GBA 490 TEST 1 Flashcards
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A company's strategy concerns A. Its market focus and plans for offering a more appealing product than rivals B. How it plans to make money in its chosen business C. Management's action plan for running the business and conducting operations—its commitment to pursue a particular set of actions in growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations and achieving targeted objectives D. The long-term direction that management believes the company should pursue E. Whether it is employing an aggressive offense to gain market share or a conservative defense to protect its market position
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C
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A company's strategy consists of A. The actions it is taking to develop a more appealing business model than rivals B. The plans it has to outcompete rivals and establish a sustainable competitive advantage C. The offensive moves it is employing to make its product offering more distinctive and appealing to buyers D. The competitive moves and business approaches that managers are employing to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations and achieve targeted objectives E. Its strategic vision, its strategic objectives and its strategic intent
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D
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The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations and achieve organizational objectives is referred to as its A. Strategy B. Mission statement C. Strategic intent D. Business model E. Strategic vision
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A
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In crafting a strategy, management is in effect saying A. "This is who we are and where we are headed.'' B. "This is our model for making money in our particular line of business." C. "We intend to launch these new moves to outcompete our rivals." D. "Among all the many different business approaches and ways of competing we could have chosen, we have decided to employ this particular combination of competitive and operating approaches in moving the company in the intended direction, strengthening its market position and competitiveness and boosting performance." E. "This is our vision of what our business will be like, what products/services we will sell and who our customers will be in the years to come."
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D
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A company's strategy is most accurately defined as A. Management's approaches to building revenues, controlling costs and generating an attractive profit B. Management's commitment to pursue a particular set of actions in growing the business, attracting and pleasing customers, competing successfully, conducting operations and improving the company's financial and market performance C. Management's concept of "who we are, what we do and where we are headed." D. The business model that a company's board of directors has approved for outcompeting rivals and making the company profitable E. The choices management has made regarding what financial plan to pursue
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B
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Which of the following is not something a company's strategy is concerned with? A. Management's choices about how to attract and please customers B. How quickly and closely to copy the strategies being used by successful rival companies C. Management's choices about how to grow the business D. Management's choices about how to compete successfully E. Management's action plan for conducting operations and improving the company's financial and market performance
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B
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Which of the following is not a primary focus of a company's strategy? A. How to attract and please customers B. How each functional piece of the business will be operated C. How to grow the business D. How to compete successfully E. How to achieve above-average gains in the company's stock price and thereby meet or beat shareholder expectations
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E
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In crafting a company's strategy, A. Management's biggest challenge is how closely to mimic the strategies of successful companies in the industry B. Managers have comparatively little freedom in choosing the hows of strategy C. Managers are wise not to decide on concrete courses of action in order to preserve maximum strategic flexibility D. Managers need to come up with some distinctive "aha" element to the strategy that draws in customers and produces a competitive edge over rivals E. Managers are well-advised to be risk-averse and develop a "conservative" strategy—"dare-to-be-different" strategies rarely are successful
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D
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The heart and soul of a company's strategy-making effort A. Involves coming up with moves and actions that produce a durable competitive edge over rivals B. Is figuring out how to maximize the profits and shareholder value C. Concerns how to improve the efficiency of its business model D. Deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner that keeps the company's prices as low as possible E. Is figuring out how to become the industry's low-cost provider
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A
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A company's strategy and its quest for competitive advantage are tightly connected because A. Without a competitive advantage a company cannot become the industry leader B. Without a competitive advantage a company cannot have a profitable business model C. Crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance D. A competitive advantage is what enables a company to achieve its strategic objectives E. How a company goes about trying to please customers and outcompete rivals is what enables senior managers choose an appropriate strategic vision for the company
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C
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A company achieves sustainable competitive advantage when A. It has a profitable business model B. An attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors C. It is able to maximize shareholder wealth D. It is consistently able to achieve both its strategic and financial objectives E. Its strategy and its business model are well-matched and in sync
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B
