Question 1

Identify and briefly describe the four most frequently used strategic approaches to achieving a sustainable competitive advantage.Provide examples.

Accepted Answer

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Question 2

To which of the following firms is the term "repeatedly evolving strategy" MOST applicable?

Accepted Answer

A)  A government agency that makes plans for a set period of time and implements them phase by phase through the tenure 
B)  A mobile company,established in a saturated market,that aims at quarterly release of new products 
C)  A new cosmetics manufacturer in a market that replicates the products of a competitor at a moderate quality and lower price 
D)  A nationalized bank that lends at a lower interest rate but a zero processing fee in a market crowded with privatized banks running at high cost 
E)  A firearms regulatory agency,set up by the government,that publishes industry standards for safety,reliability,and quality of arms and ammunition

Question 3

Winning a sustainable competitive edge over competitors does NOT hinge on which of the following?

Accepted Answer

A)  Having a distinctive competitive product offering 
B)  Building competitively valuable expertise and capabilities not readily matched,and offering distinctive products 
C)  Building experience,know-how,and specialized capabilities that have been perfected over a long period of time 
D)  Having "hard-to-beat" capabilities and impressive product innovation 
E)  Building products and distributing them at low prices to a broad customer base irrespective of manufacturing cost

Question 4

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.

Question 5

A multinational company enters a new geographical location,considered an emerging market,with its established product line: laptops and tablets.Which of the following would NOT serve as a good strategic move to enhance profits?

Accepted Answer

A)  Creating a sales plan that aims to enhance initial sales and market share with low prices based on high operational costs 
B)  Devising a marketing plan that aims at different customer segments with attractive advertisements and offers on products 
C)  Implementing a diversification plan that aims at adding smartphones to the existing line of products 
D)  Charting an acquisition plan that aims at acquiring small-scale companies looking for funding and with a similar product lineup 
E)  Establishing a distribution plan that aims at setting up more supply outlets than any other rivals in the location

Question 6

A company's strategy is a "work in progress" and evolves over time because of:

Accepted Answer

A)  the importance of developing a fresh strategic plan every year that keeps employees from becoming bored with executing the same strategy year after year. 
B)  the ongoing need to imitate the new strategic moves of the industry leaders. 
C)  the need to make regular adjustments in the company's strategic vision. 
D)  the ongoing need of company managers to react and respond to changing market and competitive conditions. 
E)  the frequent need to modify key elements of the company's business model.

Question 7

A company's strategy represents a managerial commitment to an integrated array of considered choices about how to compete.This includes the choice about how to capitalize on attractive opportunities to grow the business.Why is opportunity recognition a vital component of the company's strategy?

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Question 8

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

Question 9

Strategy is about competing differently than rivals,thus strategy success is about:

Accepted Answer

A)  the sources of sustained advantages and superior profitability. 
B)  those emergent,unplanned,reactive,and adaptive plans that are more appropriate than deliberate or intended ones that drive the realized strategy. 
C)  matching internal resources and capabilities to the industry environment. 
D)  keeping the firm current with the rapid pace of change in the industry. 
E)  replacing proactive and reactive measures by modified ongoing strategic elements to preserve company values.

Question 10

Is it more accurate to think of strategy as being "proactive" or as being "reactive"? Why?

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Question 11

What factors determine whether a strategy can be called a winning strategy?

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Question 12

A fashion magazine plans to cuts down on its fashion-related content and provides the space for high-priced advertisements,but fails to convince giant fashion brands to advertise in the magazine.What do we understand from this failure?

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Question 13

Which of the following is NOT one of the managerial considerations in determining how to compete successfully?

Accepted Answer

A)  How can a company attract,keep,and please customers? 
B)  How can a company modify its entire product line to emphasize its internal service attributes? 
C)  How should a company respond to changing economic and market conditions? 
D)  How should a company be competitive against rivals? 
E)  How should a company position itself in the marketplace?

Question 14

The objectives of a well-crafted strategy require management to strive to:

Accepted Answer

A)  match rival businesses' products and quality dimensions in the marketplace. 
B)  build profits for short-term success. 
C)  realign the market to provoke change in rival companies. 
D)  develop lasting success that can support growth and secure the company's future over the long term. 
E)  re-create their business models regularly.

Question 15

A new entrant in a market uses copycat products at its rival at budget prices.What can you say about this company's long-term success?

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Question 16

Excellent execution of an excellent strategy is:

Accepted Answer

A)  the best test of managerial excellence and the best recipe for making a company a standout performer. 
B)  a solid indication that managers are maximizing profits and looking out for the best interests of shareholders. 
C)  the best test of whether a company is a "true" industry leader. 
D)  the best evidence that managers have a emerging business model. 
E)  the best test of whether a company enjoys sustainable competitive advantage.

Question 17

Why are crafting and executing business strategies the foremost tasks of any organization?

Accepted Answer

A)  Because they are necessary ingredients of a sound operational business model 
B)  Because a good strategy coupled with a good strategy execution are the most telling signs of good management and allow a company to be a standout performer in the marketplace 
C)  Because the management skills of top executives are sharpened as they work their way through the strategy-making,strategy-executing processes 
D)  Because doing these tasks helps executives develop an appropriate strategic vision,strategic intent,and set of strategic objectives 
E)  Because of the contribution they make to maximizing value for shareholders

Question 18

Which of the following companies would have the LEAST bargaining power with its suppliers?

Accepted Answer

A)  A company that is involved in mass production of goods to cater its expanding customer base 
B)  A company that actively caters to a broad price-sensitive customer base 
C)  A company that generates high quality product components from easily available raw materials for a broad customer base 
D)  A company whose products are highly popular and easily available across most supermarkets 
E)  A company that offers high-cost specialized products that could be used only by customers of a certain age group

Question 19

Which of the following is true of a company's business model?

Accepted Answer

A)  It zeroes in on the customer value proposition and its related profit formula. 
B)  It explains why the customer value proposition takes precedence over the related profit formula to generate optimum revenues. 
C)  It details the ethical and socially responsible nature of the company's strategy. 
D)  It explains how it intends to achieve the same market position as a rival. 
E)  It is termed a winning model if it passes any one of the three strategy tests.

Question 20

Which of the following firms uses a deliberate strategy?

Accepted Answer

A)  A popular downtown theater that has been staging plays decides to begin booking rock and roll acts. 
B)  An airline company cuts frills in order to cope with increasing fuel prices. 
C)  An IT firm trims jobs during a recession. 
D)  A smartphone company divests its tablet production branch after not gaining market share. 
E)  An online jewelry site discontinues its line of turquoise rings due to lack of demand.

Exam 1: What Is Strategy and Why Is It Important