Chapter 1-Self Graded Quiz MGMT Flashcards


Set Details Share
created 5 years ago by MrsBonilla2011
3,102 views
MGMT 4312-Essentials of Strategic Management
show moreless
Page to share:
Embed this setcancel
COPY
code changes based on your size selection
Size:
X
Show:
1

Which of the following statements about a company's strategy is true?

A. Crafting an excellent strategy is more important than executing it well.

B. A company's strategy deals with whether the revenue-cost-profit economics of its business model demonstrate the viability of the business enterprise as a whole.

C. Strategy at its essence is about competing differently — doing what rival firms do not do or cannot do.

D. Masterful strategies come partly (maybe mostly) by doing things in much the same way as the industry leader but then being better than the leader in one particular area that counts heavily with buyers.

E. Whether a company's strategy is ethical or not does not matter a lot because most customers and most suppliers are relatively unconcerned whether a company they do business with engages in sleazy practices or turns a blind eye to below-board behavior on the part of its employees.

C. Strategy at its essence is about competing differently — doing what rival firms do not do or cannot do.

2

A company's business model sets forth how its strategy and operating approaches _____________

A. help it become a market leader

B. will create value for customers and realize a profit

C. promote its long-term strategic directions

D. support its mission statement

E. diverge from its strategy

B. will create value for customers and realize a profit

3

Which one of the following is not related to actions and approaches that comprise a company's strategy?

A. Proving to shareholders that the company's business model is viable.

B. Achieving a low-cost provider strategy.

C. Seeking a broad differentiation strategy.

D. Concentrating on a focused low-cost strategy.

E. Pursuing a best-cost provider strategy.

A. Proving to shareholders that the company's business model is viable.

4

In answering the question, "How well does the strategy fit the company's situation?" management must have deliberate plans for addressing such issues as __________________

A. developing a sound business model and customer base.

B. emergent strategy elements, deliberate strategy elements, and abandoned strategy elements.

C. changing market conditions, development of internal capabilities and competencies, and allocation of financial resources.

D. "Where are we now?" and "Where do we want to go?"

E. how to develop copy-cat strategies.

C. changing market conditions, development of internal capabilities and competencies, and allocation of financial resources.

5

Which of the following is not an element of a company's business strategy?

A. Actions and approaches used in managing R&D, production, sales and marketing, finance, and other key activities.

B. Actions to strengthen competitiveness via strategic alliances and collaborative partnerships.

C. Actions to capture emerging market opportunities and defend against external threats to the company's business prospects.

D. Actions to enter new geographic or product markets.

E. Adhering to abandoned strategy elements.

E. Adhering to abandoned strategy elements.

6

Which of the following is not one of the most frequently used strategic approaches to building competitive advantage?

A. Sticking with an outdated business model.

B. Focusing on a narrow market niche within an industry.

C. Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage over rivals.

D. Developing an advantage based on offering more value for the money.

E. Creating a differentiation-based advantage over rivals.

A. Sticking with an outdated business model.

7

The heart and soul of any strategy _______________

A. is its ability to increase shareholder value.

B. is the actions and moves to gain a competitive edge over rivals in the marketplace.

C. deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner.

D. is the day-to-day demands of delivering a service or producing goods to be sold.

E. is its linkage with its business model.

B. is the actions and moves to gain a competitive edge over rivals in the marketplace.

8

Strategies that yield sustainable competitive advantage are important because __________

A. a competitive advantage is what enables a company to achieve its strategic objectives.

B. these enable a company to attract sufficiently large numbers of buyers who have a lasting preference for its products or services over those offered by rivals, despite the efforts of competitors to offset that appeal and overcome the company's advantage.

C. competitive advantage forms the underpinnings of a company's strategic vision.

D. increases in shareholder value are contingent on a sustainable competitive advantage.

E. none of the above.

B. these enable a company to attract sufficiently large numbers of buyers who have a lasting preference for its products or services over those offered by rivals, despite the efforts of competitors to offset that appeal and overcome the company's advantage.

9

A company achieves sustainable competitive advantage when ________________

A. it has a best-cost or focused differentiation business model.

B. it is able to increase shareholder value.

C. sufficient numbers of buyers believe the company has demonstrated a commitment to environmental sustainability.

D. an attractively large number of buyers develop a durable preference for its products or services over the offerings of competitors, despite the efforts of competitors to overcome or erode its advantage.

E. it is consistently able to achieve both its strategic and financial objectives.

D. an attractively large number of buyers develop a durable preference for its products or services over the offerings of competitors, despite the efforts of competitors to overcome or erode its advantage.

10

A strategy that distinguishes a company from its rivals and provides a sustainable competitive advantage ________________

A. is a company's most reliable ticket to above-average profitability.

B. is based heavily upon the emergent elements of its strategy.

C. is a reliable indicator that the company has a profitable business model.

D. is logical because the strategies of rival companies are often predicated on strikingly different business models.

E. is the best indicator that the company's strategy and business model are well matched and properly synchronized.

A. is a company's most reliable ticket to above-average profitability.

11

Approaches to achieving a sustainable competitive advantage include which of the following?

