Question 1

Strategy is about competing differently than rivals, thus strategy success is about:

Select one:

1. those emergent, unplanned, reactive, and adaptive plans that are more appropriate than deliberate or intended ones that drive the realized strategy.
2. keeping the firm current with the rapid pace of change in the industry.
3. matching internal resources and capabilities to the industry environment.
4. the sources of sustained advantages and superior profitability.

A successful strategy is a powerful one that aims at sustained competitive advantage and changes along with the evolving market and consumer needs and expectations. Such strategies are a combination of proactive and reactive elements that provide a competitive edge.

1. replacing proactive and reactive measures by modified ongoing strategic elements to preserve company values.

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A successful strategy is a powerful one that aims at sustained competitive advantage and changes along with the evolving market and consumer needs and expectations. Such strategies are a combination of proactive and reactive elements that provide a competitive edge.

A successful strategy is a powerful one that aims at sustained competitive advantage and changes along with the evolving market and consumer needs and expectations. Such strategies are a combination of proactive and reactive elements that provide a competitive edge.

The correct answer is: the sources of sustained advantages and superior profitability.

Question 2

 

Which of the following is true of a company’s business model?

Select one:

1. It details the ethical and socially responsible nature of the company’s strategy.
2. It explains why the customer value proposition takes precedence over the related profit formula to generate optimum revenues.
3. It explains how it intends to achieve the same market position as a rival.
4. It is termed a winning model if it passes any one of the three strategy tests.
5. It zeroes in on the customer value proposition and its related profit formula.

A company’s business model comprises its cost value proposition and related profit formula; it is implemented such that customers receive perceived optimum quality and the company receives optimum profits. For a strategy (or associated business model) to be a winning strategy it has to pass two or more of the tests.

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A company’s business model comprises its cost value proposition and related profit formula; it is implemented such that customers receive perceived optimum quality and the company receives optimum profits. For a strategy (or associated business model) to be a winning strategy it has to pass two or more of the tests.

A company’s business model comprises its cost value proposition and related profit formula; it is implemented such that customers receive perceived optimum quality and the company receives optimum profits. For a strategy (or associated business model) to be a winning strategy it has to pass two or more of the tests.

The correct answer is: It zeroes in on the customer value proposition and its related profit formula.

Question 3

 

Crafting a deliberate strategy involves developing strategy elements that:

Select one:

1. deliberately eliminate the ongoing strategic elements and implement new planned initiatives.
2. imitate as much of the market leader’s strategy as possible so as not to end up at a competitive disadvantage.
3. consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods.

The biggest portion of a company’s current strategy flows from previously initiated actions that have proven themselves in the marketplace and newly launched initiatives aimed at edging out rivals and boosting financial performance. This part of management’s action plan for running the company is its deliberate strategy, consisting of proactive strategy elements that are both planned and realized as planned.

1. consist of adaptive change plans to new market situations along with abandoned redundant ongoing elements.
2. comprise a five-year strategic plan that is then fine-tuned during the remainder of the plan period; big changes in strategy are thus made only once every five years.

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The biggest portion of a company’s current strategy flows from previously initiated actions that have proven themselves in the marketplace and newly launched initiatives aimed at edging out rivals and boosting financial performance. This part of management’s action plan for running the company is its deliberate strategy, consisting of proactive strategy elements that are both planned and realized as planned.

The biggest portion of a company’s current strategy flows from previously initiated actions that have proven themselves in the marketplace and newly launched initiatives aimed at edging out rivals and boosting financial performance. This part of management’s action plan for running the company is its deliberate strategy, consisting of proactive strategy elements that are both planned and realized as planned.

The correct answer is: consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods.

Question 4

 

The heart and soul of a company’s strategy-making effort is determining how to:

Select one:

1. maximize profits and shareholder value.
2. become the industry’s low-cost provider.
3. maximize profits while simultaneously operating in a socially responsible manner that keeps the company’s prices as low as possible.
4. come up with moves and actions that produce a durable competitive edge over rivals. 

A company achieves a competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces. Strategy, at its essence, is about competing differently—doing what rival firms don’t do or what rival firms can’t do.

1. improve the efficiency of its business model.

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A company achieves a competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces. Strategy, at its essence, is about competing differently—doing what rival firms don’t do or what rival firms can’t do.

A company achieves a competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces. Strategy, at its essence, is about competing differently—doing what rival firms don’t do or what rival firms can’t do.

The correct answer is: come up with moves and actions that produce a durable competitive edge over rivals.

Question 5

 

Managers must be prepared to modify their strategy in response to all of the following EXCEPT:

Select one:

1. changing circumstances that affect performance and the desire to improve the current strategy.
2. mounting evidence that the strategy is less effective.
3. public pronouncements from rivals about monthly profit margins. 

Managers of every company must be willing and ready to modify the strategy in response to changing market conditions, advancing technology, unexpected moves by competitors, shifting buyer needs, emerging market opportunities, and new ideas for improving the strategy.

1. competitor moves in the market and shifting needs of buyers.
2. stagnating market and restrictive industrial opportunities.

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Managers of every company must be willing and ready to modify the strategy in response to changing market conditions, advancing technology, unexpected moves by competitors, shifting buyer needs, emerging market opportunities, and new ideas for improving the strategy.

Managers of every company must be willing and ready to modify the strategy in response to changing market conditions, advancing technology, unexpected moves by competitors, shifting buyer needs, emerging market opportunities, and new ideas for improving the strategy.

The correct answer is: public pronouncements from rivals about monthly profit margins.

