Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Managers of all types of business organizations must develop a clear answer for which of
the following questions?
A) What approaches do we need to take in order to gain a competitive advantage in the
marketplace?
B) What is the set of actions that we need to take to outperform competitors and achieve
superior profitability?
C) Where are we now?
D) Where do we go from here?
E) When will we know that we are there?
2) Sanofi, a pharmaceutical company selling prescription drugs in France for the past 10
years, has had moderate sales in a crowded market while its rivals manufacture and market drugs
having similar efficacy and safety precautions, but with superior market share. This particular
pharmaceutical company's greatest challenge is to increase prescriptions of their drugs by French
doctors. What would be the most effective strategy for Sanofi to improve sales performance in its
existing market?
A) modifying marketing communication to increase brand familiarity within key
physician segments
B) relocating all the existing drug manufacturing facilities to developing countries to
reduce operational costs
C) employing hiring plans that aim at acquiring drug designers from rival companies
D) exiting the market and entering a new unexplored geographical location
E) engaging in new contract talks with suppliers about price breaks
3) You have been hired as a consultant by SandCloud, a venture-backed established
company in the beachwear and toweling markets. SandCloud’s owners are weighing a decision
to donate a part of its profits to a children's charity to improve its market image. Your advice to
SandCloud regarding strategy is that it will consist of the action plan management takes to
Version 1 1
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) develop a more appealing business model than rival beachwear and toweling
companies.
B) compete against rivals in the beachwear and toweling industry and establish a
transitory competitive advantage.
C) concentrate on improving its existing product offering irrespective of its decision to
donate a percentage of its profits to a children’s charity.
D) stake out a unique market position in beachwear and toweling markets and achieve
superior profitability.
E) identify its strategic vision, its strategic objectives, and its strategic intent.
4) Keurig, the coffee machine manufacturer, sells high-quality espresso machines at a very
low price and also provides low-cost refills of varietal coffee pods at a relatively higher price
than rivals. The action steps that Keurig’s managers take to outperform the company's
competitors and achieve superior profitability are known as its
A) strategy.
B) mission statement.
C) strategic intent.
D) value-cost-price framework.
E) market visioning statement.
5) Strategy, at its essence, is about
A) matching rival businesses' products and quality dimensions in the marketplace.
B) building profits for short-term success.
C) realigning the market to provoke change in rival companies.
D) developing lasting success that can support growth and secure the company's future
over the long term.
E) re-creating a business model with regularity.
6) To improve performance, there are many different avenues for outcompeting rivals, such
as
Version 1 2
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) realizing a higher cost structure and lower operating profit margins than rivals in
order to drive sales growth.
B) creating products analogous with competitors so as to be competitive in the same
markets.
C) pursuing similar personalized customer service or quality dimensions as rivals.
D) being undecided whether to concentrate operations on local or global markets.
E) strengthening competitiveness by pursuing strategic alliances and collaborative
partnerships.
7) Pizza Port, a craft brewing and pizza chain in southern California, manufactures thin-
crust pizzas and offers one free pint of beer with the purchase of four large pizzas. What would
you advise Pizza Port’s owners not to do to craft a strategy that will enhance its future profits?
A) Establish a distribution plan to set up more rapid pizza and beer delivery than any
other rivals in the region,
B) Devise a social media marketing plan that aims at mass customer segments,
providing them with updates on new releases of beer, attractive advertisements, and offers on
products.
C) Implement a diversification plan that aims at eventually adding regions outside of
southern California to its existing line of products.
D) Chart an acquisition plan that aims at rebranding and creating franchises with local
smaller-scale pizza restaurants and craft beer taprooms that seek funding and offer attractive
locations.
E) Create a sales plan that aims to enhance initial sales and market penetration with low
prices based on high operational costs.
8) A cleverly crafted and well-executed strategy
A) precludes the capture of emerging opportunities.
B) produces mediocre financial performance.
C) immunizes a business from changing macro-economic and market conditions.
D) provides direction only in terms of what the company should do.
E) can withstand the competitive challenges from rival firms.
Version 1 3
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
9) A company's strategy is not concerned with management's choices about how to
A) attract and please customers.
B) stake out the same market position as successful rival companies.
C) grow the business.
D) compete successfully.
E) conduct operations and improve the company's financial and market performance.
10) FaberRoad, a respected courier brand, is rapidly losing its market share to competitors
who do overnight deliveries of packages or offer lower prices. The company's research
department has found that many customers care more about knowing exactly when a package
will arrive than getting it the next day. Which strategy would best address the current state of
FaberRoad and help it regain its market?
