Question 1

Which of the following statements about a company's realized strategy is true?

Accepted Answer

A company's realized strategy is the pattern of actions that a company actually takes, and it is typically a blend of deliberate and/or planned initiatives and emergent and/or unplanned reactive strategy elements. It can change over time as the company responds to internal and external factors, and it may not always align with the company's intended strategy.

Question 2

Consider the following three companies and their strategies: Company A is an established database management company that acquires a well-reputed but small publishing house to enter the booming publishing industry.
Company B,a sports management house,declared bankruptcy during a recent recession but now has created a television network that airs regional sports events.
Company C,a package delivery business,is a startup based on delivery efficiency models created by a few students and delivers almost all kinds of packages.
Which of the following describes the use of strategies by these companies accurately?

Accepted Answer

The answer of Consider the following three companies and their...

Question 3

A company's realized business strategy is made up of

Accepted Answer

A company's realized business strategy is a combination of deliberate and planned initiatives that have proven themselves in the marketplace and newly launched initiatives aimed at further boosting performance, as well as emergent and/or reactive adjustments to unanticipated strategic moves by rivals, unexpected changes in customer preferences, and new market opportunities. This means that both elements are necessary to create a successful strategy. Other options such as tactical plans or choices between low-cost provider and differentiation strategies are not comprehensive enough to fully describe a realized business strategy.

Question 4

In evaluating proposed or existing strategies,managers should

Accepted Answer

Scrutinizing existing strategies on a regular basis is crucial for ensuring they continue to offer a good strategic fit, create a competitive advantage, and result in above-average performance. This allows managers to make necessary adjustments and improvements to the company's strategies. The other choices either do not prioritize the evaluation of existing strategies or suggest implementing new initiatives without considering the company's situation and capabilities.

Question 5

A company is unlikely to develop an emergent strategy due to

Accepted Answer

Emergent strategies typically arise from unexpected opportunities or challenges, not from deficiencies in rivals' value chains, which are more likely to be exploited through deliberate strategies.

Question 6

A company achieves a sustainable competitive advantage when

Accepted Answer

A sustainable competitive advantage is achieved when a company develops capabilities that are difficult for competitors to imitate or best. This enables the company to maintain its advantage over an extended period of time, despite efforts by competitors to erode or imitate its advantage. Options A, B, C, and D all suggest situations where the company's competitive advantage is not sustained, and therefore do not describe a sustainable competitive advantage.

Question 7

It is normal for a company's strategy to end up being

Accepted Answer

A company's strategy is rarely set in stone and must adapt to changing market conditions and unforeseen events. While there may be deliberate planned actions, companies must also be able to make unplanned reactions to achieve competitiveness and financial performance. Defensive moves and offensive initiatives may also be necessary to protect market share and differentiate from rivals. It is unlikely that a company's strategy will be identical to others in the industry, and mimicking the business model may not always lead to profitability.

Question 8

A winning strategy is one that

Accepted Answer

A winning strategy is one that is tailored to fit the company's internal and external environment, creates a sustainable competitive advantage, and ultimately improves the company's performance. The other options may be components of a winning strategy, but on their own, they do not encompass all the necessary elements.

Question 9

Crafting a strategy involves

Accepted Answer

Crafting a strategy involves a combination of deliberate, planned initiatives and emergent, unplanned reactive responses to changing circumstances. It also involves abandoning planned strategy elements that have failed in the marketplace. This approach allows for flexibility and adaptation in the face of uncertainty and changing market conditions. Option B is too rigid and does not allow for adjustments based on changes in the business environment. Option C is not recommended as it does not take into consideration the unique strengths and resources of the company. Option D is too focused on differentiation alone and does not consider other elements of a successful strategy. Option E is correct as it accurately summarizes the various aspects of crafting a company's strategy.

Question 10

Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage.Which of the following businesses is most likely to use a low-cost provider strategy?

Accepted Answer

The business that is most likely to use a low-cost provider strategy is the one that sells unassembled baby furniture produced in China. This suggests that the retailer is probably sourcing its products at a lower cost than competitors and passing on the savings to customers. The other options mention expensive designers, specialized lending, overnight delivery, and exotic substitutes, which do not suggest a focus on low-cost production or pricing.

Question 11

To which of the following firms is the term "repeatedly evolving strategy" most applicable?

Accepted Answer

A repeatedly evolving strategy is most applicable to a company in a dynamic and competitive market. Mobile companies constantly need to release new products to stay ahead of the competition and cater to changing customer needs, making option B the best choice. The other options either involve fixed plans with little room for evolution (A, D, and E) or a replication strategy with a moderate quality and lower price (C).

