CHAPTER 01:

1. Which of the following statements about a company's strategy is true?

⇨ The objective of a well-crafted strategy is not merely temporary competitive success and
profits in the short run, but rather the sort of lasting success that can support growth and
secure the company's future over the long run.
2. Competing differently from rivals? Doing what competitors don't do or, even better, doing what
they can't do is referred to as its:
⇨ Strategy.
3. Which one of the following is not related to actions and approaches that comprise a company's
strategy?
⇨ How to prove to shareholders that the company's business model is viable.
4. A company achieves sustainable competitive advantage when
⇨ When it provide buyers with lasting reasons to prefer its products or services over those of
competitors.
5. Which one of the following is not something to look for in identifying a company's strategy?
⇨ The company's actions to validate and improve upon its business model.
6. Company strategies evolve because:
⇨ Of changing circumstances and ongoing management efforts to improve the strategy.
7. A company's business model:
⇨ Is management's blueprint for delivering a valuable product or service to customers in a
manner that will generate revenues sufficient to cover costs and yield an attractive profit.
8. A winning strategy is one that:
⇨ Fits the company's internal and external situation, builds sustainable competitive advantage,
and boosts company performance.
9. Crafting and executing strategy are top-priority managerial tasks because:
⇨ How well a company performs and the degree of market success it enjoys are directly
attributable to the caliber of its strategy and the proficiency with which the strategy is
executed.
10. The most trustworthy signs of a well-managed company are
⇨ Good strategy and good strategy execution.
CHAPTER 02:
1. Most boards of directors have a compensation committee, composed entirely of
________________________, to develop a salary and incentive compensation plan that rewards
senior executives for boosting the company's _______________ performance and growing the
economic value of the enterprise on behalf of shareholders?
⇨ outside directors; long-term
2. Which of the following represents the best example of a well-stated strategic objective (as
opposed to a well-stated financial objective)?
⇨ Increase market share from 17% to 22% and achieve the lowest overall costs of any
producer in the industry, both within three years
3. A balanced scorecard for measuring company performance?
⇨ Entails setting both financial and strategic objectives and putting balanced emphasis on their
achievement. 
4. Which of the following statements about a company's values is false?
⇨ At all but a few companies, the stated values are mostly window-dressing and serve mainly to
embellish the company's public image.
5. The strategy-making hierarchy in a single business company consists of?
 ⇨ Business strategy, functional-area strategies, and operating strategies.
6. 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-executing process is concerned?
⇨ Direct senior executives as to what the company's long-term direction, objectives, business
model, and strategy should be and, further, closely supervise senior executives in their efforts
to implement and execute the strategy.
7. Which one of the following is not an integral part of the managerial process of crafting and
executing strategy?
⇨ Choosing a strategic intent.
8. The task of crafting a strategy is.
⇨ Is a collaborative team effort in which every manager has a role for the area he or she
heads; it is rarely something that only high-level managers do.  
9. Which of the following statements about objectives is false?
⇨ A company's managers are well-advised to give the achievement of financial objectives a
much higher priority than the achievement of strategic objectives.
10. A strategic vision for a company?
⇨ Provides a panoramic view of "where we are going" and a convincing rationale for why this
makes good business sense for the company.
CHAPTER 03:
1. The rivalry among competing sellers in an industry intensifies?
⇨ As the number of rivals increases and as they become more equal in size and competitive
capability. 
2. Competitive pressures associated with the threat of new entrants grow stronger when?
⇨ Existing industry members are looking to expand their market reach by entering product
segments or geographic areas where they do not have a presence yet.
3. Whether the buyers of an industry's product have strong or weak bargaining leverage over the
terms and conditions of sale depends on?
⇨ Whether buyers purchase in relatively large or small quantities, and how well-informed
buyers are about sellers' prices, products, and costs. 
4. The task of driving forces analysis is to?
⇨ Determine how the collective impact of the driving forces will change market demand,
competition and industry profitability. 
5. Which of the following conditions generally raise the barriers to entering an industry?
⇨ High capital requirements, and difficulties in building a network of distributors-retailers and
securing adequate space on retailers' shelves.
6. Competitive pressures stemming from substitute products are weaker when?
⇨ Buyers don't believe substitute products have equal or better features, and buyers' costs of
switching to substitutes are relatively high. 
