Chapter01 Test Bank
j j j
Student:j
1. WhichjofjthejfollowingjisjNOTjonejofjthejmanagerialjconsiderationsjinjdeterminingjhowjtojcompetejsuccessfully?
A. Howjcanjajcompanyjattract,jkeep,jandjpleasejcu
stomers?
B. Howjcanjajcompanyjmodifyjitsjentirejproductjlinejtojemphasizejitsjinternaljservicejattrib
utes?
C. Howjshouldjajcompanyjrespondjtojchangingjeconomicjandjmarketjcon
ditions?
D. Howjshouldjajcompanyjbejcompetitivejagainstjriv
als?
E. Howjshouldjajcompanyjpositionjitselfjinjthejm
arketplace?
2. AjpharmaceuticaljcompanyjfunctioningjinjFrancejforjthejlastj10jyearsjhasjmoderatejsalesjinjajcrowdedjmarketjwithjcompe
titorsjofferingjdrugsjwithjsimilarjefficacyjandjsafetyjprecautions,jbutjwithjbetterjsales.jThejgreatestjchallengejisjtojincrease
jthejprescriptionjofjtheirjdrugs.jWhatjwouldjbejthejMOST jeffectivejstrategyjtojimprovejsalesjperformancejinjthejexistingjm
arket?
A. Modifyingjmarketingjcommunicationjtojincreasejbrandjfamiliarityjwithinjkeyjphysicianjseg
ments
B. Relocatingjalljthejexistingjdrugjmanufacturingjfacilitiesjtojdevelopingjcountriesjtojreducejope
rationaljcosts
C. Employingjhiringjplansjthatjaimjatjacquiringjdrugjdesignersjfromjrivaljco
mpanies
D. Exitingjthejmarketjandjenteringjajnewjunexploredjgeographicaljloc
ation
E. Engagingjinjnewjcontractjtalksjwithjsuppliersjaboutjpricejbre
aks
3. Ajcompany'sjstrategyjconsistsjofjthejactionjplanjmanagementjisjtakingjto:
A. stakejoutjajuniquejmarketjpositionjandjachievejsuperiorjpro
fitability.
B. competejagainstjrivalsjandjestablishjajtransitoryjcompetitivejad
vantage.
C. concentratejonjimprovingjthejexistingjproductjofferingjirrespectivejofjthejchangingjandjturbulentjmar
kets.
D. developjajmorejappealingjbusinessjmodeljthanjriv
als.
E. identifyjitsjstrategicjvision,jitsjstrategicjobjectives,jandjitsjstrategicjinte
nt.
,4. Thejcompetitivejmovesjandjbusinessjapproachesjajcompany'sjmanagementjisjusingjtojgrowjthejbusiness,jstakejoutjajmar
ketjposition,jattractjandjpleasejcustomers,jcompetejsuccessfully,jconductjoperations,jandjachievejorganizationaljobjectiv
esjisjreferredjtojasjits:
A. strateg
jy.
B. missionjst
atement.
C. strategicj
intent.
D. cost-pricejfr
amework.
E. market
jvision.
5. Thejobjectivesjofjajwell-craftedjstrategyjrequirejmanagementjtojstrivejto:
A. matchjrivaljbusinesses'jproductsjandjqualityjdimensionsjinjthejma
rketplace.
B. buildjprofitsjforjshort-termjs
uccess.
C. realignjthejmarketjtojprovokejchangejinjrivaljco
mpanies.
D. developjlastingjsuccessjthatjcanjsupportjgrowthjandjsecurejthejcompany'sjfuturejoverjthejlongjt
erm.
E. re-createjtheirjbusinessjmodelsjr
egularly.
6. Tojimprovejperformance,jtherejarejmanyjdifferentjavenuesjforjoutcompetingjrivalsjsuchjas:
A. realizingjajhigherjcostjstructurejandjlowerjoperatingjprofitjmarginsjthanjrivalsjinjorderjtojdrivejsalesj
growth.