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A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage A. Is a reliable indicator that the company has a profitable business model B. Is every company's strategic vision C. Is a company's most reliable ticket to above-average profitability—indeed, the tight connection between competitive advantage and profitability means that the quest for sustainable competitive advantage always ranks center stage in crafting a strategy D. Signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives E. Is the best indicator that the company's strategy and business model are well-matched and properly synchronized
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C
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What separates a powerful strategy from a run-of-the-mill or ineffective one is A. The ability of the strategy to keep the company profitable B. Management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, tilts the playing field in the company's favor and produces sustainable competitive advantage over rivals C. The speed with which it helps the company achieve its strategic vision D. The proven ability of the strategy to generate maximum profits E. Whether it allows the company to maximize shareholder value in the shortest possible time
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B
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Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? 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 such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority or unusually good value for the money C. Developing expertise and resource strengths that give the company competitive capabilities that rivals can't easily imitate or trump with capabilities of their own D. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche E. All of these
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E
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Which of the following is not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? 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 such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority or unusually good value for the money C. Striving to be more profitable than rivals and aiming for a competitive edge based on bigger profit margins 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 expertise and resource strengths that give the company competitive capabilities that rivals can't easily imitate or trump with capabilities of their own
answer
C
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One of the keys to successful strategy-making is A. To come up with a business model that enables a company to earn bigger profits per unit sold than rivals B. To aggressively pursue all of the growth opportunities the company can identify C. To develop a product/service with more innovative performance features than what rivals are offering and to provide customers with better after-the-sale service D. To come up with one or more differentiating strategy elements that act as a magnet to draw customers and yield a lasting competitive edge E. To charge a lower price than rivals and thereby win sales and market share away from rivals
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D
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Which of the following is not something to look for in identifying a company's strategy? A. Actions to respond to changing market conditions or other external factors B. Actions to strengthen competitiveness via strategic alliances and collaborative partnerships C. Actions to strengthen competitive capabilities and correct competitive weaknesses D. Actions to capture emerging market opportunities and defend against external threats to the company's business prospects E. Management actions to revise the company's financial and strategic performance targets
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E
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Which of the following is something to look for in identifying a company's strategy? A. Actions to gain sales and market share B. Actions to strengthen marketing standing and competitiveness by merging with or acquiring rival companies C. Actions to enter new geographic or product markets or exit existing ones D. Actions and approaches used in managing R&D, production, sales and marketing, finance and other key activities E. All of above are pertinent in identifying a company's strategy
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E
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A company's strategy evolves over time as a consequence of A. The need to keep strategy in step with changing 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. All of these
answer
E
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Which of the following is not one of the basic reasons that a company's strategy evolves over time? A. An ongoing need to abandon those strategy features that are no longer working well B. The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy C. The need on the part of company managers to make regular adjustments in the company's strategic vision and also to initiate fresh strategic actions so as to keep employees from becoming bored with having to execute the same strategy month after month D. The need to respond to the actions and competitive moves of rival firms E. The need to keep strategy in step with changing market conditions and changing customer needs and expectations
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C
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Changing circumstances and ongoing managerial efforts to improve the strategy A. Account for why a company's strategy evolves over time B. Explain why a company's strategic vision undergoes almost constant change C. Make it very difficult for a company to have concrete strategic objectives D. Make it very hard to know what a company's strategy really is E. All of the above
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A
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) A company's strategy is a "work in progress" and evolves over time because of A. The ongoing need of company managers to react and respond to changing market and competitive conditions B. The ongoing need to imitate the new strategic moves of the industry leaders C. The need to make regular adjustments in the company's strategic vision D. The importance of developing a fresh strategic plan every year (which also has the benefit of keeping employees from becoming bored with executing the same strategy year after year after year) E. The frequent need to modify key elements of the company's business model
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A
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It is normal for a company's strategy to end up being 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 as-needed 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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D
