Question 1

Explain why some companies get to the top of industry rankings and stay there, while others do not.

Accepted Answer

The better conceived a company's strategy and the more competently it is executed, the more likely that the company will be a standout performer in the marketplace. In stark contrast, a company that lacks clear-cut direction, has a flawed strategy, or can't execute its strategy competently is a company whose financial performance is probably suffering, whose business is at long-term risk, and whose management is sorely lacking. That is, how well a company performs is directly attributable to the caliber of its strategy and the proficiency with which the strategy is executed.

Question 2

Managers must be prepared to modify their strategy in response to all of the following EXCEPT

Accepted Answer

A)  changing circumstances that affect performance and the desire to improve the current strategy. 
B)  competitor moves in the market and shifting needs of buyers. 
C)  stagnating market and restrictive industrial opportunities. 
D)  mounting evidence that the strategy is less effective. 
E)  public pronouncements from rivals about monthly profit margins. 
A)  changing circumstances that affect performance and the desire to improve the current strategy. 
B)  competitor moves in the market and shifting needs of buyers. 
C)  stagnating market and restrictive industrial opportunities. 
D)  mounting evidence that the strategy is less effective. 
E)  public pronouncements from rivals about monthly profit margins. E

Question 3

A winning strategy is one that

Accepted Answer

A)  builds strategic fit, is socially responsible, and maximizes shareholder wealth. 
B)  is highly profitable and boosts the company's market share. 
C)  fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance. 
D)  results in a company becoming the dominant industry leader. 
E)  can pass the ethical standards test, the strategic intent test, and the profitability test. 
A)  builds strategic fit, is socially responsible, and maximizes shareholder wealth. 
B)  is highly profitable and boosts the company's market share. 
C)  fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance. 
D)  results in a company becoming the dominant industry leader. 
E)  can pass the ethical standards test, the strategic intent test, and the profitability test. C

Question 4

Why are capabilities needed to build a sustainable competitive advantage so important to a winning business strategy? Cite one of the company examples in the chapter to illustrate your answer.

Accepted Answer

A strategy should be tailored to the com

Question 5

What is the connection between a company's strategy and its quest for sustainable competitive advantage?

Accepted Answer

The central features of a strategy are t

Question 6

Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy?

Accepted Answer

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? 
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?

Question 7

It is normal for a company's strategy to end up being

Accepted Answer

A)  a blend of offensive actions on the part of managers to improve the company's profitability and defensive moves to counteract changing market conditions. 
B)  a combination of conservative moves to protect the company's market share and somewhat more risky initiatives to set the company's product offering apart from rivals. 
C)  a close imitation of the strategy employed by the recognized industry leader. 
D)  a blend of proactive actions to improve the company's competitiveness and financial performance, and adaptive reactions to unanticipated developments and fresh market conditions. 
E)  more a product of clever entrepreneurship than of efforts to clearly set a company's product/service offering apart from the offerings of rivals. 
A)  a blend of offensive actions on the part of managers to improve the company's profitability and defensive moves to counteract changing market conditions. 
B)  a combination of conservative moves to protect the company's market share and somewhat more risky initiatives to set the company's product offering apart from rivals. 
C)  a close imitation of the strategy employed by the recognized industry leader. 
D)  a blend of proactive actions to improve the company's competitiveness and financial performance, and adaptive reactions to unanticipated developments and fresh market conditions. 
E)  more a product of clever entrepreneurship than of efforts to clearly set a company's product/service offering apart from the offerings of rivals.

Question 8

Managers of every company should be willing and ready to modify the strategy because

Accepted Answer

A)  market conditions and circumstances are changing over time or the current strategy is clearly failing. 
B)  the task of crafting strategy is a one-time event. 
C)  the strategic vision necessitates periodic updating. 
D)  frequent changes in strategy make it very difficult for rivals to imitate. 
E)  all strategies are reactive. 
A)  market conditions and circumstances are changing over time or the current strategy is clearly failing. 
B)  the task of crafting strategy is a one-time event. 
C)  the strategic vision necessitates periodic updating. 
D)  frequent changes in strategy make it very difficult for rivals to imitate. 
E)  all strategies are reactive.

Question 9

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?

