Test Bank For Strategic Management: Concepts and Cases 3rd Edition By Jeffrey H. Dyer, Paul Godfrey, Robert Jensen, David Bryce (CHAPTER 1)

Package Title: Chapter 1, Testbank Course Title: Dyer, SM 2e Chapter Number: 1 Question type: Multiple Choice 1) ________ can be best defined as when an organization generates higher profits compared to its rivals. a) Client advantage b) Competitive advantage c) Employer advantage d) Unique value Answer: b Difficulty: Easy Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Knowledge Standard 1 : AACSB || Analytic 2) Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its competitors. In order to overcome this, the employees of Gems Corp. decide to work harder to provide unique value to customers and increase the sales of the company. After a year, it is able to make more profits than its competitors. This scenario best illustrates ________. a) client advantage b) internal analysis c) external analysis d) competitive advantage Answer: d Difficulty: Hard Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Application Standard 1 : AACSB || Analytic 3) The industry and geographic area that a company competes in, is referred to as its ________. a) niche b) business c) segment d) market Answer: d Difficulty: Easy Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Knowledge Standard 1 : AACSB || Analytic 4) Adia and Ali are two business partners who want to set up a company that sells imported sports gear and equipment. In order to make sure that the company makes and retains profit, they must choose an area that is close to where their products have the highest demand. This area should allow them consistently to make profit. In this scenario, Adia and Ali are looking for a ________. a) market b) strategy c) cost advantage d) mission Answer: a Difficulty: Hard Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Application Standard 1 : AACSB || Analytic 5) ________ can be best defined as the reason a firm wins with customers or the value proposition it offers to customers, such as a low cost advantage or differentiation advantage. a) Switching costs b) Unique value c) Complementary products d) SWOT analysis Answer: b Difficulty: Easy Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Knowledge Standard 1 : AACSB || Analytic 6) The employees of Flamingo Inc., a greeting card company, focus on providing unmatched customer satisfaction. Unlike its competitors, the employees of Flamingo take the time to listen to the needs of individual customers and design custom-made cards upon request. The customers of Flamingo state that the company provides a large variety of affordable products to choose from. The company has won many awards for providing complete customer satisfaction. In this scenario, which of the following does Flamingo Inc. provide to its customers? a) Backward integration b) Switching costs c) Complementary products d) Unique value Answer: d Difficulty: Hard Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Application Standard 1 : AACSB || Analytic 7) Returns in excess of what an investor expects from other investments with a similar amount of risk are referred to as ________. a) unique value b) complimentary value c) above-average profits d) above-average losses Answer: c Difficulty: Easy Section Reference 1: What Is Business Strategy? Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. Bloomcode: Knowledge Standard 1 : AACSB || Analytic