QUESTION 1

1. A company achieves a competitive advantage when it

provides buyers with superior value compared to rival sellers or offers the same value
at a lower cost.
has a profitable business model.
is able to maximize shareholder wealth.
is consistently able to achieve both its strategic and financial objectives.
has a strategy well-matched to its business model.

QUESTION 2
1. The five basic tasks of the strategy-making, strategy-executing process DO NOT include
developing a strategic vision of where the company needs to head and what its future
business makeup will be.
strategic management to convert the strategic vision into specific strategic and
financial performance outcomes for the company to achieve.
crafting a strategy to achieve the objectives and get the company where it wants to go.
developing a profitable business model.
executing the chosen strategy efficiently and effectively.

QUESTION 3
1. A winning strategy must pass which three tests?
the dominant market test, the sustainable advantage test, and the profit test
the fit test, the competitive advantage test, and the performance test
the sustainable performance test, the fit test, and the profit test
the performance test, the dominant market test, and the fit test
the fit test, the sustainable advantage test, and the dominant market test

QUESTION 4
1. A company's strategic vision concerns
management's storyline of how it intends to make a profit with the chosen strategy
"who we are and what we do."
what future actions the enterprise will likely undertake to outmaneuver rivals and
achieve a sustainable competitive advantage.
"who we are and what we do."
a company's directional path and future product-customer-market-technology focus.
why the company does certain things in trying to please its customers.
QUESTION 5
1. The best example of a well-stated, specific financial objective is to
increase earnings per share by 15 percent annually.
gradually boost market share from 10 percent to 15 percent over the next several
years.
achieve lower costs than any other industry competitor.
boost revenues by a percentage margin greater than the industry average.
maximize total company profits and return on investment.

QUESTION 6
1. The wording of a company's vision statement should commonly be
vague or incomplete—short on specifics.
flexible—adjustable according to changing circumstances.
bland or uninspiring—short on inspiration.
generic—could apply to almost any company (or at least several others in the same
industry).
reliant on superlatives (best, most successful, recognized leader, global or worldwide
leader, first choice of customers).

QUESTION 7
1. An effectively worded strategic vision statement is not likely to be
directional (is forward-looking, describes the strategic course that management has
charted that will help the company prepare for the future).
easy to communicate (is explainable in 5-10 minutes, and can be reduced to a
memorable slogan).
graphic (paints a picture of the kind of company management is trying to create and
the market position(s) the company is striving to stake out).
consensus-driven (commits the company to a "mainstream" directional path that
almost all stakeholders will enthusiastically support).
focused (provides guidance to managers in making decisions and allocating resources).
QUESTION 8
1. A company's values or core values concern
whether and to what extent it intends to operate in an ethical and socially responsible
manner.
how aggressively it will seek to maximize profits and enforce high ethical standards.
the beliefs and operating principles built into the company's balanced scorecard for
measuring performance.
the beliefs, traits, and behavioral norms that company personnel are expected to
display in conducting the company's business and pursuing its strategic vision and
mission.
the beliefs, principles, and ethical standards that are incorporated into the company's
strategic intent and business model.

QUESTION 9
1. A company's strategy is NOT concerned with management's choices about how to
attract and please customers.
stake out the same market position as successful rival companies.
grow the business.
compete successfully.
conduct operations and improve the company's financial and market performance.

QUESTION 10
1. A company's business model
concerns the actions and business approaches that will be used to grow the business,
conduct operations, and stake a competitor's market position.
is management's blueprint for how it will generate revenues sufficient to cover costs
and yield an attractive profit.
concerns what combination of moves in the marketplace it plans to make to
outcompete rivals.
deals with how it can simultaneously maximize profits and operate in a socially
responsible manner that keeps its prices as low as possible.
concerns how management plans to pursue strategic objectives, given the larger
imperative of meeting or beating its financial performance targets.