7. Which of the following is not a factor in determining whether the suppliers to an industry are a
source of strong, moderate, or weak competitive pressures?
⇨ Whether the industry supply chain is global or mostly national, whether suppliers have a
wide or narrow product line, and whether industry members place orders frequently or
infrequently with suppliers.
8. An industry's key success factors?
⇨ Are so important to competitive success that all firms in the industry must pay close attention
to them or risk becoming an industry laggard or failure. 
 9. Which of the following is not among the factors that determine whether competitive rivalry
among industry members is strong, moderate, or weak?
⇨ Whether industry members are vertically integrated and whether the industry is
characterized by significant scale economies and rapid technological change.
10. Strategic group mapping is a helpful analytical tool for?
⇨ Revealing the market positions of key industry competitors. 
CHAPTER 04:
1. Benchmarking?
⇨ Is a potent tool for improving a company's own internal activities that is based on learning
how other companies perform them and borrowing "best practices"
2. For a company to translate performance of value chain activities into competitive advantage, it?
⇨ Must be more cost efficient in how it performs value chain activities or better able to manage
activities that add customer value.
3. Which one of the following is not something that can be learned from doing a competitive
strength assessment?
⇨ Whether a company utilizes best practices in performing its value chain activities.
4. A company's value chain consists of?
⇨ The collection of activities it performs in the course of designing, producing, marketing,
delivering, and supporting its product or service and delivering value to customers.
5. SWOT analysis? (All of these)
⇨ Provides the basis for crafting a strategy that capitalizes on the company's strengths,
overcomes its weaknesses, aims squarely at capturing the company's best opportunities, and
defends against competitive and environmental threats.
⇨ Provides a quick overview of where on the scale from "alarmingly weak" to "exceptionally
strong" the attractiveness of the company's overall business situation ranks.
⇨ Helps identify a company's core competencies and competitive capabilities and the
seriousness of its resource weaknesses and competitive deficiencies.
⇨ Helps provide a basis for matching the company's strategy to its internal resource
capabilities and its external opportunities and threats. 
6. Which one of the following is not helpful in identifying the components of a single-business
company's strategy?
⇨ The company's resource strengths and weaknesses.
7. A core competence?
⇨ May evolve into a distinctive competence, giving the company superiority over rivals in
performing an important value chain activity.  
8. Which of the following analytical tools are particularly useful for determining whether a
company's prices and costs are competitive?
⇨ Value chain analysis and benchmarking.
9. A company's cost competitiveness is largely a function of?
⇨ How efficiently it manages its overall value chain activities relative to how efficiently
competitors manage theirs. 
10. The measure of internal cash flow estimates the cash a company's business is generating
_____________________________.?
⇨ after payment of operating expenses, interest, and taxes.
CHAPTER 05:
1. A competitive strategy of striving to be the low-cost provider is particularly attractive when?
 ⇨ Buyers are large and use the product in much the same ways.
2. A focused differentiation strategy aims at securing competitive advantage by?
⇨ Offering buyers in the target market niche a product which they perceive is uniquely well
suited to their tastes and preferences. 
3. What sets focused (or market niche) strategies apart from low-cost leadership and broad
differentiation strategies is?
⇨ Their concentrated attention on serving the needs of buyers in a narrow piece of the overall
market.
4. A broad differentiation strategy?
⇨ Can produce sustainable competitive advantage if the differentiating features possess strong
buyer appeal and can't be copied or easily matched by rivals.
5. A company's competitive strategy deals:
⇨ Exclusively with the specifics of management's game plan for competing successfully. 
6. A low-cost leader's basis for competitive advantage is?
⇨ Meaningfully lower overall costs than competitors. 
7. The five generic types of competitive strategies include:
⇨ Low-cost provider strategies; Broad differentiation strategies; Best-cost provider strategies;
Focused low-cost strategies; Focused differentiation strategies. 
8. A strategy of being a best-cost provider?
⇨ Combines a strategic emphasis on low cost with a strategic emphasis on more than
minimally acceptable quality, service, features, and performance. 
9. Which of the following is not one of the four basic routes to achieving a differentiation-based
competitive advantage?
⇨ Striving to capture all available economies of scale.
10. Which of the following are distinguishing features of a best-cost provider strategy?
⇨ A competitive advantage based on more value for the money.