1. Which one of the following is notone of the five basic tasks of the strategy-making, strategy-executing process?

A. Crafting a strategy to achieve the objectives
B. Developing a profitable business model
C. Setting objectives to convert the strategic vision into specific strategic and financial performance outcomes for the company to achieve
D. Forming a strategic vision of where the company must head and what its future business make-up will be

2.   Which of the following is the purpose of a company's business model?

A. It describes how the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment.
B. It sets forth the actions and approaches that the company will employ to achieve market leadership.
C. It details the ethical and socially responsible nature of the company's strategy.
D. It's management's storyline for how the strategy will result in achieving the targeted strategic objectives.

3. Excellent execution of an excellent strategy is

A. the best test of managerial excellence and the best recipe for making a company a standout performer.
B. a solid indication if whether managers are maximizing profits and looking out for the best interests of shareholders.
C. the best test of whether a company is a "true"industry leader.
D. the best test of whether a company enjoys sustainable competitive advantage.

4.   A company's strategic plan consists of

A. a vision of where it's headed, a set of performance targets, and a strategy to achieve them.
B. its objectives and its strategy for achieving them.
C. its strategic vision, strategic objectives, strategic intent, and business model.
D. its strategy and management's specific, detailed plans for implementing it.

5.   A company achieves sustainable competitive advantage when

A. it has a profitable business model and is able to maximize shareholder wealth.
B. it's consistently able to achieve both its strategic and financial objectives.
C. an attractive number of buyers have a lasting preference for its products over those of its competitors.
D. its strategy and its business model are well-matched and in sync.

6.   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 are referred to as its

A. mission statement.
B. strategic vision.
C. business model.
D. strategy.

7.   A creative, distinctive strategy that sets a company apart from rivals and gives it a sustainable competitive advantage

A. signals that the company places the achievement of strategic objectives ahead of the achievement of financial objectives.
B. is a reliable indicator that the company has a profitable business model.
C. is a company's most reliable ticket to above-average profitability.
D. is the best indicator that the company's strategy and business model are well-matched and properly synchronized.

8.   Which of the following is a correctdescription of the process of crafting a strategy?

A. Doing everything possible (in the way of price, quality, service, warranties, advertising, and so on) to make sure the company's product/service is very clearly differentiated from the offerings of rivals
B. Stitching together a proactive strategy and then adapting it as circumstances surrounding the company's situation change or better options emerge
C. Trying to imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage
D. Developing a five-year strategic plan and then fine-tuning it during the remainder of the plan period; big changes in strategy are thus made only once every five years

9.   Business strategy, as distinct from corporate strategy, is chieflyconcerned with

A. making sure the strategic intent of a particular business is in step with the company's overall strategic intent and strategy.
B. deciding what new businesses to enter, which existing businesses to get out of, and which existing business to remain in.
C. coordinating the competitive approaches of a company's different business units.
D. forging actions and approaches to compete successfully in a particular line of business.

10.   Which of the following is notone of the basic reasons that a company's strategy evolves over time?

A. The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy
B. The need to keep strategy in step with changing market conditions and changing customer needs and expectations
C. An ongoing need to abandon those strategy features that are no longer working well
D. The need to make regular adjustments in the company's strategic vision so employees don't become bored executing the same strategy month after month

11.   Which one of the following questions is notpertinent to company managers in thinking strategically about their company's directional path and developing a strategic vision?

A. What, if any, new customer groups and/or geographic markets should the company get in position to serve?
B. Is the outlook for the company promising if it continues with its present product-market-technology-customer focus?
C. What business approaches and operating practices should we consider in trying to implement and execute our business model?
D. Are changing market and competitive conditions acting to enhance or weaken the company's prospects?

12.   Which of the following is an integralpart of the managerial process of crafting and executing strategy?

A. Setting objectives and using them as yardsticks for measuring the company's performance and progress
B. Developing a proven business model
C. Deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage
D. Communicating the company's mission and purpose to all employees

13.   Which one of the following questions can be used to test the merits of one strategy over another and distinguish a winning strategy from a mediocre or losing strategy?

A. Does the company have low prices in comparison to rivals?
B. How good is the company's business model?
C. Is the company putting too little emphasis on behaving in an ethical and socially responsible manner?
D. How well does the strategy fit the company's situation?

14.   What is the difference between a company's mission statementand its strategic vision?

A. The mission statement is always to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit.
B. A mission statement typically concerns a company's present business scope, whereas the principal concern of a strategic vision is with the company's long-term direction and future product-market-customer-technology focus.
C. A mission statement deals with what to accomplish on behalf of shareholders, and a strategic vision concerns what to accomplish on behalf of customers.
D. A mission statement deals with "where we're headed,"whereas a strategic vision provides the critical answer to "how will we get there?"

15.   Good strategy and good strategy execution together provide

A. a surefire guarantee for avoiding periods of weak financial performance.
B. the most trustworthy signs of good management.
C. signs of a company having a superior business model.
D. the two best signs that a company is a true industry leader.

16.   What separates a powerful strategy from a run-of-the-mill or ineffective strategy is

A. the proven ability of the strategy to generate maximum profits.
B. whether it allows the company to maximize shareholder value in the shortest possible time.
C. the speed with which it helps the company achieve its strategic vision.
D. whether it sets the company apart and produces sustainable competitive advantage over rivals.

17.   Corporate strategy for a diversified or multi-business enterprise

A. is orchestrated by senior-corporate executives and center around the kinds of initiatives the company uses to establish business positions in different industries and efforts to boost the combined performance of the business into which the company has diversified.
B. is orchestrated by senior-corporate executives and focuses on how to create a competitive advantage in each specific line of business that the total enterprise is in.
C. deals chiefly with what the strategic intent of each of its business units should be.
D. concerns how best to allocate resources across the departments of each line of business that the company is in.

18.   What a company's top executives are saying about where the company is headed and what the company's future product-customer-market-technology will be

A. constitutes their strategic vision for the company.
B. indicates what kind of business model the company is going to have in the future.
C. serves to define the company's mission.
D. signals what the firm's strategy will be.

19.   The payoffs of a clear vision statement do notinclude

A. helping the organization prepare for the future.
B. reducing the risks of rudderless decision making.
C. helping to crystallize top management's view about the firm's long-term direction.
D. greater ability to avoid strategic inflection points.

20.   Which of the following statements is trueof strategy-making?

A. It's first and foremost the function and responsibility of a company's strategic-planning staff.
B. It's primarily the responsibility of key executives rather than a task for a company's entire management team.
C. It's first and foremost the function and responsibility of a company's board of directors.
D. It's more of a collaborative-group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives.

21.   The obligations of an investor-owned company's board of directors in the strategy-making, strategy-executing process include which of the following?

A. Overseeing the company's financial accounting and financial-reporting practices, and evaluating the caliber of senior executives'strategy-making/strategy-executing skills
B. Approving the company's operating strategies, functional-area strategies, business strategy, and overall corporate strategy
C. Taking the lead in formulating the company's strategic plan, then delegating the task of implementing and executing the plan to the company's senior executives
D. Coming up with compelling strategy proposals of their own to debate against those put forward by top management

22.   In endeavoring to craft an ethical strategy, what must company managers do?

A. Ensure only that each piece of the strategy entails actions and behaviors that are within the letter and spirit of the law
B. Go beyond what strategic actions and behaviors are legal and address whether all the various elements of the company's strategy can pass the test of moral scrutiny
C. Ask the company's board of directors to review the strategy and certify whether each element of the company's strategy is or is not ethical
D. Develop an ethical strategy code that clearly states which strategic actions are ethical (and will be pursued) and which are unethical (and won't be tolerated) so that all managers and company personnel can stay within ethical bounds in developing strategic initiatives

23.   Which of the following is the bestexample of a well-stated financial objective?

A. Boost revenues by a percentage greater than the industry average
B. Increase earnings per share by 15% annually
C. Achieve lower costs than any other industry competitor
D. Gradually boost market share from 10% to 15% over the next several years

24.   What causes a company's strategy to evolve from one version to the next?

A. The proactive efforts of company managers to improve aspects of the strategy to respond to changing customer requirements and strategic maneuvers of rival firms
B. Ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy)
C. Changing management conclusions about which of several appealing strategy alternatives is actually best
D. The importance of keeping the company's business model fresh and up-to-date to appeal to the 24-hour business news networks

25.   Which of the following is notsomething to look for in identifying a company's strategy?

A. Actions to respond to changing market conditions or other external factors
B. Management actions to revise the company's financial and strategic performance targets
C. Actions to capture emerging market opportunities and defend against external threats to the company's business prospects
D. Actions to strengthen competitiveness via strategic alliances and collaborative partnerships