Crafting and Executing Strategy: The Quest for
Competitive Advantage, 22nd Edition by
Thompson – Test Bank | Full Solutions Pack |
Updated 2025/2026 Instant Download
Chapter 1: What is Strategy and Why is it Important?
1. What is the best definition of a company's strategy?
A) Its long-term financial goals and targets.
B) A set of actions for outperforming competitors and achieving
superior profitability.
C) Its mission statement and declaration of core values.
D) The internal operating procedures and policies. B
2. A company's strategy is primarily concerned with:
A) Matching rivals' actions in the marketplace.
B) Strengthening its internal capabilities and market position.
C) Setting financial objectives for the next quarter.
D) Delegating operational decisions to lower-level managers. B
3. The sustainable competitive advantage of a company is best
described as:
A) A one-time, dramatic technological breakthrough.
B) Any unique attribute that makes it difficult for rivals to copy.
C) Having the lowest costs in the industry for one fiscal year.
D) A strong brand image. B
4. A winning strategy is one that:
A) Is the most complex and difficult to understand.
,B) Fits the company's situation, builds competitive advantage, and
boosts performance.
C) Is approved by all employees and stakeholders.
D) Mimics the strategy of the industry leader. B
5. The strategy-making, strategy-executing process:
A) Is primarily the responsibility of top management.
B) Includes the tasks of crafting, implementing, and executing a
strategy.
C) Is a one-time event conducted during annual planning.
D) Focuses solely on external market analysis. B
Chapter 2: Charting a Company's Direction
6. A company's strategic vision describes:
A) "Who we are and what we do."
B) The current product line and markets.
C) Management's aspirations for the future and the intended strategic
course.
D) The company's core values and ethical standards. C
7. A company's mission statement typically concerns:
A) The company's future product-market-customer-technology focus.
B) The company's present business scope and purpose—"who we are
and what we do."
C) Its specific financial and strategic objectives.
D) Its pledge to corporate social responsibility. B
8. Strategic objectives are distinct from financial objectives because
they:
,A) Are more important for the company's long-term health.
B) Relate to target outcomes that indicate a company is strengthening
its market standing and competitive vitality.
C) Are easier to measure and quantify.
D) Focus solely on revenue growth. B
9. A balanced scorecard is used for:
A) Measuring financial performance from different angles.
B) Tracking employee satisfaction and turnover.
C) Measuring company performance from financial, customer, internal
process, and learning/growth perspectives.
D) Balancing the interests of shareholders and managers. C
10. The primary role of a company's board of directors in the strategy-
making process is to:
A) Craft the detailed strategic plan.
B) Oversee the CEO and evaluate the strategic direction.
C) Manage the day-to-day execution of the strategy.
D) Set the company's stock price. B
Chapter 3: Evaluating a Company's External Environment
11. The three components of a company's macro-environment are:
A) Competitors, suppliers, and customers.
B) Economic conditions, political factors, and sociocultural forces.
C) General economic conditions, industry and competitive forces, and
other situational factors.
D) Resources, capabilities, and core competencies. C
, 12. Porter's Five-Forces model analyzes the:
A) Internal strengths and weaknesses of a company.
B) Overall state of the economy.
C) Attractiveness and competitive intensity of an industry.
D) Political and legal environment. C
13. Which of the following is NOT one of Porter's Five Forces?
A) Threat of new entrants.
B) Bargaining power of suppliers.
C) Rivalry among competing sellers.
D) Threat of government regulation. D
14. The strongest of the five competitive forces is typically:
A) The bargaining power of suppliers.
B) The threat of substitute products.
C) Competitive rivalry among existing firms.
D) It varies from industry to industry; there is no single "always
strongest" force. D
15. Strategic group mapping is a technique for:
A) Evaluating the best geographic locations for a company's operations.
B) Identifying a company's closest competitors and its relative
competitive position.
C) Grouping employees into project teams.
D) Mapping the organizational structure. B
16. Key success factors in an industry are those things that:
A) All companies in the industry must pay attention to.
B) Spell the difference between profit and loss, and between
competitive success and failure.
