GLOBUS- CHAPTER 1 EXAM
QUESTIONS & VERIFIED CORRECT
ANSWERS
What is the overall purpose of strategic management? - Correct Answer ✔✔ Gain
competitive advantage
Burger Bomb is a new hamburger restaurant. In order to compete successfully against
its many competitors, Burger Bomb has decided to focus on quality and an interesting,
unique menu that uses locally sourced, organic ingredients. This is known as Burger
Bomb's ______. - Correct Answer ✔✔ strategy
Which of the following indicates that investors expect future growth for Tesla? - Correct
Answer ✔✔ the increasing value of the company's stock
Effective guiding policy is supported by and stays consistent through the use of ______.
- Correct Answer ✔✔ strategic commitments
A competitive advantage _____. - Correct Answer ✔✔ is assessed relative to other
competitors in the industry
Which of the following elements comprise strategic management? - Correct Answer ✔✔
formulation,
analysis,
implementation
The overall purpose of a firm's strategy is to ______. - Correct Answer ✔✔ perform
better than other companies in the same industry
Strategy is ______. - Correct Answer ✔✔ the set of actions a firm takes to achieve a
competitive advantage
Based on its long dominance as a coffeehouse chain, Starbucks has ______. - Correct
Answer ✔✔ a sustainable competitive advantage
What is one explanation for why Tesla underperforms when the company's profits are
compared to the profits of established car companies? - Correct Answer ✔✔ Startups
often lose money early on.
If a firm has a 10% return on invested capital while the industry average return on
invested capital is 18%, the firm has a(n) ______. - Correct Answer ✔✔ competitive
disadvantage
, What must a firm do after diagnosing its specific competitive challenge? - Correct
Answer ✔✔ Create an effective guiding policy
Michael's Deli is able to perform at the same level as its primary competitor. Michael's
Deli has ______. - Correct Answer ✔✔ competitive parity
In order to determine if Home Depot has a competitive advantage, we must compare
Home Depot's performance to ______. - Correct Answer ✔✔ the performance of other
firms in its industry
The Bright Bulb light bulb company produces a line of LED bulbs that customers
consider very similar to competitors' LED bulbs. Which of the following conditions must
be true for Bright Bulb to have a competitive advantage? - Correct Answer ✔✔ The
bulbs must have a lower cost than competitors' bulbs.
Burger Bomb has been outperforming other burger restaurants in recent years. This
indicates that Burger Bomb has which of the following? - Correct Answer ✔✔ A
competitive advantage
Andrew's Home Center has created a unique situation for itself in its industry that allows
the company to not only provide excellent value to its customers but also control its
costs. This is known as ______. - Correct Answer ✔✔ strategic positioning
A competitive advantage that lasts for a long period of time is said to be ______. -
Correct Answer ✔✔ sustainable
Managers often have to make decisions between two conflicting strategic options,
otherwise known as ______. - Correct Answer ✔✔ trade-offs
A(n) ______ occurs when a firm performs below the industry average or is
outperformed by its competitors. - Correct Answer ✔✔ competitive disadvantage
A well-devised strategy is about which two things? - Correct Answer ✔✔ what not to do,
what to do
Competitive parity occurs when ______. - Correct Answer ✔✔ two or more firms
achieve the same performance results
Which statement about strategies is true? - Correct Answer ✔✔ A statement of desire
on its own often leads to goal conflict.
In which of the following situations can a firm providing goods and services gain a
competitive advantage? - Correct Answer ✔✔ Their offerings provide more value for
consumers than competitors' offerings.
QUESTIONS & VERIFIED CORRECT
ANSWERS
What is the overall purpose of strategic management? - Correct Answer ✔✔ Gain
competitive advantage
Burger Bomb is a new hamburger restaurant. In order to compete successfully against
its many competitors, Burger Bomb has decided to focus on quality and an interesting,
unique menu that uses locally sourced, organic ingredients. This is known as Burger
Bomb's ______. - Correct Answer ✔✔ strategy
Which of the following indicates that investors expect future growth for Tesla? - Correct
Answer ✔✔ the increasing value of the company's stock
Effective guiding policy is supported by and stays consistent through the use of ______.
- Correct Answer ✔✔ strategic commitments
A competitive advantage _____. - Correct Answer ✔✔ is assessed relative to other
competitors in the industry
Which of the following elements comprise strategic management? - Correct Answer ✔✔
formulation,
analysis,
implementation
The overall purpose of a firm's strategy is to ______. - Correct Answer ✔✔ perform
better than other companies in the same industry
Strategy is ______. - Correct Answer ✔✔ the set of actions a firm takes to achieve a
competitive advantage
Based on its long dominance as a coffeehouse chain, Starbucks has ______. - Correct
Answer ✔✔ a sustainable competitive advantage
What is one explanation for why Tesla underperforms when the company's profits are
compared to the profits of established car companies? - Correct Answer ✔✔ Startups
often lose money early on.
If a firm has a 10% return on invested capital while the industry average return on
invested capital is 18%, the firm has a(n) ______. - Correct Answer ✔✔ competitive
disadvantage
, What must a firm do after diagnosing its specific competitive challenge? - Correct
Answer ✔✔ Create an effective guiding policy
Michael's Deli is able to perform at the same level as its primary competitor. Michael's
Deli has ______. - Correct Answer ✔✔ competitive parity
In order to determine if Home Depot has a competitive advantage, we must compare
Home Depot's performance to ______. - Correct Answer ✔✔ the performance of other
firms in its industry
The Bright Bulb light bulb company produces a line of LED bulbs that customers
consider very similar to competitors' LED bulbs. Which of the following conditions must
be true for Bright Bulb to have a competitive advantage? - Correct Answer ✔✔ The
bulbs must have a lower cost than competitors' bulbs.
Burger Bomb has been outperforming other burger restaurants in recent years. This
indicates that Burger Bomb has which of the following? - Correct Answer ✔✔ A
competitive advantage
Andrew's Home Center has created a unique situation for itself in its industry that allows
the company to not only provide excellent value to its customers but also control its
costs. This is known as ______. - Correct Answer ✔✔ strategic positioning
A competitive advantage that lasts for a long period of time is said to be ______. -
Correct Answer ✔✔ sustainable
Managers often have to make decisions between two conflicting strategic options,
otherwise known as ______. - Correct Answer ✔✔ trade-offs
A(n) ______ occurs when a firm performs below the industry average or is
outperformed by its competitors. - Correct Answer ✔✔ competitive disadvantage
A well-devised strategy is about which two things? - Correct Answer ✔✔ what not to do,
what to do
Competitive parity occurs when ______. - Correct Answer ✔✔ two or more firms
achieve the same performance results
Which statement about strategies is true? - Correct Answer ✔✔ A statement of desire
on its own often leads to goal conflict.
In which of the following situations can a firm providing goods and services gain a
competitive advantage? - Correct Answer ✔✔ Their offerings provide more value for
consumers than competitors' offerings.
