Question 1

The essence of formulating strategy is choosing how the organization will be identical to its key competitors in the industry.

Accepted Answer

The essence of formulating strategy is choosing how the organization will be different from its key competitors in the industry. It involves making unique choices and trade-offs about the company's products, services, target markets, and value proposition to create a sustainable competitive advantage. A company that merely copies its rivals' strategies and actions is unlikely to succeed in the long run. Therefore, the correct answer is B, false.

Question 2

Strategy implementation involves the planning and decision making that lead to the establishment of the firm's goals.

Accepted Answer

Strategy implementation involves the execution of plans and actions that lead to the achievement of established goals, not the planning and decision making themselves.

Question 3

Research has shown that strategic thinking and planning positively affect a firm's performance and financial success.

Accepted Answer

Numerous studies have found a strong association between strategic planning and improved financial performance. Companies that engage in strategic thinking and planning tend to have a clearer understanding of their goals and how to achieve them, which can lead to increased profitability, market share, and overall success.

Question 4

Better-Than-The-Rest, Inc.'s ability to market its products better than its competitors is an example of its core competence.

Accepted Answer

Core competencies refer to the unique capabilities and strengths of a company that differentiate it from competitors, and Better-Than-The-Rest, Inc.'s ability to market its products better than its competitors is an example of such a competency.

Question 5

SWOT analysis includes a review of the internal threats and opportunities.

Accepted Answer

SWOT analysis reviews internal strengths and weaknesses, and external opportunities and threats.

Question 6

Strategic decisions at the business level concern amount of advertising, direction and extent of R & D, product changes, new product development, equipment and facilities, and expansion or contraction of product lines.

Accepted Answer

Strategic decisions at the business level do concern these factors.

Question 7

"How do we compete?" question concerns functional-level strategy.

Accepted Answer

The question "How do we compete?" is typically associated with business-level strategy, which focuses on how a company will compete in its chosen markets. Functional-level strategy deals with specific functions within the company, like marketing or finance.

Question 8

The administration and implementation of the strategic plan is strategy execution.

Accepted Answer

Strategy execution involves the actual implementation and management of the strategic plan. It involves putting the plan into action and ensuring that all resources are utilized in order to achieve the goals and objectives of the plan.

Question 9

Top managers and chief executives have the final responsibility for strategic planning.

Accepted Answer

Top managers and chief executives have the ultimate responsibility for formulating and implementing an organization's strategic plans. They are responsible for setting the overall direction of the organization and ensuring that it meets its long-term objectives.

Question 10

Corporate-level strategy pertains to the organization as a whole.

Accepted Answer

Corporate-level strategy focuses on the overall goals and objectives of the entire organization, rather than just a specific business unit or division.

Question 11

Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

Accepted Answer

The answer of Core competence is the plan of action...

Question 12

Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction.

Accepted Answer

The statement incorrectly associates external opportunities with internal documents like budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction. These documents primarily provide information about internal operations, strengths, and weaknesses, not external opportunities.

Question 13

Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies.

Accepted Answer

The answer of Competitive advantage refers to the set of...

Question 14

The three levels of strategy are business, corporate, and global.

Accepted Answer

The three levels of strategy are corporate, business, and functional. Corporate strategy focuses on the overall scope and direction of the corporation, business strategy is concerned with how the business competes within a particular market, and functional strategy deals with how parts of the business support the corporate and business strategies.

Question 15

Strategy means knowing your desired outcomes, how to acquire factual knowledge, thinking clearly about tactics and cause-effect relationships, and implementing behaviors that will achieve the desired outcomes.

Accepted Answer

Strategy involves a combination of knowing desired outcomes, acquiring knowledge, thinking clearly, and taking action to achieve those outcomes.

Question 16

The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy.

Accepted Answer

Synergy refers to the creation of a whole that is greater than the simple sum of its parts. In this case, the interaction of Production and Sales working together results in a higher profit than if they were working separately, which is an example of synergy.

Question 17

The combination of benefits received and costs paid by the customer refers to value.

Accepted Answer

This statement describes the concept of customer perceived value, which is the comparison between the benefits received and the costs paid by the customer.

Question 18

Strategic management largely determines which organizations succeed and which ones struggle.

Accepted Answer

Strategic management is a critical process that involves setting goals, analyzing resources, and developing plans to achieve these objectives. Organizations that engage in strategic management are more likely to succeed because they have a clear understanding of their strengths, weaknesses, opportunities, and threats. By aligning organizational resources and capabilities with strategic objectives, companies can make informed decisions and stay competitive in ever-changing market conditions. In contrast, organizations that neglect strategic management are likely to struggle due to a lack of direction, poor decision-making, and inadequate resource allocation.

Question 19

Value occurs when the organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone.

Accepted Answer

The answer of Value occurs when the organizational parts interact...

Question 20

Front-line mangers have the final responsibility for strategic planning.

Accepted Answer

Front-line managers are responsible for implementing and executing the strategies set by upper-level management, not creating them. Strategic planning is typically done by top-level executives and then cascaded down to the front-line managers for execution.

Quiz 7: Strategy Formulation and Implementation