STRATEGY EXAM #1 QUESTIONS
WITH CORRECT ANSWERS
AQcompany'sQ__________QspellsQoutQwhyQtheQcompanyQmattersQinQtheQmarketplaceQ
byQdefiningQitsQapproachQtoQcreatingQsuperiorQvalueQforQcustomersQandQhowQcapabilit
iesQandQresourcesQwillQbeQemployedQtoQdeliverQtheQdesiredQvalueQtoQcustomers.
profitQmodel
advertisingQplan
strategy
boardQofQdirectors
financialQobjectivesQ-QCORRECTQANSWERSC
AQstrategyQonlyQstandsQaQchanceQofQsucceedingQwhenQ__________
theQcompanyQexpandsQitsQproductQlineQorQserviceQofferingsQasQrapidlyQandQwidelyQas
Qpossible.
short-termQshareholderQvalueQisQmaximizedQasQmuchQasQpossible.
strategicQmovesQareQmadeQinQorderQtoQimitateQtheQindustryQcompetitorsQthatQareQth
eQmostQsuccessful.
theQcompanyQmatchesQcompetitor'sQpricesQasQmuchQasQpossible.
itQisQpredicatedQonQactions,QbusinessQapproaches,QandQcompetitiveQmovesQaimedQatQ
appealingQtoQbuyersQinQwaysQthatQsetQaQcompanyQapartQfromQrivals.Q-
QCORRECTQANSWERSE
,AsQaQcomponentQofQaQcompany'sQbusinessQmodel,Q__________QisQtheQcompany'sQapp
roachQtoQsatisfyingQbuyerQwantsQandQneedsQatQaQpriceQcustomersQwillQconsiderQaQgo
odQvalue
theQprofitQformula
aQlow-costQproviderQstrategy
aQsustainableQadvantage
aQdeliberateQstrategy
theQcustomerQvalueQpropositionQ-QCORRECTQANSWERSE
InQorderQtoQsucceed,QaQcompany'sQstrategyQ____________________
needsQtoQhaveQatQleastQoneQdistinctive,Qsuperior,QorQuniqueQelementQthatQattractsQcu
stomersQandQproducesQaQcompetitiveQedgeQoverQrivals.
needsQtoQbeQsimilarQtoQtheQstrategiesQofQsuccessfulQcompaniesQinQitsQindustry.
hasQtoQbeQcreatedQbyQallQemployeesQasQexecutionQdependsQonQeveryQsingleQemploye
e.
shouldQfocusQonQmeetingQorQbeatingQshareholderQexpectations.
shouldQbeQadaptedQtoQmatchQtheQstrategiesQofQitsQclosestQcompetitors.Q-
QCORRECTQANSWERSA
WhichQofQtheQfollowingQstatementsQisQcorrectQregardingQaQcompany'sQprofitQformula?
, AQcompanyQthatQhasQaQsuperiorQprofitQformulaQcanQbeQprofitableQregardlessQofQtheQ
customerQvalueQproposition.
AQcarefullyQcraftedQstrategyQvirtuallyQguaranteesQthatQtheQcompanyQwillQbeQprofitable.
TheQprofitQformulaQdescribesQtheQcompany'sQapproachQtoQdeterminingQaQcostQstructur
eQthatQwillQallowQforQacceptableQprofitsQgivenQtheQpricingQtiedQtoQitsQcustomerQvalu
eQproposition.
TheQlowerQtheQcostsQgivenQtheQcustomerQvalueQproposition,QtheQlessQlikelyQtheQabilit
yQofQtheQbusinessQmodelQtoQbeQaQmoneymaker.
AQprofitQformulaQisQusedQtoQpredictQfutureQearningsQwithQrelativelyQcertainQaccuracy.
Q-QCORRECTQANSWERSC
WhatQisQtheQreasonQthatQaQcompany'sQstrategyQtendsQtoQbeQaQ"workQinQprogress"Qa
ndQevolvesQoverQtime?
TheQcompetitiveQadvantageQpotentialQofQdevelopingQnewQstrategicQmovesQannually.
TheQchangingQcircumstancesQinQtheQmarketQandQtheQcompetitiveQarena.
TheQchangeQinQaQcompany'sQvisionQandQvaluesQcausesQaQconstantQadaptionQofQtheQs
trategyQtoQmeetQtheQongoingQneedQtoQimitateQtheQnewQstrategicQmovesQofQtheQindu
stryQleaders.
TheQongoingQneedQtoQimitateQtheQstrategicQmovesQofQtheQindustry'sQstrongestQrival.