A) employing night delivery drivers at a high cost and maintenance charges
B) developing radio tags that could be attached to packages to allow for real-time
tracking by customers' PCs and mobile phones
C) diversifying the different types of packages that can be transported and enabling
booking through calls
D) acquiring small transportation companies with cheaper trucks and tempos,
rebranding, and using them for deliveries
E) engaging in expensive advertising with new tag lines and famous celebrities to
enhance its brand image in the market
11) A company's strategy stands a better chance of succeeding when
A) it is developed through a collaborative process involving all managers and staff from
all levels of the organization.
B) managers employ conservative strategic moves based on past experience and form an
underlying basis of control.
C) it is predicated on competitive moves aimed at appealing to buyers in ways that set
the company apart from rivals.
D) managers copy the strategic moves of successful companies in its industry.
E) managers focus on meeting or beating shareholder expectations.
12) In crafting a company's strategy, managers
Version 1 4
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
https://browsegrades.net/singlePaper/416743/test-bank-instructor-manual-chapters-notes-for-c
Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) face the biggest challenge of how closely to replicate strategies of successful
companies in the industry.
B) have comparatively little freedom in choosing the "hows" of strategy.
C) are wise not to decide on concrete courses of action in order to preserve maximum
strategic flexibility.
D) need to come up with a sustainable competitive advantage that draws in customers
and produces a competitive edge over rivals.
E) are well-advised to be risk-averse and develop a "conservative" strategy—"dare-to-
be-different" strategies are rarely successful.
13) The heart and soul of a company's strategy-making effort is determining how to
A) become the industry's low-cost provider.
B) maximize profits and shareholder value.
C) improve the efficiency of its business model.
D) maximize profits while simultaneously operating in a socially responsible manner
that keeps the company's prices as low as possible.
E) come up with moves and actions that produce a durable competitive edge over rivals.
14) The pattern of actions and business approaches that would not define a company's
strategy include actions to
A) strengthen market standing and competitiveness by acquiring or merging with other
companies.
B) strengthen competitiveness via strategic coalitions and partnerships.
C) upgrade competitively important resources and capabilities.
D) gain sales and market share with lower prices despite increased costs.
E) strengthen the firm's bargaining position with suppliers and distributors.
15) A creative, distinctive strategy that delivers a sustainable competitive advantage is
important because
Version 1 5
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
https://browsegrades.net/singlePaper/416743/test-bank-instructor-manual-chapters-notes-for-c
Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) without a competitive advantage a company cannot become the industry leader.
B) without a competitive advantage a company is likely to fall into bankruptcy.
C) crafting 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.
16) A company achieves a competitive advantage when it
A) provides buyers with superior value compared to rival sellers or offers the same
value at a lower cost.
B) has a profitable business model.
C) is able to maximize shareholder wealth.
D) is consistently able to achieve both its strategic and financial objectives.
E) has a strategy well-matched to its business model.
17) A creative and 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 socially responsible business model.
B) is achievable in emerging but not mature industries.
C) is a company's most reliable ticket to above-average profitability.
D) signals that the company has a bold, ambitious strategic intent that places the
achievement of strategic objectives ahead of the achievement of financial objectives.
E) is the best indicator that the company's strategy and business model are well-matched
and properly synchronized.
18) What separates a powerful strategy from a run-of-the-mill or ineffective one?
Version 1 6
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) the ability of the strategy to keep the company profitable
B) the proven ability of the strategy to generate maximum profits
C) the speed with which it helps the company achieve its strategic vision
D) management's ability to forge a series of actions, both in the marketplace and
internally, that sets the company apart from rivals and produces sustainable competitive
advantage
E) whether it allows the company to maximize shareholder value in the shortest possible
time
19) Volta Motors, a manufacturer of self-driving delivery trucks, is working on developing its
next-generation electric vehicles. It has decided on a strategy of focusing on a narrow buyer
segment and outcompeting rivals by offering buyers customized autonomous, self-driving
electric vehicles at a lower cost than rivals. What basic strategic approach has Volta Motors
decided upon?
A) focused differentiation
B) best-cost provider
C) low-cost provider
D) broad differentiation
E) focused low cost
20) Strategic approaches to set a company apart from rivals and achieve a sustainable
competitive advantage are not likely to include
A) striving to be the industry's low-cost provider.
B) outcompeting rivals on the basis of differentiating features that will appeal to a broad
spectrum of buyers.
