A “balanced scorecard” that includes both strategic and financial performance targets is
a conceptually strong approach for judging a company’s overall performance because:
A. it assists managers in putting roughly equal emphasis on short-term and long-term
performance targets.
B. it entails putting equal emphasis on good strategy execution and good business
model execution.
C. a balanced-scorecard approach pushes managers to avoid setting objectives that
reflect the results of past decisions and organizational activities.
D. financial performance measures are lagging indicators that reflect the results of past
decisions and organizational activities, whereas strategic performance measures are
leading indicators of a company’s future financial performance and business prospects.
E. it forces managers to put equal emphasis on financial and strategic objectives.
Companies with multinational operations and/or newly acquired businesses typically
have:
A. strong cultures.
B. multiple cultures (or subcultures) rather than a single culture.
C. weak cultures.
D. adaptive cultures.
E. low-performance cultures.
A focused low-cost strategy seeks to achieve competitive advantage by:
A. outmatching competitors in offering niche members an absolute rock-bottom price.
B. delivering more value for the lesser money than other competitors.
C. performing the primary value chain activities at a lower cost per unit than can the
industry’s low-cost leaders.
D. dominating more market niches in the industry via a lower cost and a lower price
than any other rival.
E. serving buyers in a narrow piece of the total market (target market niche) at a lower
cost and lower price than rivals.
What does the World Trade Organization (WTO) NOT do primarily?
A. Promotes fair trade practices
B. Actively polices dumping
C. Deals with the rules of trade between nations
D. Helps producers, exporters, and importers conduct business
E. Sets countries’ tariff rates
The external market opportunities which are MOST relevant to a company are the ones
that:
A. can increase market share.
B. are reinforced by the overall business strategy and reflect the business model.
C. match up well with the firm’s competitive assets, offer the best prospects for growth
and profitability, and present the most potential for competitive advantage.
D. qualify to correct its internal weaknesses and resource deficiencies.
E. are relevant for defending against the external threats to its well-being.
The “triple bottom line” refers to what three performance metrics a company should
simultaneously succeed in?
A. Economic, social, and environmental
B. Pay, power, and performance
C. Planning, execution, and results
D. Legal, social, and economical
E. Legal, social, and environmental
Which of the following is NOT one of the appeals of related diversification?
A. It can offer opportunities for transferring expertise, technology, and other capabilities
from one business to another.
B. It can offer opportunities for reducing costs on advertising by leveraging use of a
competitively powerful brand name.
C. It is particularly well-suited for the use of first-mover strategies and capturing
valuable financial fits.
D. It may present opportunities for cross-business collaboration to create valuable new
competencies and capabilities.
E. It can facilitate sharing of other resources (besides brands) that support
corresponding value chain activities across businesses.
In terms of strategy making, what is the difference between a one-business company
and a diversified company?
A. The first uses a business-level strategy, while the second uses a set of business
strategies and a corporate strategy.
B. The first uses a business-level strategy, while the second uses a corporate-wide
strategy.
C. The first uses an operating strategy, while the second uses a business-line strategy.
D. The first uses a functional strategy, while the second uses a business-line strategy.
E. The first uses a single-line strategy, while the second uses a multi-line strategy.
Which of the following is NOT one of the four basic routes to achieving a
differentiation-based competitive advantage?
A. Delivering value to customers via the company’s resources, competencies, and value
chain activities that rivals don’t have or can’t afford to match and are well-matched to
the requirements of the strategy
B. Incorporating tangible features that raise product performance and increase customer
satisfaction with the product
C. Incorporating product attributes and user features that lower the buyer’s overall costs
of using the company’s product
D. Appealing to buyers who are sophisticated and shop hard for the best, stand-out
differentiating attributes
E. Incorporating features that enhance buyer satisfaction in intangible or noneconomic
ways
A company’s culture is typically grounded in and shaped by:
A. its core competencies and competitive capabilities.
B. its long-term strategic success or lack thereof.
C. the degree to which top management is committed to achieving market leadership.
D. its core values and the bar it sets for ethical standards.
E. its strategic intent and its reward system.