Strategic Management: Concepts and Cases 3rd Edition by Jeffrey H. Dyer Test bank
Answer: c
Difficulty: Hard
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: Application
Standard 1: AACSB || Analytic
41) The goal of a strategic business plan is to ________.
a) create competitive advantage
b) create a monopolistic market
c) improve employee morale
d) drive competitors out of business
Answer: a
Difficulty: Medium
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: Comprehension
Standard 1: AACSB || Analytic
42) Identify the first decision a company has to make as part of its business strategy.
a) Choose a market in which to compete.
b) Choose a competitor to compete with.
c) Decide what unique value to offer to customers.
d) Decide ways to maintain a competitive advantage.
Answer: a
Difficulty: Medium
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: Comprehension
Standard 1: AACSB || Analytic
43) Delivering unique value requires ________.
a) improving employee satisfaction
b) investing in a stable firm with a long history of profitability, such as a utility company that supplies power to customers with few choices
c) developing resources and capabilities that allow a company to perform activities better than competitors
d) producing more products than rivals
Answer: c
Difficulty: Medium
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: Comprehension
Standard 1: AACSB || Analytic
44) In the context of a firm, resources refer to the ________.
a) assets that the firm accumulates over time, such as plants, equipment, land, brands, patents, cash, and people
b) processes or recipes the firm develops to coordinate human activity to achieve specific goals
c) investor’s uncertainty about the profits or losses that will result from a particular investment
d) advantages that firms have over their competitors in the activities associated with producing a product or service
Answer: a
Difficulty: Medium
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: Comprehension
Standard 1: AACSB || Analytic
45) In the context of a firm, capabilities refers to ________.
a) processes the firm develops to coordinate human activity to achieve specific goals
b) assets that the firm accumulates over time, such as plants, equipment, and people
c) its focus on offering features, quality, convenience, or image that customers cannot get from competitors
d) a company’s primary purpose that often specifies the business in which the firm intends to compete
Answer: a
Difficulty: Medium
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: Comprehension
Standard 1: AACSB || Analytic
46) Identify a true statement about the role of external analysis in creating a business strategy.
a) It involves standardized surveys to gauge employee satisfaction.
b) It involves an examination of the competition and the forces that shape industry competition and profitability.
c) It involves the examination of a company's set of resources and capabilities that can be deployed to deliver unique value to customers.
d) It involves the study of a firm's operational practices to improve efficiency.
Answer: b
Difficulty: Medium
Section Reference 2: What Information and Analysis Guides Strategy Formulation?