What Is Strategy

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What Is Strategy
Strategic Leadership: Managing the Strategy Process
External Analysis: Industry Structure, Competitive Forces, and Strategic Groups
Internal Analysis: Resources, Capabilities, and Core Competencies
Competitive Advantage, Firm Performance, and Business Models
Business Strategy: Differentiation, Cost Leadership, and Blue Oceans
Business Strategy: Innovation, Entrepreneurship, and Platforms
Corporate Strategy: Vertical Integration and Diversification
Corporate Strategy: Strategic Alliances, Mergers and Acquisitions
Global Strategy: Competing Around the World
Organizational Design: Structure, Culture, and Control
Corporate Governance and Business Ethics

All Questions

Question 1

Free

Multiple Choice

Keeping in mind Apple's competitive advantage, which of the following products was introduced by Apple in 2007?

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iPad

iPhone

iPod

iTunes

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Question 2

Free

Multiple Choice

_____ is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

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Supply chain management

Integrated technology management

Strategic management

Inventory management

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Question 3

Free

Multiple Choice

_____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

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Behavior modification

Strategy

Credo

Competency management

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Question 4

Free

Multiple Choice

Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments?

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Strategy analysis

Strategy implementation

Strategy formulation

Strategy control

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Question 5

Free

Multiple Choice

In _____ , a firm frames a guiding policy to address the competitive challenge.

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strategy control

strategy implementation

strategy formulation

strategy analysis

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Question 6

Multiple Choice

Through _____ , a firm puts its guiding policy into practice by employing a set of coherent actions.

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strategy control

strategy implementation

strategy formulation

strategy analysis

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Question 7

Multiple Choice

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n) _____ .

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competitive advantage

balanced scorecard

power position

equity leverage

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Question 8

Multiple Choice

Cadia Foods Inc.was the first company to start selling energy drinks in its country-a product that gained popularity among diverse groups.Soon, other companies started to sell their own brands of energy drinks, thereby giving Cadia Foods ample competition.In response, Cadia Foods decided to limit its variety of energy drinks to only two.However, it ensured that these two flavors were free of calories and low in cost.With this innovation, Cadia Foods Inc.consistently outperformed its competitors for ten years.In this scenario, Cadia Foods Inc.has maintained a _____ through its innovative strategy.

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balanced scorecard

fiduciary responsibility

consistent power position

sustainable competitive advantage

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Question 9

Multiple Choice

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

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Newon Inc. generated a revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000.

SM Inc. almost doubled its sales to 8500 units this year compared to its previous year's sales of 5000 units, though the industry average is 10,000 units.

TrueLink Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years.

Max Electrova Inc. was able to outperform its competitors with its new production system, in terms of revenue, for a brief period of four months.

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Question 10

Multiple Choice

If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

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Comparing the return to the return on invested capital obtained by other firms in the industry

Assessing the value based on the shareholders' expectations of return on their capital

Evaluating the liquidity ratios for other pharmaceutical companies

Comparing the value to the history of the firm's return of investment over a number of years

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Question 11

Multiple Choice

Underperformance relative to other firms in the same industry or the industry average results in a(n) _____ for a firm.

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sustainable competitive advantage

increased power distance

diseconomies of scope

competitive disadvantage

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Question 12

Multiple Choice

New Communications Inc.is a newspaper publishing company whose average return on invested capital is approximately 5 percent.Because newspaper publishing is a declining industry, the industry average has been negative (-5 percent)for the last few years.In this scenario, New Communications Inc.has a _____ .

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competitive advantage

balanced scorecard

competitive disadvantage

power position

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Question 13

Multiple Choice

Exis Inc.and Stelma Inc.are two companies that have been manufacturing typewriters for almost 30 years.Due to the reduced demand for typewriters today, both companies' average return on invested capital is approximately -5 percent.The current industry average is 2 percent.In this scenario, Exis Inc.and Stelma Inc.most likely have:

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competitive advantage over other firms in their industry.

competitive parity with each other.

strategic alliance with each other.

economies of scope instead of economies of scale.

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Question 14

Multiple Choice

The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7.StoreAll Inc.manufactures the same product for $3 per bottle and sells it for $7 per bottle.Which of the following statements is most likely true of StoreAll Inc.in this scenario?

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It has a competitive advantage in the industry.

It has a competitive disadvantage in the industry.

It has competitive parity with other firms in the industry.

It has formed a strategic alliance with other firms in the industry.

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Question 15

Multiple Choice

A firm is said to gain a competitive advantage when it can:

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exceed its own previous performances.

provide products similar to its competitors, but at lower prices.

perform at the same level as that of its competitors.

minimize the difference between value creation and cost.

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Question 16

Multiple Choice

FindFor Inc.is an e-commerce retail firm that sells a variety of merchandise online.Through services like cash on delivery, easy return, and online tracking, the company has created more customer value than its competitors (brick-and-mortar businesses)at the same price.Also, the company's costs are substantially low due to minimal investment in operation and administration.In this scenario, FindFor Inc.has most likely been able to provide superior value and cost control through _____ .

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strategic parity

strategic profiling

strategic liquidation

strategic positioning

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Question 17

Multiple Choice

When a firm adopts a differentiation strategy to attain competitive advantage, it focuses on:

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delivering unique features to its customers.

providing the lowest prices to its customers.

maximizing its profits by providing minimal customer service.

lowering costs by employing low-skill employees.

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Question 18

Multiple Choice

True Cinemas Inc.and Digi Future Inc.are two companies that own and run movie theaters in malls and other commercial areas.While True Cinemas Inc.pursues a cost-leadership strategy, Digi Future Inc.adopts a differentiation strategy.Which of the following statements is most likely true of this scenario?

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True Cinemas will charge a premium price for its customers while Digi Future will implement everyday low pricing.

Digi Future and True Cinemas will not be direct competitors to each other and their customer segments will overlap very little.

Digi Future will keep its customer service at an acceptable level while True Cinemas will provide superior customer service.

True Cinemas and Digi Future will use a similar approach to create value for customers by attempting to offer everything to everybody.

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Question 19

Multiple Choice

For a firm that operates in an industry where competition is high, which of the following practices will result in inferior performance?

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Choosing a distinct but different strategic position in the industry

Working toward increasing the difference between value creation and cost

Trying to be everything to everybody by combining different competitive strategies

Focusing on creating value for customers rather than destroying rivals

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Question 20

Multiple Choice

If a company wants to gain a competitive advantage in a highly competitive industry, it should ideally:

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execute an integrated cost-leadership and differentiation position.

copy the strategies of other firms through competitive benchmarking.

provide goods or services similar to its competitors' at higher prices.

stake out a unique position within the industry.

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