MGMT 490 TEST 1 - CH 1-4 QUESTIONS AND
VERIFIED ANSWERS
What choices must managers consider when committing to a company strategy for
competing against rival companies? (can me multiple answers)
- how to hide the company's structural weaknesses
- how to attract customers
- how to capitalize on growth opportunities
- how to respond to market conditions - Answers - -how to attract customers
-how to capitalize on growth opportunities
-how to respond to market conditions
A sound company strategy is essentially about ______ in comparison to company
rivals. - Answers - competing differently
When a business is more successful than its rivals at attracting customers and handling
competition, it is said to have a(n) ______ advantage. - Answers - competitive
The key for a company to achieve competitive advantage is either to provide superior
value to customers or to deliver value more ______. - Answers - efficiently
What are three of the most reliable ways a company can distinguish itself in the
marketplace, build customer loyalty, and achieve a competitive advantage? - Answers -
-Low-cost provider strategy
-Broad differentiation strategy
-Focused low-cost strategy
What are two characteristics of a broad differentiation strategy? - Answers - -Offering
products or services that are difficult to imitate
-Appealing to a wide range of consumers
True or false: It is easier for rivals to imitate a company's product line than it is for them
to duplicate its capabilities. - Answers - True
A strategy that changes in response to new market conditions and challenges is known
as ______. - Answers - an evolving strategy
The ____ profit is the company's approach to determining a cost structure that will allow
for acceptable profits, given the pricing tied to its customer value proposition. - Answers
- formula
,The actions that a company takes in accordance with its established business practices
make up its ______ strategy, in contrast with actions the company takes in response to
changing market conditions. - Answers - deliberate
Which performance indicators are signs of a winning strategy? (Choose every correct
answer.) - Answers - -Above-average financial performance
-Increased market share
-Gains in competitive position
Actions taken in response to new strategic maneuvers by rival firms or other
unanticipated market circumstances make up a company's ______ strategy. - Answers -
emergent
A business strategy becomes unethical when it involves what elements? (Choose every
correct answer.) - Answers - -Disreputable behavior
-Deceitfulness
-Unreasonable damage to the environment
A blueprint that outlines the means for a company to deliver value to customers in a
suitably profitable manner is known as its ______. - Answers - business model
The general profit formula for fast-food restaurants as invented by McDonald's involves
which of the following? (Choose every correct answer.) - Answers - -Strict specifications
for ingredients
-Standardized store design
-Advertising and in-store promotions
Which of the following are the components of a fit test that help evaluate how well a
company's strategy matches its situation? (Choose every correct answer.) - Answers - -
External fit
-Dynamic fit
-Internal fit
Which of the following are impediments to a company's long-term industry success?
(Choose every correct answer.) - Answers - -Inadequate attempts to improve
-Imitative strategies
-Illogical strategies
A company's ultimate success or failure is fundamentally tied to how well its
management team does which of the following? (Choose every correct answer.) -
Answers - -Facilitates internal operating excellence
-Charts the company's direction
-Develops competitively effective strategies
, What choices must managers consider when committing to a company strategy for
competing against rival companies? (Choose every correct answer.) - Answers - -How
to attract customers
-How to capitalize on growth opportunities
-How to respond to market conditions
What performance indicators reveal the most about the merits of a company's strategy?
(Choose every correct answer.) - Answers - -Profitability and financial strength
-Competitive strength and market standing
In what ways does a competitive advantage benefit a business? (Choose every correct
answer.) - Answers - -Larger profits
-Greater success in the marketplace
What are the two basic ways that companies achieve competitive advantage over their
business rivals? - Answers - -By delivering higher perceived value to customers
-By producing products or services at a lower cost
A company's realized strategy is a combination of ______. - Answers - proactive and
reactive elements
When do strategic actions fall into the "should not do" category? (Choose every correct
answer.) - Answers - -They have a negative effect on customers, employees, and the
surrounding community.
-They make the company look bad.
-They cause a public backlash and accusations of being irresponsible.
What company invented the business model for fast food restaurants? - Answers -
McDonald's
What are some of the ways that companies typically implement a competitive strategy?
(Choose every correct answer.) - Answers - -By delivering superior customer service
-By focusing on quality
-By diversifying product lines
A company's approach to meeting or exceeding its customers' needs at a price they
consider a good value is called the _____. - Answers - customer value proposition
A typical company's strategy is often both ______, meaning that it plans ways to
improve the company's competitiveness, and ______, meaning that it responds to
unforeseen market conditions. - Answers - proactive; reactive
What are two basic approaches in company strategy to improve chances of success in
competing against rivals? - Answers - -Establish a position in an uncrowded market.
