GLO BUS EXAMINATION TEST VERIFIED
QUESTIONS AND SOLUTIONS GRADED A+
●● A winning strategy is one that
Answer: fits the company's internal and external situation, improves
company performance, and helps achieve sustainable competitive
advantage.
●● Typically, a company's strategy is
Answer: a blend of (1) proactive actions to improve the company's
financial performance and secure a competitive edge and (2) as-needed
reactions to unanticipated developments and fresh market conditions
●● A company's business model
Answer: is managements 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
●● A company achieves sustainable competitive advantage when
Answer: an attractive number of buyers are drawn to purchase its
products or services rather than those of competitors and when the basis
for the preference is durable, despite the efforts of competitors to nullify
or overcome the appeal of its product offering.
,●● What makes a competitive advantage sustainable or durable as
opposed to temporary
Answer: are actions or elements in a company's strategy that cause an
attractive number of buyers to have lasting reasons to purchase the
company's products or services, despite competitor's best efforts to
nullify or overcome those reasons
●● In choosing among strategy alternatives, company managers
Answer: are well advised to embrace actions strategic actions that can
pass the test of moral scrutiny-- it is not enough to just stay within the
boards of what is legal and is in compliance with prevailing government
regulations
●● Two crucial elements of a company's business model are
Answer: its profit proposition or "profit formula" and its customer value
proposition
●● Which of the following is not something a company's strategy is
concerned with?
Answer: Management's choice of which of several alternative business
models to employ in delivering value to customers and to shareholders
●● The reputational and financial damage that unethical strategies and
behavior can do to a company
,Answer: is substantial; consequently, there are good business reason for
a company and its personnel to avoid unethical strategic actions and
behaviors
●● According to Figure 1.1, which of the following is not something to
look for in identifying a company's strategy?
Answer: Actions to boost the company's earnings per share and stock
price
●● Changing circumstances and ongoing managerial efforts to improve
the strategy
Answer: account for why a company's strategy evolves over time and
why the task of crafting a company's strategy is a work in progress, not a
one-time event.
●● The competitive moves and business approaches a company's
management is using to attract and please customers, compete
successfully, grow the business, respond to changing market conditions,
conduct operations, and achieve the targeted financial and market
performance is what defines a company's
Answer: strategy
●● Crafting and executing strategy are top-priority managerial tasks
because
, Answer: how well a company performs and the degree of market success
it achieves are directly, attributable to the caliber of its strategy and the
proficiency with which the strategy is executed
●● Which of the following statements about a company's strategy is
false
Answer: A company's strategy is deliberately kept under wraps by top-
level managers so as to catch rival companies
●● The task of stitching together a strategy
Answer: entails addressing a series of hows: how to attract and please
customers, how to compete against rivals, how to position the company
in the marketplace vis-avis rivals, how best to pursue attractive
opportunities to grow the business, how best to respond to changing
economic and market conditions, how to manage each functional piece
of the business, and how to achieve the company's strategic and financial
objectives
●● The obligations of an investor-owned company's board of directors
in the strategy-making, strategy-executing process include
Answer: overseeing the company's financial accounting and financial
reporting practices and instituting a compensation plan for top
executives
●● A company's values, or core values, concern
QUESTIONS AND SOLUTIONS GRADED A+
●● A winning strategy is one that
Answer: fits the company's internal and external situation, improves
company performance, and helps achieve sustainable competitive
advantage.
●● Typically, a company's strategy is
Answer: a blend of (1) proactive actions to improve the company's
financial performance and secure a competitive edge and (2) as-needed
reactions to unanticipated developments and fresh market conditions
●● A company's business model
Answer: is managements 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
●● A company achieves sustainable competitive advantage when
Answer: an attractive number of buyers are drawn to purchase its
products or services rather than those of competitors and when the basis
for the preference is durable, despite the efforts of competitors to nullify
or overcome the appeal of its product offering.
,●● What makes a competitive advantage sustainable or durable as
opposed to temporary
Answer: are actions or elements in a company's strategy that cause an
attractive number of buyers to have lasting reasons to purchase the
company's products or services, despite competitor's best efforts to
nullify or overcome those reasons
●● In choosing among strategy alternatives, company managers
Answer: are well advised to embrace actions strategic actions that can
pass the test of moral scrutiny-- it is not enough to just stay within the
boards of what is legal and is in compliance with prevailing government
regulations
●● Two crucial elements of a company's business model are
Answer: its profit proposition or "profit formula" and its customer value
proposition
●● Which of the following is not something a company's strategy is
concerned with?
Answer: Management's choice of which of several alternative business
models to employ in delivering value to customers and to shareholders
●● The reputational and financial damage that unethical strategies and
behavior can do to a company
,Answer: is substantial; consequently, there are good business reason for
a company and its personnel to avoid unethical strategic actions and
behaviors
●● According to Figure 1.1, which of the following is not something to
look for in identifying a company's strategy?
Answer: Actions to boost the company's earnings per share and stock
price
●● Changing circumstances and ongoing managerial efforts to improve
the strategy
Answer: account for why a company's strategy evolves over time and
why the task of crafting a company's strategy is a work in progress, not a
one-time event.
●● The competitive moves and business approaches a company's
management is using to attract and please customers, compete
successfully, grow the business, respond to changing market conditions,
conduct operations, and achieve the targeted financial and market
performance is what defines a company's
Answer: strategy
●● Crafting and executing strategy are top-priority managerial tasks
because
, Answer: how well a company performs and the degree of market success
it achieves are directly, attributable to the caliber of its strategy and the
proficiency with which the strategy is executed
●● Which of the following statements about a company's strategy is
false
Answer: A company's strategy is deliberately kept under wraps by top-
level managers so as to catch rival companies
●● The task of stitching together a strategy
Answer: entails addressing a series of hows: how to attract and please
customers, how to compete against rivals, how to position the company
in the marketplace vis-avis rivals, how best to pursue attractive
opportunities to grow the business, how best to respond to changing
economic and market conditions, how to manage each functional piece
of the business, and how to achieve the company's strategic and financial
objectives
●● The obligations of an investor-owned company's board of directors
in the strategy-making, strategy-executing process include
Answer: overseeing the company's financial accounting and financial
reporting practices and instituting a compensation plan for top
executives
●● A company's values, or core values, concern
