Crafting and Executing Strategy: Concepts: 2024 Release
TEST BANK
Crafting & Executing Strategy: The
Quest for Competitive Advantage
23rd Edition
Thompson • Peteraf • Gamble •
Strickland
McGraw-Hill Concepts
A+ Complete Test Bank — All
Chapters Included
, Crafting and Executing Strategy: Concepts: 2024 Release
Chapter 1
ANSWERS ARE LOCATED IN THE SECOND PART OF THIS DOCUMENT
MULTIPLE CHOICE
Choose the one alternative that best completes the statement or answers the question.
Question 1
Managers of all types of business organizations must develop a clear answer to which of the
following questions?
A. What approaches do we need to take in order to gain a competitive advantage in the
marketplace?
B. What is the set of actions that we need to take to outperform competitors and achieve superior
profitability?
C. Where are we now?
D. Where do we go from here?
E. When will we know that we are there?
Difficulty: Easy
Topic: Strategy and the Strategic Management Process
Learning Objective: 01-01 Understand what is meant by a company’s strategy and why it needs
to differ
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Gradable: Automatic
Question 2
Sanofi, a pharmaceutical company selling prescription drugs in France for the past 10 years, has
had moderate sales in a crowded market while its rivals manufacture and market drugs with
similar efficacy and safety profiles but with superior market share. The company’s greatest
challenge is increasing prescriptions of its drugs by French doctors.
, Crafting and Executing Strategy: Concepts: 2024 Release
What would be the most effective strategy for Sanofi to improve sales performance in its existing
market?
A. Modifying marketing communication to increase brand familiarity within key physician
segments
B. Relocating all existing drug manufacturing facilities to developing countries to reduce
operational costs
C. Employing hiring plans aimed at acquiring drug designers from rival companies
D. Exiting the market and entering a new, unexplored geographic location
E. Engaging in new contract talks with suppliers about price breaks
Difficulty: Hard
Bloom’s: Apply
AACSB: Analytical Thinking
Question 3
You have been hired as a consultant by SandCloud, a venture-backed, established company in
the beachwear and toweling markets. The owners are considering donating part of its profits to a
children’s charity to improve its market image.
Your advice regarding strategy is that it consists of the action plan management takes to:
A. Develop a more appealing business model than rival companies
B. Compete against rivals and establish a transitory competitive advantage
C. Improve existing products irrespective of the charity decision
D. Stake out a unique market position and achieve superior profitability
E. Identify strategic vision, objectives, and intent
Difficulty: Medium
Bloom’s: Apply
Question 4
Keurig, the coffee machine manufacturer, sells high-quality espresso machines at a very low
price and provides low-cost refills of varietal coffee pods at a relatively higher price than rivals.
The action steps managers take to outperform competitors and achieve superior profitability are
known as its:
A. Strategy
B. Mission statement
C. Strategic intent
, Crafting and Executing Strategy: Concepts: 2024 Release
D. Value-cost-price framework
E. Market visioning statement
Difficulty: Medium
Bloom’s: Apply
Question 5
Strategy, at its essence, is about:
A. Matching rivals’ products and quality dimensions
B. Building profits for short-term success
C. Realigning the market to provoke rival change
D. Developing lasting success that supports growth and secures the company’s future over the
long term
E. Re-creating the business model regularly
Difficulty: Medium
Bloom’s: Understand
Question 6
To improve performance, there are many different avenues for outcompeting rivals, such as:
A. Accepting higher costs and lower margins
B. Creating products analogous to competitors
C. Pursuing identical customer service dimensions
D. Remaining undecided between local or global markets
E. Strengthening competitiveness through strategic alliances and collaborative partnerships
Difficulty: Medium
Bloom’s: Understand
Question 7
Pizza Port, a craft brewing and pizza chain in Southern California, offers thin-crust pizzas and a
free pint of beer with the purchase of four large pizzas. What should the owners not do when
crafting a strategy to enhance future profits?
