GLO-BUS Chapter 1-5 Quizzes with Complete Solution

A company's business model - ANSWER sets forth how its strategy and operating approaches will create value for customers while at the same time generating ample revenues to cover costs and realize a profit The two crucial elements of a company's business model are - ANSWER its customer value proposition and its profit proposition or "profit formula" Which of the following is not a frequently used strategic approach to setting a company apart from rivals, delivering superior value, achieving competitive advantage, and converting buyers into loyal customers? - ANSWER Striving to be more profitable than rivals and aiming for a competitive edge based on bigger profit margins Which one of the following does not account for why a company's strategy evolves over time, as shown in Figure 1.2 and explained in the accompanying text discussion? - ANSWER Managerial preferences for keeping the life-cycle of any given strategy short According to Figure 1.1, which of the following is not something to look for in identifying a company's strategy? - ANSWER Actions to boost the company's credit rating and stock price A winning strategy is one that - ANSWER results in a company becoming the dominant industry leader Typically, a company's strategy is - ANSWER a blend of (1) proactive actions to improve the company's financial performance and secure a competitive edge and (2) as needed reactions to unanticipated developments and fresh market conditions Which one of the following statements about whether a company's strategy can be considered ethical is true? - ANSWER Just keeping a company's strategic actions within the bounds of what is legal does not mean the strategy is ethical A company achieves sustainable competitive advantage when - ANSWER an attractive number of buyers are drawn to purchase its products or services rather than those of competitors, despite the efforts of competitors to nullify or overcome the appeal of its product offering Which of the following is not one of the reasons that a company's strategy evolves over time? - ANSWER The need on the part of company managers to make regular strategy adjustments so as to keep rivals off balance and always guessing about what moves it will make next 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 company can execute its customer value proposition profitably In crafting a company's strategy, - ANSWER managers need to come up with some distinctive "aha" quality that goes beyond merely attracting buyer attention but that, more importantly, delivers what buyers perceive as superior value and converts them into loyal customers The competitive moves and business approaches a company's management is using to attract and please customers, compete successfully, pursue opportunities to grow the business, respond to changing market conditions, conduct operations, and achieve the targeted financial and market performance is what defines a company's - ANSWER strategy Good strategy combined with good strategy execution - ANSWER are strongly correlated with how well the company performs both financially and in the marketplace In choosing among strategy alternatives, company managers - ANSWER are well-advised to embrace strategic actions that can pass the test of moral scrutiny--it is not enough to just stay within the bounds of what is legal and is in compliance with prevailing government regulations Which one of the following is not one of the five tasks that comprise the strategy-making, strategy-executing process? - ANSWER Developing a profitable business model 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 for the company 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? Which of the following is not a common shortcoming of company vision statements? - ANSWER Too narrow--doesn't leave enough room for future growth, new ideas, and innovation A company's mission statement typically addresses which of the following questions? - ANSWER "Who are we, what do we do, and why are we here?" The task of effectively communicating the strategic vision to organization members is made easier by - ANSWER capturing the essence of the vision in an easily remembered phrase or catchy slogan and then using the phrase/slogan repeatedly as a reminder of "where we are going and why." At companies where the stated values are real rather than cosmetic, company managers can connect the stated values to pursuit of the strategic vision and mission by - ANSWER crafting a vision, mission, strategy, and set of operating practices that match established values and repeatedly emphasizing how the values-based behavioral norms contribute to the company's business success The managerial purpose of setting objectives is to - ANSWER convert the strategic vision and mission into specific performance targets--the results and outcomes management wants to achieve; objectives function as yardsticks for measuring how well the company is doing Which of the following is the best example of a well-stated financial objective? - ANSWER Increase total profits by 10% annually Strategic objectives - ANSWER relate to target outcomes that indicate a company is strengthening its market standing, competitive vitality, and future business prospects 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 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 Masterful strategies come from - ANSWER doing things differently from competitors where it counts--out-innovating them, being more efficient, being more imaginative, adapting faster--rather than running with the herd Strategy-making is - ANSWER 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-ranking executives A company's overall strategy - ANSWER is really a collection of strategic initiatives and actions devised by managers (and sometimes key employees) up and down the whole organizational hierarchy Business strategy, as distinct from corporate strategy, concerns - ANSWER the actions and approaches being employed to produce successful performance in one specific line of business