MGMT 5560 Exam 1 Glo-Bus
Questions and Answers
The difference between a company's strategy and a company's business model is that
its strategy is defined by the specific market positioning, competitive moves, and business
approaches management employes to try to produce good business results while its business
model relates to management's blueprint for delivering a valuable product or service to
customers in a manner that will generate revenues sufficient to cover costs and yield an
attractive profit
Which of the following is NOT something a company's strategy is concerned with
Management's choice of which of several alternative business models to employ in delivering
value to customers and to shareholders
A portion of a company's strategy is always developed on the fly because
managers must always be willing to supplement or modify various proactive strategy elements
with as-needed reactions to unanticipated happenings in the surrounding environment
Which of the following questions can be used to distinguish a winning strategy from a mediocre
or losing strategy?
How well does the strategy fit the company's situation?
The reputational and financial damage that unethical strategies and behavior can do to a
company
is substantial; consequently, there are good business reasons for a company and its personnel to
avoid unethical strategic actions and behaviors
A company's business model
,sets forth how its strategy and operating approaches will create value for customers while at
the same time generating revenues sufficient to cover costs and realize a profit
The two crucial elements of a company's business model are
its customer value propoition (which lays out the company's approach to satisfying buyer needs
and requirements at a price they will consider a good value) and its profit proposition or "profit
formula" (its business approach to generating sufficiently large revenues and controlling the
costs of its customer value propoition, such that the company will be able to simultaneously
deliver the intended value to customers and delvier appealing profits to shareholders)
How well a company performs and the degree of market success it achieves are directly
attributable to
the caliber of its strategy and the proficiency with which the strategy is executed
What makes a competitive advantage sustainable or durable as opposed to temporary is
actions or elements in the strategy that cause an attractive number of buyers to have lasting
reasons to purchase a company's products or services, despite competitors' best efforts to
nullify or overcome those reasons
The competitive moves and business apporaches a company's management is using to attract
and please customers, compete successfully, grow the business, respond to changing market
conditions, conduct oeprations, and achieve the targeted financial and market performance is
what defines a company's
strategy
A company's strategy is a "work in progress" and evolves over time because of
the need to react and respond to changing market and competitive conditions and ongoing
management efforts to improve this or that piece of the strategy
Which of the following statements about a company's strategy is false?
, A company's strategy is deliberately kept under wraps by top-level managers so as to catch rival
companies by surprise and keep them off-balance
A company's strategy can be considered "ethical"
if it does not entail actions or behaviors that cross the moral line from "can do" to "should not
do"
According to Figure 1.1, which of the following is NOT something to look for in identifying a
company's strategy
Actions to strengthen the company's competitive position by laying off a portion of its work
force or paying down its long-term debt
A creative, distinctive strategy that sets a company apart from rivals and delivers superior value
to customers
is a company's most reliable ticket for winning a competitive advantage over rivals
Chapter 2
Chapter 2
A set of "stretch" financial and strategic objectives
helps a company avoid ho-hum results
Which of the following is the best example of a well-stated strategic objective?
Within 2 years, achieve costs per unit sold that are 10% below the current industry average of
$4.75 per unit
A company's strategic plan
Questions and Answers
The difference between a company's strategy and a company's business model is that
its strategy is defined by the specific market positioning, competitive moves, and business
approaches management employes to try to produce good business results while its business
model relates to management's blueprint for delivering a valuable product or service to
customers in a manner that will generate revenues sufficient to cover costs and yield an
attractive profit
Which of the following is NOT something a company's strategy is concerned with
Management's choice of which of several alternative business models to employ in delivering
value to customers and to shareholders
A portion of a company's strategy is always developed on the fly because
managers must always be willing to supplement or modify various proactive strategy elements
with as-needed reactions to unanticipated happenings in the surrounding environment
Which of the following questions can be used to distinguish a winning strategy from a mediocre
or losing strategy?
How well does the strategy fit the company's situation?
The reputational and financial damage that unethical strategies and behavior can do to a
company
is substantial; consequently, there are good business reasons for a company and its personnel to
avoid unethical strategic actions and behaviors
A company's business model
,sets forth how its strategy and operating approaches will create value for customers while at
the same time generating revenues sufficient to cover costs and realize a profit
The two crucial elements of a company's business model are
its customer value propoition (which lays out the company's approach to satisfying buyer needs
and requirements at a price they will consider a good value) and its profit proposition or "profit
formula" (its business approach to generating sufficiently large revenues and controlling the
costs of its customer value propoition, such that the company will be able to simultaneously
deliver the intended value to customers and delvier appealing profits to shareholders)
How well a company performs and the degree of market success it achieves are directly
attributable to
the caliber of its strategy and the proficiency with which the strategy is executed
What makes a competitive advantage sustainable or durable as opposed to temporary is
actions or elements in the strategy that cause an attractive number of buyers to have lasting
reasons to purchase a company's products or services, despite competitors' best efforts to
nullify or overcome those reasons
The competitive moves and business apporaches a company's management is using to attract
and please customers, compete successfully, grow the business, respond to changing market
conditions, conduct oeprations, and achieve the targeted financial and market performance is
what defines a company's
strategy
A company's strategy is a "work in progress" and evolves over time because of
the need to react and respond to changing market and competitive conditions and ongoing
management efforts to improve this or that piece of the strategy
Which of the following statements about a company's strategy is false?
, A company's strategy is deliberately kept under wraps by top-level managers so as to catch rival
companies by surprise and keep them off-balance
A company's strategy can be considered "ethical"
if it does not entail actions or behaviors that cross the moral line from "can do" to "should not
do"
According to Figure 1.1, which of the following is NOT something to look for in identifying a
company's strategy
Actions to strengthen the company's competitive position by laying off a portion of its work
force or paying down its long-term debt
A creative, distinctive strategy that sets a company apart from rivals and delivers superior value
to customers
is a company's most reliable ticket for winning a competitive advantage over rivals
Chapter 2
Chapter 2
A set of "stretch" financial and strategic objectives
helps a company avoid ho-hum results
Which of the following is the best example of a well-stated strategic objective?
Within 2 years, achieve costs per unit sold that are 10% below the current industry average of
$4.75 per unit
A company's strategic plan