TEST BANK
Crafting & Executing Strategy: The
Quest for Competitive Advantage
23rd Edition
Thompson • Peteraf • Gamble •
Strickland
McGraw-Hill Concepts
A+ Complete Test Bank — All
Chapters Included
, Crafting and Executing Strategy: Concepts: 2024 Release
Chapter 1
ANSWERS ARE LOCATED IN THE SECOND PART OF THIS DOCUMENT
MULTIPLE CHOICE
Choose the one alternative that best completes the statement or answers the question.
Question 1
Managers of all types of business organizations must develop a clear answer to which of the
following questions?
A. What approaches do we need to take in order to gain a competitive advantage in the
marketplace?
B. What is the set of actions that we need to take to outperform competitors and achieve superior
profitability?
C. Where are we now?
D. Where do we go from here?
E. When will we know that we are there?
Difficulty: Easy
Topic: Strategy and the Strategic Management Process
Learning Objective: 01-01 Understand what is meant by a company’s strategy and why it needs
to differ
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Gradable: Automatic
Question 2
Sanofi, a pharmaceutical company selling prescription drugs in France for the past 10 years, has
had moderate sales in a crowded market while its rivals manufacture and market drugs with
similar efficacy and safety profiles but with superior market share. The company’s greatest
challenge is increasing prescriptions of its drugs by French doctors.
, Crafting and Executing Strategy: Concepts: 2024 Release
What would be the most effective strategy for Sanofi to improve sales performance in its existing
market?
A. Modifying marketing communication to increase brand familiarity within key physician
segments
B. Relocating all existing drug manufacturing facilities to developing countries to reduce
operational costs
C. Employing hiring plans aimed at acquiring drug designers from rival companies
D. Exiting the market and entering a new, unexplored geographic location
E. Engaging in new contract talks with suppliers about price breaks
Difficulty: Hard
Bloom’s: Apply
AACSB: Analytical Thinking
Question 3
You have been hired as a consultant by SandCloud, a venture-backed, established company in
the beachwear and toweling markets. The owners are considering donating part of its profits to a
children’s charity to improve its market image.
Your advice regarding strategy is that it consists of the action plan management takes to:
A. Develop a more appealing business model than rival companies
B. Compete against rivals and establish a transitory competitive advantage
C. Improve existing products irrespective of the charity decision
D. Stake out a unique market position and achieve superior profitability
E. Identify strategic vision, objectives, and intent
Difficulty: Medium
Bloom’s: Apply
Question 4
Keurig, the coffee machine manufacturer, sells high-quality espresso machines at a very low
price and provides low-cost refills of varietal coffee pods at a relatively higher price than rivals.
The action steps managers take to outperform competitors and achieve superior profitability are
known as its:
A. Strategy
B. Mission statement
C. Strategic intent
, Crafting and Executing Strategy: Concepts: 2024 Release
D. Value-cost-price framework
E. Market visioning statement
Difficulty: Medium
Bloom’s: Apply
Question 5
Strategy, at its essence, is about:
A. Matching rivals’ products and quality dimensions
B. Building profits for short-term success
C. Realigning the market to provoke rival change
D. Developing lasting success that supports growth and secures the company’s future over the
long term
E. Re-creating the business model regularly
Difficulty: Medium
Bloom’s: Understand
Question 6
To improve performance, there are many different avenues for outcompeting rivals, such as:
A. Accepting higher costs and lower margins
B. Creating products analogous to competitors
C. Pursuing identical customer service dimensions
D. Remaining undecided between local or global markets
E. Strengthening competitiveness through strategic alliances and collaborative partnerships
Difficulty: Medium
Bloom’s: Understand
Question 7
Pizza Port, a craft brewing and pizza chain in Southern California, offers thin-crust pizzas and a
free pint of beer with the purchase of four large pizzas. What should the owners not do when
crafting a strategy to enhance future profits?
