BSG MIDTERM PRACTICE SET 2026
STRATEGIC DECISION MAKING
QUESTIONS HIGH YIELD A+
◉ There are many routes to competitive advantage, but they all
involve
Answer: providing buyers with what they perceive as superior value
compared to the offerings of rival sellers.
◉ Which one of the following statements about whether a
company's strategy can be considered ethical is true?
Answer: just keeping a company's strategic actions within the
bounds of what is legal does not mean the strategy is ethical.
◉ Among all the things managers do, nothing affects a company's
ultimate success or failure more fundamentally than
Answer: how well its management team charts the company's
direction, develops competitively effective strategic moves and
business approaches, and pursues what needs to be done internally
to produce good day-in/day-out strategy execution and operating
excellence.
,◉ 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 employs
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 revenue
sufficient to cover costs and yield an attractive profit.
◉ Which of the following is NOT one of the reasons that a company's
strategy evolves over time?
Answer: the need on the part of company managers to make regular
strategy adjustments so as to keep rivals off balance and always
guessing about what moves it will make next.
◉ A company achieves competitive advantage when
Answer: it has some type of edge over rivals in attracting buyers and
coping with competitive forces.
◉ Which one of the following does NOT account for why a
company's strategy evolves over time, as shown in Figure 1.2 and
explained in the accompanying text discussion?
Answer: managerial preferences for keeping the life-cycle of any
given strategy short.
, ◉ In choosing among strategy alternatives, company managers
Answer: are well-advised to embrace strategic actions that can pass
the test of moral scrutiny -- it is not enough to just stay within the
bounds of what is legal and is in compliance with prevailing
government regulations.
◉ A company's strategy evolves from one version to the next
Answer: as managers abandon obsolete or ineffective strategy
elements, settle upon a set of proactive strategy elements, and then -
- as new circumstances unfold -- make adaptive strategic
adjustments, which gives rise to reactive strategy elements.
◉ 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 hiring one or more new top executives or laying off a portion of
its work force or paying down its long-term debt.
◉ The two crucial elements of a company's business model are
Answer: its profit proposition or "profit formula" and its customer
value proposition.
◉ Which one 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?
STRATEGIC DECISION MAKING
QUESTIONS HIGH YIELD A+
◉ There are many routes to competitive advantage, but they all
involve
Answer: providing buyers with what they perceive as superior value
compared to the offerings of rival sellers.
◉ Which one of the following statements about whether a
company's strategy can be considered ethical is true?
Answer: just keeping a company's strategic actions within the
bounds of what is legal does not mean the strategy is ethical.
◉ Among all the things managers do, nothing affects a company's
ultimate success or failure more fundamentally than
Answer: how well its management team charts the company's
direction, develops competitively effective strategic moves and
business approaches, and pursues what needs to be done internally
to produce good day-in/day-out strategy execution and operating
excellence.
,◉ 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 employs
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 revenue
sufficient to cover costs and yield an attractive profit.
◉ Which of the following is NOT one of the reasons that a company's
strategy evolves over time?
Answer: the need on the part of company managers to make regular
strategy adjustments so as to keep rivals off balance and always
guessing about what moves it will make next.
◉ A company achieves competitive advantage when
Answer: it has some type of edge over rivals in attracting buyers and
coping with competitive forces.
◉ Which one of the following does NOT account for why a
company's strategy evolves over time, as shown in Figure 1.2 and
explained in the accompanying text discussion?
Answer: managerial preferences for keeping the life-cycle of any
given strategy short.
, ◉ In choosing among strategy alternatives, company managers
Answer: are well-advised to embrace strategic actions that can pass
the test of moral scrutiny -- it is not enough to just stay within the
bounds of what is legal and is in compliance with prevailing
government regulations.
◉ A company's strategy evolves from one version to the next
Answer: as managers abandon obsolete or ineffective strategy
elements, settle upon a set of proactive strategy elements, and then -
- as new circumstances unfold -- make adaptive strategic
adjustments, which gives rise to reactive strategy elements.
◉ 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 hiring one or more new top executives or laying off a portion of
its work force or paying down its long-term debt.
◉ The two crucial elements of a company's business model are
Answer: its profit proposition or "profit formula" and its customer
value proposition.
◉ Which one 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?