C) developing a best-cost provider strategy that gives customers more value for the
money.
D) focusing on a narrow market niche and serving buyers' special needs and tastes.
E) striving to be the industry's high-price provider.
21) If you were advising Rebel Toad Brewing, a local brewpub, about how to set itself apart
from rivals and achieve a sustainable competitive advantage, you would most likely not
recommend that Rebel Toad Brewing
Version 1 7
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) strive to be the industry's low-cost provider, thereby aiming for a cost-based
competitive advantage.
B) outcompete rivals on the basis of differentiating features such as higher quality,
wider product selection, added performance, better service, more attractive styling, technological
superiority, or unusually good value for the money.
C) mimic the successful strategies of rivals.
D) focus on a narrow market niche to achieve a competitive edge by doing a better job
than rivals of satisfying the needs and tastes of buyers composing the niche.
E) develop a cost advantage based on offering more value for its patrons' money.
22) Soap is critical for hygiene, but it’s not always available in certain areas around the
world. Pacha Soap is trying to change that via small production of all-natural handmade soap
sold primarily through selected Whole Foods stores. For every bar of Pacha Soap purchased,
Andrew and Abigail Vrbas, the company’s founders, donate a bar to someone in need. Pacha
Soap, however, enjoys the least bargaining power with its suppliers because the company is
A) involved in mass production of its products to cater to an expanding customer base.
B) actively catering to a broad, price-sensitive customer base.
C) manufacturing high-quality soap and related bath products from readily available raw
materials for a broad customer base.
D) selling soap and related bath products deemed to be highly popular and easily
available across most supermarkets.
E) offering high-cost specialized soap that could be purchased primarily by socially
conscious customers in limited markets.
23) Winning a sustainable competitive edge over competitors does not hinge on which of the
following?
Version 1 8
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) having a distinctive competitive product offering
B) building competitively valuable expertise and capabilities not readily matched and
offering distinctive products
C) building experience, know-how, and specialized capabilities that have been perfected
over a long period of time
D) having hard-to-beat capabilities and impressive product innovation
E) building products and distributing them at low prices to a broad customer base
irrespective of manufacturing cost
24) If you were asked to develop a low-cost provider strategy for a start-up passenger air
carrier business, what would you most likely not recommend?
A) offer low prices on short-distance flights and eliminate meals during flights
B) offer low prices on long-distance flights and maintain long service times for aircraft
between flights
C) offer low prices on short-distance flights and improve airplane capacity by reducing
the distance between existing seats to permit adding more rows of seating
D) offer low prices on short-distance flights and pay flight attendants a minimum wage
E) offer low prices on long-distance flights and charge fees for both carry-on and
checked luggage
25) Amy's Drive-Thru, a fast-food facility, offers healthy, sustainably grown veggie and
vegan fast food at higher prices than its competitors in the market and has a drive-through and
indoor seated casual dining operation. What strategy is Amy's Drive-Thru using to gain
competitive advantage?
A) a low-cost provider strategy
B) a broad differentiation strategy
C) a focused low-cost strategy
D) a differentiation strategy
E) a best-cost provider strategy
Version 1 9
, Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
26) BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded
market that caters to all kinds of consumers, this resort caters mainly to gays with a guaranteed
hassle-free holiday experience at a premium price. What strategy is BloomsJay using to gain
competitive advantage?
A) a low-cost provider strategy
B) a broad differentiation strategy
C) a focused low-cost strategy
D) a focused differentiation strategy
E) a best-cost provider strategy
27) Identify the company with a low-cost provider strategy.
A) A fashion clothing line uses sought-after designers and natural fabrics.
B) A mortgage company specializes in lending money for second homes.
C) An online retailer delivers organic groceries overnight.
D) A baby products retailer sells unassembled baby furniture produced in China.
E) A dairy products manufacturer uses exotic substitutes to produce lactose-free dairy
products.
28) Giving customers more value for the money by satisfying their expectations on key
quality features, performance, and/or service attributes while beating their price expectations is a
__________ strategy.
A) best-cost provider
B) focused low-cost
C) focused differentiation
D) broad differentiation
E) low-cost provider
29) An evolving strategy for a ride-share business like Uber or Lyft is not likely to be
triggered by
Version 1 10
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Managers of all types of business organizations must develop a clear answer for which of
the following questions?
A) What approaches do we need to take in order to gain a competitive advantage in the
marketplace?
B) What is the set of actions that we need to take to outperform competitors and achieve
superior profitability?
