Deck 4: Introduction to Strategy

Question 1

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

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

Answer 1

C

Question 2

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

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

Answer 2

B

Question 3

The first step to create competitive advantage through a strategy is to:

A) generate better information than the rivals.
B) make choices based on the available information.
C) convert strategic choices into decisive actions.
D) analyze the information that is available.

Answer 3

A

Question 4

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

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

Question 5

Which of the following best defines corporate-level strategy?

A) The determination of how a company will compete in a given business and position itself among its competitors
B) The process of identifying how a firm can best align its resources to carve out a defensible position in the marketplace
C) The way a company seeks to create value through the configuration and coordination of multimarket activities
D) A projected state of affairs that a person or system plans or intends to achieve or bring about

Question 6

According to the Roman military strategists,strategy was considered as:

A) the manager's "game plan" to attain personal gain.
B) represented by the specific moves or actions their armies performed.
C) a plan of action designed to achieve a specific goal.
D) a plan not usually aimed at creating a military advantage.

Question 7

Which of the following statements best describes multinational strategies?

A) They focus on developing overall scale economies and global efficiency instead of catering to local tastes.
B) They focus on efficiency,local responsiveness,and organizational learning.
C) They are used by firms to compete in a given business and position themselves among their competitors.
D) They are used by firms when it is important to be responsive and sensitive to local needs and tastes.

Question 8

Which of the following statements is true about strategy formulation?

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 9

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

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 10

When a manager determines whether a firm's strategy leverages its key resources,which of the following criteria for evaluating the quality of a firm's strategy is the manager assessing?

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

Question 11

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?

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

Question 12

An emergent component of a firm's strategy:

A) involves the systematic assessment of the external and internal environments.
B) includes the creation of plans to react to or impact environmental factors.
C) makes it flexible and adaptable to changing environmental conditions.
D) establishes the objectives or benchmarks the firm hopes to achieve.

Question 13

According to military leaders,tactics differed from strategy in that:

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.

Question 14

Identify a benefit provided by an effective mission statement.

A) It outlines the history of the organization.
B) It communicates the firm's rules and regulations.
C) It states the different levels of authority within the firm.
D) It defines the purpose of the company.

Question 15

TechPark,a manufacturing company,was in the process of formulating a strategy in an attempt to improve the firm's competitive advantage.The management began by evaluating the resources available within the organization to better understand how the firm should compete.Eventually they decided to offer their products at a lower cost compared to that of their competitors.Identify the strategy used by the management of TechPark.

A) Corporate-level strategy
B) Transnational strategy
C) Business-level strategy
D) Global strategy

Question 16

Which of the following questions is most important to the development of a firm's strategy?

A) What is the purpose of the business?
B) How will environmental forces impact the firm's business?
C) What stakeholders are important?
D) How to distinguish the firm from its competitors?

Question 17

In the formulation of strategy,managers must create a solid fit among the activities to:

A) make a competitive strategy that is different from others.
B) offer a service that cannot be easily copied by competitors.
C) decide what the company will not be doing.
D) operate more effectively than its competitors.

Question 18

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.They finally decide to open a new outlet in Berylia,by offering products with reduced cost as the demand for their product is greater in Berylia.This scenario is an example of _____ in defining a strategy.

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

Question 19

Which of the following statements best describes the function of a firm's strategy?

A) It states the firm's standardized rules and procedures.
B) It specifies how the firm intends to achieve its goals.
C) It provides information for stakeholder mapping.
D) It classifies the internal business environmental factors.

Question 20

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

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 of what a firm wants to achieve and how it plans to accomplish that

Question 21

Z-Technologies,a manufacturing company in Berylia,is a global organization.The company owns a manufacturing unit in Erbia and another one in Rhodia,where the demand for its products is more.Though it is an expensive and risky proposition,the parent company has full control of the manufacturing units in the foreign countries.Which of the following market entry strategies has been used by Z-Technologies?

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

Question 22

In considering a strategy for a firm,its leaders must decide on how they seek to position the firm within the marketplace.

Question 23

Briefly describe the use of strategy by the Roman military leaders.

Question 24

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

A) It involves setting 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 25

Outline the features of exporting.

Question 26

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

Question 27

To Roman military leaders,strategy represented the specific moves or actions their armies would perform on the battlefield.

Question 28

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

Question 29

Strategies that combine elements of multinational and global strategies by using foreign subsidiaries to produce and distribute products are known as _____.

A) business-level strategies
B) international strategies
C) corporate-level strategies
D) transnational strategies

Question 30

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

Question 31

Describe the business-level strategy.

Question 32

The transnational strategy is a cross between global and multinational strategies.

Question 33

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

Question 34

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

Question 35

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

Question 36

The transnational strategy focuses on:

A) efficiency,local responsiveness,and organizational learning.
B) how a company will compete in a given business.
C) being responsive and sensitive to local needs and tastes.
D) providing a standardized product to all markets.

Question 37

What are the three elements a manager should consider while developing a strategy?

Question 38

A global strategy:

A) attempts to provide a standardized product to all markets.
B) attempts to be responsive and sensitive to local needs and tastes.
C) focuses on local responsiveness and organizational learning.
D) is a cross between international and multinational strategies.

Question 39

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

Question 40

The vision of the firm is a definition of what activities the firm performs for its customers.