Test Bank For Strategic Management Concepts and Cases 3rd Edition . VERIFIED

1) ________ can be best defined as when an organization generates higher profits compared to its rivals. a) Client advantage b) Competitive advantage c) Employer advantage d) Unique valueAnswer: b Difficulty: Easy Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Knowledge Standard 1 : AACSB || Analytic 2) Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its competitors. In order to overcome this, the employees of Gems Corp. decide to work harder to provide unique value to customers and increase the sales of the company. After a year, it is able to make more profits than its competitors. This scenario best illustrates ________. a) client advantage b) internal analysis c) external analysis d) competitive advantage Answer: d Difficulty: Hard Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Application Standard 1 : AACSB || Analytic 3) The industry and area that a company competes in, is referred to as its ________. a) niche b) business c) segment d) market Answer: d Difficulty: Easy geographic Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Knowledge Standard 1 : AACSB || Analytic 4) Adia and Ali are two business partners who want to set up a company that sells imported sports gear and equipment. In order to make sure that the company makes and retains profit, they must choose an area that is close to where their products have the highest demand. This area should allow them consistently to make profit. In this scenario, Adia and Ali are looking for a ________. a) market b) strategy c) cost advantage d) mission Answer: a Difficulty: Hard Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Application Standard 1 : AACSB || Analytic