chapter test 1

chapter test 1 - Your Results The correct answer for each...

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Your Results: The correct answer for each question is indicated by a . 3 CORRECT In committing to a particular strategy, a company's managers are in effect saying: A) "This is where we are headed and we have a plan for getting where we want to go.'' B) "We have a plan for being a winner in the marketplace and our extensive analysis of the company's situation indicates it will work." C) "This is who we are, what we do, and where we are headed." D) "Among all the many different business approaches and ways of competing we could have chosen, we have decided to employ this particular combination of competitive and operating approaches in moving the company in the intended direction, strengthening its market position and competitiveness, and boosting performance." E) "This is our current business model, but it will probably have to be modified as market conditions change." 4 CORRECT The heart and soul of any strategy is: A) to identify actions and operating approaches that will validate the company's business model work. B) to identify business approaches that will produce good bottom-line results. C) the actions and moves in the marketplace that managers are taking to improve the company's financial performance, strengthen its long-term competitive position, and gain a competitive edge over rivals.
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D) the actions a company takes to steal substantial sales and market share away from rivals. E) pursuing competitive maneuvers that will make the company a market leader. 6 INCORRECT A company's strategy and its quest for competitive advantage are tightly related because: A) a company's strategy determines whether it will have lower or higher costs than rivals and thus be at a competitive advantage or disadvantage. B) competitive advantage is essential to having a profitable business model. C) choosing a competitive advantage to pursue also helps a company choose which business model is most appropriate. D) competitive advantage enables a company to achieve its strategic objectives. E) a company is almost certain to have better profits and financial performance when its strategy produces a competitive advantage over rivals as opposed to when the strategy results in a competitive disadvantage--in short, a strategy that leads to sustainable competitive advantage is a company's most reliable means of achieving above- average profitability and financial performance. 8 INCORRECT What separates a powerful strategy from a run-of-the-mill or ineffective one is: A) whether the strategy allows the company's business model to work as planned. B) whether the strategy produces good bottom-line results.
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C) management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, tilts the playing field in the company's favor by giving buyers a reason to prefer its products or services, and produces a sustainable competitive advantage over rivals. D)
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This note was uploaded on 10/02/2011 for the course FIN 685 taught by Professor Grady during the Spring '11 term at Texas A&M.

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chapter test 1 - Your Results The correct answer for each...

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