TEST BANK FOR CRAFTING AND EXECUTING STRATEGY THE QUEST
FOR COMPETITIVE ADVANTAGE CONCEPTS 21ST EDITION THOMPSON
FULL CHAPTER
Chapter 01 Test Bank
Student:
1. Which one of the following is NOT one of the five basic tasks of the strategy-making, strategy-executing process?
A. developing a strategic vision of where the company needs to head and what its future business makeup will be
B. Strategic Management to convert the strategic vision into specific strategic and financial performance outcomes for the company
to achieve
C. crafting a strategy to achieve the objectives and get the company where it wants to go
D. developing a profitable business model
E. executing the chosen strategy efficiently and effectively
2. A company's strategic plan
A. maps out the company's history.
B. links the company's financial targets to control mechanisms.
C. outlines the competitive moves and approaches to be used in achieving the desired business results.
D. focuses on offering a more appealing product than rivals.
E. lists methods of making money in its chosen business.
3. Which of the following is an integral part of the managerial process of crafting and executing strategy?
A. developing a proven business model
B. deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage
C. Strategic Management and using them as yardsticks for measuring the company's performance and progress
D. communicating the company's values and code of conduct to all employees
E. deciding on the company's strategic intent
4. Which of the following are integral parts of the managerial process of crafting and executing strategy?
A. developing a strategic vision, Strategic Management, and crafting a strategy
B. developing a proven business model, deciding on the company's strategic intent, and crafting a strategy
C. Strategic Management, crafting a strategy, implementing and executing the chosen strategy, and deciding how much of the
company's resources to employ in the pursuit of sustainable competitive advantage
D. coming up with a statement of the company's mission and purpose, Strategic Management, choosing what business approaches to
employ, selecting a business model, and monitoring developments
E. deciding on the company's strategic intent, setting financial objectives, crafting a strategy, and choosing what business approaches
and operating practices to employ
5. The strategy-making, strategy-executing process is shaped by
A. management's strategic vision, strategic and financial objectives, and strategy.
B. the decisions made by the compensation and audit committees of the board of directors.
C. external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of
resources and capabilities.
,D. the challenges of developing a sound business model.
E. top executives and the board of directors; very few managers below this level are involved in the process.
,6. When companies adopt the strategy-making and strategy-execution process, it requires they start by
A. developing a strategic vision, mission, and values.
B. developing a proven business model, deciding on the company's top management team, and crafting a strategy.
C. Strategic Management, developing a business model, crafting a strategy, and deciding how much of the company's resources to
employ in the pursuit of sustainable competitive advantage.
D. coming up with a statement of the company's mission and communicating it to all employees, Strategic Management, selecting
a business model, and monitoring developments and initiating corrective adjustments to the business model when necessary.
E. deciding on the company's board of directors, setting financial objectives, crafting a strategy, and choosing what business
approaches and operating practices to employ.
7. A company's strategic vision concerns
A. management's storyline of how it intends to make a profit with the chosen strategy "who we are and what we do."
B. what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.
C. "who we are and what we do."
D. a company's directional path and future product-customer-market-technology focus.
E. why the company does certain things in trying to please its customers.
8. The real purpose of the company's strategic vision
A. lays out how management plans to implement and execute a profitable business model.
B. describes what business the company is presently in and why it has chosen certain operating practices to meet the needs of
customers.
C. serves as management's tool for giving the organization a sense of direction.
D. defines "who we are and what we do."
E. spells out a company's strategic intent, its strategic and financial objectives, and the business approaches and operating practices
that will underpin its efforts to achieve sustainable competitive advantage.
9. A strategic vision constitutes management's view and conclusions about the company's
A. long-term direction and what product-market-customer mix seems optimal.
B. business model and the kind of value that it is trying to deliver to customers.
C. justification of why the business will be a moneymaker.
D. past and present scope of work.
E. long-term plan for outcompeting rivals and achieving a competitive advantage.
10. The managerial task of developing a strategic vision for a company
A. concerns deciding what approach the company should take to implement and execute its business model.
B. entails coming up with a fairly specific answer to "who are we, what do we do, and why are we here?"
C. is chiefly concerned with addressing what a company needs to do to successfully outcompete rivals in the marketplace.
D. involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path
makes good business sense.
E. entails coming up with a concrete plan for how the company intends to make money.
11. Which of the following is NOT an accurate attribute of an organization's strategic vision?
A. providing a panoramic view of "where we are going"
B. outlining how the company intends to implement and execute its business model
C. pointing an organization in a particular direction and charting a strategic path for it to follow
D. helping mold an organization's character and identity
E. describing the company's future product-market-customer focus
12. Management's strategic vision for an organization
A. charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes
good sense.
B. describes in fairly specific terms the organization's strategic objectives, and strategy.
C. spells out how the company will become a big moneymaker and boost shareholder value.
D. addresses the critical issue of "why our business model needs to change and how we plan to change it."
E. spells out the organization's strategic intent and the actions and moves that will be undertaken to achieve it.
, 13. Well-conceived visions are and to a particular organization and they avoid generic, feel-good statements
that could apply to hundreds of organizations.
A. widespread; unique
B. recurring; customary
C. distinctive; specific
D. customary; familiar
E. universal; established
14. What a company's top executives are saying about where the company is headed long term with respect to its
future product-market-customer-technology mix
A. indicates what kind of business model the company is going to have in the future.
B. constitutes the strategic vision for the company.
C. signals what the firm's emergent strategy will be.
D. serves to define the company's business plan.
E. indicates what kind of products and services the company plans to offer in the future.
15. One of the important benefits of a well-conceived and well-stated strategic vision is to
A. clearly delineate how the company's business model will be implemented and executed.
B. clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel
in a common direction.
C. set forth the firm budgetary objectives in clear and fairly precise terms.
D. help create a "balanced scorecard" approach to objective-setting and not stretch the company's resources too thin across
different products, technologies, and geographic markets.
E. indicate what kind of sustainable competitive advantage the company will try to create in the course of becoming the
industry leader.
16. The defining characteristic of a well-conceived strategic vision is
A. what it says about the company's future strategic course—"the direction we are headed and what our
future product-market-customer focus will be."
B. that it not stretch the company's resources too thin across different products, technologies, and geographic markets.
C. clarity and specificity about "who we are, what we do, and why we are here."
D. that it be flexible and operate in the mainstream.
E. that it be within the realm of what the company can reasonably expect to achieve within four years.
17. Which of the following questions is NOT pertinent to company managers in thinking strategically about what directional
path should be taken by the company and about developing a strategic vision?
A. Is the outlook for the company promising if it continues with its present product offerings?
B. Are changing market and competitive conditions acting to enhance or weaken the company's prospects?
C. What business approaches and operating practices should we consider in trying to implement and execute our business model?
D. What strategic course offers attractive opportunity for growth and profitability?
E. What, if any, new customer groups and/or geographic markets should the company get in position to serve?
18. Which of the following questions is NOT something that company managers should consider in choosing to pursue one
strategic course or directional path versus another?
A. Are changing market and competitive conditions acting to enhance or weaken the company's business outlook?
B. Is the company stretching its resources too thinly by trying to compete in too many markets or segments, some of which
are unprofitable?
C. Will our present business generate sufficient growth and profitability in the years ahead to please shareholders?
D. What market opportunities should the company pursue and which ones should not be pursued?
E. Do we have a better business model than key rivals?
