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STRATEGIC MANAGEMENT SAMPLE TEXT
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
A company's strategy consists of
A) its strategic vision, its strategic objectives, and its strategic intent.
B) competitive moves and approaches that managers have developed to
grow the business,attract and please customers, conduct operations, and
achieve targeted objectives.
C) plans involving alignment of organizational activities and strategic
objectives.
D) offensive and defensive moves to generate revenues and increase
profit margins.
E) actions to develop a more appealing business model than rivals. Ans:
B
A creative, distinctive strategy that delivers a sustainable competitive
advantage is important because
A) without a proven strategy a company is likely to fall into bankruptcy.
B) without a competitive advantage a company cannot have a profitable
business model.
C) 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.
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E) how a company goes about trying to please customers and
outcompete rivals is what enables senior managers choose an
appropriate strategic vision for the company. Ans: C
The most important aspect of a company's business strategy
A) is figuring out how to maximize profits and shareholder value.
B) is figuring out how to become the industry's low-cost provider.
C) is its approach to competing in the marketplace.
D) concerns how to improve the efficiency of its business model.
E) deals with how management plans to maximize profits while, at the
same time, operating in a socially responsible manner. Ans: C
A company achieves sustainable competitive advantage when
A) it is conSistently able to achieve both its strategic and financial
objectives.
B) it has a profitable business model.
C) its strategy and its business model are well-matched and in sync.
D) a sufficiently large number of buyers have a lasting preference for its
products or services as -compared to the offerings of competitors.
E) it is able to maximize shareholder wealth. Ans: D
Changing circumstances and ongoing managerial efforts to improve the
strategy
A)account for why a company's s!rategy evolves over time.
B) explain why a company's strategic \$iGfl. undergoes almost constant
change.
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C) make it very difficult for a company to have concrete strategic
objectives.
0) make it very hard to know what a company's strategy really is.
E) All of the above. Ans: A
A company's strategy is a "work in progress" and evolves over time
because of
A) the ongoing need of company managers to react and respond to
changing industry and competitive conditions.
B) the ongoing need to imitate the new strategic moves of the industry
leaders.
C) the need to make regular adjustments in the company's strategic
vision.
0) the importance of developing a fresh strategic plan every year.
E) the frequent need to modify key elements of the company's business
model. Ans: A
A company's business model
A) concerns the actions and business approachs that will be used to grow
the business, conduct operations, please customers, and compete
successfully.
B) relates to the principle business components that will allow the
business to generate revenues ample to cover costs and produce a profit.
C) concerns what moves in the marketplace it plans to make to
outcompete rivals.
D) deals with how it can simultaneously maximize profits and operate in
a socially responsible
manner.
STRATEGIC MANAGEMENT SAMPLE TEXT
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
A company's strategy consists of
A) its strategic vision, its strategic objectives, and its strategic intent.
B) competitive moves and approaches that managers have developed to
grow the business,attract and please customers, conduct operations, and
achieve targeted objectives.
C) plans involving alignment of organizational activities and strategic
objectives.
D) offensive and defensive moves to generate revenues and increase
profit margins.
E) actions to develop a more appealing business model than rivals. Ans:
B
A creative, distinctive strategy that delivers a sustainable competitive
advantage is important because
A) without a proven strategy a company is likely to fall into bankruptcy.
B) without a competitive advantage a company cannot have a profitable
business model.
C) 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.
, Page | 2
E) how a company goes about trying to please customers and
outcompete rivals is what enables senior managers choose an
appropriate strategic vision for the company. Ans: C
The most important aspect of a company's business strategy
A) is figuring out how to maximize profits and shareholder value.
B) is figuring out how to become the industry's low-cost provider.
C) is its approach to competing in the marketplace.
D) concerns how to improve the efficiency of its business model.
E) deals with how management plans to maximize profits while, at the
same time, operating in a socially responsible manner. Ans: C
A company achieves sustainable competitive advantage when
A) it is conSistently able to achieve both its strategic and financial
objectives.
B) it has a profitable business model.
C) its strategy and its business model are well-matched and in sync.
D) a sufficiently large number of buyers have a lasting preference for its
products or services as -compared to the offerings of competitors.
E) it is able to maximize shareholder wealth. Ans: D
Changing circumstances and ongoing managerial efforts to improve the
strategy
A)account for why a company's s!rategy evolves over time.
B) explain why a company's strategic \$iGfl. undergoes almost constant
change.
, Page | 3
C) make it very difficult for a company to have concrete strategic
objectives.
0) make it very hard to know what a company's strategy really is.
E) All of the above. Ans: A
A company's strategy is a "work in progress" and evolves over time
because of
A) the ongoing need of company managers to react and respond to
changing industry and competitive conditions.
B) the ongoing need to imitate the new strategic moves of the industry
leaders.
C) the need to make regular adjustments in the company's strategic
vision.
0) the importance of developing a fresh strategic plan every year.
E) the frequent need to modify key elements of the company's business
model. Ans: A
A company's business model
A) concerns the actions and business approachs that will be used to grow
the business, conduct operations, please customers, and compete
successfully.
B) relates to the principle business components that will allow the
business to generate revenues ample to cover costs and produce a profit.
C) concerns what moves in the marketplace it plans to make to
outcompete rivals.
D) deals with how it can simultaneously maximize profits and operate in
a socially responsible
manner.
