Test Bank For
Crafting and Executing Strategy: Concepts and Cases (Crafting &
Executing Strategy)
Author: Arthur A. Thompson
23rd Edition
,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
, 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
, 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.
Crafting and Executing Strategy: Concepts and Cases (Crafting &
Executing Strategy)
Author: Arthur A. Thompson
23rd Edition
,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
, 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
, 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.
