Question 1

According to Tzu, the process of gathering information was an integral component of developing strategy.

Accepted Answer

A) True 
 B)False

Question 2

Corporate-level strategy entails "how a company will compete in a given business and position itself among its competitors."

Accepted Answer

A) True 
 B)False

Question 3

Two low-cost methods that firms entering foreign markets can use are licensing and franchising agreements.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements best describes a business-level strategy?

Accepted Answer

A)  The determination of how a company will compete in a given business and position itself among its competitors 
B)  The way a company seeks to create value through the configuration and coordination of multimarket business activities 
C)  The process of identifying how a firm can best align its resources in a business to carve out a defensible position in the marketplace 
D)  The way a strategy is formed with a focus on developing global efficiency instead of catering to local tastes

Question 5

For a fee, Green Health Supplements, Inc. (GHS) allowed another company in Britain to use its formula for a men's tonic. In this case, GHS is using which of the following market entry strategies?

Accepted Answer

A)  Exporting 
B)  Licensing and franchising 
C)  Joint venture 
D)  Wholly owned subsidiaries

Question 6

Which of the following statements is true about licensing and franchising?

Accepted Answer

A)  They involve setting up a fully operational, independent entity in a foreign country to conduct business. 
B)  Unlike franchising, licensing is used by service firms such as hotels and fast-food chains. 
C)  Like franchising, licensing is a high-cost means of market entry. 
D)  The most important risk involved with licensing is the potential loss of proprietary advantage.

Question 7

Which of the following statements best describes the vision of an organization?

Accepted Answer

A)  The activities a firm performs for its customers 
B)  An illustration of how a firm can align its resources to get a position in the marketplace 
C)  A concept that defines a firm's reason for existence 
D)  A concept or picture of what a firm wants to achieve

Question 8

"Within five years, we will be the top-rated boat tour company in Central Florida, doubling the size of our fleet and achieving 100% seating capacity with every excursion." This is an example of

Accepted Answer

A)  strategy. 
B)  mission. 
C)  vision. 
D)  tactic.

Question 9

Objectives provide a series of quantifiable milestones or benchmarks by which a firm can assess its progress.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true about strategy formulation?

Accepted Answer

A)  The strategy development process typically flows in a linear fashion. 
B)  Managers should engage in environmental scanning on an ongoing basis. 
C)  All aspects of a firm's strategy are more susceptible to frequent changes. 
D)  The formulation of strategy is the last step toward achieving profitability.

Question 11

The process of identifying how a firm can best align its resources to carve out a defensible position in the marketplace is known as

Accepted Answer

A)  scenario building. 
B)  strategy formulation. 
C)  contingency planning. 
D)  stakeholder mapping.

Question 12

Z-coffiz charges much higher prices for a cup of coffee than its competitors. Z-coffiz is able to do this because it positions itself to be selling an experience, rather than merely a cup of coffee. Which aspect of a firm's strategy does this describe?

Accepted Answer

A)  External fit 
B)  Internal fit 
C)  Differentiation 
D)  Implementable

Question 13

According to Milton Friedman, the primary goal of a business is to

Accepted Answer

A)  satisfy customers. 
B)  expand globally. 
C)  make profits. 
D)  provide employment.

Question 14

Foodies, a food manufacturing company, made plans to either open a new outlet in Berylia, a country where the majority are low-income families, or Erbia, a country where the majority of the people belong to high-income families. It finally decides to open a new outlet in Berylia by offering products with reduced cost as the demand for its product is greater in Berylia. This scenario is an example of _____ in defining a strategy.

Accepted Answer

A)  making trade-offs 
B)  creating fit among activities 
C)  choosing a set of activities 
D)  developing objectives

Question 15

In developing a strategy, a manager must realize that competitive strategy is primarily about operational efficiency.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following refers to a network of unique activities that strategically fit together and are difficult to replicate?

Accepted Answer

A)  Conglomeration 
B)  Core competencies 
C)  Virtue ethics 
D)  Global strategies

Question 17

Green Health Supplements, Inc. (GHS) produces all of its products in the United States. It is trying to expand globally by shipping its products to foreign distributors. GHS has which of the following market entry strategies?

Accepted Answer

A)  Exporting 
B)  Licensing and franchising 
C)  Joint venture 
D)  Wholly owned subsidiaries

Question 18

Define vision, mission, and objectives. What are the benefits provided by effective mission statements?

Accepted Answer

The answer of  Define vision, mission, and objectives. What are...

Question 19

For a firm's strategy to be effective and defensible, a manager must create fit and alignment among its chosen activities.

Accepted Answer

A) True 
 B)False

Question 20

According to military leaders, tactics differed from strategy in that

Accepted Answer

A)  tactics were usually aimed at creating a military advantage. 
B)  tactics represented the specific moves their armies would perform on the battlefield. 
C)  tactics represented the grand plan for the war. 
D)  tactics referred to an individual leader's ability to marshal a large set of resources.

Exam 4: Introduction to Strategy

According to Tzu, the process of gathering information was an integral component of developing strategy.

Corporate-level strategy entails "how a company will compete in a given business and position itself among its competitors."

Two low-cost methods that firms entering foreign markets can use are licensing and franchising agreements.

Which of the following statements best describes a business-level strategy?

For a fee, Green Health Supplements, Inc. (GHS) allowed another company in Britain to use its formula for a men's tonic. In this case, GHS is using which of the following market entry strategies?

Which of the following statements is true about licensing and franchising?

Which of the following statements best describes the vision of an organization?

"Within five years, we will be the top-rated boat tour company in Central Florida, doubling the size of our fleet and achieving 100% seating capacity with every excursion." This is an example of

Objectives provide a series of quantifiable milestones or benchmarks by which a firm can assess its progress.

Which of the following statements is true about strategy formulation?

The process of identifying how a firm can best align its resources to carve out a defensible position in the marketplace is known as

Z-coffiz charges much higher prices for a cup of coffee than its competitors. Z-coffiz is able to do this because it positions itself to be selling an experience, rather than merely a cup of coffee. Which aspect of a firm's strategy does this describe?

According to Milton Friedman, the primary goal of a business is to

In developing a strategy, a manager must realize that competitive strategy is primarily about operational efficiency.

Which of the following refers to a network of unique activities that strategically fit together and are difficult to replicate?

Green Health Supplements, Inc. (GHS) produces all of its products in the United States. It is trying to expand globally by shipping its products to foreign distributors. GHS has which of the following market entry strategies?

Define vision, mission, and objectives. What are the benefits provided by effective mission statements?

For a firm's strategy to be effective and defensible, a manager must create fit and alignment among its chosen activities.

According to military leaders, tactics differed from strategy in that