Chapter 01
What Is Strategy and Why Is It Important?
Multiple Choice Questions
1. Managers in all types of businesses must address the central strategic
question
A. Where are we now?
B. Where do we want to go from here?
C. How are we going to get there?
D. When will we know we are there?
E. All of these
2. A company's strategy consists of
A. actions to develop a more appealing business model than rivals.
B. plans involving alignment of organizational activities and strategic
objectives.
C. offensive and defensive moves to generate revenues and increase profit
margins.
D. competitive moves and approaches that managers have developed to
grow the business, attract and please customers, conduct operations, and
achieve targeted objectives.
E. its strategic vision, its strategic objectives, and its strategic intent.
,3. The competitive moves and business approaches a company's management
is using to grow the business, compete successfully, attract and please
customers, conduct operations, respond to changing economic and market
conditions, and achieve organizational objectives is referred to as its
A. strategy.
B. mission statement.
C. strategic intent.
D. business model.
E. strategic vision.
4. A company's strategy is most accurately defined as
A. management's approaches to building revenues, controlling costs, and
generating an attractive profit.
B. management's game plan for growing the business, attracting and pleasing
customers, conducting operations, and achieving financial and market
performance objectives.
C. management's concept of "where we are headed."
D. the business model that a company's board of directors has approved for
outcompeting rivals and making the company profitable.
E. the choices management has made regarding what financial plan to
pursue.
5. Which of the following is not something a company's strategy is concerned
with?
A. Management's choices about how to attract and please customers
B. Management's choices about how quickly and closely to copy the
strategies being used by successful rival companies
C. Management's choices about how to grow the business
D. Management's choices about how to outcompete rivals
E. Management's action plan for conducting operations and improving the
company's strategic and financial performance
,6. Which of the following is not an element of a company's business strategy?
A. Actions to respond to changing market conditions or other external factors
B. Actions to strengthen competitiveness via strategic alliances and
collaborative partnerships
C. Actions to strengthen internal capabilities and competitively valuable
resources
D. Actions to manage the functional areas of the business
E. Management actions to revise the company's financial and strategic
performance targets
7. Which of the following is an issue likely to be addressed by a company's
business strategy?
A. Actions to respond to changing economic and market conditions.
B. Actions to supplement the company's resources and capabilities through
alliances and joint ventures.
C. Reactions to offensive moves by rival sellers.
D. Actions and approaches used in managing the functional areas of the
business.
E. All of these are pertinent in identifying a company's strategy.
8. The most important aspect(s) of a company's business strategy
A. are the actions and moves in the marketplace that managers take to gain a
sustainable competitive advantage.
B. is figuring out how to maximize profits and shareholder value.
C. concerns how to improve the efficiency of its business model.
D. deals with how management plans to maximize profits while, at the same
time, operating in a socially responsible manner.
E. is figuring out how to become the industry's low-cost provider.
, 9. A creative, distinctive strategy that delivers a sustainable competitive
advantage is important because
A. without a proven strategy a company is likely to fall into bankruptcy.
B. without a competitive advantage a company cannot have a profitable
business model.
C. a strategy that yields a competitive advantage over rivals is a company's
most reliable means of achieving above-average profitability and financial
performance.
D. a competitive advantage is what enables a company to achieve its
strategic objectives.
E. how a company goes about trying to please customers and outcompete
rivals is what enables senior managers to choose an appropriate strategic
vision for the company.
10. A company achieves sustainable competitive advantage when
A. it has a profitable business model.
B. a sufficiently large number of buyers have a lasting preference for its
products or services as compared to the offerings of competitors.
C. it is able to maximize shareholder wealth.
D. it is consistently able to achieve both its strategic and financial objectives.
E. its strategy and its business model are well-matched and in sync.
11. A creative, distinctive strategy that sets a company apart from rivals and that
gives it a sustainable competitive advantage
A. is a reliable indicator that the company has a profitable business model.
B. is a company's most reliable ticket to above-average profitability.
C. signals that the company has a bold, ambitious strategic intent that places
the achievement of strategic objectives ahead of the achievement of
financial objectives.
D. is the best indicator that the company's strategy and business model are
well-matched and properly synchronized.