C) Where are we now?
D) Where do we go from here?
E) When will we know that we are there?
2) Sanofi, a pharmaceutical company selling prescription drugs in France for the past 10
years, has had moderate sales in a crowded market while its rivals manufacture and market drugs
having similar efficacy and safety precautions, but with superior market share. This particular
pharmaceutical company's greatest challenge is to increase prescriptions of their drugs by French
doctors. What would be the most effective strategy for Sanofi to improve sales performance in its
existing market?
A) modifying marketing communication to increase brand familiarity within key
physician segments
B) relocating all the existing drug manufacturing facilities to developing countries to
reduce operational costs
C) employing hiring plans that aim at acquiring drug designers from rival companies
D) exiting the market and entering a new unexplored geographical location
E) engaging in new contract talks with suppliers about price breaks
3) You have been hired as a consultant by SandCloud, a venture-backed established
company in the beachwear and toweling markets. SandCloud’s owners are weighing a decision
to donate a part of its profits to a children's charity to improve its market image. Your advice to
SandCloud regarding strategy is that it will consist of the action plan management takes to
Version 1 1
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
https://browsegrades.net/singlePaper/416743/test-bank-instructor-manual-chapters-notes-for-c
Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) develop a more appealing business model than rival beachwear and toweling
companies.
B) compete against rivals in the beachwear and toweling industry and establish a
transitory competitive advantage.
C) concentrate on improving its existing product offering irrespective of its decision to
donate a percentage of its profits to a children’s charity.
D) stake out a unique market position in beachwear and toweling markets and achieve
superior profitability.
E) identify its strategic vision, its strategic objectives, and its strategic intent.
4) Keurig, the coffee machine manufacturer, sells high-quality espresso machines at a very
low price and also provides low-cost refills of varietal coffee pods at a relatively higher price
than rivals. The action steps that Keurig’s managers take to outperform the company's
competitors and achieve superior profitability are known as its
A) strategy.
B) mission statement.
C) strategic intent.
D) value-cost-price framework.
E) market visioning statement.
5) Strategy, at its essence, is about
A) matching rival businesses' products and quality dimensions in the marketplace.
B) building profits for short-term success.
C) realigning the market to provoke change in rival companies.
D) developing lasting success that can support growth and secure the company's future
over the long term.
E) re-creating a business model with regularity.
6) To improve performance, there are many different avenues for outcompeting rivals, such
as
Version 1 2
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
https://browsegrades.net/singlePaper/416743/test-bank-instructor-manual-chapters-notes-for-c
Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) realizing a higher cost structure and lower operating profit margins than rivals in
order to drive sales growth.
B) creating products analogous with competitors so as to be competitive in the same
markets.
C) pursuing similar personalized customer service or quality dimensions as rivals.
D) being undecided whether to concentrate operations on local or global markets.
E) strengthening competitiveness by pursuing strategic alliances and collaborative
partnerships.
7) Pizza Port, a craft brewing and pizza chain in southern California, manufactures thin-
crust pizzas and offers one free pint of beer with the purchase of four large pizzas. What would
you advise Pizza Port’s owners not to do to craft a strategy that will enhance its future profits?
A) Establish a distribution plan to set up more rapid pizza and beer delivery than any
other rivals in the region,
B) Devise a social media marketing plan that aims at mass customer segments,
providing them with updates on new releases of beer, attractive advertisements, and offers on
products.
C) Implement a diversification plan that aims at eventually adding regions outside of
southern California to its existing line of products.
D) Chart an acquisition plan that aims at rebranding and creating franchises with local
smaller-scale pizza restaurants and craft beer taprooms that seek funding and offer attractive
locations.
E) Create a sales plan that aims to enhance initial sales and market penetration with low
prices based on high operational costs.
8) A cleverly crafted and well-executed strategy
A) precludes the capture of emerging opportunities.
B) produces mediocre financial performance.
C) immunizes a business from changing macro-economic and market conditions.
D) provides direction only in terms of what the company should do.
E) can withstand the competitive challenges from rival firms.
Version 1 3
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
9) A company's strategy is not concerned with management's choices about how to
A) attract and please customers.
B) stake out the same market position as successful rival companies.
C) grow the business.
D) compete successfully.
E) conduct operations and improve the company's financial and market performance.
10) FaberRoad, a respected courier brand, is rapidly losing its market share to competitors
who do overnight deliveries of packages or offer lower prices. The company's research
department has found that many customers care more about knowing exactly when a package
will arrive than getting it the next day. Which strategy would best address the current state of
FaberRoad and help it regain its market?
