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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 01 What Is Strategy and Why Is It Important? Answer Key
Multiple Choice Questions
1.
Which of the following is NOT one of the managerial considerations in determining how to compete
successfully?
2.
A pharmaceutical company functioning in France for the last 10 years has moderate sales in a crowded
market with competitors offering drugs with similar efficacy and safety precautions, but with better
sales. The greatest challenge is to increase the prescription of their drugs. What would be the MOST
effective strategy to improve sales performance in the existing market?
3.
A company's strategy consists of the action plan management takes to
4.
__________ is the set of actions that its managers take to outperform the company's competitors and
achieve superior profitability.
5.
Strategy, at its essence, is about
6.
To improve performance, there are many different avenues for outcompeting rivals such as
7.
A multinational pharmaceutical company enters a new geographical location, considered an emerging
market, with its established product line: generic antibiotics. Which of the following would NOT serve
as a good strategic move to enhance profits?
8.
Every strategy needs
9.
A company's strategy is NOT concerned with management's choices about how to
10.
FaberRoad, a respected courier brand, is fast losing its market share to competitors who do overnight
deliveries of packages or offer lower prices. The company's research department has found that many
customers care more about knowing exactly when a package will arrive than getting it the next day.
Which strategy would best address the current state of FaberRoad and help it regain its market?
11.
A company's strategy stands a better chance of succeeding when
12.
In crafting a company's strategy, managers
13.
The heart and soul of a company's strategy-making effort is determining how to
14.
The pattern of actions and business approaches that would NOT define a company's strategy include
actions to
15.
A creative, distinctive strategy that delivers a sustainable competitive advantage is important because
16.
A company achieves a competitive advantage when it
17.
A creative and distinctive strategy that sets a company apart from rivals and that gives it a sustainable
competitive advantage
18.
What separates a powerful strategy from a run-of-the-mill or ineffective one?
19.
Overdrive Motors, a manufacturer of self-driving delivery trucks, is working on developing its next-
generation vehicles. It has decided on a strategy of focusing on a narrow buyer segment and
outcompeting rivals by offering buyers customized vehicles at a lower cost than rivals. What basic
strategic approach has Overdrive Motors decided upon?
20.
Which of the following is NOT a frequently used strategic approach to set a company apart from rivals
and achieve a sustainable competitive advantage?
21.
Which of the following is NOT a frequently used strategic approach to set a company apart from rivals
and achieve a sustainable competitive advantage?
22.
Which of the following companies would have the LEAST bargaining power with its suppliers?
23.
Winning a sustainable competitive edge over competitors does NOT hinge on which of the following?
24.
Which of the following airlines does NOT employ a low-cost provider strategy?
25.
Amy's Drive-Thru, a fast food facility, offers healthy, sustainably grown veggie and vegan fast food at
higher prices than its competitors in the market and has a drive-through and indoor seated casual dining
operation. What strategy is Amy's Drive-Thru using to gain competitive advantage?
26.
BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded market that
caters to all kinds of consumers, this resort caters mainly to gays with guaranteed hassle-free holiday
experience at a premium price. What strategy is BloomsJay using to gain competitive advantage?
27.
Different companies across different industries adopt any one of the five generic strategies to gain
competitive advantage. Which of the following is most likely to use a low-cost provider strategy?
28.
Giving customers more value for the money by satisfying their expectations on key quality features,
performance, and/or service attributes while beating their price expectations is a
29.
Which of the following is NOT typically a trigger to an evolving strategy?
30.
To which of the following firms is the term "repeatedly evolving strategy" MOST applicable?
31.
Managers of every company should be willing and ready to modify the strategy because
32.
Adapting to new conditions like new innovations by competitors, fast-changing technological
developments, and constantly evaluating what is working result in
33.
Managers must be prepared to modify their strategy in response to all of the following EXCEPT
34.
A company's strategy is a "work in progress" and evolves over time because of the
35.
It is normal for a company's strategy to end up being
36.
Crafting a deliberate strategy involves developing strategy elements that
37.
Which of the following statements about a company's strategy is true?
38.
A company's realized strategy evolves from one version to the next due to
39.
Which one of the following does NOT account for WHY a company's strategy evolves from one version
to another?
40.
In the course of crafting a strategy, which of the following is NOT a common management function?
41.
Strategy is about competing differently than rivals, thus strategy success is about