B. creatingjproductsjanalogousjwithjcompetitorsjsojasjtojbejcompetitivejinjthejsamejmar
kets.
C. pursuingjsimilarjpersonalizedjcustomerjservicejorjqualityjdimensionsjasj
rivals.
D. confiningjoperationsjtojlocaljorjregionaljmarketsjorjdevelopingjproductjsuperiorityjorjconcentratingjonjajnarrowjprodu
ctjlineup.
E. strengtheningjcompetitivenessjbyjrestrictingjstrategicjalliancesjandjcollaborativejpartnershipsjwhenjco
mparedjtojrivals.
,7. Ajmultinationaljcompanyjentersjajnewjgeographicaljlocation,jconsideredjanjemergingjmarket,jwithjitsjestablishedjprod
uctjline:jlaptopsjandjtablets.jWhichjofjthejfollowingjwouldjNOTjservejasjajgoodjstrategicjmovejtojenhancejprofits?
A. Creatingjajsalesjplanjthatjaimsjtojenhancejinitialjsalesjandjmarketjsharejwithjlowjpricesjbasedjonjhighjoperati
onaljcosts
B. Devisingjajmarketingjplanjthatjaimsjatjdifferentjcustomerjsegmentsjwithjattractivejadvertisementsjandjoffersjonjpr
oducts
C. Implementingjajdiversificationjplanjthatjaimsjatjaddingjsmartphonesjtojthejexistingjlinejofjprod
ucts
D. Chartingjanjacquisitionjplanjthatjaimsjatjacquiringjsmall-scalejcompaniesjlookingjforjfundingjandjwithjajsimilarjprodu
ctjlineup
E. Establishingjajdistributionjplanjthatjaimsjatjsettingjupjmorejsupplyjoutletsjthanjanyjotherjrivalsjinjthejloc
ation
8. Everyjstrategyjneeds:
A. ajdistinctivejelementjthatjattractsjcustomersjandjproducesjajco
mpetitivejedge.
B. tojincludejsimilarjcharacteristicsjtojrivaljcompanyjstr
ategies.
C. tojpursuejconservativejgrowthjbuiltjonjhistoricaljstr
engths.
D. tojemployjdiversejandjsundryjoperatingjpracticesjforjproducingjgreaterjcontroljoverjsalesjgro
wthjtargets.
E. tojmimicjthejplansjofjthejindustry'sjmostjsuccessfuljco
mpanies.
9. Ajcompany'sjstrategyjisjNOTjconcernedjwithjmanagement'sjchoicesjaboutjhowjto:
A. attractjandjpleasej
customers.
B. stakejoutjthejsamejmarketjpositionjasjsuccessfuljrivaljco
mpanies.
C. growjthej
business.
D. competejsuc
cessfully.
E. conductjoperationsjandjimprovejthejcompany'sjfinancialjandjmarketjper
formance.
, 10. FaberRoad,jajrespectedjcourierjbrand,jisjfastjlosingjitsjmarketjsharejtojcompetitorsjwhojdojovernightjdeliveriesjofjpackage
sjorjofferjlowerjprices.jThejcompany'sjresearchjdepartmentjhasjfoundjthatjmanyjcustomersjcarejmorejaboutjknowingjexac
tlyjwhenjajpackagejwilljarrivejthanjgettingjitjthejnextjday.jWhichjstrategyjwouldjbestjaddressjthejcurrentjstatejofjFaberRoadj
andjhelpjitjregainjitsjmarket?
