MGMT 5560 Exam 1 Glo-Bus || A+ Graded Answers.
The difference between a company's strategy and a company's business model is that correct
answers its strategy is defined by the specific market positioning, competitive moves, and
business approaches management employes 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
Which of the following is NOT something a company's strategy is concerned with correct
answers Management's choice of which of several alternative business models to employ in
delivering value to customers and to shareholders
A portion of a company's strategy is always developed on the fly because correct answers
managers must always be willing to supplement or modify various proactive strategy
elements with as-needed reactions to unanticipated happenings in the surrounding
environment
Which of the following questions can be used to distinguish a winning strategy from a
mediocre or losing strategy? correct answers How well does the strategy fit the company's
situation?
The reputational and financial damage that unethical strategies and behavior can do to a
company correct answers is substantial; consequently, there are good business reasons for a
company and its personnel to avoid unethical strategic actions and behaviors
A company's business model correct answers sets forth how its strategy and operating
approaches will create value for customers while at the same time generating revenues
sufficient to cover costs and realize a profit
The two crucial elements of a company's business model are correct answers its customer
value propoition (which lays out the company's approach to satisfying buyer needs and
requirements at a price they will consider a good value) and its profit proposition or "profit
formula" (its business approach to generating sufficiently large revenues and controlling the
costs of its customer value propoition, such that the company will be able to simultaneously
deliver the intended value to customers and delvier appealing profits to shareholders)
How well a company performs and the degree of market success it achieves are directly
attributable to correct answers the caliber of its strategy and the proficiency with which the
strategy is executed
What makes a competitive advantage sustainable or durable as opposed to temporary is
correct answers actions or elements in the strategy that cause an attractive number of buyers
to have lasting reasons to purchase a company's products or services, despite competitors'
best efforts to nullify or overcome those reasons
The competitive moves and business apporaches a company's management is using to attract
and please customers, compete successfully, grow the business, respond to changing market
conditions, conduct oeprations, and achieve the targeted financial and market performance is
what defines a company's correct answers strategy
, A company's strategy is a "work in progress" and evolves over time because of correct
answers the need to react and respond to changing market and competitive conditions and
ongoing management efforts to improve this or that piece of the strategy
Which of the following statements about a company's strategy is false? correct answers A
company's strategy is deliberately kept under wraps by top-level managers so as to catch rival
companies by surprise and keep them off-balance
A company's strategy can be considered "ethical" correct answers if it does not entail actions
or behaviors that cross the moral line from "can do" to "should not do"
According to Figure 1.1, which of the following is NOT something to look for in identifying
a company's strategy correct answers Actions to strengthen the company's competitive
position by laying off a portion of its work force or paying down its long-term debt
A creative, distinctive strategy that sets a company apart from rivals and delivers superior
value to customers correct answers is a company's most reliable ticket for winning a
competitive advantage over rivals
Chapter 2 correct answers Chapter 2
A set of "stretch" financial and strategic objectives correct answers helps a company avoid
ho-hum results
Which of the following is the best example of a well-stated strategic objective? correct
answers Within 2 years, achieve costs per unit sold that are 10% below the current industry
average of $4.75 per unit
A company's strategic plan correct answers lays out its future direction, business purpose,
performance targets, and strategy--in other words, a strategic vision + mission + a set of
objectives + a strategy = a strategic plan
The obligations of an investor-owned company's board of directors in the strategy-making,
strategy-executing process include correct answers overseeing the company's financial
accounting and financial reporting practices and instituting a compensation plan for top
executives
Which one of the following approaches to objective-setting should definitely be avoided?
