Business Capstone Exam 1 UPDATED ACTUAL Questions and CORRECT Answers
0 view 0 purchase
Course
Business Capstone
Institution
Business Capstone
Business Capstone Exam 1 UPDATED
ACTUAL Questions and CORRECT
Answers
Which of the following statements about a company's realized strategy is true?
a. A company's realized strategy is mostly hidden to outside view and is deliberately kept
under wraps by top-level managers.
Business Capstone Exam 1 UPDATED
ACTUAL Questions and CORRECT
Answers
Which of the following statements about a company's realized strategy is true?
a. A company's realized strategy is mostly hidden to outside view and is deliberately kept
under wraps by top-level managers.
b. A company's realized strategy is typically planned well in advance and usually deviates
little from the planned set of actions.
c. 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.
d. A company's realized strategy is typically a blend of deliberate and/or planned initiatives
and emergent and/or unplanned reactive strategy elements.
e. A company's realized strategy is developed mostly on the fly because of the constant efforts
of managers to keep rival companies at a disadvantage. - CORRECT ANSWER- ✔✔d. A
company's realized strategy is typically a blend of deliberate and/or planned initiatives and
emergent and/or unplanned reactive strategy elements.
Explanation
As shown in Figure 1.1, a company's realized strategy tends to be a combination of both
deliberate planned elements and unplanned, emergent elements.
Which of the following is not one of the basic reasons that a company's strategy evolves over
time?
a. An ongoing need to abandon those strategy features that are no longer working well
,b. The proactive efforts of company managers to improve the company's financial
performance and secure a competitive advantage
c. The need on the part of company managers to make no adjustments to the company's
business model
d. The need to respond to the actions and competitive moves of rival firms
e. The need to keep strategy in step with changing industry and competitive conditions -
CORRECT ANSWER- ✔✔c. The need on the part of company managers to make no
adjustments to the company's business model
Explanation
Regardless of whether a company's strategy changes gradually or swiftly, the important point
is that the task of crafting strategy is not a one-time event but is always a work in progress.
A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its falling
share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do a joint
venture for the acquisition and involves a major automobile giant to fund the deal. After a
rocky start, the companies now have a strong market position and generate good profits.
Which of the following regarding the company's strategy is true?
a. It fails the performance test.
b. It fails the competitive advantage and the fit tests.
c. It is a winning strategy.
d. It fails in all three tests.
e. It fails the fit test, but passes the competitive advantage and performance tests. -
CORRECT ANSWER- ✔✔c. It is a winning strategy.
Explanation
,The pharmaceutical giant assessed the market, identified a suitable solution to accentuate its
market position, gained a competitive edge by adding a specialty drug to its product line, and
realized financial profits and a strong market position. The strategy is a winner as it clears all
three tests.
Rainbow Resorts Inc. has multiple tropical resorts in various locations. In a crowded market
that caters to all kinds of consumers, this resort caters mainly to LGBTQ customers with a
guaranteed hassle-free holiday experience at a premium price. What strategy is Rainbow
using to gain competitive advantage?
a. A low-cost provider strategy
b. A broad differentiation strategy
c. A focused low-cost strategy
d. A focused differentiation strategy
e. A best-cost provider strategy - CORRECT ANSWER- ✔✔d. A focused differentiation
strategy
Explanation
Rainbow Resorts caters to LGBTQ customers, focusing on a narrow customer base and
providing a unique holidaying experience. It has adopted a focused differentiation strategy
concentrating on a narrow customer segment and outcompeting rivals by offering customers
attributes that meet their specialized needs and tastes better than rivals' offerings.
It is normal for a company's strategy to end up being
a. left unchanged from management's original planned set of actions and business approaches
since making on-the-spot changes is too risky.
b. a combination of defensive moves to protect the company's market share and offensive
initiatives to set the company's product offering apart from its rivals.
, c. like the strategies of other industry members since all companies are confronting much the
same market conditions and competitive pressures.
d. a blend of deliberate planned actions to improve the company's competitiveness and
financial performance and as-needed unplanned reactions to unanticipated developments and
fresh market conditions.
e. a mirror image of its business model, so as to avoid impairing company profitability. -
CORRECT ANSWER- ✔✔d. a blend of deliberate planned actions to improve the company's
competitiveness and financial performance and as-needed unplanned reactions to
unanticipated developments and fresh market conditions.
Explanation
The biggest portion of a company's current strategy flows from ongoing actions that have
proven themselves in the marketplace and newly launched initiatives aimed at building a
larger lead over rivals and further boosting financial performance. This part of management's
action plan for running the company is its proactive, deliberate strategy.
Management's strategic vision for an organization
a. charts a strategic course for the organization ("where we are going") and outlines the
company's future product-customer-market-technology focus.
b. describes in fairly specific terms the organization's business model, strategic objectives,
and strategy.
c. spells out how the company will become a big moneymaker and boost shareholder value.
d. addresses the critical issue of "why our business model needs to change and how we plan
to change it."
spells out the organization's strategic moves that will be undertaken to achieve competitive
advantage. - CORRECT ANSWER- ✔✔a. charts a strategic course for the organization
("where we are going") and outlines the company's future product-customer-market-
technology focus.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
