[17:49, 3/15/2019] ..

: Which of the following is least important for successful strategies:

Question 1 options:

Clear, consistent, long-term goals

Deep understanding of the competitive environment

Formal strategic planning and meticulous performance tracking

Accurate assessment of one's own and competitors' resources

Question 2 (2 points)

The primary distinction between corporate strategy and business strategy is:

Question 2 options:

Corporate strategy is concerned with where the firm competes; business strategy with how it competes

Corporate strategy is concerned with establishing competitive advantage; business strategy with
strategy implementation in individual businesses

Corporate strategy is concerned with the long-term performance of the firm; business strategy with
resource deployment
Corporate strategy is the responsibility of the CEO, business strategy is formulated by the heads of
business units

Question 3 (2 points)

We can quantify a firm's competitive advantage if we know:

Question 3 options:

Its product's consumer surplus relative to competitors' products

Its product's exchange value relative to competitors' products

Its product's use value and cost relative to competitors' products

None of the above; competitive advantage cannot be quantified

Question 4 (2 points)

The main problem with SWOT as a framework for strategy analysis is that:

Question 4 options:

It is so widely used that it no longer produces market-leading strategies

Distinguishing opportunities from threats and strengths from weaknesses is often difficult

It is focused on strategy formulation and fails to take account of strategy implementation

It has been around for decades and is now less relevant than previously

Question 5 (2 points)

In regard to strategy making, most firms are likely to exhibit:

Question 5 options:

Little influence from the board of directors

An interaction between strategy design through organizational processes and strategy enactment
through decisions made by all

A combination of intentional design and emergence

A decentralized, bottom-up process

Question 6 (2 points)

If your goal is to maximize the value of your company in a competitive industry then you want to:

Question 6 options:
Increase consumer surplus and reduce input costs relative to competitors

Set price at the customers’ use value, thereby capturing all of the consumer surplus

Reduce price to the breakeven point in order to maximize market share

Increase consumer surplus by enhancing perceived use value and reducing price

Question 7 (2 points)

Strategic fit refers to:

Question 7 options:

The need for a firm’s strategy to be consistent with its vision, mission, and culture

The requirement that a firm’s strategy meet the needs of all its stakeholders, not just shareholders

The need for a firm’s strategy to be unique relative to rivals’ strategies

The consistency of a strategy with its external environment and organizational capabilities

Question 8 (2 points)
When the environment becomes turbulent, unpredictable,…

These are the MC

SHORT ANSWER: In a meeting to discuss ways to improve profitability, a manager proposes a thorough
study of the company’s costs. How would you make the case that studying costs alone will omit key
determinants of profitability?

Although studying costs is necessary to find ways to improve profitability, it is essential to know
determinants other than just costs. One needs to investigate not just the internal but external factors
too to improve profitability. One should find ways to increase overall revenue by reviewing marketing
spend, developing product differentiation, creating more consumer value, increasing product or service
reach through better distribution channels, entering into a new market, better product positioning,
vertical or horizontal integration, etc. A company might find that entering into a joint venture/
partnership or M&A might help to reduce costs or increase revenue through synergies, thereby
generating profits. It is also essential to do a competitor and industry benchmark analysis to know ways
to improve profitability. Apart from comparisons that customers make between firm’s offerings and
substitutes, one needs to check what comparisons suppliers make among different buyers.