Question 1

In the course of crafting a strategy,which of the following is NOT a common management function?

Accepted Answer

A)  Abandoning certain strategy elements that have grown stale or become obsolete 
B)  Modifying the current strategy when market and competitive conditions take an unexpected turn or some aspects of the company's strategy hit a stone wall 
C)  Modifying the current strategy in response to the fresh strategic maneuvers of rival firms 
D)  Taking proactive actions to improve this or that piece of the strategy 
E)  Sharing the strategy with the public to gain additional customer and shareholder support

Question 2

What is strategy and why is it important?

Accepted Answer

The answer of What is strategy and why is it...

Question 3

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.

Question 4

The competitive moves and business approaches a company's management is using to grow the business,stake out a market position,attract and please customers,compete successfully,conduct operations,and achieve organizational objectives is referred to as its:

Accepted Answer

A)  strategy. 
B)  mission statement. 
C)  strategic intent. 
D)  cost-price framework. 
E)  market vision.

Question 5

What are the three tests of a winning strategy?

Accepted Answer

The answer of What are the three tests of a...

Question 6

Consider the following three companies and their strategies. · Company A is an established database management company that acquires a well-reputed but small publishing house to enter the booming publishing industry.
· Company B,a sports management house,declared bankruptcy during a recent recession but now has created a television network that airs regional sports events.
· Company C,a package delivery business,is a startup based on delivery efficiency models created by a few students,and delivers almost all kinds of packages.
Which of the following describes the use of strategies by these companies accurately?

Accepted Answer

A)  Company B employs an emergent strategy, whereas Companies A and C employ deliberate strategies. 
B)  All three companies employ deliberate strategies. 
C)  All three companies employ emergent strategies. 
D)  Company C employs a deliberate strategy, Companies A and B employ emergent strategy. 
E)  Companies A and C employ emergent strategies, Company B employs a deliberate strategy.

Question 7

An established company in a market decides to donate a part of its profits to a children's charity to improve its market image.Soon after it launched a website that offers new clothes,accessories,and books that could be donated to various children's charities by interested parties.The company gained positive publicity and its sales went up.What would you say about this strategy?

Accepted Answer

The answer of An established company in a market decides...

Question 8

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?

Question 9

Briefly define each of the following terms.
a.Sustainable competitive advantage
b.Deliberate strategy
c.Emergent strategy
d.Realized strategy
e.Abandoned strategy

Accepted Answer

The answer of Briefly define each of the following terms.
a.Sustainable...

Question 10

A well-establisher retail house offers lower-priced commodities to powerful buyers at widespread locations and has loyal suppliers that supply mass goods to the retailer.With fewer ways to achieve differentiation in the market,most other rivals offer similar products but lack sufficient funding to compete against the retail house.Which strategy has the house employed? Explain your answer.

Accepted Answer

The answer of A well-establisher retail house offers lower-priced commodities...

Question 11

A company's strategy in toto that tends to be a combination of proactive and reactive elements is known as its:

Accepted Answer

A)  realized strategy. 
B)  emergent strategy. 
C)  deliberate strategy 
D)  visionary strategy. 
E)  abandoned strategy.

Question 12

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 13

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.

Question 14

The pattern of actions and business approaches that would NOT define a company's strategy include actions to:

Accepted Answer

A)  strengthen market standing and competitiveness by acquiring or merging with other companies. 
B)  strengthen competitiveness via strategic coalitions and partnerships. 
C)  upgrade competitively important resources and capabilities. 
D)  gain sales and market share with lower prices despite increased costs. 
E)  strengthen the firm's bargaining position with suppliers and distributors.

Question 15

Explain in detail what a company's business model entails.

Accepted Answer

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Question 16

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?

Accepted Answer

The answer of A fashion magazine plans to cuts down...

Question 17

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 18

Why is it appropriate to argue that good strategy-making combined with good strategy execution are valid signs of good management?

Accepted Answer

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Question 19

BloomsJay Resorts Inc.has multiple tropical resorts in various locations.In a crowded market that caters to all kinds of consumers,this resort caters mainly to gays with guaranteed hassle-free holiday experience at a premium price.What strategy is BloomsJay using to gain competitive advantage?

Accepted Answer

A)  A low-cost provider strategy 
B)  A broad differentiation strategy 
C)  A focused low-cost strategy 
D)  A focused differentiation strategy 
E)  A best-cost provider strategy

Question 20

A company achieves a competitive advantage when it:

Accepted Answer

A)  provides buyers with superior value compared to rival sellers or offers the same value at a lower cost. 
B)  has a profitable business model. 
C)  is able to maximize shareholder wealth. 
D)  is consistently able to achieve both its strategic and financial objectives. 
E)  has a strategy well-matched to its business model.

Exam 1: What Is Strategy and Why Is It Important