Question 1

Organizational core values are the ________ that govern the behavior of individuals within a firm or organization.

Accepted Answer

A)   economic measures
B)   ethical standards and norms
C)   political principles and policies
D)   social beliefs and actionsE) A) and B)
F) A) and C)

Question 2

During strategy implementation, managers primarily focus on deciding the

Accepted Answer

A)   type of corporate governance that is most effective and ways in which it can put the formulated strategy into practice.
B)   industries and markets the firm should compete in to be able to gain and sustain a competitive advantage.
C)   relationship between competitive advantage and firm performance.
D)   role strategic leaders should play in gaining and sustaining a competitive advantage.E) B) and D)
F) A) and C)

Question 3

Powell Lighting was the first company to start selling LED light bulbs in its country-a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of LED bulbs, thereby giving Powell Lighting ample competition. In response, Powell Lighting decided to limit its LED light bulbs to outdoor models. However, it ensured that these models were the longest-lasting and lowest-priced on the market. With this innovation, Powell Lighting consistently outperformed its competitors for ten years. In this scenario, Powell Lighting maintained a ________ through its innovative strategy.

Accepted Answer

A)   balanced scorecard
B)   fiduciary responsibility
C)   consistent power position
D)   sustainable competitive advantageE) A) and B)
F) B) and D)

Question 4

Why is it important for a business to have a vision?

Accepted Answer

A company's vision captures its aspirati...

Question 5

What are customer-oriented vision statements? Explain with the help of an example.

Accepted Answer

Student answers may vary.
A customer-ori...

Question 6

As manager of a major producer of automobile airbags, you have recently introduced the following vision statement: to protect the health of every driver and passenger. How can you ensure that your employees feel invested in and inspired by the firm's vision?

Accepted Answer

A)   Include a "vision adherence assessment" in each employee's annual performance review.
B)   Hang banners around the production facility touting the new vision statement.
C)   Ask employees for feedback on the vision statement and revise based on their input.
D)   Give a speech explaining why everyone should support the new vision.E) None of the above
F) A) and B)

Question 7

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

Accepted Answer

A)   strategy control
B)   strategy implementation
C)   strategy formulation
D)   strategy analysisE) A) and D)
F) C) and D)

Question 8

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Accepted Answer

A)   Customer-oriented visions tend to have a more short-range view of changing environments.
B)   Customer-oriented visions tend to have a more myopic view of changing environments.
C)   Customer-oriented visions tend to be more flexible when adapting to changing environments.
D)   Customer-oriented visions tend to be more stable when dealing with changing environments.E) B) and D)
F) A) and D)

Question 9

Which of the following strategies does Tesla need to implement or achieve to gain a competitive advantage?

Accepted Answer

A)   imitate the features of the most popular SUVs on the market
B)   reinvest profits to build successively better electric automobiles
C)   sell advertising space on their cars' digital displays
D)   substitute less-expensive components to keep costs lowE) All of the above
F) A) and B) B

Question 10

Pioneer Pharma Inc. and GH Medicines Corp. are two competing firms in the pharmaceutical industry. While Pioneer Pharma Inc.'s vision is "to be a preeminent drug manufacturer in the industry," GH Medicines Corp.'s vision is "to make good health a reality for everyone around the world." Which of the following is an implication of these different visions?

Accepted Answer

A)   GH Medicines' vision is more product-oriented than the vision of Pioneer Pharma.
B)   Pioneer Pharma is more likely to have a positive relationship between its vision and firm performance than GH Medicines.
C)   Pioneer Pharma's vision is more long-term and futuristic than GH Medicines' vision.
D)   GH Medicines will be more flexible than Pioneer Pharma when adapting to changing environments.E) B) and D)
F) C) and D)

Question 11

Define organizational core values with the help of an example.

Accepted Answer

Student examples will vary. A sample ans...

Question 12

A customer-oriented vision statement focuses employees to think about how best to

Accepted Answer

A)   make a product easier to use.
B)   increase their efficiency to benefit consumers.
C)   improve a popular product.
D)   solve a problem for a consumer.E) All of the above
F) A) and D) D

Question 13

Which of the following statements is true of customer-oriented visions?

Accepted Answer

A)   Customer-oriented visions identify how a customer need will be met.
B)   Customer-oriented vision statements are not the same as listening to your customer.
C)   Customer-oriented visions reduce a company's ability to adapt to a changing environment.
D)   Customer-oriented visions define a business in terms of goods or services provided.E) B) and D)
F) A) and B)

Question 14

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

Accepted Answer

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.E) A) and C)
F) A) and B)

Question 15

Toy sales have declined by 10 percent each year, forcing many retailers to exit the industry. To eliminate its remaining competition, Bleaker Toys sells all of its product at a loss and relies on its significant cash holdings to cover costs until its competition is forced to exit the industry. Is this an example of a successful strategy? Why or why not?

