TEST BANK
Crafting & Executing Strategy: The Quest for Competitive
Advantage: Concepts and Cases
ARTHUR A. THOMPSON
23rd edition
,Crafting and Executing Strategy Concepts 23rd Edition by
Thompson
ANSWERS ARE LOCATED IN THE SECOND PART OF THIS DOCUMENT
MULTIPLE CHOICE - Choose the one alternative that best completes the statement
or answers the question.
1) Managers of all types of business organizations must develop a clear answer for
which of the following questions?
1)
A) What approaches do we need to take in order to gain a competitive
advantage in the marketplace?
B) What is the set of actions that we need to take to outperform competitors
and achieve superior profitability?
C) Where are we now?
D) Where do we go from here?
E) When will we know that we are there?
Question Details
Difficulty : 1 Easy
Topic : Strategy and the Strategic Management Process
Learning Objective : 01-01 Understand what is meant by a company’s strategy and why it needs
to diffe Bloom's : Remember
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Gradable : automatic
2) Sanofi, a pharmaceutical company selling prescription drugs in France for the
past 10 years, has had moderate sales in a crowded market while its rivals manufacture
and market drugs having similar efficacy and safety precautions, but with superior
market share. This particular pharmaceutical company's greatest challenge is to increase
prescriptions of their drugs by French doctors. What would be the most effective
strategy for Sanofi to improve sales performance in its existing market?
2)
1|Page
,Crafting and Executing Strategy Concepts 23rd Edition by
Thompson
A) modifying marketing communication to increase brand familiarity
within key physician segments
B) relocating all the existing drug manufacturing facilities to developing
countries to reduce operational costs
C) employing hiring plans that aim at acquiring drug designers from rival
companies
D) exiting the market and entering a new unexplored geographical location
E) engaging in new contract talks with suppliers about price breaks
Question Details
Topic : Strategy and the Strategic Management Process
Learning Objective : 01-01 Understand what is meant by a company’s strategy and why it needs
to diffe Accessibility : Keyboard Navigation
Difficulty : 3 Hard
Bloom's : Apply
AACSB : Analytical Thinking
Gradable : automatic
3) You have been hired as a consultant by SandCloud, a venture-backed
established company in the beachwear and toweling markets. SandCloud’s owners are
weighing a decision to donate a part of its profits to a children's charity to improve its
market image. Your advice to SandCloud regarding strategy is that it will consist of the
action plan management takes to
3)
A) develop a more appealing business model than rival beachwear and
toweling companies.
B) compete against rivals in the beachwear and toweling industry and
establish a transitory competitive advantage.
C) concentrate on improving its existing product offering irrespective of its
decision to donate a percentage of its profits to a children’s charity.
D) stake out a unique market position in beachwear and toweling markets and
achieve superior profitability.
E) identify its strategic vision, its strategic objectives, and its strategic intent.
2|Page
, Crafting and Executing Strategy Concepts 23rd Edition by
Thompson
Question Details
Topic : Strategy and the Strategic Management Process
Learning Objective : 01-01 Understand what is meant by a company’s strategy and why it needs
to diffe AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Gradable : automatic
4) Keurig, the coffee machine manufacturer, sells high-quality espresso machines
at a very low price and also provides low-cost refills of varietal coffee pods at a
relatively higher price than rivals. The action steps that Keurig’s managers take to
outperform the company's competitors and achieve superior profitability are known as
its
4)
A) strategy.
B) mission statement.
C) strategic intent.
D) value-cost-price framework.
E) market visioning statement.
Question Details
Topic : Strategy and the Strategic Management Process
Learning Objective : 01-01 Understand what is meant by a company’s strategy and why it needs
to diffe Bloom's : Remember
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Gradable : automatic
5) Strategy, at its essence, is about
5)
3|Page
Crafting & Executing Strategy: The Quest for Competitive
Advantage: Concepts and Cases
ARTHUR A. THOMPSON
23rd edition
,Crafting and Executing Strategy Concepts 23rd Edition by
Thompson
ANSWERS ARE LOCATED IN THE SECOND PART OF THIS DOCUMENT
MULTIPLE CHOICE - Choose the one alternative that best completes the statement
or answers the question.
1) Managers of all types of business organizations must develop a clear answer for
which of the following questions?
1)
A) What approaches do we need to take in order to gain a competitive
advantage in the marketplace?
B) What is the set of actions that we need to take to outperform competitors
and achieve superior profitability?
C) Where are we now?
D) Where do we go from here?
E) When will we know that we are there?
Question Details
Difficulty : 1 Easy
Topic : Strategy and the Strategic Management Process
Learning Objective : 01-01 Understand what is meant by a company’s strategy and why it needs
to diffe Bloom's : Remember
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Gradable : automatic
2) Sanofi, a pharmaceutical company selling prescription drugs in France for the
past 10 years, has had moderate sales in a crowded market while its rivals manufacture
and market drugs having similar efficacy and safety precautions, but with superior
market share. This particular pharmaceutical company's greatest challenge is to increase
prescriptions of their drugs by French doctors. What would be the most effective
strategy for Sanofi to improve sales performance in its existing market?
2)
1|Page
,Crafting and Executing Strategy Concepts 23rd Edition by
Thompson
A) modifying marketing communication to increase brand familiarity
within key physician segments
B) relocating all the existing drug manufacturing facilities to developing
countries to reduce operational costs
C) employing hiring plans that aim at acquiring drug designers from rival
companies
D) exiting the market and entering a new unexplored geographical location
E) engaging in new contract talks with suppliers about price breaks
Question Details
Topic : Strategy and the Strategic Management Process
Learning Objective : 01-01 Understand what is meant by a company’s strategy and why it needs
to diffe Accessibility : Keyboard Navigation
Difficulty : 3 Hard
Bloom's : Apply
AACSB : Analytical Thinking
Gradable : automatic
3) You have been hired as a consultant by SandCloud, a venture-backed
established company in the beachwear and toweling markets. SandCloud’s owners are
weighing a decision to donate a part of its profits to a children's charity to improve its
market image. Your advice to SandCloud regarding strategy is that it will consist of the
action plan management takes to
3)
A) develop a more appealing business model than rival beachwear and
toweling companies.
B) compete against rivals in the beachwear and toweling industry and
establish a transitory competitive advantage.
C) concentrate on improving its existing product offering irrespective of its
decision to donate a percentage of its profits to a children’s charity.
D) stake out a unique market position in beachwear and toweling markets and
achieve superior profitability.
E) identify its strategic vision, its strategic objectives, and its strategic intent.
2|Page
, Crafting and Executing Strategy Concepts 23rd Edition by
Thompson
Question Details
Topic : Strategy and the Strategic Management Process
Learning Objective : 01-01 Understand what is meant by a company’s strategy and why it needs
to diffe AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Gradable : automatic
4) Keurig, the coffee machine manufacturer, sells high-quality espresso machines
at a very low price and also provides low-cost refills of varietal coffee pods at a
relatively higher price than rivals. The action steps that Keurig’s managers take to
outperform the company's competitors and achieve superior profitability are known as
its
4)
A) strategy.
B) mission statement.
C) strategic intent.
D) value-cost-price framework.
E) market visioning statement.
Question Details
Topic : Strategy and the Strategic Management Process
Learning Objective : 01-01 Understand what is meant by a company’s strategy and why it needs
to diffe Bloom's : Remember
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Gradable : automatic
5) Strategy, at its essence, is about
5)
3|Page
