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Test Bank to accompany Dyer: Strategic Management 4
th Edition
Copyright @ 2022 by John Wiley & Sons, Inc.
Package Title: Chapter 1, Testbank
Course Title: Dyer, Strategic Management 4
th Edition
Chapter Number 1: What Is Business Strategy?
Question type: Multiple Choice
1) ________ can be best defined as when an organization generates higher profits compared to its rivals.
a) Client advantage
b) Competitive advantage
c) Employer advantage
d) Unique value
Answer: b
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Knowledge
Standard 1:1: AACSB || Analytic
2) Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its competitors. In order to overcome this, the employees of Gems Corp. decide to work harder to provide unique value to customers and increase the sales of the company. After a year, it is able to make more profits than its competitors. This scenario best illustrates
________.
- client advantage
- internal analysis
- external analysis
- competitive advantage
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process. 1 / 4
Test Bank to accompany Dyer: Strategic Management 4
th Edition
Copyright @ 2022 by John Wiley & Sons, Inc.
Bloomcode: Application
Standard 1: AACSB || Analytic
3) The industry and geographic area that a company competes in, is referred to as its
________.
- niche
- business
- segment
- market
Answer: d
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Knowledge
Standard 1:1: AACSB || Analytic
4) Adia and Ali are two business partners who want to set up a company that sells imported sports gear and equipment. In order to make sure that the company makes and retains profit, they must choose an area that is close to where their products have the highest demand. This area should allow them consistently to make profit. In this scenario, Adia and Ali are looking for a ________.
- market
- strategy
- cost advantage
- mission
Answer: a
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1:1: AACSB || Analytic
- / 4
Test Bank to accompany Dyer: Strategic Management 4
th Edition
Copyright @ 2022 by John Wiley & Sons, Inc.
5) ________ can be best defined as the reason a firm wins with customers or the value proposition it offers to customers, such as a low-cost advantage or differentiation advantage.
a) Switching costs
b) Unique value
c) Complementary products
d) SWOT analysis
Answer: b
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
6) The employees of Flamingo Inc., a greeting card company, focus on providing unmatched customer satisfaction. Unlike its competitors, the employees of Flamingo take the time to listen to the needs of individual customers and design custom-made cards upon request. The customers of Flamingo state that the company provides a large variety of affordable products to choose from. The company has won many awards for providing complete customer satisfaction. In this scenario, which of the following does Flamingo Inc. provide to its customers?
a) Backward integration
b) Switching costs
c) Complementary products
d) Unique value
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1:1: AACSB || Analytic
- / 4
Test Bank to accompany Dyer: Strategic Management 4
th Edition
Copyright @ 2022 by John Wiley & Sons, Inc.
7) Returns in excess of what an investor expects from other investments with a similar amount of risk are referred to as ________.
- unique value
- complimentary value
- above-average profits
- above-average losses
Answer: c
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
8) The Mykari Publishing House invested in buying high-end machinery that allowed its newspapers to be printed at twice the speed of average printing machines. The executives of the company stated that this would increase the company’s profit margin by 12% as opposed to the usual 7 to 8% that it makes annually. When the finances of the company were tallied this year, it was found that the profits increased to about 19%. This scenario best illustrates ________.
- return of equity
- above-average profits
- complimentary value
- unique value
Answer: b
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1: AACSB || Analytic
9) Which of the following is true of competitive advantage?
- / 4
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