Accepted Answer

A)   Yes. Any strategy that forces competition from the market is by definition successful.
B)   Yes. Bleaker has achieved a sustainable competitive advantage by selling its toys at a lower price than competitors.
C)   No. Bleaker has failed to create value for its customers.
D)   No. Bleaker's strategy and competitive advantage are unsustainable.E) B) and C)
F) All of the above

Question 16

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 lower than its competitors because of minimal investments in operation and administration. In this scenario, FindFor Inc. has most likely been able to provide superior value and cost control through

Accepted Answer

A)   strategic parity.
B)   strategic profiling.
C)   strategic liquidation.
D)   strategic positioning.E) A) and D)
F) A) and C) D

Question 17

Fuller Apparel's core value statement reads we will ensure our clothing is made with the highest respect toward human rights and environmental protection. Which of the following actions exemplifies how Fuller's core values drive its strategic decision making?

Accepted Answer

A)   demanding that textile suppliers pay livable wages and maintain safe production facilities
B)   introducing an online customer service unit to keep customers happy
C)   investing in more efficient machinery to reduce costs and lower prices for consumers
D)   purchasing a full-page advertisement in a major newspaper touting the company's valuesE) A) and B)
F) A) and C)

Question 18

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

Accepted Answer

A)   competitive advantage.
B)   balanced scorecard.
C)   power position.
D)   equity leverage.E) A) and B)
F) All of the above

Question 19

Visionary companies are able to outperform their competitors because

Accepted Answer

A)   their vision statements are more product-oriented.
B)   they provide more aspirational visions.
C)   their visions are primarily financial.
D)   they isolate internal stakeholders in defining their visions.E) B) and C)
F) All of the above

Question 20

Strategic commitments are actions that are

Accepted Answer

A)   inexpensive.
B)   long-term oriented.
C)   easy to reverse.
D)   easy to imitate.E) B) and C)
F) B) and D)

Exam 1: What Is Strategy

Organizational core values are the ________ that govern the behavior of individuals within a firm or organization.

Correct Answer
verified

During strategy implementation, managers primarily focus on deciding the

Correct Answer
verified

Correct Answer
verified

Why is it important for a business to have a vision?

Correct Answer
verified
A company's vision captures its aspirati...
View Answer

What are customer-oriented vision statements? Explain with the help of an example.

Correct Answer
verified
Student answers may vary.
A customer-ori...
View Answer

As manager of a major producer of automobile airbags, you have recently introduced the following vision statement: to protect the health of every driver and passenger. How can you ensure that your employees feel invested in and inspired by the firm's vision?

Correct Answer
verified

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

Correct Answer
verified

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Correct Answer
verified

Which of the following strategies does Tesla need to implement or achieve to gain a competitive advantage?

Correct Answer
verified
B

Correct Answer
verified

Define organizational core values with the help of an example.

Correct Answer
verified
Student examples will vary. A sample ans...
View Answer

A customer-oriented vision statement focuses employees to think about how best to

Correct Answer
verified
D

Which of the following statements is true of customer-oriented visions?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Fuller Apparel's core value statement reads we will ensure our clothing is made with the highest respect toward human rights and environmental protection. Which of the following actions exemplifies how Fuller's core values drive its strategic decision making?

Correct Answer
verified

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

Correct Answer
verified

Visionary companies are able to outperform their competitors because

Correct Answer
verified

Strategic commitments are actions that are

Correct Answer
verified

Exam 1: What Is Strategy

Organizational core values are the ________ that govern the behavior of individuals within a firm or organization.

Correct AnswerverifiedShow Answer

During strategy implementation, managers primarily focus on deciding the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why is it important for a business to have a vision?

Correct AnswerverifiedA company's vision captures its aspirati...View AnswerShow Answer

What are customer-oriented vision statements? Explain with the help of an example.

Correct AnswerverifiedStudent answers may vary.A customer-ori...View AnswerShow Answer

As manager of a major producer of automobile airbags, you have recently introduced the following vision statement: to protect the health of every driver and passenger. How can you ensure that your employees feel invested in and inspired by the firm's vision?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Correct AnswerverifiedShow Answer

Which of the following strategies does Tesla need to implement or achieve to gain a competitive advantage?

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

Define organizational core values with the help of an example.

Correct AnswerverifiedStudent examples will vary. A sample ans...View AnswerShow Answer

A customer-oriented vision statement focuses employees to think about how best to

Correct AnswerverifiedD

Which of the following statements is true of customer-oriented visions?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedD

Fuller Apparel's core value statement reads we will ensure our clothing is made with the highest respect toward human rights and environmental protection. Which of the following actions exemplifies how Fuller's core values drive its strategic decision making?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Visionary companies are able to outperform their competitors because

Correct AnswerverifiedShow Answer

Strategic commitments are actions that are

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A company's vision captures its aspirati...
View Answer

Correct Answer
verified
Student answers may vary.
A customer-ori...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
Student examples will vary. A sample ans...
View Answer

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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