A. Employingjnightjdeliveryjdriversjatjajhighjcostjandjmaintenancejcha
rges
B. Developingjradiojtagsjthatjcouldjbejattachedjtojpackagesjtojallowjforjreal-timejtrackingjbyjcustomers'jPCsjandjmobile
jphones
C. Diversifyingjthejdifferentjtypesjofjpackagesjthatjcanjbejtransportedjandjenablingjbookingjthro
ughjcalls
D. Acquiringjsmalljtransportationjcompaniesjwithjcheaperjtrucksjandjtempos,jrebranding,jandjusingjthemjforjd
eliveries
E. Engagingjinjexpensivejadvertisingjwithjnewjtagjlinesjandjfamousjcelebritiesjtojenhancejitsjbrandjimagejinjthejm
arket
11. Ajcompany'sjstrategyjstandsjajbetterjchancejofjsucceedingjwhen:
A. itjisjdevelopedjthroughjajcollaborativejprocessjinvolvingjalljmanagersjandjstaffjfromjalljlevelsjofjthejorgani
zation.
B. managersjemployjconservativejstrategicjmovesjbasedjonjpastjexperiencejandjformjanjunderlyingjbasi
sjofjcontrol.
C. itjisjpredicatedjonjcompetitivejmovesjaimedjatjappealingjtojbuyersjinjwaysjthatjsetjthejcompanyjapartjfromjri
vals.
D. managersjcopyjthejstrategicjmovesjofjsuccessfuljcompaniesjinjitsjind
ustry.
E. managersjfocusjonjmeetingjorjbeatingjshareholderjex
pectations.
12. Injcraftingjajcompany'sjstrategy,jmanagers:
A. facejthejbiggestjchallengejofjhowjcloselyjtojreplicatejstrategiesjofjsuccessfuljcompaniesjinjthejin
dustry.
B. havejcomparativelyjlittlejfreedomjinjchoosingjthej"hows"jofjstr
ategy.
C. arejwisejnotjtojdecidejonjconcretejcoursesjofjactionjinjorderjtojpreservejmaximumjstrategicjflexibi
lity.
D. needjtojcomejupjwithjajsustainablejcompetitivejadvantagejthatjdrawsjinjcustomersjandjproducesjajcompetitivejedgej
overjrivals.
E. arejwell-advisedjtojbejrisk-aversejandjdevelopjaj"conservative"jstrategy—
"dare-to-be-different"jstrategiesjarejrarelyjsuccessful.
j j j
Student:j
1. WhichjofjthejfollowingjisjNOTjonejofjthejmanagerialjconsiderationsjinjdeterminingjhowjtojcompetejsuccessfully?
A. Howjcanjajcompanyjattract,jkeep,jandjpleasejcu
stomers?
B. Howjcanjajcompanyjmodifyjitsjentirejproductjlinejtojemphasizejitsjinternaljservicejattrib
utes?
C. Howjshouldjajcompanyjrespondjtojchangingjeconomicjandjmarketjcon
ditions?
D. Howjshouldjajcompanyjbejcompetitivejagainstjriv
als?
E. Howjshouldjajcompanyjpositionjitselfjinjthejm
arketplace?
2. AjpharmaceuticaljcompanyjfunctioningjinjFrancejforjthejlastj10jyearsjhasjmoderatejsalesjinjajcrowdedjmarketjwithjcompe
titorsjofferingjdrugsjwithjsimilarjefficacyjandjsafetyjprecautions,jbutjwithjbetterjsales.jThejgreatestjchallengejisjtojincrease
jthejprescriptionjofjtheirjdrugs.jWhatjwouldjbejthejMOST jeffectivejstrategyjtojimprovejsalesjperformancejinjthejexistingjm
arket?
A. Modifyingjmarketingjcommunicationjtojincreasejbrandjfamiliarityjwithinjkeyjphysicianjseg
ments
B. Relocatingjalljthejexistingjdrugjmanufacturingjfacilitiesjtojdevelopingjcountriesjtojreducejope
rationaljcosts
C. Employingjhiringjplansjthatjaimjatjacquiringjdrugjdesignersjfromjrivaljco
mpanies
D. Exitingjthejmarketjandjenteringjajnewjunexploredjgeographicaljloc
ation
E. Engagingjinjnewjcontractjtalksjwithjsuppliersjaboutjpricejbre
aks
3. Ajcompany'sjstrategyjconsistsjofjthejactionjplanjmanagementjisjtakingjto:
A. stakejoutjajuniquejmarketjpositionjandjachievejsuperiorjpro
fitability.
