Chapter 01
What Is Strategy, and Why Is It Important?
Multiple Choice Questions
1. Keeping in mind Apple's competitive advantage, which of the following products was
introduced by Apple in 2007?
A. iPad
B. iPhone
C. iPod
D. iTunes
2. _____ is best described as an integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage.
A. Supply chain management
B. Integrated technology management
C. Strategic management
D. Inventory management
,3. _____ is best described as a set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors.
A. Behavior modification
B. Strategy
C. Credo
D. Competency management
4. Which of the following stages of the strategic management process involves an evaluation of
a firm's external and internal environments?
A. Strategy analysis
B. Strategy implementation
C. Strategy formulation
D. Strategy control
5. In _____, a firm frames a guiding policy to address the competitive challenge.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
,6. Through _____, a firm puts its guiding policy into practice by employing a set of coherent
actions.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
7. A firm that achieves superior performance relative to other firms in the same industry or the
industry average has a(n) _____.
A. competitive advantage
B. balanced scorecard
C. power position
D. equity leverage
, 8. Cadia Foods Inc. was the first company to start selling energy drinks in its country—a product
that gained popularity among diverse groups. Soon, other companies started to sell their own
brands of energy drinks, thereby giving Cadia Foods ample competition. In response, Cadia
Foods decided to limit its variety of energy drinks to only two. However, it ensured that these
two flavors were free of calories and low in cost. With this innovation, Cadia Foods Inc.
consistently outperformed its competitors for ten years. In this scenario, Cadia Foods Inc. has
maintained a _____ through its innovative strategy.
A. balanced scorecard
B. fiduciary responsibility
C. consistent power position
D. sustainable competitive advantage
9. Which of the following scenarios illustrates a firm that has a sustainable competitive
advantage?
A. Newon Inc. generated a revenue of $300,000 this financial year, which is close to the
industrial revenue average of $320,000.
B. SM Inc. almost doubled its sales to 8500 units this year compared to its previous year's
sales of 5000 units, though the industry average is 10,000 units.
C. TrueLink Corp. was able to hold its market share of 68 percent in the social networking
industry for more than three years.
D. Max Electrova Inc. was able to outperform its competitors with its new production system,
in terms of revenue, for a brief period of four months.
What Is Strategy, and Why Is It Important?
Multiple Choice Questions
1. Keeping in mind Apple's competitive advantage, which of the following products was
introduced by Apple in 2007?
A. iPad
B. iPhone
C. iPod
D. iTunes
2. _____ is best described as an integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage.
A. Supply chain management
B. Integrated technology management
C. Strategic management
D. Inventory management
,3. _____ is best described as a set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors.
A. Behavior modification
B. Strategy
C. Credo
D. Competency management
4. Which of the following stages of the strategic management process involves an evaluation of
a firm's external and internal environments?
A. Strategy analysis
B. Strategy implementation
C. Strategy formulation
D. Strategy control
5. In _____, a firm frames a guiding policy to address the competitive challenge.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
,6. Through _____, a firm puts its guiding policy into practice by employing a set of coherent
actions.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
7. A firm that achieves superior performance relative to other firms in the same industry or the
industry average has a(n) _____.
A. competitive advantage
B. balanced scorecard
C. power position
D. equity leverage
, 8. Cadia Foods Inc. was the first company to start selling energy drinks in its country—a product
that gained popularity among diverse groups. Soon, other companies started to sell their own
brands of energy drinks, thereby giving Cadia Foods ample competition. In response, Cadia
Foods decided to limit its variety of energy drinks to only two. However, it ensured that these
two flavors were free of calories and low in cost. With this innovation, Cadia Foods Inc.
consistently outperformed its competitors for ten years. In this scenario, Cadia Foods Inc. has
maintained a _____ through its innovative strategy.
A. balanced scorecard
B. fiduciary responsibility
C. consistent power position
D. sustainable competitive advantage
9. Which of the following scenarios illustrates a firm that has a sustainable competitive
advantage?
A. Newon Inc. generated a revenue of $300,000 this financial year, which is close to the
industrial revenue average of $320,000.
B. SM Inc. almost doubled its sales to 8500 units this year compared to its previous year's
sales of 5000 units, though the industry average is 10,000 units.
C. TrueLink Corp. was able to hold its market share of 68 percent in the social networking
industry for more than three years.
D. Max Electrova Inc. was able to outperform its competitors with its new production system,
in terms of revenue, for a brief period of four months.
