Management Strategy Quiz

Please choose an incorrect description of core competencies.

• Core competencies are a company's unique strengths

• Core competencies differentiate a company's products and services from those of competitors.

• Core competencies persist over time.

• Core competencies expressed through structures, processes, routines.

Please choose an incorrect sentence regarding the resource-based view of competitive advantage.

• Each company possesses a unique combination of resources and capabilities.

• Resources are not easily transferred to other companies.

• The goal of resource-based view is to create a strategic fit with the firm's environment.

• Intangible resources do not have physical attributes and are invisible.

Please choose an incorrect sentence about performance measuring.?

• Corporate performance can only be measured with qualitative data such as accounting profitability

• Three frameworks include accounting profitability, shareholder value creation, and economic value creation.

• Accounting profitability analyzes performance by comparing it with other competitors within the same industry or with the industry average.

• The limitation of shareholder value creation is that macroeconomic factors affect the stock price.

Please choose an incorrect sentence regarding economic value creation

• Consumer surplus refers to the difference between the amount a consumer is willing to pay, and the actual price.

• Consumer surplus represents the profit of a company.

• The value of a product perceived by consumers can change based on factors such as weather.

• Producer surplus is the difference between the price paid and the cost of production

Diseconomies of scale occur when __________.

• Firms spread fixed costs over more units

• Firms become too big and lose flexibility

• Firms use specialized equipment efficiently

• Firms achieve minimum efficient scale

Please choose an incorrect sentence regarding differentiation and cost leadership strategy

• The cost leadership strategy focuses on attracting customers who are willing to pay a price premium

• Companies can generate lower costs through improvements in technology and production processes.

• As companies accumulate experience, production time decreases, which can also lead to lower costs.

• Differentiation strategies focus on adding value through unique features.

Please choose an incorrect sentence describing vision, mission and values.

• Vision captures an organization's aspiration.

• An effective vision is expressed as a statement.

• Mission is what an organization actually does.

• The relationship between vision statement and firm performance is strongest when the vision is product-oriented.

Please choose an incorrect sentence describing a good strategy.

• Competitive advantage is always absolute and never relative.

• A firm can achieve a competitive advantage by offering superior value.

• Competitive advantage can be measured by comparing a firm to its industry average.

• Sustainable competitive advantage lasts over a prolonged period.

Please choose an incorrect sentence describing the strategy process across levels.

• Corporate strategy determines industry, markets and geography.

• Organizations are required to determine cost leadership, differentiation or value innovation strategies at functional level.

• Business strategy concerns how to compete in the industry.

• Corporate strategy concerns where to compete.

Which of the following helps firms keep costs low in a cost leadership strategy?

• Premium pricing

• Economies of scale and learning-curve effects

• Customized marketing

• Brand exclusivity