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Crafting a strategy involves A. Stitching together a proactive/intended strategy and then adapting first one piece and then another as circumstances surrounding the company's situation change or better options emerge B. Developing a 5-year strategic plan and then fine-tuning it during the remainder of the plan period; big changes in strategy are thus made only once every 5 years C. Trying to imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage D. Doing everything possible (in the way of price, quality, service, warranties, advertising and so on) to make sure the company's product/service is very clearly differentiated from the product/service offerings of rivals E. All of these accurately characterize the managerial process of crafting a company's strategy
answer
A
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Which of the following statements about a company's strategy is true? A. A company's strategy is mostly hidden to outside view and is deliberately kept under wraps by top-level managers (so as to catch rival companies by surprise when the strategy is launched) B. A company's strategy is typically planned well in advance and usually deviates little from the planned set of actions and business approaches because of the risks of making on-the-spot changes C. A company's strategy generally changes very little over time unless a newly-appointed CEO decides to take the company in a new direction with a new strategy D. A company's strategy is typically a blend of proactive and reactive strategy elements E. A company's strategy is developed mostly on the fly because of the constant efforts of managers to come up with fresh moves to keep the company's product offering clearly different and set apart from the product offerings of rival companies
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D
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A company's strategy evolves from one version to the next because of A. Changing management conclusions about which of several appealing strategy alternatives is actually best B. The proactive efforts of company managers to improve this or that aspect of the strategy, a need to respond to changing customer requirements and expectations and a need to react to fresh strategic maneuvers on the part of rival firms C. Ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy) D. Pressures from shareholders to boost profit margins and pay higher dividends E. The importance of keeping the company's business model fresh and up-to-date
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B
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Which one of the following does not account for why a company's strategy evolves from one version to another? A. The need to abandon some strategy elements that are no longer working well B. A desire on the part of company managers to develop new strategy elements on the fly C. A need to respond to changing customer requirements and expectations D. A need to react to fresh strategic maneuvers on the part of rival firms E. The proactive efforts of company managers to improve this or that aspect of the strategy
answer
B
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In the course of crafting a strategy, it is common for management to A. Decide to abandon certain strategy elements that have grown stale or become obsolete B. Modify the current strategy when market and competitive conditions take an unexpected turn or some aspects of the company's strategy hit a stone wall C. Modify the current strategy in response to the fresh strategic maneuvers of rival firms D. Take proactive actions to improve this or that piece of the strategy E. All of these
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E
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A company's strategy can be considered "ethical" A. If each element of its strategy is "legal." B. If it does not entail actions or behaviors that cross the moral line from "can do" to "should not do" (because such actions are unsavory, unconscionable, injurious to others or unnecessarily harmful to the environment) and if it allows management to fulfill its ethical duties to all stakeholders (shareholders, employees, customers, suppliers, the communities in which it operates and society at large) C. If its actions and behaviors fall within the bounds of "fair competition." D. So long as leading religious authorities find nothing "morally wrong" in the company's actions E. So long as the company's strategic actions do not injure the business of rival firms or the well-being of customers
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B
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A company's strategy can be considered "unethical" or shady A. If any of its actions constitute "unfair competition." B. If the company engages in actions or behaviors that are contrary to the general public interest C. If the company's actions/behaviors are harmful to its stakeholders—customers, employees, shareholders, suppliers and the communities in which the company operates D. If it entails actions or behaviors that cross the moral line from "can do" to "should not do" (because such actions are "unsavory" or unconscionable or unnecessarily harmful to the environment) E. All of the above call the company's actions/behaviors into question from an ethical standpoint
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E
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In endeavoring to craft an ethical strategy, company managers A. Need only take care to ensure that each piece of the strategy entails actions and behaviors that are within the letter and spirit of the law B. Are well advised to develop an ethical strategy code that clearly states which strategic actions are ethical (and which will be pursued) and which are unethical (and will not be tolerated) so that all managers and company personnel can stay within ethical bounds in developing strategic initiatives C. Are well advised to have the company's board of directors review the strategy and "certify" whether each element of the company's strategy is ethical or not D. Have to go beyond what strategic actions and behaviors are legal and address whether all the various elements of the company's strategy can pass the test of moral scrutiny E. Have to back off aggressive efforts to maximize profits (many strategic actions to maximize profits cross over the line to unsavory or shady—or, at least, are borderline unethical)
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D
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A company's business model A. Concerns the actions and business approaches that will be used to grow the business, conduct operations, please customers and compete successfully B. Is management's storyline for how it will generate revenues ample to cover costs and produce a profit—absent the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt 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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B