correct answers Setting targets that carry no adverse consequences for organizational
members if actual performance falls short of targeted perforamnce
The strategy-making, strategy-executing process correct answers includes the tasks of
developing a strategic vision, mission and core values; setting objectives; crafting a strategy
to achieve the performance objectives and move the company along the chosen path;
implementing and executing the strategy; and monitoring developments, evaluating
performance, and intiating corrective adjustments
The difference between a company's strategy and a company's business model is that correct
answers its strategy is defined by the specific market positioning, competitive moves, and
business approaches management employes 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
Which of the following is NOT something a company's strategy is concerned with correct
answers Management's choice of which of several alternative business models to employ in
delivering value to customers and to shareholders
A portion of a company's strategy is always developed on the fly because correct answers
managers must always be willing to supplement or modify various proactive strategy
elements with as-needed reactions to unanticipated happenings in the surrounding
environment
Which of the following questions can be used to distinguish a winning strategy from a
mediocre or losing strategy? correct answers How well does the strategy fit the company's
situation?
The reputational and financial damage that unethical strategies and behavior can do to a
company correct answers is substantial; consequently, there are good business reasons for a
company and its personnel to avoid unethical strategic actions and behaviors
A company's business model correct answers sets forth how its strategy and operating
approaches will create value for customers while at the same time generating revenues
sufficient to cover costs and realize a profit
The two crucial elements of a company's business model are correct answers its customer
value propoition (which lays out the company's approach to satisfying buyer needs and
requirements at a price they will consider a good value) and its profit proposition or "profit
formula" (its business approach to generating sufficiently large revenues and controlling the
costs of its customer value propoition, such that the company will be able to simultaneously
deliver the intended value to customers and delvier appealing profits to shareholders)
How well a company performs and the degree of market success it achieves are directly
attributable to correct answers the caliber of its strategy and the proficiency with which the
strategy is executed
What makes a competitive advantage sustainable or durable as opposed to temporary is
correct answers actions or elements in the strategy that cause an attractive number of buyers
to have lasting reasons to purchase a company's products or services, despite competitors'
best efforts to nullify or overcome those reasons
The competitive moves and business apporaches a company's management is using to attract
and please customers, compete successfully, grow the business, respond to changing market
conditions, conduct oeprations, and achieve the targeted financial and market performance is
what defines a company's correct answers strategy
, A company's strategy is a "work in progress" and evolves over time because of correct
answers the need to react and respond to changing market and competitive conditions and
ongoing management efforts to improve this or that piece of the strategy
Which of the following statements about a company's strategy is false? correct answers A
company's strategy is deliberately kept under wraps by top-level managers so as to catch rival
companies by surprise and keep them off-balance
A company's strategy can be considered "ethical" correct answers if it does not entail actions
or behaviors that cross the moral line from "can do" to "should not do"
According to Figure 1.1, which of the following is NOT something to look for in identifying
a company's strategy correct answers Actions to strengthen the company's competitive
position by laying off a portion of its work force or paying down its long-term debt
A creative, distinctive strategy that sets a company apart from rivals and delivers superior
value to customers correct answers is a company's most reliable ticket for winning a
competitive advantage over rivals
Chapter 2 correct answers Chapter 2
A set of "stretch" financial and strategic objectives correct answers helps a company avoid
ho-hum results
Which of the following is the best example of a well-stated strategic objective? correct
answers Within 2 years, achieve costs per unit sold that are 10% below the current industry
average of $4.75 per unit
A company's strategic plan correct answers lays out its future direction, business purpose,
performance targets, and strategy--in other words, a strategic vision + mission + a set of
objectives + a strategy = a strategic plan
The obligations of an investor-owned company's board of directors in the strategy-making,
strategy-executing process include correct answers overseeing the company's financial
accounting and financial reporting practices and instituting a compensation plan for top
executives
Which one of the following approaches to objective-setting should definitely be avoided?
correct answers Setting targets that carry no adverse consequences for organizational
members if actual performance falls short of targeted perforamnce
The strategy-making, strategy-executing process correct answers includes the tasks of
developing a strategic vision, mission and core values; setting objectives; crafting a strategy
to achieve the performance objectives and move the company along the chosen path;
implementing and executing the strategy; and monitoring developments, evaluating
performance, and intiating corrective adjustments
