Strategic Management: Concepts and Cases 3rd Edition by Jeffrey H. Dyer Test bank

Bloomcode: Comprehension
Standard 1: AACSB || Analytic
 
 
53) Which of the following statements is true of a deliberate strategy?
 
a) It is implemented as a result of careful analysis of markets, customers, competitors, and a firm's resources and capabilities.
b) It develops when leaders recognize and act on unexpected opportunities that occur through serendipity.
c) It involves decisions on how to effectively implement the business unit strategy within functional areas.
d) It focuses on decisions about how to motivate employees to perform their work efficiently.
 
Answer: a
 
Difficulty: Medium
Section Reference 4: Who Is Responsible for Business Strategy?
Learning Objective 4: Explain who is responsible for, and who benefits from, good business strategy.
Bloomcode: Comprehension
Standard 1: AACSB || Analytic
 
 
54) Which of the following statements is true of the strategies of successful companies?
 
a) They are wholly deliberate due to effective strategic planning processes.
b) They are solely a result of obtaining ideas from within the firm.
c) They are partly deliberate and partly emergent.
d) They are partly established by the owners of the company.
 
Answer: c
 
Difficulty: Medium
Section Reference 4: Who Is Responsible for Business Strategy?
Learning Objective 4: Explain who is responsible for, and who benefits from, good business strategy.
Bloomcode: Comprehension
Standard 1: AACSB || Analytic
 
 
55) Identify a capital market stakeholder from the following choices.
 
a) Banks
b) Customers
c) Suppliers
d) Government bodies
 
Answer: a
 
Difficulty: Medium
Section Reference 4: Who Is Responsible for Business Strategy?
Learning Objective 4: Explain who is responsible for, and who benefits from, good business strategy.
Bloomcode: Comprehension
Standard 1: AACSB || Analytic
 
 
Question type: Text Entry
 
 
56) An advantage that a firm has over its competitors in the activities associated with producing a product or service, thereby allowing it to produce the same product at lower cost best defines the term ___.
 
Answer: cost advantage
 
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
 
 
57) A company’s primary purpose that often specifies the business or businesses in which the firm intends to compete—or the customers it intends to serve—refers to its ___.
 
Answer: mission
 
Difficulty: Easy
Section Reference 2: What Information and Analysis Guides Strategy Formulation?
Learning Objective 2: Summarize the information that the company’s mission and thorough external and internal analysis provide to guide strategy.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
 
 
Question type: Essay
 
 
58) What is the first decision that a company which is developing a strategic management process must make when it is initiated?
 
Answer:
 
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
Solution: In a strategic management process, one of the first decisions a company must make is which markets it will serve.
 
 
59) What is the next step in the strategic management process that a company should take after identifying prospective markets?
 
Answer:
 
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
Solution: The next step in the strategic management process after identifying prospective markets is attempting to decide what unique value is to be offered in those markets.
 
 
60) What does the term cost advantage mean?
 
Answer:
 
Difficulty: Easy
Section Reference 1: What Is Business Strategy?