Description

MGT498 Week 1 – Practice: Week 1 – Quiz

1. Which of the following has contributed to Tesla’s competitive advantage in terms of stock appreciation?

copying the most popular features of competitors’ vehicles

keeping its proprietary technologies secret

using inexpensive materials to keep costs low

reinvesting profits to continually design and produce better electric vehicles

2. If a company chooses to keep its vision customer-oriented rather than product-oriented,
what will be the implication of that decision?

The company will tend to be more flexible when adapting to changing environments.

The company will have a short-term, unidirectional focus.

The company will clearly define how it means to satisfy a customer need.

The company will fail to establish a positive relationship between its vision statement and performance.

3. Organizational core values are the answer to which of the following questions?

What is the company’s customer lifetime value?

What commitments do we make to act both legally and ethically?

Which of the value chain activities are primary?

What is the value added to a good or service at each step in the production?

4. Product-oriented vision statements provide managers with

strategic flexibility.

ways to solve customer problems.

goals for employee development.

goals to improve service.

5. An organization’s _____ describes what the organization actually does—the products and services it plans to provide, and the markets in which it will compete.

Mission

code of conduct

vision

promissory note

6. The greater the difference between value creation and cost, the

less likely that a firm’s strategic position will be competitive.

greater a firm’s economic contribution.

greater a firm’s competitive parity.

less likely a firm will gain competitive advantage.

7. Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Revved Rider Inc. from this scenario?

It has a competitive advantage over the other firms.

It has competitive parity with the other firms.

It has a direct investment in the other firms.

It has an exchange relationship with the other firms.

8. A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy

analysis.

formulation.

control.

implementation.

9. A firm is likely to have a competitive advantage when it

provides services that consumers will value more than those of its rivals.

provides goods similar to those of its competitors, but at a higher price.

performs at a level similar to the other firms in the industry.

minimizes the difference between value creation and the costs involved.

10. Which of the following statements will effectively guide a strategist?

Industry and firm effects that determine firm performance are independent of each other.

Strategy is all about competitive benchmarking and operational effectiveness.

It is necessary to isolate the key stakeholders and their needs when formulating a strategy.

The principles of strategic management can be applied universally to all organizations.

11. Which of the following statements about competitive advantage is not true?

A firm will have a sustainable competitive advantage when it outperforms its competitors over a prolonged period of time.

A firm’s past performance does not guarantee its future performance.

A firm’s competitive advantage is always absolute, not relative.

A firm can gain a competitive advantage by providing goods similar to its competitors’ goods at a lower price.

12. Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time?

consistent power position

strategic positioning

sustainable competitive advantage

long-term capital gain

13. Which of the following statements accurately brings out the difference between an organization’s vision and mission?

Vision is short-term: oriented and related to the organization’s present, whereas the mission is futuristic.

Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.

Mission is the organization’s aspirations for the future and vision is about how these aspirations can be made true over time.

Vision is valid at the functional level of the organization, whereas mission covers the entire organization.

14. When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in

an increase in the firm’s economic contribution.

competitive parity with firms that have adopted either of the strategies.

trade-offs that work against each other.

a competitive advantage through superior performance.

15. Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision?

Quick Eats will not face any direct competition in the industry.

Quick Eats will face low profit potential.

Quick Eats will be better placed to gain a competitive advantage in the industry.

Quick Eats will be able to create higher value for its customers.

16. Which of the following actions of an automobile firm will be considered as a strategic commitment?

the firm spending $100,000 on renting a manufacturing facility to meet the temporary demand for its cars
the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future

the firm promoting its new model of coupe through a free European trip worth $15,000 to be won as an early-bird offer

the firm launching an existing model of a car in red as a limited edition for six months

17. Which of the following statements is true of customer-oriented visions?

They state an organization’s goals in terms of a good or service provided to customers.

They tend to force managers to take a myopic view of the business environment.

They are inflexible with regard to adapting to changing environments.

They define a business in terms of providing solutions to people’s needs.

18. Which of the following statements is true of strategy?

Tactical tools that are a part of a firm’s functional and global initiatives are strategy.

Actions that allow a firm to address a competitive challenge are strategy.

Statements of desire, on their own, are strategy.

Operational effectiveness and competitive benchmarking are strategy.

19. A company’s vision primarily states

what the company wants to ultimately accomplish.

how the company plans to accomplish its goals.

how the company plans to compete in its industry.

what the company actually does to generate revenues.

20. How has Walmart staked out a unique strategic position?

by cutting costs to offer lower prices than competitors.

by investing 100% of profits in community development programs.

by paying high wages to attract the most talented employees.

by providing excellent customer service in a luxury setting.