1.

The Difference between a companys strategy and a companys business model is that:
a. strategy relates broadly to a company's competitive moves and business
approaches (which may or may not lead to profitability) while its business model
relates to management's blueprint for delivering a valuable product or service to
customers in a manner that will generate ample revenues to cover costs and yield
an attractive profit.
2. The 2 crucial elements of a companys business model are:
a. Its customer value proposition and its profit proposition or profit formula
3. Which of the following is not one of the reasons that a companys strategy evolves over time
a. The need on the part of the company managers to make regula strategy adjustments so
as to avoid the risks that rivals might soon find ways to weaken or defeat its present
strategy with strategy improvements of their own.
4. Which of the following statements about a companys strategy is true?
a. A companys strategy is typically a blend of proactive and reactive strategy elements
5. A companys strategy can be considered ethical
a. if it does not entail actions or behaviors that cross the moral line from "should do"
to "should not do" (because such actions are unsavory, unconscionable, injurious
to others, or unnecessarily harmful to the environment) and if it allows
management to fulfill its ethical duties to all stakeholders (shareholders,
employees, customers, suppliers, the communities in which it operates, and
society at large)
6. Excellent execution of an excellent strategy
a. Is the best test of managerial excellence
7. A winning strategy is one that
a. fits the company's internal and external situation, helps the company achieve a
sustainable competitive advantage, and results in better company performance.
8. According to figure 1.1 which of the following is not something to look for in identifying a
companys strategy?
a. Actions to strengthen the company's competitive position by hiring one or more
new top executives or laying off a portion of its work force or paying down its
long-term debt
9. Which of the following is not a frequenly used strategic approach to setting a company apart
from rivals building strong customer loyalty and trying to win a sustainable competitive
advantage?
a. Striving to be more profitable than rivals and aiming for a competitive edge based
on bigger profit margins
10. A companys strategy
a. consists of the competitive moves and business approaches that managers employ
to attract and please customers, compete successfully, capitalize on opportunities
to grow the business, respond to changing market conditions, conduct operations,
and achieve the targeted financial and market performance.
11. It is normal for a companys strategy to end up being
a. a blend of proactive actions to improve the company's competitiveness and
financial performance and as-needed reactions to unanticipated developments and
fresh market conditions.
12. A companys business model
a. < sets forth how its strategy and business approaches will create value for
customers while at the same time generating ample revenues to cover costs and
realize a profit.
13. Crafting an ethical strategy requires that managers
a. carefully and conscientiously consider whether each proposed strategy element
can pass the test of moral scrutiny in the sense of not being shady,
unconscionable, or injurious to others
14. A company achieves sustainable competitive advantage when
a. an attractive number of buyers are drawn to purchase its products or services
rather than those of competitors, despite the efforts of competitors to nullify or
overcome the appeal of its product offering
15. In Crafting a companys strategy
a. managers need to come up with some distinctive "aha" quality that goes beyond
merely attracting buyer attention but that, more importantly, delivers what buyers
perceive as superior value and converts them into loyal customers