MGMT 5560 Exam 1 Glo-Bus questions
and answers with solutions 2025
Chapter 1 - ANSWER Chapter 1
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
and answers with solutions 2025
Chapter 1 - ANSWER Chapter 1
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
