Strategy & Innovation – Ch 1 – Flashcards

Which of the following statements about a company's strategy is true? A) Crafting an excellent strategy is more important than executing it well. B) Managers at all companies face three central questions in thinking strategically about their company's present circumstances and prospects: What's the company's present situation? Where does the company need to go from here? How should it get there? C) A company's strategy deals with whether the revenue-cost-profit economics of its business model demonstrate the viability of the business enterprise as a whole. D) Masterful strategies come partly (maybe mostly) by doing things in much the same way as the industry leader but then being better than the leader in one particular area that counts heavily with buyers. E) Whether a company's strategy is ethical or not does not matter a lot because most customers and most suppliers are relatively unconcerned whether a company they do business with engages in sleazy practices or turns a blind eye to below-board behavior on the part of its employees.

The competitive moves and business approaches a company's management are using grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance is referred to as its A) Strategic offensive for becoming a market leader. B) Business model. C) Long-term strategic direction. D) Mission statement. E) Strategy.

Which one of the following is not related to actions and approaches that comprise a company's strategy? A) How management intends to grow the business B) How to prove to shareholders that the company's business model is viable C) How to build a loyal clientele and outcompete rivals D) How to boost the company's performance E) How each functional piece of the business (R, supply chain activities, production, sales and marketing, distribution, finance, and human resources) will be operated

Company strategies evolve because A) it is a bad idea to do too much strategizing until a company has been in business long enough to know what strategies will work best. B) most managers like to develop the strategy in bits and pieces rather than all at once. C) of the ongoing need to respond to changing market conditions, advancing technology, the fresh moves of competitors, shifting buyer needs and preferences, emerging market opportunities, new ideas for improving the strategy, and any evidence that indicates the strategy is not working well. D) many managers are conservative, preferring to carefully contemplate the best responses to new developments and avoiding the risks associated with developing a complete strategy too quickly. E) a strategy does not really transition to a well-crafted stage until a company has been trying to execute it for a number of years and has learned what works and what doesn't.

A company's business model A) determines whether its strategy will be ethical or not. B) is management's storyline for how the strategy will result in achieving sustainable competitive advantage. C) is management's rationale for how the strategy will be a moneymaker—absent the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt. D) identifies how the company plans to outmaneuver and outcompete key rivals and become a market leader. E) sets forth the actions and approaches that it will rely on to earn the best profit margins in the industry.

A winning strategy is one that A) makes the company a market leader, is ethically and socially responsible, and maximizes profits. B) is highly profitable and boosts the company's market share. C) passes the profitability test, the ethics and social responsibility test, the customer satisfaction test, and the shareholder wealth test. D) fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance. E) passes the ethical standards test, the competitive advantage test, and the profitability test.

Crafting and executing strategy are top-priority managerial tasks because A) how managers go about the tasks of crafting and executing strategy sends a message to shareholders and the entire investment community regarding "what it is we are trying to do and how we plan to achieve our objectives." B) The company is unlikely to be profitable unless senior executives have a clear answer to "where are we headed, how do we plan to get there, and when do we expect to arrive?" C) there is a compelling need for managers to proactively shape how the company's business will be conducted and because a strategy-focused organization is more likely to be a strong bottom-line performer. D) without clear guidance as to what the company's business model and strategy are, managerial decision-making is likely to be haphazard and inconsistent. E) a company cannot hope to be a market leader if all it does is respond to changing market conditions, new technologies, new opportunities, and threatening moves on the part of competitors.

The most trustworthy signs of a well-managed company are A) a strong emphasis on offensive strategies rather than defensive strategies. B) a strategy matched to fast-evolving market conditions and bigger profit margins than rivals and a steady upward trend in net income. C) attractive bottom-line performance and a proven business model. D) good strategy and good strategy execution. E) having a profitable business model, a willingness to change the company's business model whenever circumstances warrant, and having a sustainable competitive advantage.