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What Is Strategy

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Question 1
Free
Multiple Choice

Which of the following strategies does Twitter need to implement to increase its competitive advantage?

Choose correct answer/s
A

charge no fee to individual users

B

increase its user base

C

deliver ads in real time

D

allow core users to stay always connected

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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.

Choose correct answer/s
A

Supply chain management

B

Integrated technology management

C

Strategic management

D

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.

Choose correct answer/s
A

Behavior modification

B

Strategy

C

Credo

D

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?

Choose correct answer/s
A

strategy analysis

B

strategy implementation

C

strategy formulation

D

strategy control

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Question 5
Free
Multiple Choice

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

Choose correct answer/s
A

strategy control

B

strategy implementation

C

strategy formulation

D

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.

Choose correct answer/s
A
strategy control
B
strategy implementation
C
strategy formulation
D
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)

Choose correct answer/s
A
competitive advantage.
B
balanced scorecard.
C
power position.
D
equity leverage.
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Question 8
Multiple Choice

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

Choose correct answer/s
A
balanced scorecard
B
fiduciary responsibility
C
consistent power position
D
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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A
Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000.
B
CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's sales of 5,000 units, though the industry average is 10,000 units.
C
Zhang Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years.
D
Peak 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?

Choose correct answer/s
A
comparing the return to the return on invested capital obtained by other firms in the industry
B
assessing the value based on the shareholders' expectations of return on their capital
C
evaluating the liquidity ratios for other pharmaceutical companies
D
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.

Choose correct answer/s
A
sustainable competitive advantage
B
increased power distance
C
diseconomies of scope
D
competitive disadvantage
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Question 12
Multiple Choice

The Scoop,Ltd.is a magazine publishing company whose average return on invested capital is approximately 5 percent.Because magazine publishing is a declining industry,the industry average has been negative (-5 percent)for the last few years.In this scenario,The Scoop Ltd.has a

Choose correct answer/s
A
competitive advantage.
B
balanced scorecard.
C
competitive disadvantage.
D
power position.
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Question 13
Multiple Choice

Rapida Inc.and Click 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,Rapida Inc.and Click Inc.most likely have

Choose correct answer/s
A
competitive advantage over other firms in their industry.
B
competitive parity with each other.
C
strategic alliance with each other.
D
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?

Choose correct answer/s
A
It has a competitive advantage in the industry.
B
It has a competitive disadvantage in the industry.
C
It has competitive parity with other firms in the industry.
D
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

Choose correct answer/s
A
exceed its own previous performances.
B
provide products similar to its competitors, but at lower prices.
C
perform at the same level as that of its competitors.
D
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

Choose correct answer/s
A
strategic parity.
B
strategic profiling.
C
strategic liquidation.
D
strategic positioning.
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Question 17
Multiple Choice

A firm always has a competitive disadvantage when its return on invested capital is

Choose correct answer/s
A
below the industry average.
B
2 percent or lower in a declining industry.
C
about the same as its closest competitor.
D
declining steadily over two or more years.
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Question 18
Multiple Choice

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

Choose correct answer/s
A
Silver Screen Cinemas will charge a premium price for its customers, while Digi Now will implement everyday low pricing.
B
Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little.
C
Digi Now will keep its customer service at an acceptable level, while Silver Screen Cinemas will provide superior customer service.
D
Silver Screen Cinemas and Digi Now 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?

Choose correct answer/s
A
choosing a distinct but different strategic position in the industry
B
working toward increasing the difference between value creation and cost
C
trying to be everything to everybody by combining different competitive strategies
D
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

Choose correct answer/s
A
execute an integrated cost-leadership and differentiation position.
B
copy the strategies of other firms through competitive benchmarking.
C
provide goods or services similar to its competitors at higher prices.
D
stake out a unique position within the industry.
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