells it for $7 per bottle. Which of the following statements is most likely true of StoreAll Inc. in this scenario?

Which of the following provides an example of what AFI strategy framework is used for?

Explain product-oriented vision statements with the help of an example.

Free Winds, Inc. is a company that manufactures a variety of generators that run on wind power. The company envisions that wind technology will replace all forms of exhaustible energy sources in the near future. Which of the following statements will make an accurate vision for Free Winds?

The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and Incorporate feedback.

How is competitive advantage different from competitive parity?

What part of the AFI strategy framework does the question "How does the firm make money?" relate to?

Why is it important for firms in the same industry to choose distinct but different strategic positions?

Underperformance relative to other firms in the same industry or the industry average results in a(n) ________ for a firm.

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