E. All of these.
What Is Strategy and Why Is It Important?
Multiple Choice Questions
1. Managers in all types of businesses must address the central strategic
question
A. Where are we now?
B. Where do we want to go from here?
C. How are we going to get there?
D. When will we know we are there?
E. All of these
2. A company's strategy consists of
A. actions to develop a more appealing business model than rivals.
B. plans involving alignment of organizational activities and strategic
objectives.
C. offensive and defensive moves to generate revenues and increase profit
margins.
D. competitive moves and approaches that managers have developed to
grow the business, attract and please customers, conduct operations, and
achieve targeted objectives.
E. its strategic vision, its strategic objectives, and its strategic intent.
,3. The competitive moves and business approaches a company's management
is using to grow the business, compete successfully, attract and please
customers, conduct operations, respond to changing economic and market
conditions, and achieve organizational objectives is referred to as its
A. strategy.
B. mission statement.
C. strategic intent.
D. business model.
E. strategic vision.
4. A company's strategy is most accurately defined as
A. management's approaches to building revenues, controlling costs, and
generating an attractive profit.
B. management's game plan for growing the business, attracting and pleasing
customers, conducting operations, and achieving financial and market
performance objectives.
C. management's concept of "where we are headed."
D. the business model that a company's board of directors has approved for
outcompeting rivals and making the company profitable.
E. the choices management has made regarding what financial plan to
pursue.
5. Which of the following is not something a company's strategy is concerned
with?
A. Management's choices about how to attract and please customers
B. Management's choices about how quickly and closely to copy the
strategies being used by successful rival companies
C. Management's choices about how to grow the business
D. Management's choices about how to outcompete rivals
E. Management's action plan for conducting operations and improving the
company's strategic and financial performance
,6. Which of the following is not an element of a company's business strategy?
A. Actions to respond to changing market conditions or other external factors
B. Actions to strengthen competitiveness via strategic alliances and
collaborative partnerships
C. Actions to strengthen internal capabilities and competitively valuable
resources
D. Actions to manage the functional areas of the business
E. Management actions to revise the company's financial and strategic
performance targets
7. Which of the following is an issue likely to be addressed by a company's
business strategy?
A. Actions to respond to changing economic and market conditions.
B. Actions to supplement the company's resources and capabilities through
alliances and joint ventures.
C. Reactions to offensive moves by rival sellers.
D. Actions and approaches used in managing the functional areas of the
business.
E. All of these are pertinent in identifying a company's strategy.
8. The most important aspect(s) of a company's business strategy
A. are the actions and moves in the marketplace that managers take to gain a
sustainable competitive advantage.
B. is figuring out how to maximize profits and shareholder value.
C. concerns how to improve the efficiency of its business model.
D. deals with how management plans to maximize profits while, at the same
time, operating in a socially responsible manner.
E. is figuring out how to become the industry's low-cost provider.
, 9. A creative, distinctive strategy that delivers a sustainable competitive
advantage is important because
A. without a proven strategy a company is likely to fall into bankruptcy.
B. without a competitive advantage a company cannot have a profitable
business model.
C. a strategy that yields a competitive advantage over rivals is a company's
most reliable means of achieving above-average profitability and financial
performance.
D. a competitive advantage is what enables a company to achieve its
strategic objectives.
E. how a company goes about trying to please customers and outcompete
rivals is what enables senior managers to choose an appropriate strategic
vision for the company.
10. A company achieves sustainable competitive advantage when
A. it has a profitable business model.
B. a sufficiently large number of buyers have a lasting preference for its
products or services as compared to the offerings of competitors.
C. it is able to maximize shareholder wealth.
D. it is consistently able to achieve both its strategic and financial objectives.
E. its strategy and its business model are well-matched and in sync.
11. A creative, distinctive strategy that sets a company apart from rivals and that
gives it a sustainable competitive advantage
A. is a reliable indicator that the company has a profitable business model.
B. is a company's most reliable ticket to above-average profitability.
C. signals that the company has a bold, ambitious strategic intent that places
the achievement of strategic objectives ahead of the achievement of
financial objectives.
D. is the best indicator that the company's strategy and business model are
well-matched and properly synchronized.
E. All of these.
