Question 1

The most important aspect(s) of a company's business strategy
A) are the actions and moves in the marketplace that managers take to gain a sustainable competitive advantage.
B) is figuring out how to maximize profits and shareholder value.
C) concerns how to improve the efficiency of its business model.
D) deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner.
E) is figuring out how to become the industry's low-cost provider.

Accepted Answer

The most important aspect(s) of a company's business strategy is gaining a sustainable competitive advantage in the marketplace. This involves a series of actions and moves that managers take to outperform competitors, attract customers, and achieve stronger financial performance than rivals. While maximizing profits and shareholder value, improving efficiency, becoming a low-cost provider, and operating in a socially responsible manner are all important, they are not the primary focus of a business strategy. A successful strategy should create value for customers, differentiate the company from its competitors, and align with the company's capabilities and resources. Thus, choice A is the best answer.

Question 2

A company's strategy consists of
A) actions to develop a more appealing business model than rivals.
B) plans involving alignment of organizational activities and strategic objectives.
C) offensive and defensive moves to generate revenues and increase profit margins.
D) competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives.
E) its strategic vision, its strategic objectives, and its strategic intent.

Accepted Answer

A company's strategy consists of competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives. It includes both offensive and defensive moves to generate revenues and increase profit margins. A and B are too specific and do not encompass the full scope of a company's strategy, and while E includes important elements, it does not fully cover the competitive and operational aspects of a strategic approach.

Question 3

Proven approaches to winning a sustainable competitive advantage include which of the following?
A) Strategies keyed to developing a low-cost-based advantage.
B) Strategies keyed to creating a broad differentiation-based advantage.
C) Focusing on a narrow market niche within an industry.
D) Developing a best-cost provider strategy.
E) All of these.

Accepted Answer

All of the options listed are proven approaches to winning a sustainable competitive advantage. Developing a low-cost-based advantage generally involves achieving economies of scale or reducing costs through operational efficiency. Creating a broad differentiation-based advantage involves offering unique and valuable products or services that set the business apart from competitors. Focusing on a narrow market niche allows the business to specialize and serve a specific customer segment effectively. Developing a best-cost provider strategy seeks to offer customers the best value for their money by providing high-quality products or services at an affordable price. Combining any or all of these strategies can help a business to create and maintain a strong competitive advantage.

Question 4

Crafting a strategy involves
A) blending deliberate/planned initiatives with emergent/unplanned reactive responses to changing circumstances, while abandoning planned strategy elements that have failed in the marketplace.
B) developing a five-year strategic plan and then fine-tuning it during the remainder of the plan period.
C) trying to imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage.
D) doing everything possible (in the way of price, quality, service, warranties, advertising, and so on) to make sure the company's product/service is very clearly differentiated from the product/service offerings of rivals.
E) All of these accurately characterize the managerial process of crafting a company's strategy.

Accepted Answer

Crafting a strategy involves blending deliberate/planned initiatives with emergent/unplanned reactive responses to changing circumstances, while abandoning planned strategy elements that have failed in the marketplace. This approach allows the company to maintain a balance between long-term planning and short-term flexibility to adapt to changes in the business environment. The other options are either too rigid, too focused on competitors, or too narrow in their definition of crafting a strategy.

Question 5

A company may develop an emergent strategy due to
A) strategic moves by rival firms.
B) unexpected shifts in customer preferences.
C) fast-changing technological developments.
D) new market opportunities.
E) All of these.

Accepted Answer

All of the options listed can lead to the development of an emergent strategy. Rival firms' strategic moves, unexpected shifts in customer preferences, fast-changing technological developments, and new market opportunities all have the potential to disrupt a company's existing plans and require adapting and changing direction, which can result in an emergent strategy.

Question 6

Managers in all types of businesses must address the central strategic question
A) Where are we now?
B) Where do we want to go from here?
C) How are we going to get there?
D) When will we know we are there?
E) All of these

Accepted Answer

The answer of Managers in all types of businesses must...

Question 7

Which of the following is not one of the basic reasons that a company's strategy evolves over time?
A) An ongoing need to abandon those strategy features that are no longer working well
B) The proactive efforts of company managers to improve the company's financial performance and secure a competitive advantage
C) The need on the part of company managers to make regular adjustments in the company's business model
D) The need to respond to the actions and competitive moves of rival firms
E) The need to keep strategy in step with changing industry and competitive conditions

Accepted Answer

The answer of Which of the following is not one...