Competitive Advantage, 22nd Edition by
Thompson – Test Bank | Full Solutions Pack |
Updated 2025/2026 Instant Download
Chapter 1: What is Strategy and Why is it Important?
1. What is the best definition of a company's strategy?
A) Its long-term financial goals and targets.
B) A set of actions for outperforming competitors and achieving
superior profitability.
C) Its mission statement and declaration of core values.
D) The internal operating procedures and policies. B
2. A company's strategy is primarily concerned with:
A) Matching rivals' actions in the marketplace.
B) Strengthening its internal capabilities and market position.
C) Setting financial objectives for the next quarter.
D) Delegating operational decisions to lower-level managers. B
3. The sustainable competitive advantage of a company is best
described as:
A) A one-time, dramatic technological breakthrough.
B) Any unique attribute that makes it difficult for rivals to copy.
C) Having the lowest costs in the industry for one fiscal year.
D) A strong brand image. B
4. A winning strategy is one that:
A) Is the most complex and difficult to understand.
,B) Fits the company's situation, builds competitive advantage, and
boosts performance.
C) Is approved by all employees and stakeholders.
D) Mimics the strategy of the industry leader. B
5. The strategy-making, strategy-executing process:
A) Is primarily the responsibility of top management.
B) Includes the tasks of crafting, implementing, and executing a
strategy.
C) Is a one-time event conducted during annual planning.
D) Focuses solely on external market analysis. B
Chapter 2: Charting a Company's Direction
6. A company's strategic vision describes:
A) "Who we are and what we do."
B) The current product line and markets.
C) Management's aspirations for the future and the intended strategic
course.
D) The company's core values and ethical standards. C
7. A company's mission statement typically concerns:
A) The company's future product-market-customer-technology focus.
B) The company's present business scope and purpose—"who we are
and what we do."
C) Its specific financial and strategic objectives.
D) Its pledge to corporate social responsibility. B
8. Strategic objectives are distinct from financial objectives because
they:
,A) Are more important for the company's long-term health.
B) Relate to target outcomes that indicate a company is strengthening
its market standing and competitive vitality.
C) Are easier to measure and quantify.
D) Focus solely on revenue growth. B
9. A balanced scorecard is used for:
A) Measuring financial performance from different angles.
B) Tracking employee satisfaction and turnover.
C) Measuring company performance from financial, customer, internal
process, and learning/growth perspectives.
D) Balancing the interests of shareholders and managers. C
10. The primary role of a company's board of directors in the strategy-
making process is to:
A) Craft the detailed strategic plan.
B) Oversee the CEO and evaluate the strategic direction.
C) Manage the day-to-day execution of the strategy.
D) Set the company's stock price. B
Chapter 3: Evaluating a Company's External Environment
11. The three components of a company's macro-environment are:
A) Competitors, suppliers, and customers.
B) Economic conditions, political factors, and sociocultural forces.
C) General economic conditions, industry and competitive forces, and
other situational factors.
D) Resources, capabilities, and core competencies. C
, 12. Porter's Five-Forces model analyzes the:
A) Internal strengths and weaknesses of a company.
B) Overall state of the economy.
C) Attractiveness and competitive intensity of an industry.
D) Political and legal environment. C
13. Which of the following is NOT one of Porter's Five Forces?
A) Threat of new entrants.
B) Bargaining power of suppliers.
C) Rivalry among competing sellers.
D) Threat of government regulation. D
14. The strongest of the five competitive forces is typically:
A) The bargaining power of suppliers.
B) The threat of substitute products.
C) Competitive rivalry among existing firms.
D) It varies from industry to industry; there is no single "always
strongest" force. D
15. Strategic group mapping is a technique for:
A) Evaluating the best geographic locations for a company's operations.
B) Identifying a company's closest competitors and its relative
competitive position.
C) Grouping employees into project teams.
D) Mapping the organizational structure. B
16. Key success factors in an industry are those things that:
A) All companies in the industry must pay attention to.
B) Spell the difference between profit and loss, and between
competitive success and failure.
