Test Bank – Essentials of Strategic Management: The Quest for
Competitive Advantage |
Chapter 4
If you were advising Boll & Branch’s on improving its strategy and competitive approach, which question
would you not be likely to ask?
How well is the company’s strategy working?
What are the company’s competitively important resources and capabilities?
Are the company’s cost structure and customer value proposition competitive?
,2. Award: 10.00 po ints
What are the company’s most and least profitable geographic segments?
What strategic issues and problems merit front-burner managerial attention?
The five questions comprising the task of evaluating a company’s competitive strength and cost structure
are: (1) How well is the company’s strategy working? (2) What are the company’s competitively important
resources and capabilities? (3) Are the company’s cost structure and customer value proposition
competitive? (4) Is the company competitively weaker or stronger than key rivals? (5) What strategic issues
and problems merit front-burner managerial attention? These questions do not involve an assessment of
Boll & Branch’s most and least profitable geographic segments.
When SunPower’s managers engage in the process of developing a list of questions to evaluate their
company’s internal situation, which question would you recommend they not ask because it doesn’t serve
the task of evaluating SunPower’s resources and competitive position?
How well is SunPower’s strategy working?
What are the company’s competitively important resources and capabilities?
How do SunPower’s value chain activities impact its cost structure and customer value proposition?
What strategic issues and problems merit front-burner managerial attention at SunPower?
Is SunPower’s environmental scanning system up to date?
,3. Award: 10.00 po ints
The five questions comprising the task of evaluating a company’s competitive strength and cost structure
are: (1) How well is the company’s strategy working? (2) What are the company’s competitively important
resources and capabilities? (3) Are the company’s cost structure and customer value proposition
competitive? (4) Is the company competitively weaker or stronger than key rivals? (5) What strategic issues
and problems merit front-burner managerial attention? Questioning a company’s environmental scanning
approach is not a component of evaluating a company’s competitive strength and cost structure.
One important indicator of how well a company’s present strategy is working is whether
it is customarily a first-mover in introducing new or improved products (a good sign) or a late-mover
(a bad sign).
its strategy is built around at least two of the industry’s key success factors.
the company is achieving its financial and strategic objectives and whether it is an aboveaverage
industry performer.
it has been able to create new industry demand through the use of a blue ocean strategy.
it is subject to weaker competitive forces and pressures than close rivals (a good sign) or stronger
competitive forces and pressures (a bad sign).
The two best indicators of how well a company’s strategy is working are (1) whether the company is
recording gains in financial strength and profitability and (2) whether the company’s competitive strength
and market standing are improving.
, 4. Award: 10.00 po ints
Benchmarking how well a company’s current strategy is working (companies like BMW or Toyota) involves
determining whether the company is falling short of its stated financial objectives, i.e., its financial
performance is well below the industry average, and its market share gains reflect short-term
preferences for capacity maximization.
ascertaining whether the company is achieving its stated financial and strategic objectives, its financial
performance is above the industry average, and it is gaining customers and increasing its market
share.
assessing whether the company is remaining attentive to possible improvements in its functional
areas, creating “stretch” business goals, and providing a product-focused value proposition to
customers.
verifying whether the company is undertaking new initiatives to promote corporate social
responsibility.
discovering whether the company has been foregoing initiatives designed to build market share and
to promote corporate responsibility.
Competitive Advantage |
Chapter 4
If you were advising Boll & Branch’s on improving its strategy and competitive approach, which question
would you not be likely to ask?
How well is the company’s strategy working?
What are the company’s competitively important resources and capabilities?
Are the company’s cost structure and customer value proposition competitive?
,2. Award: 10.00 po ints
What are the company’s most and least profitable geographic segments?
What strategic issues and problems merit front-burner managerial attention?
The five questions comprising the task of evaluating a company’s competitive strength and cost structure
are: (1) How well is the company’s strategy working? (2) What are the company’s competitively important
resources and capabilities? (3) Are the company’s cost structure and customer value proposition
competitive? (4) Is the company competitively weaker or stronger than key rivals? (5) What strategic issues
and problems merit front-burner managerial attention? These questions do not involve an assessment of
Boll & Branch’s most and least profitable geographic segments.
When SunPower’s managers engage in the process of developing a list of questions to evaluate their
company’s internal situation, which question would you recommend they not ask because it doesn’t serve
the task of evaluating SunPower’s resources and competitive position?
How well is SunPower’s strategy working?
What are the company’s competitively important resources and capabilities?
How do SunPower’s value chain activities impact its cost structure and customer value proposition?
What strategic issues and problems merit front-burner managerial attention at SunPower?
Is SunPower’s environmental scanning system up to date?
,3. Award: 10.00 po ints
The five questions comprising the task of evaluating a company’s competitive strength and cost structure
are: (1) How well is the company’s strategy working? (2) What are the company’s competitively important
resources and capabilities? (3) Are the company’s cost structure and customer value proposition
competitive? (4) Is the company competitively weaker or stronger than key rivals? (5) What strategic issues
and problems merit front-burner managerial attention? Questioning a company’s environmental scanning
approach is not a component of evaluating a company’s competitive strength and cost structure.
One important indicator of how well a company’s present strategy is working is whether
it is customarily a first-mover in introducing new or improved products (a good sign) or a late-mover
(a bad sign).
its strategy is built around at least two of the industry’s key success factors.
the company is achieving its financial and strategic objectives and whether it is an aboveaverage
industry performer.
it has been able to create new industry demand through the use of a blue ocean strategy.
it is subject to weaker competitive forces and pressures than close rivals (a good sign) or stronger
competitive forces and pressures (a bad sign).
The two best indicators of how well a company’s strategy is working are (1) whether the company is
recording gains in financial strength and profitability and (2) whether the company’s competitive strength
and market standing are improving.
, 4. Award: 10.00 po ints
Benchmarking how well a company’s current strategy is working (companies like BMW or Toyota) involves
determining whether the company is falling short of its stated financial objectives, i.e., its financial
performance is well below the industry average, and its market share gains reflect short-term
preferences for capacity maximization.
ascertaining whether the company is achieving its stated financial and strategic objectives, its financial
performance is above the industry average, and it is gaining customers and increasing its market
share.
assessing whether the company is remaining attentive to possible improvements in its functional
areas, creating “stretch” business goals, and providing a product-focused value proposition to
customers.
verifying whether the company is undertaking new initiatives to promote corporate social
responsibility.
discovering whether the company has been foregoing initiatives designed to build market share and
to promote corporate responsibility.
