MGMT 5560 Exam 1 Glo-Bus Questions
and Complete Solutions Graded A+
The difference between a company's strategy and a company's business model is that - Answer: its
strategy is defined by the specific market positioning, competitive moves, and business approaches
management employes 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 revenues sufficient to cover costs and yield an attractive profit
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
A portion of a company's strategy is always developed on the fly because - Answer: managers must
always be willing to supplement or modify various proactive strategy elements with as-needed reactions
to unanticipated happenings in the surrounding environment
Which of the following questions can be used to distinguish a winning strategy from a mediocre or losing
strategy? - Answer: How well does the strategy fit the company's situation?
The reputational and financial damage that unethical strategies and behavior can do to a company -
Answer: is substantial; consequently, there are good business reasons for a company and its personnel
to avoid unethical strategic actions and behaviors
A company's business model - Answer: 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
The two crucial elements of a company's business model are - Answer: its customer value propoition
(which lays out the company's approach to satisfying buyer needs and requirements at a price they will
consider a good value) and its profit proposition or "profit formula" (its business approach to generating
sufficiently large revenues and controlling the costs of its customer value propoition, such that the
company will be able to simultaneously deliver the intended value to customers and delvier appealing
profits to shareholders)
,How well a company performs and the degree of market success it achieves are directly attributable to -
Answer: the caliber of its strategy and the proficiency with which the strategy is executed
What makes a competitive advantage sustainable or durable as opposed to temporary is - Answer:
actions or elements in the strategy that cause an attractive number of buyers to have lasting reasons to
purchase a company's products or services, despite competitors' best efforts to nullify or overcome
those reasons
The competitive moves and business apporaches a company's management is using to attract and
please customers, compete successfully, grow the business, respond to changing market conditions,
conduct oeprations, and achieve the targeted financial and market performance is what defines a
company's - Answer: strategy
A company's strategy is a "work in progress" and evolves over time because of - Answer: the need to
react and respond to changing market and competitive conditions and ongoing management efforts to
improve this or that piece of the strategy
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 by surprise and
keep them off-balance
A company's strategy can be considered "ethical" - Answer: if it does not entail actions or behaviors that
cross the moral line from "can do" to "should not do"
According to Figure 1.1, which of the following is NOT something to look for in identifying a company's
strategy - Answer: Actions to strengthen the company's competitive position by laying off a portion of its
work force or paying down its long-term debt
A creative, distinctive strategy that sets a company apart from rivals and delivers superior value to
customers - Answer: is a company's most reliable ticket for winning a competitive advantage over rivals
Chapter 2 - Answer: Chapter 2
A set of "stretch" financial and strategic objectives - Answer: helps a company avoid ho-hum results
, Which of the following is the best example of a well-stated strategic objective? - Answer: Within 2 years,
achieve costs per unit sold that are 10% below the current industry average of $4.75 per unit
A company's strategic plan - Answer: lays out its future direction, business purpose, performance
targets, and strategy--in other words, a strategic vision + mission + a set of objectives + a strategy = a
strategic plan
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
Which one of the following approaches to objective-setting should definitely be avoided? - Answer:
Setting targets that carry no adverse consequences for organizational members if actual performance
falls short of targeted perforamnce
The strategy-making, strategy-executing process - Answer: includes the tasks of developing a strategic
vision, mission and core values; setting objectives; crafting a strategy to achieve the performance
objectives and move the company along the chosen path; implementing and executing the strategy; and
monitoring developments, evaluating performance, and intiating corrective adjustments
A company's strategy-making hierarchy - Answer: typically involves three organizational levels in single-
business companies and four organizational levels in multi-buisness or diversified companies (as shown
in Figure 2.2)
A company's values, or core values, concern - Answer: the beliefs, traits, and behavioral norms that
company personnel are expected to display in conducting the company's business and pursuing its
strategic vision and mission
Which of the following are characteristics of an effectively-worded strategic vision statement? - Answer:
Feasible, memorable, makes good business sense, and has some wiggle room
A company with strategic intent is one that - Answer: concentrates the full force of its resources and
competitive actions on achieving an ambitious strategic outcome
and Complete Solutions Graded A+
The difference between a company's strategy and a company's business model is that - Answer: its
strategy is defined by the specific market positioning, competitive moves, and business approaches
management employes 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 revenues sufficient to cover costs and yield an attractive profit
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
A portion of a company's strategy is always developed on the fly because - Answer: managers must
always be willing to supplement or modify various proactive strategy elements with as-needed reactions
to unanticipated happenings in the surrounding environment
Which of the following questions can be used to distinguish a winning strategy from a mediocre or losing
strategy? - Answer: How well does the strategy fit the company's situation?
