Chapter 01
New Challenges for Market-Driven Strategy
True/False Questions
1. The underlying logic of market-driven strategy is that production needs are the starting
point in business strategy.
Answer: False
Difficulty: Easy
Page: 4
2. Customer linking is an example of an outside-in process.
Answer: True
Difficulty: Easy
Page: 8
3. The outside-in organizational processes connect the organization to the external
environment, providing market feedback and forging external relationships.
Answer: True
Difficulty: Easy
Page: 8
4. Pricing is an example of an outside-in process.
Answer: False
Difficulty: Moderate
Page: 8
,5. The inside-out processes play a key role in offering direction for the spanning and
outside-in capabilities, which respond to the customer needs and requirements identified
by the inside-out processes.
Answer: False
Difficulty: Moderate
Page: 8
6. The organizational process view of distinctive capabilities requires shifting away from
the traditional specialization of business functions toward a cross-functional process
perspective.
Answer: True
Difficulty: Easy
Page: 8
7. Superior customer value results from a very favorable use experience of the customer
compared to expectations of the customer and the value offerings of competitors.
Answer: True
Difficulty: Easy
Page: 9
8. Corporate objectives are concerned with resolving questions about the business the firm
should be in, where it should focus, and its enduring strategic purpose.
Answer: False
Difficulty: Moderate
Page: 12
9. Synergies highlight competencies, resources, and capabilities that drive efficiency and
effectiveness in the business.
Answer: True
Difficulty: Easy
,Page: 12
10. The purpose of strategic positioning is to locate the people (or organizations) that
management wishes to serve in the product-market.
Answer: False
Difficulty: Easy
Page: 17
Multiple Choice Questions
11. _____ is a business perspective that makes the customer the focal point of a company’s
total operations.
A. Market orientation
B. Competitive parity
C. Value chain integration
D. Business scaffolding
Answer: A
Difficulty: Easy
Page: 4
12. Getting all business functions working together to provide superior customer value is
referred to as _____.
A. customer relationship management
B. competitor intelligence
C. cross-functional coordination
D. centralization
Answer: C
Difficulty: Easy
Page: 6
, 13. _____ are complex bundles of skills and accumulated knowledge, excised through
organizational processes, that enables firms to coordinate activities and make use of their
assets.
A. Business clusters
B. Competitor faculties
C. Cross functions
D. Distinctive capabilities
Answer: D
Difficulty: Easy
Page: 6
14. _____ consist(s) of the benefits and costs resulting from the purchase and use of products
as perceived by the buyer.
A. Customer value
B. Distinctive capabilities
C. Spanning process
D. Market sensing
Answer: A
Difficulty: Easy
Page: 8
15. _____ consist(s) of deciding the scope and purpose of the business, the objectives, and the
resources necessary to achieve the objectives.
A. Marketing strategy
B. Corporate strategy
C. Market sensing
D. Channel bonding
Answer: B
Difficulty: Easy
Page: 11
Page: 12
16. With regard to corporate strategy, _____ is/are concerned with resolving questions about
the business the firm should be in, where it should focus, and its enduring strategic purpose.
New Challenges for Market-Driven Strategy
True/False Questions
1. The underlying logic of market-driven strategy is that production needs are the starting
point in business strategy.
Answer: False
Difficulty: Easy
Page: 4
2. Customer linking is an example of an outside-in process.
Answer: True
Difficulty: Easy
Page: 8
3. The outside-in organizational processes connect the organization to the external
environment, providing market feedback and forging external relationships.
Answer: True
Difficulty: Easy
Page: 8
4. Pricing is an example of an outside-in process.
Answer: False
Difficulty: Moderate
Page: 8
,5. The inside-out processes play a key role in offering direction for the spanning and
outside-in capabilities, which respond to the customer needs and requirements identified
by the inside-out processes.
Answer: False
Difficulty: Moderate
Page: 8
6. The organizational process view of distinctive capabilities requires shifting away from
the traditional specialization of business functions toward a cross-functional process
perspective.
Answer: True
Difficulty: Easy
Page: 8
7. Superior customer value results from a very favorable use experience of the customer
compared to expectations of the customer and the value offerings of competitors.
Answer: True
Difficulty: Easy
Page: 9
8. Corporate objectives are concerned with resolving questions about the business the firm
should be in, where it should focus, and its enduring strategic purpose.
Answer: False
Difficulty: Moderate
Page: 12
9. Synergies highlight competencies, resources, and capabilities that drive efficiency and
effectiveness in the business.
Answer: True
Difficulty: Easy
,Page: 12
10. The purpose of strategic positioning is to locate the people (or organizations) that
management wishes to serve in the product-market.
Answer: False
Difficulty: Easy
Page: 17
Multiple Choice Questions
11. _____ is a business perspective that makes the customer the focal point of a company’s
total operations.
A. Market orientation
B. Competitive parity
C. Value chain integration
D. Business scaffolding
Answer: A
Difficulty: Easy
Page: 4
12. Getting all business functions working together to provide superior customer value is
referred to as _____.
A. customer relationship management
B. competitor intelligence
C. cross-functional coordination
D. centralization
Answer: C
Difficulty: Easy
Page: 6
, 13. _____ are complex bundles of skills and accumulated knowledge, excised through
organizational processes, that enables firms to coordinate activities and make use of their
assets.
A. Business clusters
B. Competitor faculties
C. Cross functions
D. Distinctive capabilities
Answer: D
Difficulty: Easy
Page: 6
14. _____ consist(s) of the benefits and costs resulting from the purchase and use of products
as perceived by the buyer.
A. Customer value
B. Distinctive capabilities
C. Spanning process
D. Market sensing
Answer: A
Difficulty: Easy
Page: 8
15. _____ consist(s) of deciding the scope and purpose of the business, the objectives, and the
resources necessary to achieve the objectives.
A. Marketing strategy
B. Corporate strategy
C. Market sensing
D. Channel bonding
Answer: B
Difficulty: Easy
Page: 11
Page: 12
16. With regard to corporate strategy, _____ is/are concerned with resolving questions about
the business the firm should be in, where it should focus, and its enduring strategic purpose.
