Test Bank for Essentials of Strategic Management - 8e - Gamble - Chapter 01 1) Managers in all types of businesses must develop a clear answer for which of the following questions? A) Where are we now? B) Where do we want to go from here? C) What is the set of actions that we need to take to outperform the company ’s competitors and achieve superior profitability? D) When will we know we are there? E) What moves and approaches do we need to gain advantage in the marketplace? 2) A company’s strategy consists of A) actions to develop a more appealing business model than rivals. B) plans involving alignment o f organizational activities and strategic objectives. C) offensive and defensive moves to generate revenues and increase profit margins. D) competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives. E) its strategic vision, its strategic objectives, and its strategic intent. 3) The competitive moves and business approaches a company ’s management is using to grow the business, compete successfully, attract and pl ease customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its A) strategy. B) moves to imitate key rivals. C) strategic mission. D) business model. E) strategic vision. 4) The essence of strategy is A) developing lasting success that can support growth and secure the company ’s future over the long term. B) re-creating a business model with regularity. C) matching rival businesses ’ products and quality dimensions in the marketplace. D) building profits for short-term success. E) realigning the market to provoke change in rival companies. 1 Test Bank for Essentials of Strategic Management - 8e - Gamble - Chapter 01 5) A company’s strategy has a chance of succeeding only when it is predicated on A) building revenues, controlling costs, and generating an attractive profit. B) actions, business approaches, and competitive moves aimed at appealing to buyers and setting the company apart from rivals. C) management’s concepts of “where we have been, ” “where we are headed, ” and “where we need to go. ” D) the approval of a business model by a company ’s board of directors that spells out how to outcompete with rivals and make the company profitable. E) educated choices that management has made regarding which financial and operating plans to pursue. 6) Under Armour, a multinational sports apparel company, plans en try into a new geographical location, Vietnam, considered an emerging market, with its established and best -selling product line: women ’s running shorts. How should Under Armour not craft a strategy to enhance future profits in Vietnam? A) create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs B) devise a marketing plan that aims at mass customer segments with attractive advertisements and offers on products C) implement a diversification plan th at aims at adding health and fitness centers to its existing line of products D) chart an acquisition plan that aims at acquiring local smaller -scale sports apparel manufacturers that seek funding and offer a complementary product lineup E) establish a distribut ion plan to set up more supply outlets than any other rivals in the location 7) Which of the following is not an element of a company ’s business strategy? A) actions to respond to changing market conditions or other external factors B) actions to strengthen compet itiveness via strategic alliances and collaborative partnerships C) actions to strengthen internal capabilities and competitively valuable resources D) actions to manage the functional areas of the business E) actions to revise the company ’s financial and strategic performance targets 2 Test Bank for Essentials of Strategic Management - 8e - Gamble - Chapter 01 8) Pizza Port, a craft brewing and pizza chain in southern California, manufactures thin -crust pizzas and offers one free pint of beer with the purchase of four large pizzas. Which of the following actions would you be most unlikely to a dvise Pizza Port’s owners in formulating a strategy in order to enhance its future profits? A) Create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs. B) Devise a social media marketing plan that aims at mass customer segments, providing them with updates on new releases of beer, attractive advertisements, and offers on products. C) Implement a diversification plan that aims at eventually adding regions outside of southern California to its existing line of products. D) Chart an acquisition plan that aims at rebranding and creating franchises with local smaller-scale pizza restaurants and craft beer taprooms that seek funding and offer attractive locations. E) Establish a distribution plan to set u p more rapid pizza and beer delivery than any other rivals in the region. 9) The most important aspect(s) of a company ’s business strategy A) are the actions and moves in the marketplace that managers take to gain a sustainable competitive advantage. B) is figuring out how to maximize profits and shareholder value. C) concerns how to improve the efficiency of its business model. D) deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner. E) is figuring out how to become the industry ’s low-cost provider. 10) A creative, distinctive strategy that delivers a sustainable, competitive advantage is important because A) without a proven strategy, a company is likely to fall into bankruptcy. B) without a competitive advantage, a company cannot have a profitable business model. C) a strategy that yields a competitive advantage over rivals is a company ’s most reliable means of achieving above -average profitability and financial performance. D) a competitive advantage is what enables a co mpany to achieve its strategic objectives. E) how a company goes about trying to please customers and outcompete rivals is what enables senior managers to choose an appropriate strategic vision for the company. 3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestBankToday. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $37.99. You're not tied to anything after your purchase.