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A company's business model A. Details the ethical and socially responsible nature of the company's strategy B. Is management's storyline for how the strategy will result in achieving the targeted strategic objectives C. Zeros in on how and why the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment D. Explains how it intends to achieve high profit margins E. Sets forth the actions and approaches that it will employ to achieve market leadership
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C
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A company's business model A. Sets forth management's game plan for maximizing profits for shareholders B. Details exactly how management's strategy will result in the achievement of the company's strategic intent C. Explains how it will achieve high profit margins while at the same time charging relatively low prices to customers D. Sets forth the key components of the enterprise's business approach, indicates how revenues will be generated and makes a case for why the strategy can deliver value to customers in a profitable manner E. Sets forth management's long term action plan for achieving market leadership
answer
D
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Management's story line for how and why the company's business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment A. Describes what is meant by a company's strategy B. Best describes what is meant by a company's business model C. Accounts for why a company's financial objectives are at the stated level D. Portrays the essence of a company's business purpose or mission E. Is what is meant by the term strategic intent
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B
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The difference between a company's strategy and a company's business model is that 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 the business purpose or mission D. Strategy relates broadly to a company's competitive moves and business approaches (which may or may not lead to profitability) while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to earn satisfactory profits and returns on investment E. A company's strategy concerns how to please customers while its business model concerns how to please shareholders
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D
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A winning strategy is one that A. Builds strategic fit, is socially responsible and maximizes shareholder wealth B. Is highly profitable and boosts the company's market share C. Results in a company becoming the dominant industry leader D. Fits the company's internal and external situation, builds sustainable competitive advantage and improves company performance E. Can pass the ethical standards test, the strategic intent test and the profitability test
answer
D
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Which one of the following questions can be used to test the merits of one strategy over another and distinguish a winning strategy from a mediocre or losing strategy? A. How good is the company's business model? B. How well does the strategy fit the company's situation? C. Does the company have low prices in comparison to rivals? D. Is the company putting too little emphasis on behaving in an ethical and socially responsible manner? E. Is the company a technology leader?
answer
B
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Crafting and executing strategy are top-priority managerial tasks because A. Good strategy coupled with good strategy execution greatly raises the chances that a company will be a standout performer in the marketplace B. They are necessary ingredients of a sound business model C. The management skills of top executives are sharpened as they work their way through the strategy-making/strategy-executing process D. Doing these tasks helps executives develop an appropriate strategic vision, strategic intent and set of strategic objectives E. Of the contribution they make to maximizing value for shareholders
answer
A
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Good strategy combined with good strategy execution A. Offers a surefire guarantee for avoiding periods of weak financial performance B. Are the two best signs that a company is a true industry leader C. Are more important management functions than forming a strategic vision and setting objectives D. Are the most trustworthy signs of good management E. Signal that a company has a superior business model
answer
D
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Which one of the following is not one of the five basic tasks of the strategy-making, strategy-executing process? A. Forming a strategic vision of where the company needs to head and what its future business make-up will be B. Setting objectives to convert the strategic vision into specific strategic and financial performance outcomes for the company to achieve C. Crafting a strategy to achieve the objectives and get the company where it wants to go D. Developing a profitable business model E. Implementing and executing the chosen strategy efficiently and effectively
answer
D
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Which of the following is an integral part of the managerial process of crafting and executing strategy? A. Developing a proven business model B. Setting objectives and using them as yardsticks for measuring the company's performance and progress C. Deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage D. Communicating the company's mission and purpose to all employees E. Deciding on the company's strategic intent
answer
B
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Which of the following are integral parts of the managerial process of crafting and executing strategy? A. Developing a strategic vision, setting objectives and crafting a strategy B. Developing a proven business model, deciding on the company's strategic intent and crafting a strategy C. Setting objectives, crafting a strategy, implementing and executing the chosen strategy and deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage D. Coming up with a statement of the company's mission and purpose and communicating it to all employees, setting objectives, choosing what business approaches and operating practices to employ, selecting a business model and monitoring developments and initiating corrective adjustments E. Deciding on the company's strategic intent, setting financial objectives, crafting a strategy and choosing what business approaches and operating practices to employ
answer
A
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The strategy-making, strategy-executing process A. Is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives B. Includes establishing a company's mission, developing a business model aimed at making the company an industry leader and crafting a strategy to implement and execute the business model C. Embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, new ideas and new opportunities D. Is principally concerned with sizing up an organization's internal and external situation, so as to be prepared for the challenge of developing a sound business model E. Is primarily the responsibility of top executives and the board of directors; very few managers below this level are involved
answer
C
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A company's strategic vision concerns A. A company's directional path and future product-market-customer-technology focus B. Why the company does certain things in trying to please its customers C. Management's storyline of how it intends to make a profit with the chosen strategy D. "who we are and what we do." E. What future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage
answer
A
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A company's strategic vision A. Is management's story line for how it plans to implement and execute a profitable business model B. Sets forth what business the company is presently in and why it uses particular operating practices in trying to please customers C. Delineates management's aspirations for the business, providing a panoramic view of "where we are going" and a convincing rationale for why this makes good business sense D. Defines "who we are and what we do." E. Spells out a company's strategic intent, its strategic and financial objectives and the business approaches and operating practices that will underpin its efforts to achieve sustainable competitive advantage
answer
C
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Developing a strategic vision for a company entails A. Prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense B. Describing its business model and the kind of value that it is trying to deliver to customers C. Putting together a story line of why the business will be a moneymaker D. Describing "who we are and what we do." E. Coming up with a long-term plan for outcompeting rivals and achieving a competitive advantage
answer
A
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) The managerial task of developing a strategic vision for a company A. Concerns deciding what approach the company should take to implement and execute its business model B. Entails coming up with a fairly specific answer to "who are we, what do we do and why are we here?" C. Is chiefly concerned with addressing what a company needs to do to successfully outcompete rivals in the marketplace D. Involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense E. Entails coming up with a persuasive storyline of how the company intends to make money
answer
D
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Which one of the following is not an accurate attribute of an organization's strategic vision? A. Providing a panoramic view of "where we are going" B. Describing the company's future product-market-customer-technology focus C. Pointing an organization in a particular direction and charting a strategic path for it to follow D. Helping mold an organization's character and identity E. Outlining how the company intends to implement and execute its business model
answer
E
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Management's strategic vision for an organization A. Charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense B. Describes in fairly specific terms the organization's strategic intent, strategic objectives and strategy C. Spells out how the company will become a big moneymaker and boost shareholder value D. Addresses the critical issue of "why our business model needs to change and how we plan to change it." E. Spells out the organization's strategic intent and the actions and moves that will be undertaken to achieve it
answer
A
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What a company's top executives are saying about where the company is headed and about what the company's future product-customer-market-technology will be A. Indicates what kind of business model the company is going to have in the future B. Constitutes their strategic vision for the company C. Signals what the firm's strategy will be D. Serves to define the company's mission E. Indicates what the company's long-term strategic plan is
answer
B
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One of the important benefits of a well-conceived and well-stated strategic vision is to A. Clearly delineate how the company's business model will be implemented and executed B. Clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction C. Set forth the firm's strategic objectives in clear and fairly precise terms D. Help create a "balanced scorecard" approach to objective-setting and not stretch the company's resources too thin across different products, technologies and geographic markets E. Indicate what kind of sustainable competitive advantage the company will try to create in the course of becoming the industry leader
answer
B
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The defining characteristic of a well-conceived strategic vision is A. That it be flexible and in the mainstream B. That it not stretch the company's resources too thin across different products, technologies and geographic markets C. Clarity and specificity about "who we are, what we do and why we are here." D. What it says about the company's future strategic course—"the direction we are headed and what our future product-market-customer-technology focus will be." E. That it be within the realm of what the company can reasonably expect to achieve within 2-4 years
answer
D
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Which one of the following questions is not pertinent to company managers in thinking strategically about their company's directional path and developing a strategic vision? A. Is the outlook for the company promising if it continues with its present product-market-technology-customer focus? B. Are changing market and competitive conditions acting to enhance or weaken the company's prospects? C. What business approaches and operating practices should we consider in trying to implement and execute our business model? D. What are our ambitions for the company—what industry standing do we want the company to have? E. What, if any, new customer groups and/or geographic markets should the company get in position to serve?
answer
C
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Which one of the following questions is not something that company managers should consider in choosing to pursue one strategic course or directional path versus another? A. Are changing market and competitive conditions acting to enhance or weaken the company's business outlook? B. Is the company stretching its resources too thinly by trying to compete in too many markets or segments, some of which are unprofitable? C. Will our present business generate sufficient growth and profitability in the years ahead to please shareholders? D. What emerging market opportunities should the company pursue and which ones should not be pursued? E. Do we have a better business model than key rivals?
answer
E
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Which of the following are characteristics of an effectively-worded strategic vision statement? A. Graphic, directional and focused B. Challenging, competitive and "set in concrete" C. Balanced, responsible and rational D. Realistic, customer-focused and market-driven E. Achievable, profitable and ethical
answer
A
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Which one of the following is not a characteristic of an effectively-worded strategic vision statement? A. Directional (is forward-looking, describes the strategic course that management has charted and the kinds of product-market-customer-technology changes that will help the company prepare for the future) B. Easy to communicate (is explainable in 10-15 minutes, can be reduced to a memorable slogan) C. Graphic (paints a picture of the kind of company management is trying to create and the market position(s) the company is striving to stake out) D. Consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support) E. Focused (is specific enough to provide guidance to managers in making decisions and allocating resources)
answer
D
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Which of the following is not a common shortcoming of company vision statements? A. Vague or incomplete—short on specifics B. Too narrow—doesn't leave enough room for future growth C. Bland or uninspiring D. Not distinctive—could apply to most any company (or at least several others in the same industry) E. Too reliant on superlatives (best, most successful, recognized leader, global or worldwide leader, first choice of customers)
answer
B
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Which of the following are common shortcomings of company vision statements? A. Too broad, vague or incomplete, bland/uninspiring, not distinctive and too reliant on superlatives B. Unrealistic, unconventional and un-businesslike C. Too specific, too inflexible and can't be achieved in 5 years D. Too broad, too narrow and too risky E. Not customer-driven, out-of-step with emerging technological trends and too ambitious
answer
A
question
A company's mission statement typically addresses which of the following questions? A. "Who are we and what do we do?" B. "What objectives and level of performance do we want to achieve?" C. "Where are we going and what should our strategy be?" D. "What approach should we take to achieve sustainable competitive advantage?" E. "What business model should we employ to achieve our objectives and our vision?"
answer
A
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The difference between the concept of a company mission statement and the concept of a strategic vision is that A. A mission statement typically concerns a company's present business scope ("who we are and what we do") whereas the principal concern of a strategic vision is with the company's long term direction and future product-market-customer-technology focus
answer
A
question
The task of effectively communicating the strategic vision is made easier by A. Having a simple strategy that is easy for company personnel to understand B. Combining the strategic vision and the company's values statement into a single document C. Combining the strategic vision and the mission statement into a single statement of overall business purpose D. Waiting until the company achieves its mission to tell company personnel about the strategic vision E. Capturing the essence of the vision in a catchy slogan or brief phrase and then using it repeatedly as a reminder of "where we are going and why."
answer
E
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Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of A. Not only explaining where management is trying to take the company and what changes lie on the road ahead but, more importantly, also inspiring company personnel to unite behind managerial efforts to get the company moving in the intended direction B. Helping company personnel understand why "making a profit" is so important C. Making it easier for top executives to set stretch objectives D. Helping lower-level managers and employees better understand the company's business model
answer
a
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Perhaps the most important benefit of a vivid, engaging and convincing strategic vision is A. Helping to crystallize top management's own view about what strategy to employ B. Helping company personnel understand the logic of the company's business model C. Helping justify the company's mission of making a profit D. Gaining wholehearted organizational support for the vision and uniting company personnel behind managerial efforts to get the company moving in the intended direction E. Keeping company personnel well-informed
answer
D
question
When there's an order of magnitude change in a company's environment that dramatically alters its prospects and mandates radical revision of its strategic course, the company is said to have encountered A. An opportunity to pursue a new strategic vision B. A strategic inflection point C. A strategic roadblock D. A new strategic opportunity E. A fork in the road that gives the company an opening to change to a different business model
answer
B
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The payoffs of a clear vision statement do not include A. Greater ability to avoid strategic inflection points B. Helping the organization prepare for the future C. Reducing the risks of rudderless decision-making D. Helping to crystallize top management's own view about the firm's long-term direction E. Providing a tool for winning the support of organizational members for internal changes that will help make the vision a reality
answer
A
question
A company's values concern A. Whether and to what extent it intends to operate in an ethical and socially responsible manner B. How aggressively it will seek to maximize profits and enforce high ethical standards C. The beliefs and operating principles built into the company's "balanced scorecard" for measuring performance D. The beliefs, traits and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and strategy E. The beliefs, principles and ethical standards that are incorporated into the company's strategic intent and business model
answer
D
question
Company managers connect values to the chosen strategic vision by A. Making it clear that company personnel are expected to live up to the values in conducting the company's business and pursuing its strategic vision B. Using a values-based balanced scorecard to measure the company's progress in achieving the vision C. Making achievement of the values a prominent part of the company's strategic objectives D. Combining the company's values and mission/business purpose into a single statement E. Making adherence to the company's values the centerpiece of the company's strategy
answer
A
question
The managerial purpose of setting objectives includes A. Converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve B. Using the objectives as yardsticks for tracking the company's progress and performance C. Challenging and helping stretch the organization to perform at its full potential and deliver the best possible results D. Pushing company personnel to be more inventive, to exhibit more urgency in improving the company's financial performance and business position and to be more intentional and focused in their actions E. All of these
answer
E
question
A set of "stretch" financial and strategic objectives A. Pushes the company closer to true profit maximization B. Is an effective tool for avoiding ho-hum results C. Helps convert the mission statement into meaningful company values D. Challenges company personnel to execute the strategy with greater proficiency E. Helps create a "balanced scorecard" for judging company performance
answer
B
question
Which one of the following is not an advantage of setting "stretch" objectives? A. Helping to avoid ho-hum results B. Pushing company personnel to be more inventive and innovative C. Helping clarify the company's strategic vision and strategic intent D. Helping a company be more focused and intentional in its actions E. Spurring exceptional performance and helping build a firewall against contentment with modest performance gains
answer
C
question
A company needs financial objectives A. To spur company personnel to help the company overtake key competitors on such important measures as net profit margins and return on investment B. Because adequate profitability and financial strength is critical to effective pursuit of its strategic vision, as well as to its long-term health and ultimate survival—weak earnings and a weak balance sheet alarm shareholders and creditors and put executives' jobs at risk C. To indicate to employees whether the emphasis should be on earnings per share or return on investment or return on assets or positive cash flow D. To convince shareholders that top management is acting in their interests E. To counterbalance its pursuit of strategic objectives and have a balanced scorecard for judging the caliber of its overall performance
answer
B
question
Which of the following is the best example of a well-stated financial objective? A. Increase earnings per share by 15% annually B. Gradually boost market share from 10% to 15% over the next several years C. Achieve lower costs than any other industry competitor D. Boost revenues by a percentage greater than the industry average E. Maximize total company profits and return on investment
answer
A
question
Which of the following is the best example of a well-stated strategic objective? A. Increase revenues by more than the industry average B. Be among the top 5 five companies in the industry on customer service C. Overtake key competitors on product quality within three years D. Improve manufacturing performance by 5% within 12 months E. Obtain 150 new customers during the current fiscal year
answer
C
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Strategic objectives A. Are more essential in achieving a company's strategic vision than are financial objectives B. Are generally less important than financial objectives C. Are more difficult to achieve and harder to measure than financial objectives D. Relate to strengthening a company's overall business and competitive position E. Help managers track an organization's true progress better than do financial objectives
answer
D
question
A balanced scorecard for measuring company performance A. Entails putting equal emphasis on financial and strategic objectives B. Entails putting balanced emphasis on profit and non-profit objectives C. Prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives D. Prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives E. Entails creating a set of objectives that is "balanced" in the sense of including both financial and strategic objectives
answer
E
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A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because A. Financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities whereas strategic performance measures are leading indicators of a company's future financial performance B. It entails putting equal emphasis on good strategy execution and good business model execution C. A balanced scorecard approach pushes managers to avoid setting objectives that reflect the results of past decisions and organizational activities and, instead, to set objectives that will serve as leading indicators of a company's future financial performance
answer
A
question
A company that pursues and achieves strategic objectives Refer To: 43 A. Is likely to weaken the achievement of its short-term and long-term financial objectives B. Believes that the company's financial performance is not as important as it really is C. Is generally not strongly focused on its true mission of making a profit D. Is frequently in better position to improve its future financial performance (because of the increased competitiveness and strength in the marketplace that flows from the achievement of strategic objectives)
answer
D
question
A company exhibits strategic intent when A. It adopts a strategic plan B. It relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective C. Senior executives pursue their strategic vision D. Top management establishes a comprehensive set of strategic objectives
answer
B
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Strategic intent refers to a situation where a company A. Relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective B. Decides to adopt a particular strategy C. Commits to using a particular business model to make money D. Commits to pursuing stretch strategic objectives
answer
A
question
A company with strategic intent A. Is one that is going all-out to overcome the challenges of having encountered a strategic inflection point B. Is one that is putting much more emphasis on achieving its strategic objectives than its financial objectives C. Is one that has good alignment between its strategic objectives and its strategy D. Usually has an aggressive strategy and plan for growing its business E. Usually has an exceptionally bold and grandiose long-term objective—like becoming the dominant global market leader—and an unshakable commitment to concentrating its full resources and strategy on achieving that objective even if it takes 10 years or longer
answer
E
question
Company objectives A. Are needed only in those areas directly related to a company's short-term and long-term profitability B. Need to be broken down into performance targets for each of its separate businesses, product lines, functional departments and individual work units C. Play the important role of establishing the direction in which it needs to be headed D. Are important because they help guide managers in deciding what the company's strategic intent should be
answer
B
question
A company needs performance targets or objectives A. For its operations as a whole and also for each of its separate businesses, product lines, functional departments and individual work units B. Because they give the company clear-cut strategic intent C. In order to unify the company's strategic vision and business model
answer
A
question
The task of stitching together a strategy A. Entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete customers, how to outcompete rivals, how to respond to changing market conditions, how to manage each functional piece of the business and develop needed competencies and capabilities and how to achieve strategic and financial objectives B. Is primarily an exercise in deciding which of several freshly-emerging market opportunities to pursue C. Is mainly an exercise that should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements
answer
A
question
Masterful strategies come from A. Successful managerial efforts to develop a sound strategic vision B. Doing a very thorough job of strategic planning C. Involving as many company personnel as possible in the strategy-making process D. Crafting a strategy that mimics the best parts of the strategies of the industry leaders E. Doing things differently from competitors where it counts—out-innovating them, being more efficient, adapting faster—rather than running with the herd
answer
E
question
Strategy-making is A. Primarily the responsibility of key executives rather than a task for a company's entire management team B. More of a collaborative group effort that involves, to some degree, all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives C. First and foremost the function and responsibility of a company's strategic planning staff
answer
B
question
Managerial jobs with strategy-making responsibility A. Are found only at the vice-president level and above in most companies B. Are primarily located in the strategic planning departments of large corporations C. Are relatively rare because most strategy-making is done by the members of a company's board of directors D. Seldom exist within a functional department (e.g., marketing and sales) or in an operating unit (a plant or a district office) because these levels of the organization structure are well below the level where strategic decisions are typically made E. Extend throughout the managerial ranks and exist in every part of a companybusiness units, operating divisions, functional departments, manufacturing plants and sales districts
answer
E
question
A company's overall strategy A. Is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy B. Is subject to being changed much less frequently than either its objectives or its mission statement and thus serves as the base of its strategy-making pyramid C. Should be based on a flexible strategic vision and strategic intent D. Is customarily reviewed and approved level-by-level by the company board of directors E. Determines whether its strategic intent is proactive or reactive
answer
A
question
In a diversified company, the strategy-making hierarchy consists of A. Corporate strategy and a group of business strategies (one for each line of business the corporation has diversified into) B. Corporate or managerial strategy, a set of business strategies and divisional strategies within each business C. Business strategies, functional strategies and operating strategies D. Corporate strategy, business strategies, functional strategies and operating strategies E. Its diversification strategy, its line of business strategies and its operating strategies
answer
D
question
In a single-business company, the strategy-making hierarchy consists of A. Business strategy, divisional strategies and departmental strategies B. Business strategy, functional strategies and operating strategies C. Business strategy and operating strategy D. Managerial strategy, business strategy and divisional strategies E. Corporate strategy, divisional strategies and departmental strategies
answer
B
question
Corporate strategy for a diversified or multi-business enterprise A. Is orchestrated by the CEO and other senior corporate executives and focuses on how to create a competitive advantage in each specific line-of-business the total enterprise is in B. Is orchestrated by the CEO and other senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries and efforts to boost the combined performance of the set of businesses the company has diversified into C. Concerns how best to allocate resources across the departments of each line of business the company is in
answer
B
question
Business strategy concerns A. The actions and approaches crafted by management to produce successful performance in one specific line of business B. What set of businesses to be in and why C. Selecting a business model to use in pursuing business objectives D. Selecting a set of stretch financial and strategic objectives for a particular line of business E. Choosing the most appropriate strategic intent for a specific line of business
answer
A