-Clearly differentiate a company from its rivals.
VERIFIED ANSWERS
What choices must managers consider when committing to a company strategy for
competing against rival companies? (can me multiple answers)
- how to hide the company's structural weaknesses
- how to attract customers
- how to capitalize on growth opportunities
- how to respond to market conditions - Answers - -how to attract customers
-how to capitalize on growth opportunities
-how to respond to market conditions
A sound company strategy is essentially about ______ in comparison to company
rivals. - Answers - competing differently
When a business is more successful than its rivals at attracting customers and handling
competition, it is said to have a(n) ______ advantage. - Answers - competitive
The key for a company to achieve competitive advantage is either to provide superior
value to customers or to deliver value more ______. - Answers - efficiently
What are three of the most reliable ways a company can distinguish itself in the
marketplace, build customer loyalty, and achieve a competitive advantage? - Answers -
-Low-cost provider strategy
-Broad differentiation strategy
-Focused low-cost strategy
What are two characteristics of a broad differentiation strategy? - Answers - -Offering
products or services that are difficult to imitate
-Appealing to a wide range of consumers
True or false: It is easier for rivals to imitate a company's product line than it is for them
to duplicate its capabilities. - Answers - True
A strategy that changes in response to new market conditions and challenges is known
as ______. - Answers - an evolving strategy
The ____ profit is the company's approach to determining a cost structure that will allow
for acceptable profits, given the pricing tied to its customer value proposition. - Answers
- formula
,The actions that a company takes in accordance with its established business practices
make up its ______ strategy, in contrast with actions the company takes in response to
changing market conditions. - Answers - deliberate
Which performance indicators are signs of a winning strategy? (Choose every correct
answer.) - Answers - -Above-average financial performance
-Increased market share
-Gains in competitive position
Actions taken in response to new strategic maneuvers by rival firms or other
unanticipated market circumstances make up a company's ______ strategy. - Answers -
emergent
A business strategy becomes unethical when it involves what elements? (Choose every
correct answer.) - Answers - -Disreputable behavior
-Deceitfulness
-Unreasonable damage to the environment
A blueprint that outlines the means for a company to deliver value to customers in a
suitably profitable manner is known as its ______. - Answers - business model
The general profit formula for fast-food restaurants as invented by McDonald's involves
which of the following? (Choose every correct answer.) - Answers - -Strict specifications
for ingredients
-Standardized store design
-Advertising and in-store promotions
Which of the following are the components of a fit test that help evaluate how well a
company's strategy matches its situation? (Choose every correct answer.) - Answers - -
External fit
-Dynamic fit
-Internal fit
Which of the following are impediments to a company's long-term industry success?
(Choose every correct answer.) - Answers - -Inadequate attempts to improve
-Imitative strategies
-Illogical strategies
A company's ultimate success or failure is fundamentally tied to how well its
management team does which of the following? (Choose every correct answer.) -
Answers - -Facilitates internal operating excellence
-Charts the company's direction
-Develops competitively effective strategies
, What choices must managers consider when committing to a company strategy for
competing against rival companies? (Choose every correct answer.) - Answers - -How
to attract customers
-How to capitalize on growth opportunities
-How to respond to market conditions
What performance indicators reveal the most about the merits of a company's strategy?
(Choose every correct answer.) - Answers - -Profitability and financial strength
-Competitive strength and market standing
In what ways does a competitive advantage benefit a business? (Choose every correct
answer.) - Answers - -Larger profits
-Greater success in the marketplace
What are the two basic ways that companies achieve competitive advantage over their
business rivals? - Answers - -By delivering higher perceived value to customers
-By producing products or services at a lower cost
A company's realized strategy is a combination of ______. - Answers - proactive and
reactive elements
When do strategic actions fall into the "should not do" category? (Choose every correct
answer.) - Answers - -They have a negative effect on customers, employees, and the
surrounding community.
-They make the company look bad.
-They cause a public backlash and accusations of being irresponsible.
What company invented the business model for fast food restaurants? - Answers -
McDonald's
What are some of the ways that companies typically implement a competitive strategy?
(Choose every correct answer.) - Answers - -By delivering superior customer service
-By focusing on quality
-By diversifying product lines
A company's approach to meeting or exceeding its customers' needs at a price they
consider a good value is called the _____. - Answers - customer value proposition
A typical company's strategy is often both ______, meaning that it plans ways to
improve the company's competitiveness, and ______, meaning that it responds to
unforeseen market conditions. - Answers - proactive; reactive
What are two basic approaches in company strategy to improve chances of success in
competing against rivals? - Answers - -Establish a position in an uncrowded market.
-Clearly differentiate a company from its rivals.