A) employing night delivery drivers at a high cost and maintenance charges
B) developing radio tags that could be attached to packages to allow for real-time
tracking by customers' PCs and mobile phones
C) diversifying the different types of packages that can be transported and enabling
booking through calls
D) acquiring small transportation companies with cheaper trucks and tempos,
rebranding, and using them for deliveries
E) engaging in expensive advertising with new tag lines and famous celebrities to
enhance its brand image in the market
11) A company's strategy stands a better chance of succeeding when
A) it is developed through a collaborative process involving all managers and staff from
all levels of the organization.
B) managers employ conservative strategic moves based on past experience and form an
underlying basis of control.
C) it is predicated on competitive moves aimed at appealing to buyers in ways that set
the company apart from rivals.
D) managers copy the strategic moves of successful companies in its industry.
E) managers focus on meeting or beating shareholder expectations.
12) In crafting a company's strategy, managers
Version 1 4
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
https://browsegrades.net/singlePaper/416743/test-bank-instructor-manual-chapters-notes-for-c
Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) face the biggest challenge of how closely to replicate strategies of successful
companies in the industry.
B) have comparatively little freedom in choosing the "hows" of strategy.
C) are wise not to decide on concrete courses of action in order to preserve maximum
strategic flexibility.
D) need to come up with a sustainable competitive advantage that draws in customers
and produces a competitive edge over rivals.
E) are well-advised to be risk-averse and develop a "conservative" strategy—"dare-to-
be-different" strategies are rarely successful.
13) The heart and soul of a company's strategy-making effort is determining how to
A) become the industry's low-cost provider.
B) maximize profits and shareholder value.
C) improve the efficiency of its business model.
D) maximize profits while simultaneously operating in a socially responsible manner
that keeps the company's prices as low as possible.
E) come up with moves and actions that produce a durable competitive edge over rivals.
14) The pattern of actions and business approaches that would not define a company's
strategy include actions to
A) strengthen market standing and competitiveness by acquiring or merging with other
companies.
B) strengthen competitiveness via strategic coalitions and partnerships.
C) upgrade competitively important resources and capabilities.
D) gain sales and market share with lower prices despite increased costs.
E) strengthen the firm's bargaining position with suppliers and distributors.
15) A creative, distinctive strategy that delivers a sustainable competitive advantage is
important because
Version 1 5
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
https://browsegrades.net/singlePaper/416743/test-bank-instructor-manual-chapters-notes-for-c
Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) without a competitive advantage a company cannot become the industry leader.
B) without a competitive advantage a company is likely to fall into bankruptcy.
C) crafting 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.
16) A company achieves a competitive advantage when it
A) provides buyers with superior value compared to rival sellers or offers the same
value at a lower cost.
B) has a profitable business model.
C) is able to maximize shareholder wealth.
D) is consistently able to achieve both its strategic and financial objectives.
E) has a strategy well-matched to its business model.
17) A creative and 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 socially responsible business model.
B) is achievable in emerging but not mature industries.
C) is a company's most reliable ticket to above-average profitability.
D) signals that the company has a bold, ambitious strategic intent that places the
achievement of strategic objectives ahead of the achievement of financial objectives.
E) is the best indicator that the company's strategy and business model are well-matched
and properly synchronized.
18) What separates a powerful strategy from a run-of-the-mill or ineffective one?
Version 1 6
,Crafting & Executing Strategy The Quest for Competitive Advantage Concepts, 23e Arthur A. T
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) the ability of the strategy to keep the company profitable
B) the proven ability of the strategy to generate maximum profits
C) the speed with which it helps the company achieve its strategic vision
D) management's ability to forge a series of actions, both in the marketplace and
internally, that sets the company apart from rivals and produces sustainable competitive
advantage
E) whether it allows the company to maximize shareholder value in the shortest possible
time
19) Volta Motors, a manufacturer of self-driving delivery trucks, is working on developing its
next-generation electric vehicles. It has decided on a strategy of focusing on a narrow buyer
segment and outcompeting rivals by offering buyers customized autonomous, self-driving
electric vehicles at a lower cost than rivals. What basic strategic approach has Volta Motors
decided upon?
A) focused differentiation
B) best-cost provider
C) low-cost provider
D) broad differentiation
E) focused low cost
20) Strategic approaches to set a company apart from rivals and achieve a sustainable
competitive advantage are not likely to include
A) striving to be the industry's low-cost provider.
