Test Bank For Crafting & Executing Strategy The Quest for
Competitive Advantage Concepts and Cases, 23rd Edition
by Arthur Thompson 100% Complete A+ Study Guide Latest
Version
1|Page
, Chapter 01 What Is Strategy and Why Is It Important? Answer Key
Multiple Choice Questions
1. Which of the following is NOT one of the managerial considerations in determining how to
compete successfully?
A. How can a company attract, keep, and
please customers?
B. How can a company modify its entire product line to emphasize its internal
service attributes?
C. How should a company respond to changing economic and
market conditions?
D. How should a company be competitive
against rivals?
E. How should a company position itself in
the marketplace?
Managerial considerations for successful strategies serve consumers better while increasing
performance. Internal attributes are modified to meet product line changes based on changes in the
market rather than vice versa.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 What we mean by a company's strategy.
Learning Objective: 01-02 The concept of a sustainable competitive
advantage.
Topic: Strategic management
2|Page
,2. A pharmaceutical company functioning in France for the last 10 years has moderate sales in a
crowded market with competitors offering drugs with similar efficacy and safety precautions, but
with better sales. The greatest challenge is to increase the prescription of their drugs. What would
be the MOST effective strategy to improve sales performance in the 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
Modifying marketing communication to target the most preferred set of physicians would help
increase the prescription of drugs, boosting sales and performance, and increasing market share.
Relocation or reduced supplier costs might improve profits but would not affect sales performance.
Employing drug designers does not add value as the rivals, too, offer drugs with similar efficacy and
safety precautions.
AACSB: Reflective
Thinking Accessibility: Keyboard
Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 01-01 What we mean by a company's strategy.
Topic: Strategic management
3. A company's strategy consists of the action plan management takes to
A. stake out a unique market position and achieve superior profitability.
B. compete against rivals and establish a transitory
competitive advantage.
C. concentrate on improving the existing product offering irrespective of the changing and
turbulent markets.
D. develop a more appealing business model
than rivals.
E. identify its strategic vision, its strategic objectives, and its
strategic intent.
A company's strategy is the set of actions that its managers take to outperform the company's
competitors with a unique market position and sustained competitive advantage.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
3|Page
, Difficulty: 2 Medium
Learning Objective: 01-01 What we mean by a company's strategy.
Topic: Strategic planning
4|Page
Competitive Advantage Concepts and Cases, 23rd Edition
by Arthur Thompson 100% Complete A+ Study Guide Latest
Version
1|Page
, Chapter 01 What Is Strategy and Why Is It Important? Answer Key
Multiple Choice Questions
1. Which of the following is NOT one of the managerial considerations in determining how to
compete successfully?
A. How can a company attract, keep, and
please customers?
B. How can a company modify its entire product line to emphasize its internal
service attributes?
C. How should a company respond to changing economic and
market conditions?
D. How should a company be competitive
against rivals?
E. How should a company position itself in
the marketplace?
Managerial considerations for successful strategies serve consumers better while increasing
performance. Internal attributes are modified to meet product line changes based on changes in the
market rather than vice versa.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 What we mean by a company's strategy.
Learning Objective: 01-02 The concept of a sustainable competitive
advantage.
Topic: Strategic management
2|Page
,2. A pharmaceutical company functioning in France for the last 10 years has moderate sales in a
crowded market with competitors offering drugs with similar efficacy and safety precautions, but
with better sales. The greatest challenge is to increase the prescription of their drugs. What would
be the MOST effective strategy to improve sales performance in the 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
Modifying marketing communication to target the most preferred set of physicians would help
increase the prescription of drugs, boosting sales and performance, and increasing market share.
Relocation or reduced supplier costs might improve profits but would not affect sales performance.
Employing drug designers does not add value as the rivals, too, offer drugs with similar efficacy and
safety precautions.
AACSB: Reflective
Thinking Accessibility: Keyboard
Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 01-01 What we mean by a company's strategy.
Topic: Strategic management
3. A company's strategy consists of the action plan management takes to
A. stake out a unique market position and achieve superior profitability.
B. compete against rivals and establish a transitory
competitive advantage.
C. concentrate on improving the existing product offering irrespective of the changing and
turbulent markets.
D. develop a more appealing business model
than rivals.
E. identify its strategic vision, its strategic objectives, and its
strategic intent.
A company's strategy is the set of actions that its managers take to outperform the company's
competitors with a unique market position and sustained competitive advantage.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
3|Page
, Difficulty: 2 Medium
Learning Objective: 01-01 What we mean by a company's strategy.
Topic: Strategic planning
4|Page