Question 8

It is normal for a company's strategy to end up being
A) a blend of offensive actions and defensive moves to counteract changing market conditions to improve the company's profitability.
B) a combination of conservative moves to protect the company's market share and somewhat more risky initiatives to set the company's product offering apart from rivals.
C) a close imitation of the strategy employed by the recognized industry leader.
D) a blend of deliberate planned actions to improve the company's competitiveness and financial performance and as-needed unplanned reactions to unanticipated developments and fresh market conditions.
E) more a product of clever entrepreneurship than of efforts to clearly set a company's product/service offering apart from the offerings of rivals.

Accepted Answer

It is normal for a company's strategy to be a mix of planned and unplanned actions. Deliberate actions are required to improve a company's competitiveness and financial performance, while unplanned responses are required to address unanticipated developments and changing market circumstances. This combination of proactive and reactive initiatives is essential for achieving long-term success in today's dynamic business environment.

Question 9

Changing circumstances and ongoing managerial efforts to improve the strategy
A) account for why a company's strategy evolves over time.
B) explain why a company's strategic vision undergoes almost constant change.
C) make it very difficult for a company to have concrete strategic objectives.
D) make it very hard to know what a company's strategy really is.
E) All of the above.

Accepted Answer

Changing circumstances and ongoing managerial efforts to improve the strategy can lead to changes in the company's direction and goals, which may require adjustments to its strategy. As a result, a company's strategy must evolve over time to remain relevant and effective.

Question 10

The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attract and please customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its
A) strategy.
B) mission statement.
C) strategic intent.
D) business model.
E) strategic vision.

Accepted Answer

The definition provided clearly describes the concept of strategy. The other options are either too narrow (mission statement, strategic intent, strategic vision) or too broad (business model) to encompass all the elements mentioned in the definition.

Question 11

A company achieves sustainable competitive advantage when
A) it has a profitable business model.
B) a sufficiently large number of buyers have a lasting preference for its products or services as compared to the offerings of competitors.
C) it is able to maximize shareholder wealth.
D) it is consistently able to achieve both its strategic and financial objectives.
E) its strategy and its business model are well-matched and in sync.

Accepted Answer

Sustainable competitive advantage is achieved when a company can maintain a competitive edge over its rivals for a significant period of time. This is possible when a sufficiently large number of buyers have a lasting preference for its products or services as compared to the offerings of competitors. A profitable business model, maximizing shareholder wealth, consistent achievement of strategic and financial objectives, and alignment of strategy and business model are important factors, but they do not necessarily guarantee sustainable competitive advantage.

Question 12

A company's strategy is a "work in progress" and evolves over time because of
A) the ongoing need of company managers to react and respond to changing industry and competitive conditions.
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 importance of developing a fresh strategic plan every year.
E) the frequent need to modify key elements of the company's business model.

Accepted Answer

A company's strategy is a "work in progress" and evolves over time because of the ongoing need of company managers to react and respond to changing industry and competitive conditions. As the industry and competition change, companies need to adjust their strategies to remain competitive and maintain a leading position in the market. This requires ongoing monitoring and evaluation of the company's strategy to ensure it remains relevant and effective.

Question 13

Which of the following is not something a company's strategy is concerned with?
A) Management's choices about how to attract and please customers
B) Management's choices about how quickly and closely to copy the strategies being used by successful rival companies
C) Management's choices about how to grow the business
D) Management's choices about how to outcompete rivals
E) Management's action plan for conducting operations and improving the company's strategic and financial performance

Accepted Answer

A company's strategy is concerned with choices related to attracting and pleasing customers, growing the business, outcompeting rivals, and improving strategic and financial performance. However, copying strategies of successful rivals is not a proactive strategy but rather a reactive tactic that does not necessarily guarantee success. Therefore, B is not something a company's strategy is concerned with.

Question 14

A company's strategy is most accurately defined as
A) management's approaches to building revenues, controlling costs, and generating an attractive profit.
B) management's game plan for growing the business, attracting and pleasing customers, conducting operations, and achieving financial and market performance objectives.
C) management's concept of "where we are headed."
D) the business model that a company's board of directors has approved for outcompeting rivals and making the company profitable.
E) the choices management has made regarding what financial plan to pursue.

