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WorksheetsStrategy Management for Enterprise Final Exam
Total questions: 50
Worksheet time: 2hrs 40mins
Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages
True
False
Strategic management includes strategy analysis, strategy formulation, and strategy implementation.
True
False
According to the text, formulating strategy includes taking into consideration strategy at the business, international, digital, and corporate levels.
True
False
Shareholders in a company are the only individuals with an interest in the financial performance in the company.。
True
False
Objectives in organizations should be clear, stated, and known by employees throughout the organization.
True
False
Strategic management should only include short-term objectives. Long-term objectives are covered in the organization's vision statement.
True
False
Organizational goals and objectives should be vague in order to allow for changes in strategy.
True
False
Organizational vision statements are the beginning point for the hierarchy of goals throughout the organization. An organization's vision statement should be massively inspiring, overarching, and long-term.
True
False
Although vision statements vary from organization to organization, vision statements are intended to motivate and inspire employees to work toward a general goal.
True
False
Shareholders in a company are the only individuals with an interest in the financial performance in the company.。
True
False
The four key attributes of strategic management include the idea that
strategy must be directed toward overall organizational goals and objectives.
strategy must be focused on long-term objectives.
strategy must be focused on one specific area of an organization.
. strategy must focus on competitor strengths.
The four key attributes of strategic management include all of the following except
. including multiple stakeholder interests in decision-making.
incorporating both short-term and long-term perspectives.
recognizing the trade-offs between effectiveness and efficiency.
emphasis on the attainment of short-term objectives.
In order to increase their competitiveness, organizations must continually analyze their strategy and their competitive environments. According to the text, strategy analysis includes
assessing intellectual capital as well as analyzing the internal and external environment.
formulating Internet and international-level strategy.
strategic leadership and fostering entrepreneurship.
strategy implementation and strategic controls.
Many organizations have a large number of functional areas with very diverse, and sometimes competing, interests. Such organizations will be most effective if
each functional area focuses on achieving their own goals.
functional areas work together to attain overall goals.
goals are defined at the bottom and implemented at the top.
management and employees have separate goals.
Gathering "competitive intelligence"
is good business practice.
is illegal.
is considered unethical
minimizes the need to obtain information in the public domain.
Two key inputs to developing forecasts discussed in the text are
. environmental scanning and stakeholder identification.
environmental scanning and competitor intelligence.
assessing internal strengths and environmental scanning.
environmental scanning and a SWOT analysis.
The threat of new entrants is high when there are
low economies of scale
high capital requirements.
high switching costs.
. high differentiation among competitors' products and services
Strategic groups consist of。
. top executives who make strategies for a company
firms within an industry that follow similar strategies.
executives drawn from different companies within an industry that makes decisions on industry standards.
firms within an industry that decide to collude rather than compete with each other so that they can increase their profits.
The three key types of resources that are central to the resource-based view of the firm are:
tangible resources, intangible resources, and organizational structure
culture, tangible resources, intangible resources
tangible resources, intangible resources, and organizational capabilities
tangible resources, intangible resources, and top management
For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have the following four attributes:
rare, valuable, mobile, nonsubstitutable
. rare, inimitable, physically unique, nonsubstitutable
rare, valuable, inimitable, non-substitutable
rare, valuable, physically unique, causally ambiguous
A competitive advantage based on inimitability can be sustained for at least some time if it has the following characteristics:。
physical uniqueness, path dependency, causal ambiguity, and social complexity
psychographic uniqueness, path dependency, causal ambiguity, and substitutability
rarity, path dependency, causal ambiguity, and social substitutability
geographic uniqueness, cause dependency, social ambiguity, and path complexity
A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain
no competitive advantage.
competitive parity.
a temporary competitive advantage
a sustainable competitive advantage.
The best measure of a company's ability to meet imminent financial obligations is known as the
current ratio.
total asset turnover
debt ratio.
profit margin.
As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently strategic management has moved from focusing on
. intangible resources to tangible resources.
tangible resources to intangible resources.
working capital to fixed capital
fixed capital to working capital.
Human capital includes
an individual's capabilities, knowledge, and skills.
the relationships between people.
the output from assembly line employees
an improved product.
Maintaining a competitive workforce is very challenging in today's economy. The role of evaluating human capital, in recent years, has
increased.
decreased.
become less important
remained the same.
Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy?
overall cost leadership
differentiation
differentiation focus
cost leadership focus
A firm can achieve differentiation through all of the following means except
improving brand image.
better customer service.
offering lower prices to frequent customers.
adding additional product features.
. A firm following a focus strategy
. must focus on governmental regulations
must focus on a market segment or group of segments
. must focus on the rising cost of inputs
must avoid entering international markets.
Which of the following is considered an accurate statement for a product in the growth period of its life cycle?
It is difficult to gain market share in growth markets.
There is more price pressure in growth markets
It is easier to develop technology in the growth phase.
. Customers are brand loyal in the growth phase.
Which of the following is most often true of mature markets。
Some competitors enjoy a significant operating advantage due to increasing experience effects.
