BSG Midterm Exam 1 Questions with
Complete Solutions16
A company's strategy - ANSWERS-represents managerial commitment to undertake one set of
actions rather than another in an effort to compete successfully and achieve good performance
outcomes.
There are many routes to competitive advantage, but they all involve - ANSWERS-providing
buyers with what they perceive as superior value compared to the offerings of rival sellers.
Which one of the following statements about whether a company's strategy can be considered
ethical is true? - ANSWERS-just keeping a company's strategic actions within the bounds of what
is legal does not mean the strategy is ethical.
Among all the things managers do, nothing affects a company's ultimate success or failure more
fundamentally than - ANSWERS-how well its management team charts the company's direction,
develops competitively effective strategic moves and business approaches, and pursues what
needs to be done internally to produce good day-in/day-out strategy execution and operating
excellence.
The difference between a company's strategy and a company's business model is that -
ANSWERS-its strategy is defined by the specific market positioning, competitive moves, and
business approaches management employs to try to produce good business results while its
business model relates to management's blueprint for delivering a valuable product or service
to customers in a manner that will generate revenue sufficient to cover costs and yield an
attractive profit.
Which of the following is NOT one of the reasons that a company's strategy evolves over time? -
ANSWERS-the need on the part of company managers to make regular strategy adjustments so
as to keep rivals off balance and always guessing about what moves it will make next.
,A company achieves competitive advantage when - ANSWERS-it has some type of edge over
rivals in attracting buyers and coping with competitive forces.
Which one of the following does NOT account for why a company's strategy evolves over time,
as shown in Figure 1.2 and explained in the accompanying text discussion? - ANSWERS-
managerial preferences for keeping the life-cycle of any given strategy short.
In choosing among strategy alternatives, company managers - ANSWERS-are well-advised to
embrace strategic actions that can pass the test of moral scrutiny -- it is not enough to just stay
within the bounds of what is legal and is in compliance with prevailing government regulations.
A company's strategy evolves from one version to the next - ANSWERS-as managers abandon
obsolete or ineffective strategy elements, settle upon a set of proactive strategy elements, and
then -- as new circumstances unfold -- make adaptive strategic adjustments, which gives rise to
reactive strategy elements.
According to Figure 1.1, which of the following is NOT something to look for in identifying a
company's strategy? - ANSWERS-actions to strengthen the company's competitive position by
hiring one or more new top executives or laying off a portion of its work force or paying down
its long-term debt.
The two crucial elements of a company's business model are - ANSWERS-its profit proposition
or "profit formula" and its customer value proposition.
Which one of the following questions can be used to distinguish a winning strategy from a
mediocre or losing strategy? - ANSWERS-how well does the strategy fit the company's situation?
A company's business model - ANSWERS-sets forth how its strategy and operating approaches
will create value for customers while at the same time generating revenues sufficient to cover
costs and realize a profit.
, A company's strategy is most accurately defined as - ANSWERS-management's commitment to
pursue a particular set of actions in attracting and pleasing customers, competing successfully,
capitalizing on opportunities to grow the business, responding to changing market conditions,
conducting operations, and achieving the targeted financial and market performance.
A company's strategic plan - ANSWERS-lays out its future direction, business purposes,
performance targets, and strategy -- in other words, a strategic vision + mission + a set of
objectives + a strategy = a strategic plan.
Which one of the following is NOT one of the external or internal considerations in deciding on
a company's future direction? - ANSWERS-what actions should the company take to become a
global leader and the first choice of customers in every market the company competes in?
Which of the following are part of the strategy-making, strategy-executing process shown in
Figure 2.1? - ANSWERS-setting objectives and using them as yardsticks for measuring the
company's performance and tracking its progress in achieving the intended strategic vision and
mission.
Setting and achieving strategic objectives is critically important because - ANSWERS-a stronger
market standing with buyers and improved competitive strength to combat rivals' vitality --
especially when these result in a bigger competitive advantage -- is what enables and empowers
a company to improve its financial performance in upcoming periods.
A company's values relate to such things as - ANSWERS-fair treatment, honor and integrity,
ethical behavior, innovativeness, teamwork, accountability, a passion for top-notch quality or
superior customer service, social responsibility, and community citizenship.
A company with strategic intent is one that - ANSWERS-concentrates the full force of its
resources and competitive actions on achieving an ambitious strategic outcome.