Accepted Answer

A company's strategy encompasses its overall plan for achieving success in the market. This includes its approach to growth, customer satisfaction, operations, financial performance, and market performance. While revenue generation and cost control are important components of a company's strategy, they are not comprehensive enough to fully define it. Similarly, a company's concept of "where we are headed" is too broad and vague to be considered a strategy on its own. The business model approved by a company's board of directors is certainly an important aspect of its strategy, but it is only one part of a larger plan that encompasses all aspects of the business. Finally, a company's financial plan is not its overall strategy, but rather a component of it.

Question 15

A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage
A) is a reliable indicator that the company has a profitable business model.
B) is a company's most reliable ticket to above-average profitability.
C) signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives.
D) is the best indicator that the company's strategy and business model are well-matched and properly synchronized.
E) All of these.

Accepted Answer

The answer of A creative, distinctive strategy that sets a...

Question 16

Which of the following is not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?
A) Aiming for a cost-based competitive advantage
B) Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, or more attractive styling
C) Striving to be more profitable than rivals by aiming for a competitive edge based on bigger profit margins
D) Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of satisfying the needs and tastes of buyers comprising the niche
E) Developing expertise and resources that give the company competitive capabilities that rivals can't easily imitate or trump with capabilities of their own

Accepted Answer

Striving to be more profitable than rivals by aiming for a competitive edge based on bigger profit margins is not a frequently used strategic approach. While profitability is certainly an important goal, the focus of competitiveness is usually on things like providing better value to customers or developing unique capabilities that give the company an advantage. Simply trying to be more profitable than rivals by increasing profit margins is unlikely to be sustainable in the long run.

Question 17

Which of the following is an issue likely to be addressed by a company's business strategy?
A) Actions to respond to changing economic and market conditions.
B) Actions to supplement the company's resources and capabilities through alliances and joint ventures.
C) Reactions to offensive moves by rival sellers.
D) Actions and approaches used in managing the functional areas of the business.
E) All of these are pertinent in identifying a company's strategy.

Accepted Answer

All of these issues are relevant to a company's business strategy. A company's strategy should address how it will respond to changing economic and market conditions, supplement its resources and capabilities, react to offensive moves by rivals, and manage its functional areas effectively.

Question 18

A creative, distinctive strategy that delivers a sustainable competitive advantage is important because
A) without a proven strategy a company is likely to fall into bankruptcy.
B) without a competitive advantage a company cannot have a profitable business model.
C) a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance.
D) a competitive advantage is what enables a company to achieve its strategic objectives.
E) how a company goes about trying to please customers and outcompete rivals is what enables senior managers to choose an appropriate strategic vision for the company.

Accepted Answer

A sustainable competitive advantage allows a company to differentiate itself from its rivals and maintain higher profitability over the long-term. This is crucial for a company's financial performance and success.

Question 19

Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?
A) Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage.
B) Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, or technological superiority.
C) Developing competitively valuable resources and capabilities that rivals can't easily match, copy, or trump with capabilities of their own.
D) Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche.
E) All of these.

Accepted Answer

All of the above choices are frequently used strategic approaches to setting a company apart from rivals and achieving a sustainable competitive advantage. Companies can strive to be the industry's low-cost provider, outcompete rivals on the basis of differentiating features, develop competitively valuable resources and capabilities, or focus on a narrow market niche to win a competitive edge. Each approach has its own advantages and challenges, and the best approach depends on the company's goals, resources, and industry dynamics.

Question 20

Which of the following is not an element of a company's business strategy?
A) Actions to respond to changing market conditions or other external factors
B) Actions to strengthen competitiveness via strategic alliances and collaborative partnerships
C) Actions to strengthen internal capabilities and competitively valuable resources
D) Actions to manage the functional areas of the business
E) Management actions to revise the company's financial and strategic performance targets

Accepted Answer

The answer of Which of the following is not an...

Quiz 1: What Is Strategy and Why Is It Important

The most important aspect(s) of a company's business strategy

A company's strategy consists of

Proven approaches to winning a sustainable competitive advantage include which of the following?

Crafting a strategy involves

A company may develop an emergent strategy due to

Managers in all types of businesses must address the central strategic question

Which of the following is not one of the basic reasons that a company's strategy evolves over time?

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

Changing circumstances and ongoing managerial efforts to improve the strategy

The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attract and please customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its

A company achieves sustainable competitive advantage when

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

Which of the following is not something a company's strategy is concerned with?

A company's strategy is most accurately defined as

A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage

Which of the following is not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?

Which of the following is an issue likely to be addressed by a company's business strategy?

A creative, distinctive strategy that delivers a sustainable competitive advantage is important because

Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?

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