Essay about What Is Strategy and Why Is It Important

6710 Words Jan 16th, 2016 27 Pages
Chapter 1

What Is Strategy and Why Is It Important?

Multiple Choice Questions

What Do We Mean By “Strategy?”

1. Which of the following is not one of the central questions in evaluating a company’s business prospects? A) What is the company’s present situation? B) What are the key product or service attributes demanded by consumers? C) Where does the company need to go from here? D) How should it get there? E) All of the above are pertinent in evaluating a company’s business prospects.

Answer: B Page: 5 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation

2. A company's strategy concerns
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D) the actions it is taking to develop a more appealing business model than rivals.

E) its strategic vision, its strategic objectives, and its strategic intent.

Answer: A Page: 6 Learning Objective: 1 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation 4. The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its A) strategy. B) mission statement. C) strategic intent. D) business model. E) strategic vision.

Answer: A Page: 6 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation

5. In crafting a strategy, management is in effect saying A) "this is who we are and where we are headed.'' B) "this is our model for making money in our particular line of business." C) "we intend to launch these new moves to outcompete our rivals." D) "among all the many different business approaches and ways of competing we could have chosen, we have decided to employ this particular combination of competitive and operating approaches in moving the company in the intended direction, strengthening its

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