The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its
A company's strategy stands a better chance of succeeding when
it is predicted on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals
Changing circumstances and ongoing managerial efforts to improve the strategy
Account for what a company's strategy evolves over time
Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?
All of these
A company's business model
Is management's story line for how it will generate revenues ample to cover costs and produce a profit - absent the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt
A winning strategy is one that
fits the company's internal external situations, builds sustainable competitive advantage, and improves company performance
Crafting and executing strategy are top-priority managerial tasks because
good strategy coupled with good strategy execution greatly raise the chances that a company will be a standout performer in the marketplace
What is the foremost question in running a business enterprise?
What must managers do, and do well, to make a company a winner in the marketplace?
Which of the following is an integral part of the managerial process of crafting and executing strategy?
Setting objectives and using them as yardsticks for measuring the company's performance and progress
Management's strategic vision for an organization
charts a strategic course for the organization ("where we are going") and provides a rational for why this directional path makes good sense
Which of the following is NOT a common shortcoming of company vision statements?
Too narrow - doesn't leave enough room for future growth
Which of the following is the result of a well-conceived and communicated strategic vision?
All of these
The managerial purpose of setting objectives includes
All of these
A company that pursues and achieves strategic objectives
is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows form the achievement of strategic objectives
Masterful strategies come from
doing things differently form competitors where it counts - out-innovating them, being more efficient, adapting faster - rather than running with the herd
Business strategy concerns
the actions and approaches crafted by management to produce successful performance in one specific line of business
Which one of the following is NOT among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy process is concerned?
Hiring and firing senior-level executives and working with the company's chief strategic planning officer to improve the company's strategy when performance comes up short of expectations
The nature and strength of the competitive forces that prevail in an industry is generally a joint product of
All of these
Rivalry among competing sellers is generally more intense when
Rivals are active in making fresh moves to lower prices, introduce new products, increase promotional efforts and advertising, and otherwise gain sales and market share
Competitive pressures associated with the threat of entry are greater when incumbent firms are unable or unwilling to strongly contest the entry of newcomers
All of these conditions heighten the competitive pressures associated with fresh entry into the industry
The strength of competitive pressures that suppliers can exert on industry members is main a function of
whether needed input are in short supply or whether ample suppliers are readily available form several different suppliers
Which of the following is not a factor that causes buyer bargaining power to be stronger?
The industry is composed of a few large sellers and the customer group consists of numerous buyers that purchase in fairly small quantities
A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers
is competitively unattractive from the standpoint of earning good profits
Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?
Ups and downs in the economy and in interest rates
The real payoff for strategy making comes when managers draw conclusions about
what strategy adjustments are needed to deal with the changes in conditions
One of the things that can be gleaned from a strategic group map of industry rivals is
whether profit prospects vary among strategic groups cut to strengths and weakness in their respective market positions on the map (perhaps because competitive pressures are acting to favor some strategic groups and to disadvantage other groups)
Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?
The industry's growth potential, whether competition appears destined to become stronger or weaker, and whether the industry's overall profit prospects are above average, average, or below average
Which of the following is NOT pertinent in identifying a company's present strategy?
The company's mission, strategic objectives, and financial objectives
Resource and capability analysis is designed to
ascertain which of a company's resources and capabilities are competitively valuable
The competitive power of a company resource strength is not measured by which of the following tests?
Is the resource strength something that a company does internally rather than in collaborative arrangements with outsiders?
provides a good overview of whether a company's situation is fundamentally health or unhealthy
A company's value chain
consists of two broad categories of activities: the primary activities that create customer value and the requisite support activities that facilitate and enhance the performance of the primary activities
Benchmarking provides a company with which of the following?
Hard evidence of cost competitiveness
To build advantage by out-managing rivals in performing value chain activities, a company must
Develop core competencies and maybe distinctive competence that rivals don't have or can't quite match and that are instrumental in helping it deliver attractive value to customers or else be more efficient in how it performs value chain activities such that it has a low-cost advantage
Which one of the following is an accurate interpretation of the scores that result from doing a competitive strength assessment?
High scores signal a strong competitive position and possession of a competitive advantage over companies with lower scores
Which one of the following generic types of competitive strategy is typically the best strategy for a company to employ?
There is not such thing as a "best" competitive strategy; a company 's "best" strategy is always one that is customized to fit both industry and competitive conditions and the company's own resources and competitive capabilities
Achieving a cost advantage over rivals entails
Performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities altogether
Being the overall low-cost provider in an industry has the attractive advantage of
putting a firm in a position to win the business of price sensitive customers, set the floor on market price, and still earn a profit
The essence of a broad differentiation strategy is to
be unique in ways that are valuable and appealing to a wide range of buyers
A broad differentiation strategy works best in situations where
technological change is fast-paced and competition revolves around rapidly evolving product features
The chief difference between a broad differentiation strategy and a focused differentiation is
the size of the buyer group that a company is trying to appeal to
For a best-cost provider strategy to be successful, a company must have
resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes
The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to
communicate the attractive features of a budget-priced product offering that fits niche members' expectations
Which one of the following is not a strategic choice that a company must make to complement and supplement its choice of one of the five generic competitive strategies?
Whether to employ a market share leadership strategy
Challenging a struggling rival can
All of these
What is the goal of signaling a challenger that strong retaliation is likely in the event of an attack?
Divert the challenger to use less threatening options
Mergers and acquisitions
frequently do not produce the hoped-for outcomes
Companies racing against rivals for global market leadership need strategic alliances and collaborative partnerships with companies in foreign countries to
get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations
Experience indicates that strategic alliances
Can suffer culture clash and integration problems due to different management styles and business practices
A company that fails in managing their strategic alliances probably has not
All of these
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