Question 12

Which of the following is not one of the basic reasons that a company's strategy evolves over time?

Accepted Answer

The need to make no adjustments to the company's business model is not a basic reason for a company's strategy to evolve over time. In fact, the need to consistently make adjustments and improvements is important for a company to remain competitive and successful. The other options (A, B, D, and E) all provide valid reasons for a company's strategy to evolve over time.

Question 13

Changing circumstances and ongoing managerial efforts to improve the strategy

Accepted Answer

As circumstances change, such as competition, customer needs, and economic conditions, a company's strategy needs to adapt to remain competitive and relevant.

Answer: B
 Ongoing managerial efforts to improve the strategy, along with changes in the external environment, can lead to frequent adjustments in a company's strategic vision.

Answer: D
 With the constant evolution of a company's strategy, it can be difficult for outsiders to determine what the company's current strategic objectives and plans really are.

(Note: Options C and E are not accurate statements about the impact of changing circumstances and ongoing managerial efforts on a company's strategy.)

Question 14

A company's strategy is a "work in progress" and evolves over time because of the

Accepted Answer

A company's strategy is not a one-time deal but a continuous process. The ongoing need of company managers to respond to changing industry and competitive conditions ensures that the strategy remains a "work in progress" and continues to evolve over time. Thus, option A is the correct choice. Options B, C, D, and E are not entirely wrong, but they are not as comprehensive as option A.

Question 15

A well-conceived strategy builds a company's

Accepted Answer

The answer of A well-conceived strategy builds a company's
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Question 16

Managers of every company should be willing and ready to modify their strategy because

Accepted Answer

Market conditions and circumstances are constantly changing and if the current strategy is not working, modification is necessary to address and adapt to the changing environment. It is not a one-time event and periodic updating is necessary for a strategic vision. Having frequent changes in strategy may create instability and confusion within the organization, but adapting to the changing conditions is crucial for success.

Question 17

Which of the following is not typically a trigger to an evolving strategy?

Accepted Answer

Short-term swings in the stock market are not typically a trigger for evolving strategy. While it is important for companies to be aware of their stock prices, reacting to short-term fluctuations in the market is not a sound basis for strategic decisions. The other options listed are all typical triggers for evolving strategy.

Question 18

A luxury hot-tub manufacturer offered monogrammed bathrobes as a gimmick when their hot tubs did not sell.Their monogrammed bathrobes became famous among some women and led to a line of exclusive bath products for women.The bathtub manufacturer established shops in various regional locations and hired celebrities to market their products to enhance sales.Today,its products are sold through retail outlets and online sites throughout the world.Which of the following is accurate?

Accepted Answer

The creation of a subbrand that offers exclusive bath products for women was an emergent strategy, as it was a response to the success of the monogrammed bathrobes among some women. The other options, such as offering scented bubble-bath foams and massage coupons, establishing shops in regional locations, roping in celebrities to market their products, and creating a worldwide presence through retail outlets and online sites, can be considered deliberate strategies that the company planned and executed to enhance sales and expand their reach.

Question 19

An industrial air-conditioner manufacturing giant decides to outsource its operations to a new geographical location with cheaper labor amidst ongoing labor strikes in a few of its existing locations (due to proposed job cuts and relocation of the plant offshore).This draws criticism in its home market and affects its current market position and productivity.Which of the following would be an appropriate reactive (emergent)strategy while moving forward?

Accepted Answer

Canceling the job cuts till the market situation and entry operations stabilize would be an appropriate reactive strategy. This would help the company to retain its existing workforce and also avoid negative criticism in its home market. It would also help in maintaining productivity and stability during the initial phase of operations in the new location. Hiring and training new talent may be costly and time-consuming. Acquiring a local computer chip marketing and distribution specialist firm may not be relevant to the company's core operations. Shifting the existing workforce to the new geographical location and paying them according to new standards may lead to dissatisfaction among the workforce and affect their productivity. Canceling the idea of outsourcing would not address the issue of cheaper labor in the new location.

Question 20

Which of the following firms uses an emergent strategy?

Accepted Answer

A microbrewer investing in building community water wells during a drought is an example of an emergent strategy, where a company adapts to changing environmental conditions and societal needs. This strategy is not planned in advance but emerges as a response to the situation at hand.

Quiz 1: Strategy,business Models,and Competitive Advantage