SM401 PRELIM EXAM

Superior value creation normally accomplishes with one of the following:

• Profitability

• Increase in market share

• Elimination of all possible competitors

• Creating value while controlling, containing cost to create it

Strategic decision-making is important to the following except:

• Firm’s customer

• Firm’s Chief Operating Officer

• Firm’s Division Manager

• Firm’s Board of Director

Co-opetition happens when:

• Competitors cooperate with one another to achieve strategic objective

• Players in the industry severely compete with one another

• Competitors in the industry try to eliminate each other

• Competitors block entry of new players in the market

Among the significant benefits of applying strategy are the following except:

• Strategy provides impetus for commercial success

• Strategy highlights where the business is profitable and why

• Strategy shows managers where business skills need to be added or strengthened

• Strategy limits the manager’s understanding of their customers and competitors

An objective should meet the following criteria, except:

• It is measurable

• It is definitely achievable

• It is specific and relevant

• It is time-consuming

In choosing the right strategic approach, the business manager may do the following except:

• Gathering the right information

• Developing market awareness

• Seeking additional funds to ensure success of the profit

• Deciding what action needs to be taken

In developing market awareness, the business manager should obtain the following information about the competitors except:

• Brand reputation and recognition

• Customer’s perceptions

• Product portfolio

• Return on invested capital

It can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objective.

• Strategic Management

• Optimization

• Coopetition

• Strategic Planning

It is also identified as a company’s game plan.

• Strategic Plan

• Business Plan

• Data Analysis

• Mission/Vision Statement

This explains either where the firm is going or how it will make progress.

• Strategic Plan

• Business Plan

• Data Analysis

• Mission/Vision Statement