BUSA 6600 (Chapter 1) Final Exam All
Questions Answered Correct.
Which of the following is NOT true of a company's business model? - Answer It is
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.
It is management's storyline for how the strategy will be a moneymaker.
It consists of two crucial elements: (1) its customer value proposition and (2) its profit formula.
It reflects how efficiently a company can meet customer wants and needs even at the cost of
incurring loss. [Correct]
It sets forth the logic for how its strategy will create value for customers, while at the same time
generates revenues sufficient to cover costs and realize a profit.
(Exp: A company's business model sets forth the logic for how its strategy will create value for
customers and at the same time generate revenues sufficient to cover costs and realize a profit.)
A company's strategy - Answer is mainly affected by a reactive approach since uncertainty is
high.
is mostly proactive and consists of strategy elements that are both planned and realized as
planned.
tends to be a combination of both proactive and reactive elements, with certain elements being
abandoned because they have become obsolete or ineffective. [Correct]
generally consists of new strategy elements and strategic moves that emerge as changing
conditions warrant.
consists of initial and developing approaches aiming to ensure long-term growth.
(Exp: The evolving nature of a company's strategy means that the typical company strategy is a
, Types of actions and approaches that often characterize a company's strategy do NOT include
actions to - Answer enter new product or geographic markets or to exit existing ones.
upgrade, build, or acquire competitively important resources and capabilities.
strengthen market standing and competitiveness by acquiring or merging with other companies.
capture emerging market opportunities and defend against external threats to the company's
business prospects.
improve ethical standards, ensure employees' commitment, and continuously develop new
talents. [correct]
(Exp: Actions and approaches that characterize a company's strategy do not include actions to
improve ethical standards, ensure employees' commitment, and continuously develop new
talents.)
Which of the following statements about strategies is NOT correct? - Answer A strategy
provides direction and guidance, in terms of not only what the company should do but also
what it should not do.
A strategy is an action plan for outperforming its
competitors and achieving superior profitability.
Making the wrong strategic moves will prove a distraction and a waste of company resources.
A strategy is the actions taken to gain sales and market share irrespective of product prices and
costs. (Correct)
A strategy represents a managerial commitment to an integrated array of considered choices
about how to compete.
(Exp: Strategy is about competing differently from rivals—doing what competitors don't do or
doing what they can't do. Companies compete on dimensions like quality, cost, services,
locations, and customers. Sometimes companies enter strategic alliances and collaborative
partnerships to strengthen their market position and competitiveness.
Questions Answered Correct.
Which of the following is NOT true of a company's business model? - Answer It is
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.
It is management's storyline for how the strategy will be a moneymaker.
It consists of two crucial elements: (1) its customer value proposition and (2) its profit formula.
It reflects how efficiently a company can meet customer wants and needs even at the cost of
incurring loss. [Correct]
It sets forth the logic for how its strategy will create value for customers, while at the same time
generates revenues sufficient to cover costs and realize a profit.
(Exp: A company's business model sets forth the logic for how its strategy will create value for
customers and at the same time generate revenues sufficient to cover costs and realize a profit.)
A company's strategy - Answer is mainly affected by a reactive approach since uncertainty is
high.
is mostly proactive and consists of strategy elements that are both planned and realized as
planned.
tends to be a combination of both proactive and reactive elements, with certain elements being
abandoned because they have become obsolete or ineffective. [Correct]
generally consists of new strategy elements and strategic moves that emerge as changing
conditions warrant.
consists of initial and developing approaches aiming to ensure long-term growth.
(Exp: The evolving nature of a company's strategy means that the typical company strategy is a
, Types of actions and approaches that often characterize a company's strategy do NOT include
actions to - Answer enter new product or geographic markets or to exit existing ones.
upgrade, build, or acquire competitively important resources and capabilities.
strengthen market standing and competitiveness by acquiring or merging with other companies.
capture emerging market opportunities and defend against external threats to the company's
business prospects.
improve ethical standards, ensure employees' commitment, and continuously develop new
talents. [correct]
(Exp: Actions and approaches that characterize a company's strategy do not include actions to
improve ethical standards, ensure employees' commitment, and continuously develop new
talents.)
Which of the following statements about strategies is NOT correct? - Answer A strategy
provides direction and guidance, in terms of not only what the company should do but also
what it should not do.
A strategy is an action plan for outperforming its
competitors and achieving superior profitability.
Making the wrong strategic moves will prove a distraction and a waste of company resources.
A strategy is the actions taken to gain sales and market share irrespective of product prices and
costs. (Correct)
A strategy represents a managerial commitment to an integrated array of considered choices
about how to compete.
(Exp: Strategy is about competing differently from rivals—doing what competitors don't do or
doing what they can't do. Companies compete on dimensions like quality, cost, services,
locations, and customers. Sometimes companies enter strategic alliances and collaborative
partnerships to strengthen their market position and competitiveness.
