GLO BUS UPDATED ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
●● 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?
QUESTIONS AND CORRECT ANSWERS
●● 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?
