Exam 1: What Is Strategy and Why Is It Important?

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

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Crafting and executing strategy are core...

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A) a distinctive element that attracts customers and produces a competitive edge.
B) to include similar characteristics to rival company strategies.
C) to pursue conservative growth built on historical strengths.
D) to employ diverse and sundry operating practices for producing greater control over sales growth targets.
E) to mimic the plans of the industry's most successful companies.

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A) a need to promote stability and retain the status quo.
B) the need to abandon some strategy elements that are no longer working well.
C) a need to respond to changing customer requirements and expectations.
D) a need to react to fresh strategic maneuvers on the part of rival firms.
E) the proactive efforts of company managers to improve obsolete aspects of the strategy.

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The company has adopted a proactive stra...

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A) builds strategic fit, is socially responsible, and maximizes shareholder wealth.
B) is highly profitable and boosts the company's market share.
C) results in a company becoming the dominant industry leader.
D) fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.
E) can pass the ethical standards test, the strategic intent test, and the profitability test.

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A) employing night delivery drivers at a high cost and maintenance charges
B) developing radio tags that could be attached to packages to allow for real-time tracking by customers' PCs and mobile phones
C) diversifying the different types of packages that can be transported and enabling booking through calls
D) acquiring small transportation companies with cheaper trucks and tempos, rebranding, and using them for deliveries
E) engaging in expensive advertising with new tag lines and famous celebrities to enhance its brand image in the market

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A) become the industry's low-cost provider.
B) maximize profits and shareholder value.
C) improve the efficiency of its business model.
D) maximize profits while simultaneously operating in a socially responsible manner that keeps the company's prices as low as possible.
E) come up with moves and actions that produce a durable competitive edge over rivals.

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A) because they are necessary ingredients of a sound operational business model
B) because a good strategy coupled with a good strategy execution are the most telling signs of good. management and allow a company to be a standout performer in the marketplace
C) because the management skills of top executives are sharpened as they work their way through the strategy-making, strategy-executing processes
D) because doing these tasks helps executives develop an appropriate strategic vision, strategic intent, and set of strategic objectives
E) because of the contribution they make to maximizing value for shareholders

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A) striving to be the industry's low-cost provider.
B) outcompeting rivals on the basis of differentiating features that will appeal to a broad spectrum of buyers.
C) developing a best-cost provider strategy that gives customers more value for the money.
D) focusing on a narrow market niche and serving buyers' special needs and tastes.
E) striving to be the industry's high-price provider.

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