Deck 1: Defining Strategy

Question 1

Mission statements are more explicit than vision statements.

Answer 1

True

Question 2

Napster failed because there was no felt need for its service of sharing music without cost.

Answer 2

False

Question 3

Google's mission statement says that it believes users should know when someone has paid to put a message in front of them.

Answer 3

True

Question 4

"Necessity is the mother of invention is as true of strategy" as it is of research and development.

Question 5

Strategists 'guide' rather than 'direct' activities within and outside an organization.

Question 6

The distinction between 'intended strategy' and 'realized strategy' is that intended strategy is actual behaviour whereas realized strategy is a set of ideas.

Question 7

Strategy is rarely developed by just one individual.

Question 8

Strategizing at any level within an organization will be affected by strategists both above and below.

Question 9

The partnership of aerospace companies to build the Boeing Dreamliner is an example of network strategy.

Question 10

Interacting with strong competitors can strengthen a firm's capabilities.

Question 11

Strategy applies to profit-making organizations, but not to non-profits.

Question 12

Radio Shack has not significantly changed strategic direction in recent years.

Question 13

When there is rivalry, competitors try to differentiate themselves from one another.

Question 14

Exploitation strategies seek to create value from unfamiliar resources and activities.

Question 15

The context of strategy includes politics, economics and demographics.

Question 16

Stakeholders include suppliers, customers and employees.

Question 17

Rivals are fairly unimportant in assessing strategy.

Question 18

Among the basic building blocks of strategy are resources, customers and business models.

Question 19

Everyone is a strategist.

Question 20

When Napster was challenged in court in 2000, it was found to be a copyright infringement.

Question 21

Strategy is a ________ attempt to achieve an objective.

A) Back-handed
B) Disguised
C) Purposeful
D) Visionary

Question 22

Strategy communicates which of these:

A) What to do
B) Who will do it
C) How it will be done
D) All of the above
E) None of the above

Question 23

What solution did Japan Easy Railways find for the flooding of a new tunnel?

A) Bottle the water for drinking
B) Build a water park
C) Build a viaduct
D) Divert the water to a hydropower plant

Question 24

The O in SWOT analysis stands for:

A) Objective
B) Oligopoly
C) Opposition
D) Opportunities

Question 25

Radio Shack initially set up what stores to meet its competition?

A) Best Buy
B) Circuit City
C) Incredible Universe
D) Gregg

Question 26

In 1996, Radio Shack made an exclusive distribution with:

A) Sony
B) Sprint
C) T-Mobile
D) Verizon

Question 27

Shawn Fanning was the inventor of:

A) Ebay
B) Google
C) Napster
D) Playstation

Question 28

Strategizing is an __________ process of discovering purpose, creating and using resources and guiding supporting activities.

A) Eclectic
B) Informal
C) Ongoing
D) Unpleasant

Question 29

General Electric has a goal to be ______ in all the markets in which it competes.

A) Number one
B) Number one or number two
C) Number one, number two or number three

Question 30

____ enable one resource to increase the impact of others

A) Competitive advantages
B) Mission statements
C) Stakeholders
D) Synergies

Question 31

The five year Return on Assets (ROA) of retail industries showed which company far above the others as of 2007?

A) Dillard's
B) Kohl's
C) Saks
D) Sears

Question 32

Which of the following is not true about Napster?

A) Began with a college student who developed a program in a dorm room at Northeastern University
B) Many universities quickly blocked access
C) Formed an alliance with BMG
D) Was supported by Metallica and other bands

Question 33

Which of the following is true about Google?

A) Accesses approximately 100 million web pages and images
B) Founded in a Harvard University dorm room
C) Generates revenue by providing firms with the opportunity to deliver measureable, cost-effective online advertising
D) Works only on an Apple platform

Question 34

Which of the following is a characteristic of an exploitation strategy?

A) Attempt to create additional value using current resources and activities
B) Attempt to create new value from unfamiliar resources and activities
C) Attempt to communicate vision and mission
D) Illustrated by a pattern of actual behaviour over time

Question 35

__________ strategy describes the coordinated actions among allies that are not under the control of a single entity

A) Functional
B) Business
C) Corporate
D) Network

Question 36

Which of the following is not considered a business-level stakeholder?

A) Customer
B) Employee
C) Neighbor
D) Partner
E) All of the above
F) None of the above

Question 37

________________ is the level of return after all costs of an organization's activities have been subtracted from revenue.

A) Economic profit
B) Return on assets
C) Return on equity
D) Sales

Question 38

Which of the following is the most profitable grocery retailer, by ROA from 2002-2007?

A) Kroger
B) Safeway
C) Tesco
D) Whole Foods

Question 39

Which of the following is true of a firm's competitive advantage?

A) Based on maintaining the same strategy over time
B) Revealed when a firm is more profitable than its rivals
C) Sustained easily over time
D) Enjoyed by most firms in an industry

Question 40

The ultimate goal of __________ analysis is to develop a compelling statement of strategy that will be acceptable to a large number of influential actors.

A) Business
B) Competitive
C) Stakeholder
D) SWOT

Question 41

Describe the Japan Railways East solution to the flooded tunnel. What type of strategy was employed?

Question 42

List the five levels of strategy and provide an example of each.

Question 43

Define rivals and give an example.

Question 44

What are the four components of SWOT analysis? Describe how SWOT is used and a major advantage and disadvantage.

Question 45

What is the difference between intended and realized strategy?

Question 46

Define vision statement and provide an example.

Question 47

Define mission statement and provide an example.

Question 48

Why are the successes and failures of other organizations important?

Question 49

What are the five what/who/how/why questions that strategy addresses? Provide an example of a firm's strategy.

Question 50

What are the five levels of strategizing? Define each and provide an example.