Question 1

Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies.

Accepted Answer

False

Question 2

Strategy implementation involves the planning and decision making that lead to the establishment of the firm's goals.

Accepted Answer

Strategy implementation is the process of putting the chosen strategy into action. It involves establishing goals, but the planning and decision making leading to those goals already occurred during the strategy formulation phase.

Question 3

Better-Than-The-Rest,Inc.'s ability to market its products better than its competitors is an example of its core competence.

Accepted Answer

Core competence refers to a company's unique ability or expertise that sets it apart from its competitors and gives it a competitive advantage. Better-Than-The-Rest, Inc.'s ability to market its products better than its competitors is a unique and valuable skill that sets it apart and gives it an advantage, thus making it an example of its core competence.

Question 4

Strategic management largely determines which organizations succeed and which ones struggle.

Accepted Answer

Strategic management involves setting objectives, analyzing the competitive environment, and determining actions necessary to achieve organizational goals. Successful implementation of a sound strategic plan is crucial to a company's success, while inadequate strategic management often leads to struggle and failure.

Question 5

Research has shown that strategic thinking and planning positively affect a firm's performance and financial success.

Accepted Answer

Numerous studies have found that companies that engage in strategic thinking and planning tend to outperform their peers in terms of financial success and overall performance. Strategic planning helps firms to define their goals, set priorities, and make informed decisions about how to allocate resources in order to achieve those objectives. By doing so, organizations can more effectively manage risk, identify opportunities for growth and innovation, and stay ahead of changes in their competitive landscape. Overall, strategic thinking and planning are essential components of long-term success for businesses of all sizes and industries.

Question 6

The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy.

Accepted Answer

Synergy refers to the combined effort of two or more elements working together to achieve an outcome greater than the sum of their separate effects. This scenario describes how production and sales teams can work together to create a synergy that leads to increased profits.

Question 7

The "How do we compete?" question concerns functional-level strategy.

Accepted Answer

The answer of The "How do we compete?" question concerns...

Question 8

Corporate-level strategy pertains to the organization as a whole.

Accepted Answer

Corporate-level strategy involves decisions made by top management that affect the entire organization, such as diversification, mergers and acquisitions, and global expansion.

Question 9

Strategic decisions at the business level concern amount of advertising,direction and extent of R & D,product changes,new product development,equipment and facilities,and expansion or contraction of product lines.

Accepted Answer

Strategic decisions at the business level do concern these factors, among others.

Question 10

The administration and implementation of the strategic plan is strategy execution.

Accepted Answer

Strategy execution involves the actual implementation of the strategic plan and ensuring that organizational resources are directed towards achieving the goals outlined in the plan.

Question 11

The essence of formulating strategy is choosing how the organization will be identical to its key competitors in the industry.

Accepted Answer

The essence of formulating strategy is choosing how the organization will be different from its key competitors in the industry.

Question 12

The combination of benefits received and costs paid by the customer refers to value.

Accepted Answer

This statement defines the concept of value, where the benefits received by the customer must exceed the costs paid in order for the customer to perceive value.

Question 13

Executives acquire information about external opportunities and strengths from a variety of reports,including budgets,financial ratios,profit and loss statements,and surveys of employee attitudes and satisfaction.

Accepted Answer

The statement incorrectly associates external opportunities with internal documents like budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction. These documents primarily provide information about internal operations, strengths, and weaknesses, not external opportunities.

Question 14

Front-line managers have the final responsibility for strategic planning.

Accepted Answer

While front-line managers may be involved in the implementation of strategic plans, the ultimate responsibility for strategic planning typically falls to higher-level managers and executives. Front-line managers may contribute to the development of strategies but are not typically responsible for the final decision-making and implementation process.

Question 15

The three levels of strategy are business,corporate,and global.

Accepted Answer

The three levels of strategy are corporate, business, and functional. Corporate strategy focuses on the overall scope and direction of the corporation, business strategy is concerned with how the business competes within a particular market, and functional strategy deals with how parts of the business support the corporate and business strategies.

Question 16

SWOT analysis includes a review of the internal threats and opportunities.

Accepted Answer

The answer of SWOT analysis includes a review of the...

Question 17

Value occurs when the organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone.

Accepted Answer

The answer of Value occurs when the organizational parts interact...

Question 18

Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

Accepted Answer

Core competence refers to the unique capabilities and strengths of an organization that give it a competitive advantage in the marketplace. It is not a plan of action, but rather a strategic concept that influences resource allocation and other activities.

Question 19

Top managers and chief executives have the final responsibility for strategic planning.

Accepted Answer

Top managers and chief executives are responsible for setting the overall direction and priorities for the organization, including strategic planning. They have the ultimate decision-making authority in determining the long-term goals and objectives of the company.

Question 20

Internal analysis examines overall organization structure,management competence and quality,and human resource characteristics.

Accepted Answer

Internal analysis does indeed examine the overall organization structure, management competence and quality, and human resource characteristics.

Quiz 8: Strategy Formulation and Execution