Chapter 1 Crafting and Executing

Chapter 1: What Is Strategy and Why Is It Important?

What Do We Mean By “Strategy?”

2. A company's strategy concerns

A) its market focus and plans for offering a more appealing product than rivals.

B) how it plans to make money in its chosen business.

C) management’s action plan for running the business and conducting operations—its commitment to pursue a particular set of actions in growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations, and achieving targeted objectives.

D) the long-term direction that management believes the company should pursue.

E) whether it is employing an aggressive offense to gain market share or a conservative defense to protect its market position.

3. A company's strategy consists of

A) the competitive moves and business approaches that managers are employing to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve targeted objectives.

B) the plans it has to outcompete rivals and establish a sustainable competitive advantage.

C) the offensive moves it is employing to make its product offering more distinctive and appealing to buyers.

D) the actions it is taking to develop a more appealing business model than rivals.

E) 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) strategy.

B) mission statement.

C) strategic intent.

D) business model.

E) strategic vision.

*5. In crafting a strategy, management is...