Complete Solutions16
A company's strategy - ANSWERS-represents managerial commitment to undertake one set of
actions rather than another in an effort to compete successfully and achieve good performance
outcomes.
There are many routes to competitive advantage, but they all involve - ANSWERS-providing
buyers with what they perceive as superior value compared to the offerings of rival sellers.
Which one of the following statements about whether a company's strategy can be considered
ethical is true? - ANSWERS-just keeping a company's strategic actions within the bounds of what
is legal does not mean the strategy is ethical.
Among all the things managers do, nothing affects a company's ultimate success or failure more
fundamentally than - ANSWERS-how well its management team charts the company's direction,
develops competitively effective strategic moves and business approaches, and pursues what
needs to be done internally to produce good day-in/day-out strategy execution and operating
excellence.
The difference between a company's strategy and a company's business model is that -
ANSWERS-its strategy is defined by the specific market positioning, competitive moves, and
business approaches management employs to try to produce good business results while its
business model relates to management's blueprint for delivering a valuable product or service
to customers in a manner that will generate revenue sufficient to cover costs and yield an
attractive profit.
Which of the following is NOT one of the reasons that a company's strategy evolves over time? -
ANSWERS-the need on the part of company managers to make regular strategy adjustments so
as to keep rivals off balance and always guessing about what moves it will make next.
,A company achieves competitive advantage when - ANSWERS-it has some type of edge over
rivals in attracting buyers and coping with competitive forces.
Which one of the following does NOT account for why a company's strategy evolves over time,
as shown in Figure 1.2 and explained in the accompanying text discussion? - ANSWERS-
managerial preferences for keeping the life-cycle of any given strategy short.
In choosing among strategy alternatives, company managers - ANSWERS-are well-advised to
embrace strategic actions that can pass the test of moral scrutiny -- it is not enough to just stay
within the bounds of what is legal and is in compliance with prevailing government regulations.
A company's strategy evolves from one version to the next - ANSWERS-as managers abandon
obsolete or ineffective strategy elements, settle upon a set of proactive strategy elements, and
then -- as new circumstances unfold -- make adaptive strategic adjustments, which gives rise to
reactive strategy elements.
According to Figure 1.1, which of the following is NOT something to look for in identifying a
company's strategy? - ANSWERS-actions to strengthen the company's competitive position by
hiring one or more new top executives or laying off a portion of its work force or paying down
its long-term debt.
The two crucial elements of a company's business model are - ANSWERS-its profit proposition
or "profit formula" and its customer value proposition.
Which one of the following questions can be used to distinguish a winning strategy from a
mediocre or losing strategy? - ANSWERS-how well does the strategy fit the company's situation?
A company's business model - ANSWERS-sets forth how its strategy and operating approaches
will create value for customers while at the same time generating revenues sufficient to cover
costs and realize a profit.
, A company's strategy is most accurately defined as - ANSWERS-management's commitment to
pursue a particular set of actions in attracting and pleasing customers, competing successfully,
capitalizing on opportunities to grow the business, responding to changing market conditions,
conducting operations, and achieving the targeted financial and market performance.
A company's strategic plan - ANSWERS-lays out its future direction, business purposes,
performance targets, and strategy -- in other words, a strategic vision + mission + a set of
objectives + a strategy = a strategic plan.
Which one of the following is NOT one of the external or internal considerations in deciding on
a company's future direction? - ANSWERS-what actions should the company take to become a
global leader and the first choice of customers in every market the company competes in?
Which of the following are part of the strategy-making, strategy-executing process shown in
Figure 2.1? - ANSWERS-setting objectives and using them as yardsticks for measuring the
company's performance and tracking its progress in achieving the intended strategic vision and
mission.
Setting and achieving strategic objectives is critically important because - ANSWERS-a stronger
market standing with buyers and improved competitive strength to combat rivals' vitality --
especially when these result in a bigger competitive advantage -- is what enables and empowers
a company to improve its financial performance in upcoming periods.
A company's values relate to such things as - ANSWERS-fair treatment, honor and integrity,
ethical behavior, innovativeness, teamwork, accountability, a passion for top-notch quality or
superior customer service, social responsibility, and community citizenship.
A company with strategic intent is one that - ANSWERS-concentrates the full force of its
resources and competitive actions on achieving an ambitious strategic outcome.