B. competejagainstjrivalsjandjestablishjajtransitoryjcompetitivejad
vantage.
C. concentratejonjimprovingjthejexistingjproductjofferingjirrespectivejofjthejchangingjandjturbulentjmar
kets.
D. developjajmorejappealingjbusinessjmodeljthanjriv
als.
E. identifyjitsjstrategicjvision,jitsjstrategicjobjectives,jandjitsjstrategicjinte
nt.
,4. Thejcompetitivejmovesjandjbusinessjapproachesjajcompany'sjmanagementjisjusingjtojgrowjthejbusiness,jstakejoutjajmar
ketjposition,jattractjandjpleasejcustomers,jcompetejsuccessfully,jconductjoperations,jandjachievejorganizationaljobjectiv
esjisjreferredjtojasjits:
A. strateg
jy.
B. missionjst
atement.
C. strategicj
intent.
D. cost-pricejfr
amework.
E. market
jvision.
5. Thejobjectivesjofjajwell-craftedjstrategyjrequirejmanagementjtojstrivejto:
A. matchjrivaljbusinesses'jproductsjandjqualityjdimensionsjinjthejma
rketplace.
B. buildjprofitsjforjshort-termjs
uccess.
C. realignjthejmarketjtojprovokejchangejinjrivaljco
mpanies.
D. developjlastingjsuccessjthatjcanjsupportjgrowthjandjsecurejthejcompany'sjfuturejoverjthejlongjt
erm.
E. re-createjtheirjbusinessjmodelsjr
egularly.
6. Tojimprovejperformance,jtherejarejmanyjdifferentjavenuesjforjoutcompetingjrivalsjsuchjas:
A. realizingjajhigherjcostjstructurejandjlowerjoperatingjprofitjmarginsjthanjrivalsjinjorderjtojdrivejsalesj
growth.
B. creatingjproductsjanalogousjwithjcompetitorsjsojasjtojbejcompetitivejinjthejsamejmar
kets.
C. pursuingjsimilarjpersonalizedjcustomerjservicejorjqualityjdimensionsjasj
rivals.
D. confiningjoperationsjtojlocaljorjregionaljmarketsjorjdevelopingjproductjsuperiorityjorjconcentratingjonjajnarrowjprodu
ctjlineup.
E. strengtheningjcompetitivenessjbyjrestrictingjstrategicjalliancesjandjcollaborativejpartnershipsjwhenjco
mparedjtojrivals.
,7. Ajmultinationaljcompanyjentersjajnewjgeographicaljlocation,jconsideredjanjemergingjmarket,jwithjitsjestablishedjprod
uctjline:jlaptopsjandjtablets.jWhichjofjthejfollowingjwouldjNOTjservejasjajgoodjstrategicjmovejtojenhancejprofits?
A. Creatingjajsalesjplanjthatjaimsjtojenhancejinitialjsalesjandjmarketjsharejwithjlowjpricesjbasedjonjhighjoperati
onaljcosts
B. Devisingjajmarketingjplanjthatjaimsjatjdifferentjcustomerjsegmentsjwithjattractivejadvertisementsjandjoffersjonjpr
oducts
C. Implementingjajdiversificationjplanjthatjaimsjatjaddingjsmartphonesjtojthejexistingjlinejofjprod
ucts
D. Chartingjanjacquisitionjplanjthatjaimsjatjacquiringjsmall-scalejcompaniesjlookingjforjfundingjandjwithjajsimilarjprodu
ctjlineup
E. Establishingjajdistributionjplanjthatjaimsjatjsettingjupjmorejsupplyjoutletsjthanjanyjotherjrivalsjinjthejloc
ation
8. Everyjstrategyjneeds:
A. ajdistinctivejelementjthatjattractsjcustomersjandjproducesjajco
mpetitivejedge.