Accepted Answer

A)  Offering scented bubble bath foams and massage coupons was an emergent strategy. 
B)  Creating a sub-brand that offered exclusive bath products for women was an emergent strategy. 
C)  Establishing shops in regional locations was an emergent strategy. 
D)  Roping in celebrities to market their products was an emergent strategy. 
E)  Creating a worldwide presence through retail outlets and online sites was an emergent strategy. 
A)  Offering scented bubble bath foams and massage coupons was an emergent strategy. 
B)  Creating a sub-brand that offered exclusive bath products for women was an emergent strategy. 
C)  Establishing shops in regional locations was an emergent strategy. 
D)  Roping in celebrities to market their products was an emergent strategy. 
E)  Creating a worldwide presence through retail outlets and online sites was an emergent strategy.

Question 10

Which of the following questions can be used to distinguish a winning strategy from a mediocre or losing strategy?

Accepted Answer

A)  How good is the company's business model? 
B)  Is the company a technology leader? 
C)  Does the company have low prices in comparison to rivals? 
D)  Is the company putting too little emphasis on behaving in an ethical and socially responsible manner? 
E)  How well does the strategy fit the company's situation? 
A)  How good is the company's business model? 
B)  Is the company a technology leader? 
C)  Does the company have low prices in comparison to rivals? 
D)  Is the company putting too little emphasis on behaving in an ethical and socially responsible manner? 
E)  How well does the strategy fit the company's situation?

Question 11

Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage?

Accepted Answer

A)  striving to be the industry's low-cost provider 
B)  outcompeting rivals on the basis of differentiating features that will appeal to a broad spectrum of buyers 
C)  developing a best-cost provider strategy that gives customers more value for the money 
D)  focusing on a narrow market niche and serving buyers' special needs and tastes 
E)  striving to be the industry's high-price provider 
A)  striving to be the industry's low-cost provider 
B)  outcompeting rivals on the basis of differentiating features that will appeal to a broad spectrum of buyers 
C)  developing a best-cost provider strategy that gives customers more value for the money 
D)  focusing on a narrow market niche and serving buyers' special needs and tastes 
E)  striving to be the industry's high-price provider

Question 12

Crafting a deliberate strategy involves developing strategy elements that

Accepted Answer

A)  imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage. 
B)  comprise a five-year strategic plan that is then fine-tuned during the remainder of the plan period; big changes in strategy are thus made only once every five years. 
C)  consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods. 
D)  deliberately eliminate the ongoing strategic elements and implement new planned initiatives. 
E)  consist of adaptive change plans to new market situations along with abandoned redundant ongoing elements. 
A)  imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage. 
B)  comprise a five-year strategic plan that is then fine-tuned during the remainder of the plan period; big changes in strategy are thus made only once every five years. 
C)  consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods. 
D)  deliberately eliminate the ongoing strategic elements and implement new planned initiatives. 
E)  consist of adaptive change plans to new market situations along with abandoned redundant ongoing elements.

Question 13

The difference between a company's strategy and a company's business model is that

Accepted Answer

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 its corporate responsibility goals. 
D)  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. 
E)  a company's strategy is solely concerned with how to please customers while its business model is solely concerned with how to please shareholders. 
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 its corporate responsibility goals. 
D)  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. 
E)  a company's strategy is solely concerned with how to please customers while its business model is solely concerned with how to please shareholders.

Question 14

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?

Accepted Answer

A)  low profit 
B)  high value 
C)  high cost 
D)  low value 
E)  low cost 
A)  low profit 
B)  high value 
C)  high cost 
D)  low value 
E)  low cost

Question 15

Why is sustainable competitive advantage so important to a winning business strategy?

Accepted Answer

Strategies that fail to achieve a durabl

Question 16

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?

Accepted Answer

A)  hiring and training new talent to begin operations in the emerging market 
B)  acquiring a local computer chip marketing and distribution specialist firm in the new location 
C)  cancelling the idea of outsourcing and retaining the existing the workforce to run operations 
D)  shifting the existing workforce to the new geographical location and paying them according to new standards 
E)  cancelling the job cuts till the market situation and entry operations stabilize 
A)  hiring and training new talent to begin operations in the emerging market 
B)  acquiring a local computer chip marketing and distribution specialist firm in the new location 
C)  cancelling the idea of outsourcing and retaining the existing the workforce to run operations 
D)  shifting the existing workforce to the new geographical location and paying them according to new standards 
E)  cancelling the job cuts till the market situation and entry operations stabilize

Question 17

Crafting and executing a strategy is a top-priority managerial task because

Accepted Answer

A)  it helps management create tight fits between a company's strategic vision and business model. 
B)  it allows all company personnel, and especially senior executives, to know the answer to "who are we, what do we do, and where are we headed?" 
C)  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. 
D)  it provides clear guidance as to what the company's business model and strategic intent are, and helps keep managerial decision-making from being rudderless. 
E)  it establishes how well executives perform these tasks and are the key determinants of executive compensation. 
A)  it helps management create tight fits between a company's strategic vision and business model. 
B)  it allows all company personnel, and especially senior executives, to know the answer to "who are we, what do we do, and where are we headed?" 
C)  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. 
D)  it provides clear guidance as to what the company's business model and strategic intent are, and helps keep managerial decision-making from being rudderless. 
E)  it establishes how well executives perform these tasks and are the key determinants of executive compensation.

