Exam 1: What Is Strategy and Why Is It Important

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A company's strategy is the set of actio...

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The company has used a focused low-cost ...

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A) the ability of the strategy to keep the company profitable.
B) the proven ability of the strategy to generate maximum profits.
C) the speed with which it helps the company achieve its strategic vision.
D) management's ability to forge a series of actions,both in the marketplace and internally,that sets the company apart from rivals,and produces sustainable competitive advantage.
E) whether it allows the company to maximize shareholder value in the shortest possible time.

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A) concerns the actions and business approaches that will be used to grow the business,conduct operations,and stake a competitor's market position.
B) is management's blueprint for how it will generate revenues sufficient to cover costs and yield an attractive profit.
C) concerns what combination of moves in the marketplace it plans to make to outcompete rivals.
D) deals with how it can simultaneously maximize profits and operate in a socially responsible manner that keeps its prices as low as possible.
E) concerns how management plans to pursue strategic objectives,given the larger imperative of meeting or beating its financial performance targets.

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Yes,a company's strategy should be tight...

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The company has adopted a proactive stra...

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A) The Dominant Market Test,the Sustainable Advantage Test,and the Profit Test
B) The Fit Test,the Competitive Advantage Test,and the Performance Test
C) The Sustainable Performance Test,the Fit Test,and the Profit Test
D) The Performance Test,the Dominant Market Test,and the Fit Test
E) The Fit Test,the Sustainable Advantage Test,and the Dominant Market Test

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A) The need to keep strategy in step with changing circumstances,market conditions,and changing customer needs and expectations
B) The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy
C) The need to abandon some strategy features that are no longer working well
D) The need to respond to the newly initiated actions and competitive moves of rival firms
E) The need to respond to short-term swings in the stock market

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The central features of a strategy are t...

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A) Striving to be the industry's low-cost provider,thereby aiming for a cost-based competitive advantage
B) Outcompeting rivals on the basis of differentiating features such as higher quality,wider product selection,added performance,better service,more attractive styling,technological superiority,or unusually good value for the money
C) Focusing on a broad buyer segment and offering buyers a very low cost and highly customized attributes that meet their specialized needs better than rivals' products
D) Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of satisfying the needs and tastes of buyers comprising the niche
E) Developing a cost advantage based on offering more value for the money

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High-quality pens at a very low price is...

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A) Providing a free translation feature for 80 different languages
B) Allowing users to view ads on previously made related searches
C) Allowing users to view a collation of related web pages users might want to visit
D) Providing a faster load time and more accurate hits than its rivals
E) Providing suggestive search items based on history of sites visited

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A) a company's strategy is management's game plan for achieving strategic objectives while its business model is management's game plan for achieving financial objectives.
B) the strategy concerns how to compete successfully and the business model concerns how to operate efficiently.
C) a company's strategy is management's game plan for realizing the strategic vision,whereas a company's business model is the game plan for accomplishing its corporate responsibility goals.
D) strategy relates broadly to a company's competitive moves and business approaches while its business model relates to whether the revenues flowing from the strategy are sufficient to cover costs and realize a profit.
E) a company's strategy is solely concerned with how to please customers while its business model is solely concerned with how to please shareholders.

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The house aims to achieve a cost-based a...

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A) A low-cost provider strategy
B) A broad differentiation strategy
C) A focused low-cost strategy
D) A focused differentiation strategy
E) A best-cost provider strategy

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At the core of every sound strategy is t...

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A) builds strategic fit,is socially responsible,and maximizes shareholder wealth.
B) is highly profitable and boosts the company's market share.
C) fits the company's internal and external situation,builds sustainable competitive advantage,and improves company performance.
D) results in a company becoming the dominant industry leader.
E) can pass the ethical standards test,the strategic intent test,and the profitability test.

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A) a blend of offensive actions on the part of managers to improve the company's profitability and defensive moves to counteract changing market conditions.
B) a combination of conservative moves to protect the company's market share and somewhat more risky initiatives to set the company's product offering apart from rivals.
C) a close imitation of the strategy employed by the recognized industry leader.
D) a blend of proactive actions to improve the company's competitiveness and financial performance,and adaptive reactions to unanticipated developments and fresh market conditions.
E) more a product of clever entrepreneurship than of efforts to clearly set a company's product/service offering apart from the offerings of rivals.

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