Deck 2: Analysing business strategy: creating value

Question 1

Typical 'stakeholders' of an organisation do not include its:

A) employees
B) board of directors
C) suppliers
D) World Trade Organization

Answer 1

D

Question 2

The function(s)of key stakeholders is/are to:

A) constitute the effective corporate governance of the company
B) influence the major decisions the company will make
C) determine the current and future strategy of the company
D) all of the above

Answer 2

D

Question 3

According to Hubbard,Rice and Galvin,competitive advantage is:

A) profit maximisation
B) making profits similar to the competitors
C) making more profits than competitors for similar activities
D) achieving bigger market share than the competitors

Answer 3

C

Question 4

The five questions (5Qs)of business strategy do NOT include:

A) What products and services does the company plan to produce?
B) What customer and geographic markets does the company plan to service?
C) What generic strategy must the company avoid in a differentiated market?
D) What position in the industry does the company plan to hold in the future?

Question 5

A vision statement is a statement that:

A) tells it like it is
B) is thorough and exhaustive
C) represents a realistic concept of the short-term position of the company
D) should be memorable and inspire employees

Question 6

Tests for a good business strategy do NOT include the requirement that the strategy:

A) creates value for customers
B) will confuse competitors
C) is unique compared with competitors
D) is enduring

Question 7

The business strategy process has four distinct stages except:

A) business strategy
B) value proposition
C) product development
D) business strategy plan
E) business model

Question 8

A mission statement is a statement that:

A) should be used instead of a vision statement
B) was always different from the vision statement
C) over time, became commonly focused on mundane matters
D) operationalises the vision statement for the current business situation

Question 9

In the shareholder value/value-based management theory,management seeks to maximise:

A) market share
B) value for the shareholders
C) their retirement benefits
D) prices in the marketplace

Question 10

The creation of value for customers requires:

A) a 'supply side' perspective
B) a 'demand side' perspective
C) an 'input/output' perspective
D) a 'reverse engineering' perspective

Question 11

Petris's model of the 'phases in the strategy-making process in the public sector' does NOT include:

A) setting direction through strategic frameworks
B) consulting with strategic stakeholder groups to achieve working consensus
C) transforming strategic frameworks into policies and programs
D) implementing policies and programs

Question 12

Value is the difference between:

A) what the customer pays for and deserves
B) what the 'office of fair trading' decides a customer has a right to expect
C) what the customer pays in costs and receives in benefits
D) the customer's buying price and the company's sale price

Question 13

The recommended ways to outperform competitors do NOT include providing a:

A) bigger range of products or services
B) better range of products or services
C) cheaper range of products or services
D) different range of products or services

Question 14

The value proposition rests on the requirement that:

A) the company can charge what it likes for its products
B) the customer is 'price insensitive' to the company's offering
C) the company's employees have their own prestige invested in its processes
D) the company can supply what the customers want at a price they will pay

Question 15

Reasons why business strategy may be misunderstood within an organisation do NOT include:

A) employees may not be interested in the business strategy
B) employees may not understand the business strategy
C) employees may not be convinced that the business strategy is right
D) employees may get mixed messages from a variety of managers

Question 16

The business model of an organisation:

A) takes the value proposition and incorporates it into a specific value chain of activities
B) is a process for modelling the success of the organisation's strategy
C) determines how the organisation will create customer value
D) can be difficult to identify in low-cost manufacturing firms

Question 17

The value chain of an organisation:

A) includes only those activities that are profitable
B) is determined by what competitors choose not to do
C) is the set of activities that the organisation undertakes or organises to deliver the product to the customer
D) is determined by collaborating firms such that value-adding activities are arranged in a chain of value creation between collaborators

Question 18

The behavioural theory approach of the firm:

A) allows for the existence of a variety of stakeholders
B) controls the power of strategic stakeholders
C) simplifies the process of monitoring strategy
D) explains why key stakeholders' differing expectations are always in agreement

Question 19

Petris argues that public sector organisations can be divided into three types except those:

A) concerned with profit maximisation
B) setting directions
C) transforming directions into specific policies and programs
D) implementing policies and programs

Question 20

The 'odd one out' among these statements is:

A) vision and mission
B) strategic intent
C) tactical foresight
D) core purpose

Question 21

'Value' for customers is the additional benefits that are provided by the organisation.

Question 22

Competitive advantage is not just making a profit.

Question 23

Strategic analysis is not concerned with the current or existing business strategy.

Question 24

Sustainable business development does not mean the 'triple bottom line' sustainability,but economic sustainability of the business.

Question 25

Identifying the current business strategy of an organisation is not always easy.

Question 26

Who is more important for a strategic planner-shareholders or stakeholders? Comment.

Question 27

'Does the organisation plan to grow?' is an unnecessary first question of business strategy.

Question 28

One of the challenges that the emergent strategy approach identifies for planned strategy is:

A) where possible, involve key stakeholders and managers in setting the strategy
B) convince the board of directors and the organisation that the emergent strategy is good
C) be flexible when unplanned but valuable opportunities emerge that are inconsistent with the planned direction
D) allow for expected problems that will undoubtedly emerge as the organisation tries to implement its plan

Question 29

According to Kim and Mauborgne,there are four utility levers.

Question 30

Hay and Williamson argued that for a strategy to be effectively understood and accepted:

A) the strategy should provide direction in the form of a worthwhile, relevant goal
B) it should help work teams see the leverage provided by the interaction of their own tasks and initiatives occurring elsewhere in the organisation
C) it can be used by shop stewards as guidance for tradeoffs in collective bargaining deals
D) it facilitates communication by establishing a common language which everyone can use

Question 31

What are the features of a good 'vision statement'? Explain.

Question 32

Strategy refers to those decisions that have a medium- to long-term impact on the activities of the organisation.

Question 33

A vision statement is a succinct statement that identifies long-term strategic purpose of the organisation.

Question 34

Why is it difficult to identify the existing business strategy of an organisation? Discuss.

Question 35

A 'demand side' perspective refers to the overall demand for a particular product or service.