WITH CORRECT ANSWERS
AQcompany'sQ__________QspellsQoutQwhyQtheQcompanyQmattersQinQtheQmarketplaceQ
byQdefiningQitsQapproachQtoQcreatingQsuperiorQvalueQforQcustomersQandQhowQcapabilit
iesQandQresourcesQwillQbeQemployedQtoQdeliverQtheQdesiredQvalueQtoQcustomers.
profitQmodel
advertisingQplan
strategy
boardQofQdirectors
financialQobjectivesQ-QCORRECTQANSWERSC
AQstrategyQonlyQstandsQaQchanceQofQsucceedingQwhenQ__________
theQcompanyQexpandsQitsQproductQlineQorQserviceQofferingsQasQrapidlyQandQwidelyQas
Qpossible.
short-termQshareholderQvalueQisQmaximizedQasQmuchQasQpossible.
strategicQmovesQareQmadeQinQorderQtoQimitateQtheQindustryQcompetitorsQthatQareQth
eQmostQsuccessful.
theQcompanyQmatchesQcompetitor'sQpricesQasQmuchQasQpossible.
itQisQpredicatedQonQactions,QbusinessQapproaches,QandQcompetitiveQmovesQaimedQatQ
appealingQtoQbuyersQinQwaysQthatQsetQaQcompanyQapartQfromQrivals.Q-
QCORRECTQANSWERSE
,AsQaQcomponentQofQaQcompany'sQbusinessQmodel,Q__________QisQtheQcompany'sQapp
roachQtoQsatisfyingQbuyerQwantsQandQneedsQatQaQpriceQcustomersQwillQconsiderQaQgo
odQvalue
theQprofitQformula
aQlow-costQproviderQstrategy
aQsustainableQadvantage
aQdeliberateQstrategy
theQcustomerQvalueQpropositionQ-QCORRECTQANSWERSE
InQorderQtoQsucceed,QaQcompany'sQstrategyQ____________________
needsQtoQhaveQatQleastQoneQdistinctive,Qsuperior,QorQuniqueQelementQthatQattractsQcu
stomersQandQproducesQaQcompetitiveQedgeQoverQrivals.
needsQtoQbeQsimilarQtoQtheQstrategiesQofQsuccessfulQcompaniesQinQitsQindustry.
hasQtoQbeQcreatedQbyQallQemployeesQasQexecutionQdependsQonQeveryQsingleQemploye
e.
shouldQfocusQonQmeetingQorQbeatingQshareholderQexpectations.
shouldQbeQadaptedQtoQmatchQtheQstrategiesQofQitsQclosestQcompetitors.Q-
QCORRECTQANSWERSA
WhichQofQtheQfollowingQstatementsQisQcorrectQregardingQaQcompany'sQprofitQformula?
, AQcompanyQthatQhasQaQsuperiorQprofitQformulaQcanQbeQprofitableQregardlessQofQtheQ
customerQvalueQproposition.
AQcarefullyQcraftedQstrategyQvirtuallyQguaranteesQthatQtheQcompanyQwillQbeQprofitable.
TheQprofitQformulaQdescribesQtheQcompany'sQapproachQtoQdeterminingQaQcostQstructur
eQthatQwillQallowQforQacceptableQprofitsQgivenQtheQpricingQtiedQtoQitsQcustomerQvalu
eQproposition.
TheQlowerQtheQcostsQgivenQtheQcustomerQvalueQproposition,QtheQlessQlikelyQtheQabilit
yQofQtheQbusinessQmodelQtoQbeQaQmoneymaker.
AQprofitQformulaQisQusedQtoQpredictQfutureQearningsQwithQrelativelyQcertainQaccuracy.
Q-QCORRECTQANSWERSC
WhatQisQtheQreasonQthatQaQcompany'sQstrategyQtendsQtoQbeQaQ"workQinQprogress"Qa
ndQevolvesQoverQtime?
TheQcompetitiveQadvantageQpotentialQofQdevelopingQnewQstrategicQmovesQannually.
TheQchangingQcircumstancesQinQtheQmarketQandQtheQcompetitiveQarena.
TheQchangeQinQaQcompany'sQvisionQandQvaluesQcausesQaQconstantQadaptionQofQtheQs
trategyQtoQmeetQtheQongoingQneedQtoQimitateQtheQnewQstrategicQmovesQofQtheQindu
stryQleaders.
TheQongoingQneedQtoQimitateQtheQstrategicQmovesQofQtheQindustry'sQstrongestQrival.
