Globus Final Exam Questions and Answers Already Updated 2024 Version The difference between a company's strategy and a company's business model is that Its strategy is defined by the specific market positioning, competitive moves, and business ap

Globus Final Exam Questions and Answers Already Updated 2024 Version The difference between a company's strategy and a company's business model is that 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 revenues sufficient to cover costs and yield an attractive profit. A winning strategy is one that fits the company's internal and external situation, improves company performance, and helps achieve sustainable competitive advantage. Typically, a company's strategy is a blend of (1) proactive actions to improve the company's financial performance and secure a competitive edge and (2) as-needed reactions to unanticipated developments and fresh market conditions A company's business model is managements 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 A company achieves sustainable competitive advantage when an attractive number of buyers are drawn to purchase its products or services rather than those of competitors and when the basis for the preference is durable, despite the efforts of competitors to nullify or overcome the appeal of its product offering. What makes a competitive advantage sustainable or durable as opposed to temporary are actions or elements in a company's strategy that cause an attractive number of buyers to have lasting reasons to purchase the company's products or services, despite competitor's best efforts to nullify or overcome those reasons In choosing among strategy alternatives, company managers are well advised to embrace actions strategic actions that can pass the test of moral scrutiny-- it is not enough to just stay within the boards of what is legal and is in compliance with prevailing government regulations Two crucial elements of a company's business model are its profit proposition or "profit formula" and its customer value proposition Which of the following is not something a company's strategy is concerned with? Management's choice of which of several alternative business models to employ in delivering value to customers and to shareholders The reputational and financial damage that unethical strategies and behavior can do to a company is substantial; consequently, there are good business reason for a company and its personnel to avoid unethical strategic actions and behaviors According to Figure 1.1, which of the following is not something to look for in identifying a company's strategy? Actions to boost the company's earnings per share and stock price Changing circumstances and ongoing managerial efforts to improve the strategy account for why a company's strategy evolves over time and why the task of crafting a company's strategy is a work in progress, not a one-time event. The competitive moves and business approaches a company's management is using to attract and please customers, compete successfully, grow the business, respond to changing market conditions, conduct operations, and achieve the targeted financial and market performance is what defines a company's strategy Crafting and executing strategy are top-priority managerial tasks because how well a company performs and the degree of market success it achieves are directly, attributable to the caliber of its strategy and the proficiency with which the strategy is executed Which of the following statements about a company's strategy is false A company's strategy is deliberately kept under wraps by top-level managers so as to catch rival companies The task of stitching together a strategy entails addressing a series of hows: how to attract and please customers, how to compete against rivals, how to position the company in the marketplace vis-avis rivals, how best to pursue attractive opportunities to grow the business, how best to respond to changing economic and market conditions, how to manage each functional piece of the business, and how to achieve the company's strategic and financial objectives The obligations of an investor-owned company's board of directors in the strategy-making, strategy-executing process include overseeing the company's financial accounting and financial reporting practices and instituting a compensation plan for top executives A company's values, or core values, concern the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission Managerial jobs with strategy-making responsibility exist at many levels of the organizational structure of a large corporation when its operations cut across different products, industries, and geographical areas Operating strategies concern the relatively narrow strategic initiatives and approaches for managing key operating units (plants, distribution centers, geographic units) and specific operating activities with strategic significance (quality control, advertising, brand-building efforts, supply chain-related activities, and website operations) Which one of the following approaches to objective-setting should definitely be avoided Setting targets that carry no adverse consequences for organizational members if actual performance falls short of targeted performance Which one of the following questions is not something that the company managers should consider in charting a company's future direction are shown in Table 2.1? Does the company have a better business model than key rivals? Which of the following are key tasks in the strategy-making, strategy-executing process? Developing a strategic vision, mission, and core values; setting objectives; and crafting a strategy to achieve the objectives and move the company along the path to accomplishing the mission and vision In a single-business company, the strategy-making hierarchy (as shown in Figure 2-2) consists of Business strategy, functional area strategies, and operating strategies Which of the following is the best example of a well-stated strategic objective? Reduce production costs per unit by 10% within 12 months The surest path to boosting company profitability quarter after quarter and year after year is for company managers to relentlessly pursue strategic outcomes that strengthen the company's market position with buyers and, ideally, produce a growing competitive advantage over rivals A set of "stretch" financial and strategic objectives helps a company avoid ho-hum results