Question 18

The most significant signs of a well-managed company are

Accepted Answer

A)  the eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision. 
B)  aggressive pursuit of new opportunities and a willingness to change the company's business model whenever circumstances warrant. 
C)  good strategy-making combined with good strategy execution. 
D)  a visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies. 
E)  a profitable business model and a balanced scorecard approach to measuring the company's performance. 
A)  the eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision. 
B)  aggressive pursuit of new opportunities and a willingness to change the company's business model whenever circumstances warrant. 
C)  good strategy-making combined with good strategy execution. 
D)  a visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies. 
E)  a profitable business model and a balanced scorecard approach to measuring the company's performance.

Question 19

The customer value proposition lays out the company's approach to

Accepted Answer

A)  meeting profitability guidelines without the risk of losing customers. 
B)  operating efficiently given the current level of customers. 
C)  embracing rival company approaches to gaining customers. 
D)  satisfying customer wants and needs at a price customers will consider a good value. 
E)  assuring that the company makes enough profits based on its per-unit cost. 
A)  meeting profitability guidelines without the risk of losing customers. 
B)  operating efficiently given the current level of customers. 
C)  embracing rival company approaches to gaining customers. 
D)  satisfying customer wants and needs at a price customers will consider a good value. 
E)  assuring that the company makes enough profits based on its per-unit cost.

Question 20

A mobile phone manufacturing and marketing company acquires an overseas display manufacturing company to gain a strong market position. Which of the five generic strategies has the mobile phone manufacturer used to gain competitive advantage?

Accepted Answer

The mobile phone manufacturing company h

Explain why some companies get to the top of industry rankings and stay there, while others do not.

Managers must be prepared to modify their strategy in response to all of the following EXCEPT

A winning strategy is one that

Why are capabilities needed to build a sustainable competitive advantage so important to a winning business strategy? Cite one of the company examples in the chapter to illustrate your answer.

What is the connection between a company's strategy and its quest for sustainable competitive advantage?

Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy?

It is normal for a company's strategy to end up being

Managers of every company should be willing and ready to modify the strategy because

Which of the following questions can be used to distinguish a winning strategy from a mediocre or losing strategy?

Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage?

Crafting a deliberate strategy involves developing strategy elements that

The difference between a company's strategy and a company's business model is that

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?

Why is sustainable competitive advantage so important to a winning business strategy?

Crafting and executing a strategy is a top-priority managerial task because

The most significant signs of a well-managed company are

The customer value proposition lays out the company's approach to

A mobile phone manufacturing and marketing company acquires an overseas display manufacturing company to gain a strong market position. Which of the five generic strategies has the mobile phone manufacturer used to gain competitive advantage?

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources and Competitive Position

The Five Generic Competitive Strategies: Which One to Employ

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters

Exam 1: What Is Strategy and Why Is It Important

Explain why some companies get to the top of industry rankings and stay there, while others do not.

Managers must be prepared to modify their strategy in response to all of the following EXCEPT

A winning strategy is one that

Why are capabilities needed to build a sustainable competitive advantage so important to a winning business strategy? Cite one of the company examples in the chapter to illustrate your answer.

What is the connection between a company's strategy and its quest for sustainable competitive advantage?

Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy?

It is normal for a company's strategy to end up being

Managers of every company should be willing and ready to modify the strategy because

Which of the following questions can be used to distinguish a winning strategy from a mediocre or losing strategy?

Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage?

Crafting a deliberate strategy involves developing strategy elements that

The difference between a company's strategy and a company's business model is that

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?

Why is sustainable competitive advantage so important to a winning business strategy?

Crafting and executing a strategy is a top-priority managerial task because

The most significant signs of a well-managed company are

The customer value proposition lays out the company's approach to

A mobile phone manufacturing and marketing company acquires an overseas display manufacturing company to gain a strong market position. Which of the five generic strategies has the mobile phone manufacturer used to gain competitive advantage?

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources and Competitive Position

The Five Generic Competitive Strategies: Which One to Employ

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters