Chapter 01
What is Strategy?
Multiple Choice Questions
1. Which of the following strategies does Twitter need to implement to increase its competitive
advantage?
A. charge no fee to individual users
B. increase its user base
C. deliver ads in real time
D. allow core users to stay always connected
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. Patterson Foods Inc. was the first company to start selling energy bars in its country—a
product that gained popularity among diverse groups. Soon, other companies started to sell
their own brands of energy bars, thereby giving Patterson Foods ample competition. In
response, Patterson Foods decided to limit its variety of energy bars to only four. However, it
ensured that these four varieties were low in calories and low in cost. With this innovation,
Patterson Foods Inc. consistently outperformed its competitors for ten years. In this scenario,
Patterson Foods Inc. 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. Jamison Inc. generated revenue of $300,000 this financial year, which is close to the
industrial revenue average of $320,000.
B. CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's
sales of 5,000 units, though the industry average is 10,000 units.
C. Zhang Corp. was able to hold its market share of 68 percent in the social networking
industry for more than three years.
D. Peak 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?
Multiple Choice Questions
1. Which of the following strategies does Twitter need to implement to increase its competitive
advantage?
A. charge no fee to individual users
B. increase its user base
C. deliver ads in real time
D. allow core users to stay always connected
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. Patterson Foods Inc. was the first company to start selling energy bars in its country—a
product that gained popularity among diverse groups. Soon, other companies started to sell
their own brands of energy bars, thereby giving Patterson Foods ample competition. In
response, Patterson Foods decided to limit its variety of energy bars to only four. However, it
ensured that these four varieties were low in calories and low in cost. With this innovation,
Patterson Foods Inc. consistently outperformed its competitors for ten years. In this scenario,
Patterson Foods Inc. 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. Jamison Inc. generated revenue of $300,000 this financial year, which is close to the
industrial revenue average of $320,000.
B. CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's
sales of 5,000 units, though the industry average is 10,000 units.
C. Zhang Corp. was able to hold its market share of 68 percent in the social networking
industry for more than three years.
D. Peak Inc. was able to outperform its competitors with its new production system, in terms
of revenue, for a brief period of four months.