The reputational and financial damage that unethical strategies and behavior can do to a company -
Answer: is substantial; consequently, there are good business reasons for a company and its personnel
to avoid unethical strategic actions and behaviors
A company's business model - Answer: 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
The two crucial elements of a company's business model are - Answer: its customer value propoition
(which lays out the company's approach to satisfying buyer needs and requirements at a price they will
consider a good value) and its profit proposition or "profit formula" (its business approach to generating
sufficiently large revenues and controlling the costs of its customer value propoition, such that the
company will be able to simultaneously deliver the intended value to customers and delvier appealing
profits to shareholders)
,How well a company performs and the degree of market success it achieves are directly attributable to -
Answer: the caliber of its strategy and the proficiency with which the strategy is executed
What makes a competitive advantage sustainable or durable as opposed to temporary is - Answer:
actions or elements in the strategy that cause an attractive number of buyers to have lasting reasons to
purchase a company's products or services, despite competitors' best efforts to nullify or overcome
those reasons
The competitive moves and business apporaches a company's management is using to attract and
please customers, compete successfully, grow the business, respond to changing market conditions,
conduct oeprations, and achieve the targeted financial and market performance is what defines a
company's - Answer: strategy
A company's strategy is a "work in progress" and evolves over time because of - Answer: the need to
react and respond to changing market and competitive conditions and ongoing management efforts to
improve this or that piece of the strategy
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 by surprise and
keep them off-balance
A company's strategy can be considered "ethical" - Answer: if it does not entail actions or behaviors that
cross the moral line from "can do" to "should not do"
According to Figure 1.1, which of the following is NOT something to look for in identifying a company's
strategy - Answer: Actions to strengthen the company's competitive position by laying off a portion of its
work force or paying down its long-term debt
A creative, distinctive strategy that sets a company apart from rivals and delivers superior value to
customers - Answer: is a company's most reliable ticket for winning a competitive advantage over rivals
Chapter 2 - Answer: Chapter 2
A set of "stretch" financial and strategic objectives - Answer: helps a company avoid ho-hum results
, Which of the following is the best example of a well-stated strategic objective? - Answer: Within 2 years,
achieve costs per unit sold that are 10% below the current industry average of $4.75 per unit
A company's strategic plan - Answer: lays out its future direction, business purpose, performance
targets, and strategy--in other words, a strategic vision + mission + a set of objectives + a strategy = a
strategic plan
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
Which one of the following approaches to objective-setting should definitely be avoided? - Answer:
Setting targets that carry no adverse consequences for organizational members if actual performance
falls short of targeted perforamnce
The strategy-making, strategy-executing process - Answer: includes the tasks of developing a strategic
vision, mission and core values; setting objectives; crafting a strategy to achieve the performance
objectives and move the company along the chosen path; implementing and executing the strategy; and
monitoring developments, evaluating performance, and intiating corrective adjustments
A company's strategy-making hierarchy - Answer: typically involves three organizational levels in single-
business companies and four organizational levels in multi-buisness or diversified companies (as shown
in Figure 2.2)
A company's values, or core values, concern - Answer: the beliefs, traits, and behavioral norms that
company personnel are expected to display in conducting the company's business and pursuing its
strategic vision and mission
Which of the following are characteristics of an effectively-worded strategic vision statement? - Answer:
Feasible, memorable, makes good business sense, and has some wiggle room
A company with strategic intent is one that - Answer: concentrates the full force of its resources and
competitive actions on achieving an ambitious strategic outcome