B. tojincludejsimilarjcharacteristicsjtojrivaljcompanyjstr
ategies.
C. tojpursuejconservativejgrowthjbuiltjonjhistoricaljstr
engths.
D. tojemployjdiversejandjsundryjoperatingjpracticesjforjproducingjgreaterjcontroljoverjsalesjgro
wthjtargets.
E. tojmimicjthejplansjofjthejindustry'sjmostjsuccessfuljco
mpanies.
9. Ajcompany'sjstrategyjisjNOTjconcernedjwithjmanagement'sjchoicesjaboutjhowjto:
A. attractjandjpleasej
customers.
B. stakejoutjthejsamejmarketjpositionjasjsuccessfuljrivaljco
mpanies.
C. growjthej
business.
D. competejsuc
cessfully.
E. conductjoperationsjandjimprovejthejcompany'sjfinancialjandjmarketjper
formance.
, 10. FaberRoad,jajrespectedjcourierjbrand,jisjfastjlosingjitsjmarketjsharejtojcompetitorsjwhojdojovernightjdeliveriesjofjpackage
sjorjofferjlowerjprices.jThejcompany'sjresearchjdepartmentjhasjfoundjthatjmanyjcustomersjcarejmorejaboutjknowingjexac
tlyjwhenjajpackagejwilljarrivejthanjgettingjitjthejnextjday.jWhichjstrategyjwouldjbestjaddressjthejcurrentjstatejofjFaberRoadj
andjhelpjitjregainjitsjmarket?
A. Employingjnightjdeliveryjdriversjatjajhighjcostjandjmaintenancejcha
rges
B. Developingjradiojtagsjthatjcouldjbejattachedjtojpackagesjtojallowjforjreal-timejtrackingjbyjcustomers'jPCsjandjmobile
jphones
C. Diversifyingjthejdifferentjtypesjofjpackagesjthatjcanjbejtransportedjandjenablingjbookingjthro
ughjcalls
D. Acquiringjsmalljtransportationjcompaniesjwithjcheaperjtrucksjandjtempos,jrebranding,jandjusingjthemjforjd
eliveries
E. Engagingjinjexpensivejadvertisingjwithjnewjtagjlinesjandjfamousjcelebritiesjtojenhancejitsjbrandjimagejinjthejm
arket
11. Ajcompany'sjstrategyjstandsjajbetterjchancejofjsucceedingjwhen:
A. itjisjdevelopedjthroughjajcollaborativejprocessjinvolvingjalljmanagersjandjstaffjfromjalljlevelsjofjthejorgani
zation.
B. managersjemployjconservativejstrategicjmovesjbasedjonjpastjexperiencejandjformjanjunderlyingjbasi
sjofjcontrol.
C. itjisjpredicatedjonjcompetitivejmovesjaimedjatjappealingjtojbuyersjinjwaysjthatjsetjthejcompanyjapartjfromjri
vals.
D. managersjcopyjthejstrategicjmovesjofjsuccessfuljcompaniesjinjitsjind
ustry.
E. managersjfocusjonjmeetingjorjbeatingjshareholderjex
pectations.
12. Injcraftingjajcompany'sjstrategy,jmanagers:
A. facejthejbiggestjchallengejofjhowjcloselyjtojreplicatejstrategiesjofjsuccessfuljcompaniesjinjthejin
dustry.
B. havejcomparativelyjlittlejfreedomjinjchoosingjthej"hows"jofjstr
ategy.
C. arejwisejnotjtojdecidejonjconcretejcoursesjofjactionjinjorderjtojpreservejmaximumjstrategicjflexibi
lity.
D. needjtojcomejupjwithjajsustainablejcompetitivejadvantagejthatjdrawsjinjcustomersjandjproducesjajcompetitivejedgej
overjrivals.
E. arejwell-advisedjtojbejrisk-aversejandjdevelopjaj"conservative"jstrategy—
"dare-to-be-different"jstrategiesjarejrarelyjsuccessful.