The market supports premium pricing, which attracts additional competitors
Advantages that cannot be duplicated by other competitors are difficult to achieve
The magnitude of pricing differences and product differentiation is larger than in the growth stage
Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that
the similarity required for sharing core competencies must be in the value chain, not in the product
. the products use similar distribution channels
the target market is the same, even if the products are very different
. the methods of production are the same
It may be advantageous to vertically integrate The
lower transaction costs and improved coordination are vital and achievable through vertical integration
the minimum efficient scales of two corporations are different.
flexibility is reduced, providing a more stationary position in the competitive environment
various segregated specializations will be combined.
The downsides or limitations of mergers and acquisitions include all of the following except
. expensive premiums that are frequently paid to acquire a business.
difficulties in integrating the activities and resources of the acquired firm into a corporation's on-going operations.
it is a slow means to enter new markets and acquire skills and competences
there can be many cultural issues that can doom an otherwise promising acquisition.
Cooperative relationships such as _______ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies
joint ventures
mergers and acquisitions
strategic alliances
. joint ventures and strategic alliances
Which of the following statements regarding internal development as a means of diversification is false?。
Many companies use internal development to extend their product lines or add to their service Offering
An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services.
The firm is able to capture the wealth created without having to "share the wealth" with alliance partners.
Firms can often develop products or services at a lower cost if they rely on their own resources instead of external funding
A major trend in international developments includes
. greater international trade and operations
. a growing recognition of an international managerial perspective.
. a large increase in international investment
all of the answers are correct
Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?
international
global
. multidomestic
transnational
All of the following are risks associated with a global strategy except
. a firm with only one manufacturing location must export its product—some of which may be a great distance from the operation
. the geographic concentration of any activity may also tend to isolate that activity from the targeted markets
concentrating an activity in a single location makes the rest of the firm dependent on that location.
. the pressures for local adaptation may elevate the firm's cost structure.
All of the following are limitations of a global strategy except
. limited ability to adapt to local markets.
. the ability to locate activities in optimal locations.
. the concentration of activities may increase dependence on a single facility.
single locations may lead to higher tariffs and transportation costs.
Which of the following is not one of the central questions in evaluating a company’s business prospects?
What is the company’s present situation?
What are the key product or service attributes demanded by consumers?
Where does the company need to go from here?
How should it get there?
All of the above are pertinent in evaluating a company’s business prospects
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
strategy.
mission statement.
strategic intent.
business model.
strategic vision.
The heart and soul of a company's strategy-making effort
is figuring out how to become the industry’s low-cost provider.
is figuring out how to maximize the profits and shareholder value.
concerns how to improve the efficiency of its business model.
deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner that keeps the company’s prices as low as possible.
involves coming up with moves and actions that produce a durable competitive edge over rivals.
A company achieves sustainable competitive advantage when
an attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors.
it has a profitable business model.
it is able to maximize shareholder wealth.
it is consistently able to achieve both its strategic and financial objectives.
its strategy and its business model are well-matched and in sync.
A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage
is a reliable indicator that the company has a profitable business model.
is every company’s strategic vision.
A) is a company’s most reliable ticket to above-average profitability—indeed, the tight connection between competitive advantage and profitability means that the quest for sustainable competitive advantage always ranks center stage in crafting a strategy.
signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives.
is the best indicator that the company’s strategy and business model are well-matched and properly synchronized.
What separates a powerful strategy from a run-of-the-mill or ineffective one is
the ability of the strategy to keep the company profitable.
the proven ability of the strategy to generate maximum profits.
the speed with which it helps the company achieve its strategic vision.
management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, tilts the playing field in the company’s favor, and produces sustainable competitive advantage over rivals.
whether it allows the company to maximize shareholder value in the shortest possible time.
Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?
A) Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage
A) Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority, or unusually good value for the money
Developing expertise and resource strengths that give the company competitive capabilities that rivals can't easily imitate or trump with capabilities of their own
Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche
All of these
19. Which of the following is not something to look for in identifying a company's strategy?
Actions to respond to changing market conditions or other external factors
Management actions to revise the company's financial and strategic performance targets
Actions to strengthen competitive capabilities and correct competitive weaknesses
Actions to capture emerging market opportunities and defend against external threats to the company's business prospects
Actions to gain sales and market share via lower prices, more performance features, more appealing design, or other such actions.
Which of the following is something to look for in identifying a company's strategy?
Actions to gain sales and market share
Actions to strengthen marketing standing and competitiveness by merging with or acquiring rival companies
Actions to enter new geographic or product markets or exit existing ones
Actions and approaches used in managing R&D, production, sales and marketing, finance, and other key activities
All of above are pertinent in identifying a company’s strategy.
Changing circumstances and ongoing managerial efforts to improve the strategy
account for why a company’s strategy evolves over time.
explain why a company’s strategic vision undergoes almost constant change.
make it very difficult for a company to have concrete strategic objectives.
make it very hard to know what a company’s strategy really is.
All of the above.
