Strategic Management Quiz 1

Strategy is about the search for competitive advantage.

• True

• False

The central purpose of SWOT analysis is to identify the strategies to exploit external opportunities, counter threats, build on and protect company strengths, and eradicate weaknesses.

• True

• False

When managers decide to ignore different segments and produce a standardized product for the average consumer, we say they are pursuing a focus strategy.

• True

• False

Internal stakeholders are employees, customers, suppliers, creditors, governments, unions, local communities, and the general public.

• True

• False

Risk capital is capital that cannot be recovered if a company fails and goes bankrupt.

• True

• False

Advanced factors of production are resources such as land, labor, management, plants, and equipment.

• True

• False

When a company targets a certain segment or niche and tries to be the low-cost player in that niche, the company is pursuing a focus low-cost strategy.

• True

• False

Four factors help a company build and sustain competitive advantage are superior efficiency, quality, innovation, and customer responsiveness.

• True

• False

When companies competing in a global marketplace face the situation that pressures to adapt to local tastes are high and pressures to reduce costs are low, the companies should pursue global standardization strategy.

• True

• False

Product innovation is the development of a new process for producing and delivering products to customers.

• True

• False