Question 6

 

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

Select one:

1. is a reliable indicator that the company has a socially responsible business model.
2. is achievable in emerging but not mature industries.
3. is a company’s most reliable ticket to above-average profitability.

If a company’s competitive edge holds promise for being sustainable (as opposed to just temporary), then so much the better for both the strategy and the company’s future profitability.

1. signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives.
2. is the best indicator that the company’s strategy and business model are well-matched and properly synchronized.

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If a company’s competitive edge holds promise for being sustainable (as opposed to just temporary), then so much the better for both the strategy and the company’s future profitability.

If a company’s competitive edge holds promise for being sustainable (as opposed to just temporary), then so much the better for both the strategy and the company’s future profitability.

The correct answer is: is a company’s most reliable ticket to above-average profitability.

Question 7

 

What separates a powerful strategy from a run-of-the-mill or ineffective one is:

Select one:

1. the ability of the strategy to keep the company profitable.
2. management’s ability to forge a series of actions, both in the marketplace and internally, that sets the company apart from rivals, and produces sustainable competitive advantage. 

A powerful strategy leads to a durable competitive advantage that competitors are unable to nullify or overcome despite their best efforts. This involves balancing and excelling in both internal and external environments.

1. the speed with which it helps the company achieve its strategic vision.
2. whether it allows the company to maximize shareholder value in the shortest possible time.
3. the proven ability of the strategy to generate maximum profits.

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A powerful strategy leads to a durable competitive advantage that competitors are unable to nullify or overcome despite their best efforts. This involves balancing and excelling in both internal and external environments.

A powerful strategy leads to a durable competitive advantage that competitors are unable to nullify or overcome despite their best efforts. This involves balancing and excelling in both internal and external environments.

The correct answer is: management’s ability to forge a series of actions, both in the marketplace and internally, that sets the company apart from rivals, and produces sustainable competitive advantage.

Question 8

 

A company’s strategy and its quest for competitive advantage are tightly connected because:

Select one:

1. a competitive advantage is what enables a company to achieve its strategic objectives.
2. without a competitive advantage a company cannot have a profitable business model.
3. crafting a strategy that yields a competitive advantage over rivals is a company’s most reliable means of achieving above-average profitability and financial performance.

A company might tailor a strategy in a new market without much competition to set a profitable business. But with competitors in a market, sustainable competitive advantage bestowed by a strong strategy gives buyers lasting reasons to prefer a company’s products or services over those of competitors—reasons that competitors are unable to nullify or overcome despite their best efforts.

1. 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.
2. without a competitive advantage a company cannot become the industry leader.

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A company might tailor a strategy in a new market without much competition to set a profitable business. But with competitors in a market, sustainable competitive advantage bestowed by a strong strategy gives buyers lasting reasons to prefer a company’s products or services over those of competitors—reasons that competitors are unable to nullify or overcome despite their best efforts.

A company might tailor a strategy in a new market without much competition to set a profitable business. But with competitors in a market, sustainable competitive advantage bestowed by a strong strategy gives buyers lasting reasons to prefer a company’s products or services over those of competitors—reasons that competitors are unable to nullify or overcome despite their best efforts.

The correct answer is: crafting a strategy that yields a competitive advantage over rivals is a company’s most reliable means of achieving above-average profitability and financial performance.

Question 9

 

The difference between a company’s strategy and a company’s business model is that:

Select one:

1. a company’s strategy is management’s game plan for achieving strategic objectives while its business model is management’s game plan for achieving financial objectives.
2. the strategy concerns how to compete successfully and the business model concerns how to operate efficiently.
3. a company’s strategy is management’s game plan for realizing the strategic vision, whereas a company’s business model is the game plan for accomplishing its corporate responsibility goals.
4. strategy relates broadly to a company’s competitive moves and business approaches while its business model relates to whether the revenues flowing from the strategy are sufficient to cover costs and realize a profit.

At the core of every sound strategy is the company’s business model. A business model is how a company plans to realize its strategies and usually revolves around the Value-Price-Cost Framework.

1. a company’s strategy is solely concerned with how to please customers while its business model is solely concerned with how to please shareholders.

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At the core of every sound strategy is the company’s business model. A business model is how a company plans to realize its strategies and usually revolves around the Value-Price-Cost Framework.

At the core of every sound strategy is the company’s business model. A business model is how a company plans to realize its strategies and usually revolves around the Value-Price-Cost Framework.

The correct answer is: strategy relates broadly to a company’s competitive moves and business approaches while its business model relates to whether the revenues flowing from the strategy are sufficient to cover costs and realize a profit.

Question 10

 

A company’s realized strategy evolves from one version to the next due to:

Select one:

1. ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy).
2. the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms.

A company’s strategy in totality (its realized strategy) tends to be a combination of proactive and reactive elements, with certain strategy elements being abandoned because they have become obsolete or ineffective. A company’s realized strategy can be observed in the pattern of its actions over time.

1. changing management direction because of understanding several appealing strategy alternatives.
2. pressures from shareholders to boost profit margins and pay higher dividends.
3. the importance of keeping the company’s business model fresh and up-to-date.

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A company’s strategy in totality (its realized strategy) tends to be a combination of proactive and reactive elements, with certain strategy elements being abandoned because they have become obsolete or ineffective. A company’s realized strategy can be observed in the pattern of its actions over time.

A company’s strategy in totality (its realized strategy) tends to be a combination of proactive and reactive elements, with certain strategy elements being abandoned because they have become obsolete or ineffective. A company’s realized strategy can be observed in the pattern of its actions over time.

The correct answer is: the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms.