, Chapter 01 Test Bank
Student: ___________________________________________________________________________
1. Which of the following is NOT one of the managerial considerations in determining how to compete successfully?
A. How can a company attract, keep, and please
customers?
B. How can a company modify its entire product line to emphasize its internal service
attributes?
C. How should a company respond to changing economic and market
conditions?
D. How should a company be competitive against
rivals?
E. How should a company position itself in the
marketplace?
2. A pharmaceutical company functioning in France for the last 10 years has moderate sales in a crowded market with
competitors offering drugs with similar efficacy and safety precautions, but with better sales. The greatest challenge
is to increase the prescription of their drugs. What would be the MOST effective strategy to improve sales
performance in the existing market?
A. Modifying marketing communication to increase brand familiarity within key physician
segments
B. Relocating all the existing drug manufacturing facilities to developing countries to reduce
operational costs
C. Employing hiring plans that aim at acquiring drug designers from rival
companies
D. Exiting the market and entering a new unexplored geographical
location
E. Engaging in new contract talks with suppliers about price
breaks
,3. A company's strategy consists of the action plan management is taking to:
A. stake out a unique market position and achieve superior
profitability.
B. compete against rivals and establish a transitory competitive
advantage.
C. concentrate on improving the existing product offering irrespective of the changing and turbulent
markets.
D. develop a more appealing business model than
rivals.
E. identify its strategic vision, its strategic objectives, and its strategic
intent.
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. strateg
y.
B. mission
statement.
C. strategic
intent.
D. cost-price
framework.
E. market
vision.
5. The objectives of a well-crafted strategy require management to strive to:
A. match rival businesses' products and quality dimensions in the
marketplace.
B. build profits for short-term
success.
C. realign the market to provoke change in rival
companies.
D. develop lasting success that can support growth and secure the company's future over the
long term.
E. re-create their business models
regularly.
, 6. To improve performance, there are many different avenues for outcompeting rivals such as:
A. realizing a higher cost structure and lower operating profit margins than rivals in order to drive
sales growth.
B. creating products analogous with competitors so as to be competitive in the same
markets.
C. pursuing similar personalized customer service or quality dimensions
as rivals.
D. confining operations to local or regional markets or developing product superiority or concentrating on a narrow
product lineup.
E. strengthening competitiveness by restricting strategic alliances and collaborative partnerships when
compared to rivals.
7. A multinational company enters a new geographical location, considered an emerging market, with its established
product line: laptops and tablets. Which of the following would NOT serve as a good strategic move to enhance
profits?
A. Creating a sales plan that aims to enhance initial sales and market share with low prices based on high
operational costs
B. Devising a marketing plan that aims at different customer segments with attractive advertisements and offers
on products
C. Implementing a diversification plan that aims at adding smartphones to the existing line of
products
D. Charting an acquisition plan that aims at acquiring small-scale companies looking for funding and with a similar
product lineup
E. Establishing a distribution plan that aims at setting up more supply outlets than any other rivals in
the location
8. Every strategy needs:
A. a distinctive element that attracts customers and produces a
competitive edge.
B. to include similar characteristics to rival company
strategies.
C. to pursue conservative growth built on historical
strengths.
D. to employ diverse and sundry operating practices for producing greater control over sales
growth targets.
E. to mimic the plans of the industry's most successful
companies.
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