A. Developing unmatched resource strengths and competitive capabilities.

B. Focusing on a narrow market niche within an industry.

C. Strategies supportive of creating a differentiation-based advantage.

D. Strategies supportive of creating a cost-based advantage.

E. All of these.

E. All of these.

12

Company strategies evolve because ________________

A. it is a bad idea to do too much strategizing until a company has been in business long enough to know what strategies will work best.

B. most managers like to develop the strategy in bits and pieces rather than all at once.

C. a strategy does not really transition to a well-crafted stage until a company has been trying to execute it for a number of years and has learned what works and what doesn't.

D. of changing circumstances and ongoing management efforts to improve the strategy.

E. All of these.

D. of changing circumstances and ongoing management efforts to improve the strategy.

13

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

A. left unchanged from management's original planned set of actions and business approaches since making on-the-spot changes is too risky.

B. entailing a combination of defensive moves to protect the company's market share and offensive initiatives to set the company's product offering apart from rivals.

C. mimicking like the strategies of other industry members since all companies are confronting much the same market conditions and competitive pressures.

D. becoming a mirror image of its business model, so as to avoid impairing company profitability.

E. blending deliberate actions to improve the company's competitiveness and financial performance and unplanned reactions to changing circumstances and fresh market conditions.

E. blending deliberate actions to improve the company's competitiveness and financial performance and unplanned reactions to changing circumstances and fresh market conditions.

14

Which of the following statements about a company's realized strategy is true?

A. A company's realized strategy is usually kept secret.

B. A company's realized strategy is typically planned well in advance and usually deviates little from the planned set of actions.

C. A company's realized strategy is typically a blend of deliberate/planned initiatives and emergent/unplanned reactive strategy elements.

D. A company's realized strategy generally changes very little over time unless a newly appointed CEO decides to take the company in a new direction with a new strategy.

E. A company's realized strategy is developed mostly on a day-to-day basis because of the constant efforts of managers to keep rival companies at a disadvantage.

C. A company's realized strategy is typically a blend of deliberate/planned initiatives and emergent/unplanned reactive strategy elements.

15

A company's business model ________________

A. determines whether its strategy will be ethical or not.

B. is management's story line for how the strategy will result in achieving sustainable competitive advantage.

C. (1) specifies a customer value proposition, and (2) develops a profit formula.

D. identifies how the company plans to outmaneuver and outcompete key rivals and become a market leader.

E. sets forth the actions and approaches that it will rely on to earn the best profit margins in the industry.

C. (1) specifies a customer value proposition, and (2) develops a profit formula.

16

A viable business model ________________

A. sets forth how both strategy and operating approaches will create value for customers, and simultaneously generate ample revenues to cover costs to realize a profit.

B. lays out a compelling case for how the strategy will yield competitive advantage.

C. explains how high profit margins will be achieved despite charging relatively low prices to customers.

D. is always closely linked to the company's business strategy.

E. is specified a company's strategic vision.

A. sets forth how both strategy and operating approaches will create value for customers, and simultaneously generate ample revenues to cover costs to realize a profit.

17

Which of the following statements concerning producing good company performance is incorrect?

A. Existing strategies should never be scrutinized if they are working well.

B. New initiatives that don't seem to match a company's internal and external situation should always be retained as a contingency.

C. The bigger and more durable the competitive edge that a strategy helps to build, the more powerful it is.

D. It's unwise to build a strategy upon the company's weaknesses or pursue a strategic approach that requires resources that are deficient within the company.

E. Both (A) and (B) above.

E. Both (A) and (B) above.

18

A winning strategy is one that ________________

A. makes the company a market leader, is ethically and socially responsible, and maximizes profits.

B. is highly profitable and boosts the company's market share.

C. passes the profitability test, the ethics and social responsibility test, the customer satisfaction test, and the shareholder wealth test.

D. fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance.

E. passes the ethical standards test, the competitive advantage test, and the profitability test.

D. fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance.

19

Nothing affects a company's ultimate success or failure more fundamentally than ________________

A. abandoning markets as conditions change.

B. how well the strategy fits the company's business model.

C. developing multiple differentiating features in comparison to rivals.

D. how well its management team charts direction, develops effective strategic moves, and pursues daily operating excellence.

E. the creation of shareholder value.

D. how well its management team charts direction, develops effective strategic moves, and pursues daily operating excellence.

20

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

A. Did the strategy develop from an inclusive cooperative relationship between top-level management, line managers, and hourly personnel?

B. Is the strategy well matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance?

C. Has management responded to changing market conditions with emergent strategy elements?

D. Is the strategy built upon a viable business model?

E. Does the strategy strike a balance between shareholder interests and social responsibility?

B. Is the strategy well matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance?