question

Which of the following is not one of the central questions in evaluating a company's business prospects?

answer

What are the key products or service attributes demanded by consumers?

question

A company's strategy concerns

answer

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.

question

A company's strategy consists of

answer

the competitive moves and business approaches the managers are employing to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve targeted objectives.

question

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

answer

strategy

question

In crafting a strategy, management is in effect saying

answer

"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."

question

A company's strategy is most accurately defined as

answer

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.

question

Which of the following is not something a company's strategy is concerned with

answer

How quickly and closely to copy the strategies being used by successful rival companies

question

Which of the following is not a primary focus of a company's strategy?

answer

How to achieve above-average gains in the company's stock price and thereby meet or beat shareholder expectations

question

In crafting a company's strategy

answer

managers need to come up with some distinctive "aha" element to the strategy that draws in customers and produces a competitive edge over time

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A company's strategy stands a better chance of succeeding when

answer

it is predicted on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals

question

A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage

answer

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.

question

The heart and soul of a company's strategy-making effort

answer

involves coming up with moves and actions that produce a durable competitive edge over rivals

question

A company's strategy and its quest for competitive advantage are tightly connected because

answer

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

question

A company achieves sustainable competitive advantage when

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an attractive number of buyers have a lasting preference for its products of services as compared to the offerings of competitors

question

What separates a powerful strategy from a run-of-the-mill or ineffective one is

answer

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

question

Which of the following is a frequently used strategic approach to setting a company apart form rivals and achieving a sustainable competitive advantage?

answer

All of these

question

Which of the following is not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?

answer

Striving to be more profitable than rivals and aiming for a competitive edge based on bigger profit margins

question

One of the keys to successful strategy-making is

answer

to come up with one or more strategy elements that act as a magnet to draw customers and yield a lasting competitive edge

question

Winning a competitive edge over competitors generally hinges on which of the following?

answer

All of these

question

A company's strategy evolves over time as consequence of

answer

the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy

question

Which of the following is not one of the basic reasons that a company's strategy evolves over time?

answer

The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture

question

Changing circumstances and ongoing managerial efforts to improve the strategy

answer

account for why a company's strategy evolves over time

question

A company's strategy is a "work in progress" and evolves over time because of

answer

the ongoing need of company managers to react and respond to changing market and competitive conditions

question

It is normal for a company's strategy to end up being

answer

a blend of proactive actions to improve the company's competitiveness and financial performance and adaptive reactions to unanticipated developments and fresh market conditions

question

Crafting a strategy involves

answer

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

question

Which of the following statements about a company's strategy is true?

answer

A company's strategy is typically a blend of proactive and reactive strategy elements

question

A company's strategy evolves from one version to the next because of

answer

the proactive efforts of company managers to improve this of 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

question

Which one of the following does not account for why a company's strategy evolves from one version to another?

answer

A desire on the part of company managers to develop new strategy elements on the fly

question

In the course of crafting a strategy, it is common for management to

answer

All of these

question

A company's business model

answer

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 survival of the business is in doubt

question

A company's business model

answer

is management's storyline for how the strategy will result in achieving the targeted strategic objectives

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A company's business model

answer

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

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Management's storyline for how and why the company's business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment

answer

best describes what is meant by a company's business model

question

The difference between a company's strategy and a company's business model is that

answer

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

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A winning strategy is one that

answer

fits the company's internal and external situations, builds sustainable competitive advantage, and improves company performance

question

Which 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?

answer

How well does the strategy fit the company's situation?

question

Which of the following questions ought to be used to test the merits of one strategy over another and distinguish a winning strategy from a mediocre or losing strategy?

answer

Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance?

question

Crafting and executing strategy are top-priority managerial tasks because

answer

there is a compelling need for managers to proactively shape how the company's business will be conducted and because a strategy-focused enterprise is more likely to be a stronger bottom-line performer than a company whose management views strategy as secondary and puts its priorities elsewhere

question

Crafting and executing strategy are top-priority managerial tasks because

answer

good strategy coupled with good strategy execution greatly raises the chances that a company will be a standout performer in the marketplace

question

Good strategy combined with good strategy execution

answer

are the most trustworthy signs of good management

question

The most trustworthy signs of a well-managed company are

answer

good strategy-making combined with good strategy execution

question

Excellent execution of an excellent strategy is

answer

the best use of managerial excellence and the best recipe for making a company a standout performer

question

What is the foremost question in running a business enterprise?

answer

What must managers do, and do well, to make a company a winner in the marketplace?

question

Which of the following is not one of the five basic tasks of the strategy-making, strategy-executing process?

answer

Developing a profitable business model

question

Which of the following is an integral part of the managerial process of crafting and executing strategy?

answer

Setting objectives and using them as yardsticks for measuring the company's performance and progress

question

Which of the following are integral parts of the managerial process of crafting and executing strategy?

answer

Developing a strategic vision, setting objectives, and crafting a strategy

question

The strategy-making, strategy-executing process

answer

is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives

question

A company's strategic vision concerns

answer

a company's directional path and future product-martket-customer-technology focus

question

A company's strategic vision

answer

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

question

Developing a strategic vision for a company entails

answer

prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense

question

The managerial task of developing a strategic vision for a company

answer

involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense

question

Which one of the following is not an accurate attribute of an organization's strategic vision?

answer

Outlining how the company intends to implement and execute its business model

question

Management's strategic vision for an organization

answer

charts a strategic course for the organization ("where are we going") and provides a rationale for why this directional path makes good sense

question

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

answer

constitutes their strategic vision for the company

question

One of the important benefits of a well-conceived and well-stated strategic vision is to

answer

clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction

question

The defining characteristic of a well-conceived strategic vision is

answer

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"

question

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?

answer

What business approaches and operating practices should we consider in trying to implement and execute our business model?

question

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?

answer

Do we have a better business model than key rivals?

question

Which of the following are characteristics of an effectively-worded strategic vision statement?

answer

Graphic, directional, and focused

question

Which of the following is not a characteristic of an effectively-worded strategic vision statement?

answer

Consensus-driven (commits the company to a "mainstream" directional path that almost all stakeholders will enthusiastically support)

question

Which of the following is not a common shortcoming of company vision statements?

answer

Too narrow--doesn't leave enough room for future growth

question

Which of the following are common shortcomings of company vision statements?

answer

Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives

question

Breaking down resistance to a new strategic vision typically requires that top management

answer

frequently reiterate the basis for the new direction at company gatherings, address employee concerns and fears head-on, and provide updates and progress reports as events unfold

question

Top management efforts to communicate the strategic vision to company personnel

answer

should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction

question

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of

answer

inspiring company personnel to unite behind managerial efforts to get the company moving in the intended direction

question

Perhaps the most important benefits of a vivid, engaging, and convincing strategic vision is

answer

uniting company personnel behind managerial efforts to get the company moving in the intended direction

question

The task of effectively communicating the strategic vision is made easier by

answer

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"

question

The payoffs of a clear vision statement do not include

answer

greater ability to avoid strategic inflection points

question

Which of the following is the result of a well-conceived and communicated strategic vision?

answer

All of these

question

A company's mission statement typically addresses which of the following questions?

answer

"Who are we and what do we do?"

question

The difference between the concept of a company mission statement and the concept of a strategic vision is that

answer

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 the company's long term direction and future product-market-customer-technology focus

question

The difference between a company's mission statement and the concept of a strategic vision is that

answer

a mission statement typically concerns a company's present business scope and purpose whereas a strategic vision sets forth "where we are going and why"

question

A company's mission statement should be sufficiently descriptive and includes which of the following?

answer

All of these

question

A company's values concern

answer

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 mission

question

A company's values relate to such things as

answer

fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship

question

Company managers connect values to the chosen strategic vision by

answer

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

question

The managerial purpose of setting objectives includes

answer

all of these

question

A company needs financial objectives

answer

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

question

Which of the following is the best example of a well-stated financial objective?

answer

Increase earnings per share by 15% annually

question

Which of the following is the best example of a well-stated strategic objective?

answer

Overtake key competitors on product quality within three years

question

Strategic objectives

answer

relate to strengthening a company's overall business and competitive position

question

A balanced scorecard for measuring company performance

answer

entails creating a set of objectives that is "balanced" in the sense of including both financial and strategic objectives

question

A "balanced scorecard" that includes both strategic and financial performance target is a conceptually strong approach for judging a company's overall performance because

answer

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

question

Perhaps the most reliable way for a company to improve its financial performance over time is to

answer

recognize that the achievement of strategic objectives fosters better long-term financial performance

question

A company that pursues and achieves strategic objectives

answer

is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives

question

A company exhibits strategic intent when

answer

it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective

question

A set of "stretch" financial and strategic objectives

answer

is an effective tool for avoiding ho-hum results

question

Which one of the following is not an advantage of setting "stretch" objectives?

answer

Helping clarify the company's strategic vision and strategic intent

question

Why should long-run objectives take precedence over short-run objectives?

answer

Long-run objectives are necessary for achieving long-term performance and block focus on short-term results and put the company in a position to perform better later

question

A company needs performance targets or objectives

answer

for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units

question

Company objectives

answer

need to be broken down into performance targets for each of its separate businesses, product lines, functional departments, and individual work units

question

The task of stitching together a strategy

answer

entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives

question

Masterful strategies come from

answer

doing things differently from competitors where it counts--out -innovating them, being more efficient, adapting faster--rather than running with the herd

question

Strategy-making is

answer

more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives

question

Which of the following is not an accurate description of the task of crafting a company's strategy?

answer

The task of crafting strategy is best done by a company's chief strategic planning officer, who should report directly to the company's CEO and board of directors

question

Managerial jobs with strategy-making responsibility

answer

extend throughout the managerial ranks and exist in every part of a company--business units, operating divisions, functional departments, manufacturing plants, and sales districts

question

Which of the following most accurately describes the task of crafting a company's strategy?

answer

The more a company's operations cut across different products, industries, and geographical areas, the more the headquarters executives have little option but to delegate considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants

question

A company's overall strategy

answer

is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy

question

In a diversified company, the strategy-making hierarchy consists of

answer

corporate strategy, business strategies, functional strategies, and operating strategies

question

Corporate strategy for a diversified or multi-business enterprise

answer

is orchestrated by 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 businesses the company has diversified into

question

Business strategy concerns

answer

the actions and approaches crafted by management to produce successful performance in one specific line of business

question

Business strategy, as distinct from corporate strategy, is chiefly concerned with

answer

forging actions and approaches to compete successfully in a particular line of business

question

Functional-area strategies

answer

concern the actions, approaches, and practices to be employed in managing particular functions or business processes or key activities within a business

question

The primary role of a functional strategy is to

answer

support the overall business strategy and competitive approach

question

Operating strategies concern

answer

the relatively narrow strategic initiatives for managing key operating units within a business (plants, distribution centers, geographic units) and for performing strategically significant operating tasks (maintenance, shipping, inventory control, purchasing, advertising) in ways that support functional strategies and the overall business strategy

question

In a single-business company, the strategy-making hierarchy consists of

answer

business strategy, functional strategies, and operating strategies

question

A company's strategic plan consists of

answer

a vision of where it is headed, a set of performance targets, and a strategy to achieve them

question

Strategic intent refers to a situation where a company

answer

relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving the objective

question

A company with strategic intent

answer

usually has an exceptionally hold 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

question

Executing the strategy

answer

Surveying employees on how they think costs can be reduced and how employee morale and job satisfaction can be improved

question

Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to

answer

...

question

The leadership challenges that top executives face in making corrective adjustments when things are not going well include

answer

...

question

The task of top executives in making corrective adjustments includes

answer

...

question

The primary role/obligations of a company's board of directors in the strategy-making, strategy-executing process include

answer

...

question

The obligations of an investor-owned company's board of directors in the strategy-making, strategy-executing process include

answer

...

question

Which one of the following is not among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy-executing process is concerned?

answer

...

question

A company's "macro-environment" refers to

answer

all the relevant forces and factors outside a company's boundaries--general economic conditions, population demographics, societal values and lifestyles, technological factors, governmental legislation and regulation, and closer to home, the industry and competitive arena in which it operates

question

Which one of the following is not part of a company's macroenvironment?

answer

The company's resource strengths, resource weaknesses, and competitive capabilities

question

Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

answer

How many companies in the industry have good track records for revenue growth and profitability?

question

Thinking strategically about industry and competitive conditions in a given industry involves evaluation such considerations as

answer

all of these

question

Which of the following is not a factor to consider in identifying an industry's dominant economic features?

answer

strength of driving forces and competitive forces

question

Which of the following is not a relevant consideration in identifying an industry's dominant economic features?

answer

The prevalence of technological change

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