Question 1

Excellent execution of an excellent strategy is

Accepted Answer

Excellent execution is a crucial aspect of any successful strategy. It demonstrates the managerial excellence that is required to ensure that a company can stand out from its competitors. Effective execution means that managers are maximizing profits, looking out for the best interests of shareholders, and ensuring that the company has a sustainable competitive advantage. All of these factors are critical to making a company a standout performer in its industry. Therefore, choice A is the best option.

Question 2

A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do a joint venture for the acquisition and involves a major automobile giant to fund the deal. After a rocky start, the companies now have a strong market position and generate good profits. How would you characterize this company's strategy?

Accepted Answer

The strategy of acquiring a manufacturer of rare specialty drugs and involving a major automobile giant to fund the deal was initially risky due to the pharmaceutical giant's falling share prices and deficit. However, the joint venture proved to be successful, leading to strong market position and good profits. This indicates that the strategy ultimately passed the performance, competitive advantage, and fit tests. As a result, it can be characterized as a winning strategy.

Question 3

What is strategy and why is it important?

Accepted Answer

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Question 4

In evaluating proposed or existing strategies managers should

Accepted Answer

Scrutinizing the company's existing strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage, and result in above-average performance is the best approach. This allows managers to identify any shortcomings or areas for improvement and make necessary adjustments. The other options may not necessarily lead to effective strategy evaluation and implementation.

Question 5

Good strategy combined with good strategy execution

Accepted Answer

Good strategy is important, but executing it well is equally if not more important. A company that can effectively execute their strategy is a clear indication of strong management. While it does not guarantee avoiding periods of weak financial performance or being the best in the industry, it does increase the chances of success. Good strategy execution is a vital management function that ensures the company is achieving its objectives and goals. The business model is not the only factor that determines a company's success, and strategy execution is critical to achieving those goals.

Question 6

Ben Weprin is founder and CEO of Graduate Hotel, a growing chain of boutique hotels situated near college campuses and designed to cater to the nostalgia and local boosterism that are part of the culture of university towns. (Room keys are imprinted with the names of famous alumni, and public spaces are decorated with historical photos of campus life, vintage art and other collegiate artifacts.)Mr. Weprin and his company are trying to create a brand that will find year-round business by catering to more than just alumni coming back for once-a-year football weekends or 10-year anniversaries of their graduating classes. What is the major question that Mr. Weprin and his team need to ask about his company's strategy?

Accepted Answer

The major question Mr. Weprin and his team need to ask is what managers must do, and do well, to make the company a winner in the marketplace. This involves understanding the key activities and strategies that will differentiate Graduate Hotel from competitors and attract a consistent customer base beyond just alumni events.

Question 7

What are the three tests of a winning strategy?

Accepted Answer

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Question 8

Changing circumstances and ongoing managerial efforts to improve the strategy

Accepted Answer

Changing circumstances, such as shifts in the market or competitive landscape, can require a company to adapt and change its strategy to remain viable. Ongoing managerial efforts, such as seeking new opportunities or improving processes, can also lead to the evolution of a company's strategy.

Question 9

What is the connection between a company's strategy and its quest for sustainable competitive advantage?

Accepted Answer

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Question 10

To test the merits of a firm's strategy and distinguish it as a winning strategy, which major question needs to be addressed?

Accepted Answer

The major question that needs to be addressed to test the merits of a firm's strategy as a winning strategy is whether the strategy is helping the company achieve a sustainable competitive advantage and resulting in better company performance. This is because a winning strategy should result in a competitive advantage and improved performance for the company. Option A, B, C, and E are also important aspects of a firm's strategy, but they are not as important as having a strategy that can deliver a sustainable competitive advantage and improve company performance.

Question 11

For John Sidanta, CEO and founder of Primaplast, a manufacturer of biodegradable plastic drinking straws made from recycled material, crafting and executing a strategy is a top-priority managerial task because it

Accepted Answer

John Sidanta emphasizes on crafting and executing a strategy because it is a game plan for competitive advantage, improvement of performance and customer satisfaction, and a roadmap to conduct business effectively especially in the light of impending bans on conventional plastic drinking straws.

Question 12

A company's business strategy is not likely to include

Accepted Answer

A company's business strategy typically focuses on market conditions, competitiveness, internal capabilities, and functional management, rather than revising financial and strategic performance targets, which is more related to strategic planning and performance management.

Question 13

Consider the following five companies and their situations. •Company A is an established online fantasy sports gaming company that has been accused of game-rigging, bribes and kickbacks.
•Company B, a ride share company, has delayed its planned initial public offering due to reports of having an inhospitable workplace characterized by sexual harassment and discrimination.
•Company C, a pharmaceutical manufacturer, charges higher prices for life-saving drugs in some countries than it charges in others.
•Company D, a manufacturer and marketer of high-end consumer electronics, has a strict Code of Conduct that requires its suppliers to comply with several standards regarding safe working conditions, fair treatment of workers, and environmentally safe manufacturing.
•Company E, a pizza delivery business, is a being boycotted by customers and losing sponsored tie-ins with professional sports due to racist comments by its founder and CEO.
Which of the above companies is distinguished by an ethical strategy as opposed to an unethical or flawed strategy?

Accepted Answer

Company D has a policy of requiring its suppliers to comply with ethical standards regarding safe working conditions, fair treatment of workers, and environmentally safe manufacturing. This is evidence of an ethical strategy.

Question 14

The most significant signs of a well-managed company are

Accepted Answer

While all of the options listed are important for a well-managed company, good strategy-making combined with good strategy execution is the most significant as it ensures the company is both effectively planning and executing its goals. Without effective strategy-making and execution, even the most ambitious vision or pursuit of new opportunities may not lead to success.

Question 15

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....

Question 16

A company achieves sustainable competitive advantage when

Accepted Answer

Sustainable competitive advantage is achieved when a company has a long-term advantage over its competitors, and this is typically achieved when a sufficiently large number of buyers have a lasting preference for its products or services compared to its competitors. This preference could be due to factors such as quality, price, brand image, and customer service. Therefore, option B is the best choice. Options A, C, D, and E are important factors for a company's success, but alone, they do not guarantee sustainable competitive advantage.

Question 17

Identify and briefly describe the five most frequently used strategic approaches to achieving a sustainable competitive advantage. Provide examples.

Accepted Answer

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Question 18

Why are crafting and executing business strategies the foremost tasks of any organization?

Accepted Answer

Crafting and executing business strategies are important because a good strategy paired with effective execution can set a company apart from its competitors and result in outstanding performance in the market.

Question 19

A seldom used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage is

Accepted Answer

E) Copying the attributes of a popular product or service is a seldom used strategic approach for achieving a sustainable competitive advantage because it does not provide a unique value proposition or differentiate the company from its rivals.

Question 20

A winning strategy is one that

Accepted Answer

A winning strategy should meet the criteria of fitting the company's internal and external situation, building sustainable competitive advantage, and improving company performance. It should be tailored to the company's strengths and weaknesses, as well as the opportunities and threats in the external environment. Additionally, it should create a sustainable advantage for the company over its competitors, leading to improved performance and long-term success.

Quiz 1: What Is Strategy and Why Is It Important?