Chapter #1 part #2

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Sustainable Competitive Advantage Quiz

Test your knowledge on key business strategies with our Sustainable Competitive Advantage Quiz! This comprehensive quiz explores essential concepts that help companies gain and maintain their competitive edge in the market.

Take this quiz to:

Understand the elements of winning strategies
Evaluate the effectiveness of strategic moves
Learn how to develop a sustainable competitive advantage

10 Questions2 MinutesCreated by StrategicThinker24

Strategies that yield sustainable competitive advantage are important because

A competitive advantage is what enables a company to achieve its strategic objectives.

These enable a company to attract sufficiently large numbers of buyers who have a lasting preference for its products or services over those offered by rivals, despite the efforts of competitors to offset that appeal and overcome the company’s advantage.

Competitive advantage forms the underpinnings of a company’s strategic vision.

Increases in shareholder value are contingent on a sustainable competitive advantage.

None of these choices are correct.

Which of the following questions ought to be used to distinguish a winning strategy from a so-so or flawed strategy?

Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

Do a sufficient numbers of buyers believe the company has demonstrated a commitment to environmental sustainability?

Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner?

Is the strategy well matched to the company’s situation, helping the company achieve a sustainable competitive advantage, and resulting in a better company performance?

Does the strategy contain a sufficient number of emergent and/or reactive elements?

A strategy that distinguishes a company from its rivals and provides a sustainable competitive advantage

Is a company’s most reliable ticket to above-average profitability.

Is based heavily upon the emergent elements of its strategy.

Is a reliable indicator that the company has a profitable business model.

Is logical because the strategies of rival companies are often predicated on strikingly different business models.

Is the best indicator that the company’s strategy and business model are well matched and properly synchronized.

Which of the following is not typically a trigger to an evolving strategy?

The need to respond to the newly initiated actions and competitive moves of rival firms

The need to abandon some strategy features that are no longer working well

The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy as conditions warrant

The need to respond to short-term swings in the stock market.

The need to keep strategy in step with changing circumstances, market conditions, and changing customer needs and expectations

It is normal for a company’s realized strategy to end up

Left unchanged from management’s original planned set of actions and business approaches since making on-the-spot changes is too risky.

Entailing a combination of defensive moves to protect the company’s market share and offensive initiatives to set the company’s product offering apart from that of rivals.

Mimicking the strategies of other industry members since all companies are confronting much the same market conditions and competitive pressures.

Becoming a mirror image of its business model, so as to avoid impairing company profitability.

Blending deliberate actions to improve the company’s competitiveness and financial performance and unplanned reactions to changing circumstances and fresh market conditions.

Which of the following statements about a company’s realized strategy is true?

A company’s realized strategy is usually kept secret.

A company’s realized strategy is typically planned well in advance and usually deviates little from the planned set of actions.

A company’s realized strategy is typically a blend of deliberate and planned initiatives, and emergent and unplanned reactive strategy elements.

A company’s realized strategy generally changes very little over time unless a newly appointed CEO decides to take the company in a new direction with a new strategy.

A company’s realized strategy is developed mostly on a day-to-day basis because of the constant efforts of managers to keep rival companies at a disadvantage.

Excellent execution of a successful strategy is

The best test of whether a company is a “true” industry leader.

The best evidence that the company has a sustainable competitive advantage.

The best evidence that managers have an emerging business model.

A solid indication that managers are maximizing profits and looking out for the best interests of shareholders.

The best test of managerial excellence and the best recipe for making a company a standout performer.

A winning strategy is one that

Makes the company a market leader, is ethically and socially responsible, and maximizes profits.

Is highly profitable and boosts the company’s market share.

Passes the profitability test, the ethics and social responsibility test, the customer satisfaction test, and the shareholder wealth test.

Fits the company’s internal and external situation, builds sustainable competitive advantage, and boosts company performance.

Passes the ethical standards test, the competitive advantage test, and the profitability test.

Nothing affects a company’s ultimate success or failure more fundamentally than

Abandoning markets as conditions change.

How well the strategy fits the company’s business model.

Developing multiple differentiating features in comparison to rivals.

How well its management team charts direction, develops effective strategic moves, and pursues daily operating excellence.

The creation of shareholder value.

When evaluating proposed or existing strategies managers should

Evaluate the firm’s business model at least every three years.

Scrutinize their company’s existing strategies on a regular basis to ensure that they offer a good strategic fit, create a competitive advantage, and result in above-average performance.

Ensure core capabilities are incorporated synergistically for establishing a competitive advantage.

Align existing strategies with new strategies to emphasize incremental gains.

Initiate new strategies even though they don’t seem to match the company’s internal and external situation.

Chapter #1 part #2

Sustainable Competitive Advantage Quiz

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