B) outcompeting rivals on the basis of differentiating features that will appeal to a broad
spectrum of buyers.
C) developing a best-cost provider strategy that gives customers more value for the
money.
D) focusing on a narrow market niche and serving buyers' special needs and tastes.
E) striving to be the industry's high-price provider.
21) If you were advising Rebel Toad Brewing, a local brewpub, about how to set itself apart
from rivals and achieve a sustainable competitive advantage, you would most likely not
recommend that Rebel Toad Brewing
Version 1 7
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) strive to be the industry's low-cost provider, thereby aiming for a cost-based
competitive advantage.
B) outcompete rivals on the basis of differentiating features such as higher quality,
wider product selection, added performance, better service, more attractive styling, technological
superiority, or unusually good value for the money.
C) mimic the successful strategies of rivals.
D) focus on a narrow market niche to achieve a competitive edge by doing a better job
than rivals of satisfying the needs and tastes of buyers composing the niche.
E) develop a cost advantage based on offering more value for its patrons' money.
22) Soap is critical for hygiene, but it’s not always available in certain areas around the
world. Pacha Soap is trying to change that via small production of all-natural handmade soap
sold primarily through selected Whole Foods stores. For every bar of Pacha Soap purchased,
Andrew and Abigail Vrbas, the company’s founders, donate a bar to someone in need. Pacha
Soap, however, enjoys the least bargaining power with its suppliers because the company is
A) involved in mass production of its products to cater to an expanding customer base.
B) actively catering to a broad, price-sensitive customer base.
C) manufacturing high-quality soap and related bath products from readily available raw
materials for a broad customer base.
D) selling soap and related bath products deemed to be highly popular and easily
available across most supermarkets.
E) offering high-cost specialized soap that could be purchased primarily by socially
conscious customers in limited markets.
23) Winning a sustainable competitive edge over competitors does not hinge on which of the
following?
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
A) having a distinctive competitive product offering
B) building competitively valuable expertise and capabilities not readily matched and
offering distinctive products
C) building experience, know-how, and specialized capabilities that have been perfected
over a long period of time
D) having hard-to-beat capabilities and impressive product innovation
E) building products and distributing them at low prices to a broad customer base
irrespective of manufacturing cost
24) If you were asked to develop a low-cost provider strategy for a start-up passenger air
carrier business, what would you most likely not recommend?
A) offer low prices on short-distance flights and eliminate meals during flights
B) offer low prices on long-distance flights and maintain long service times for aircraft
between flights
C) offer low prices on short-distance flights and improve airplane capacity by reducing
the distance between existing seats to permit adding more rows of seating
D) offer low prices on short-distance flights and pay flight attendants a minimum wage
E) offer low prices on long-distance flights and charge fees for both carry-on and
checked luggage
25) Amy's Drive-Thru, a fast-food facility, offers healthy, sustainably grown veggie and
vegan fast food at higher prices than its competitors in the market and has a drive-through and
indoor seated casual dining operation. What strategy is Amy's Drive-Thru using to gain
competitive advantage?
A) a low-cost provider strategy
B) a broad differentiation strategy
C) a focused low-cost strategy
D) a differentiation strategy
E) a best-cost provider strategy
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Test bank instructor manual chapters notes for crafting executing strategy the quest for competitive advantage concepts 23e arthur a thompson stamped
26) BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded
market that caters to all kinds of consumers, this resort caters mainly to gays with a guaranteed
hassle-free holiday experience at a premium price. What strategy is BloomsJay using to gain
competitive advantage?
A) a low-cost provider strategy
B) a broad differentiation strategy
C) a focused low-cost strategy
D) a focused differentiation strategy
E) a best-cost provider strategy
27) Identify the company with a low-cost provider strategy.
A) A fashion clothing line uses sought-after designers and natural fabrics.
B) A mortgage company specializes in lending money for second homes.
C) An online retailer delivers organic groceries overnight.
D) A baby products retailer sells unassembled baby furniture produced in China.
E) A dairy products manufacturer uses exotic substitutes to produce lactose-free dairy
products.
28) Giving customers more value for the money by satisfying their expectations on key
quality features, performance, and/or service attributes while beating their price expectations is a
__________ strategy.
A) best-cost provider
B) focused low-cost
C) focused differentiation
D) broad differentiation
E) low-cost provider
29) An evolving strategy for a ride-share business like Uber or Lyft is not likely to be
triggered by
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