1which Of The Following Should Company Managers Consider When Choosin ✓ Solved

1. Which of the following should company managers consider when choosing to pursue one strategic course or directional path over another? A. Are the company’s customers likely to stay loyal to its brand? B.

Are changing market and competitive conditions acting to enhance or weaken the company’s business outlook? C. Could the company benefit from a strategic overhaul of its technological systems? D. Does the company have a better business model than those of key rivals?

2. Which of the following is a primary focus of a company’s strategy? A. How to determine the company’s overall offering to employees B. How to attract and please customers C.

How to increase the company’s stock price to benefit shareholders D. How to leverage past successes to achieve profitability 3. Which of the following is the purpose of a company’s business model? A. It’s management’s storyline for how the strategy will result in achieving the targeted strategic objectives.

B. It describes how the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment. C. It sets forth the actions and approaches that the company will employ to achieve market leadership. D.

It details the ethical and socially responsible nature of the company’s strategy. 4. Strategy, at its essence is about A. Developing lasting success than can support growth and secure the company’s future over the long term. B.

Realigning the market to provoke change in rival companies. C. Matching rival businesses products and quality dimensions in the marketplace. D. Building profits for short-term success.

5. A set of “stretch†financial and strategic objectives A. Pushes the company closer to true profit maximization. B. Challenges company personnel to execute the strategy with greater proficiency.

C. Is an effective tool for avoiding ho-hum results D. Helps convert the mission statement into meaningful company value. 6. Which of the following are integral parts of the managerial process of crafting and executing strategy?

A. Strategic Management, crafting a strategy, implementing and executing the chosen strategy, and deciding how much of the company’s resource to employ in the pursuit of sustainable competitive advantage. B. Developing a proven business model, deciding on the company’s strategic intent, and crafting a strategy. C.

Coming up with a statement of the company’s mission and purpose, Strategic Management, choosing what business approaches to employ, selecting a business model, and monitoring developments. D. Developing a strategic vision, Strategic Management, and crafting a strategy 7. A company’s strategic vision is concerned with which of the following items? A.

Why the company does certain things in trying to please its customers B. What future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage C. The company’s directional path and future product-market-customer-technology focus. D. Management’s storyline of how it intends to make a profit with the chosen strategy.

8. Good strategy and good strategy execution together provide A. The two best signs that a company is a true industry leader B. The most trustworthy signs of good management C. A surefire guarantee for avoiding periods of weak financial performance.

D. Signs of a company having superior business model. 9. Which of the following is one of the basic reasons that a company’s strategy evolves over time? A.

The need to adjust the business model to avoid inflation B. The need to stay committed to strategy features that may no longer function optimally C. The need to make regular adjustments in the company’s strategic vision so employees don’t become bored executing the same strategy month after month. D. The need to keep strategy in step with changing market conditions and changing customer needs and expectations 10.

A creative, distinctive strategy that sets a company apart from rivals and gives it a sustainable competitive advantage A. Is the best indicator that the company’s strategy and business model are well-matched and properly synchronized. B. Signals that the company places the achievement of strategic objectives ahead of the achievement of financial objectives C. Is a reliable indicator that the company has a profitable business model D.

Is a company’s most reliable ticket to above-average profitability 11. Which of the following is one of the five basic stages of the strategy-making, strategy-executing process? A. Developing a profitable business model B. Launching new products or services every year to remain viable C.

Setting objectives to convert the Strategic vision into specific strategic and financial performance outcomes D. Conducting external perception surveys to measure company success. 12. In crafting a company’s strategy, managers A. Face the biggest challenge of how closely to replicate strategies of successful companies in the industry.

B. Have comparatively little freedom in choosing the “hows†of strategy. C. Need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals D. Are wise not to decide on concrete course of action in order to preserve maximum strategic flexibility.

13. A strategic vision constitutes management’s view and conclusion about the company’s A. Past and present scope of work B. Justification of why the business will be a moneymaker C. Business model and the kind of value that is trying to deliver to customers D.

Long-term direction and what product-market-customer mix seems optimal 14. One of the most frequently used and dependable strategic approaches to competitive differentiation for a company is A. A best-cost provider strategy B. Monitoring profits and losses on a regular basis as part of the strategic plan C. Fostering executive involvement and buy-in at all levels of strategic planning D.

A high-quality, high-priced product or service that’s distinct from competitor’s products or services. 15. What a company’s top executives say about where the company is headed and what the company’s future product-market-customer business mix will be A. Indicates what kind of business model the company is going to have in the future B. Constitutes its strategic vision for the company C.

Serves to define the company’s mission D. Signals what will be the firm’s strategy 16. A multinational pharmaceutical company enters a new geographical location, considered an emerging market, with its established product line: generic antibiotics. Which of the following would not serve as a good strategic move to enhance profits. A.

Implementing a diversification plan that aims at adding non-generic prescription medications to the existing line of products B. Creating a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs C. Charting an acquisition plan that aims at acquiring local smaller-scale pharmaceutical manufacturer’s that seek funding and offer a complementary product lineup D. Devising a marketing plan that aims at mass customer segments with attractive advertisements and offers on products 17. The payoffs of a clear vision statement include A.

A strengthened mission to ensure day-to day-quality in the marketplace. B. Crystallizing employee views about the company’s current performance C. Helping the organization prepare for the future. D.

Greater ability to avoid strategic inflection points. 18. Which of the following processes is an integral part of crafting and executing operating strategies? A. Deciding on the company’s strategic intent B.

Setting objectives and using them as yardsticks for measuring the company’s overall performance and progress C. Developing a proven business model D. Developing objectives for brand management, production volume, or quality targets for the production unit or key operating unit. 19. The two elements of a company’s business model are its A.

Liquid and physical assets B. Customer value proposition and its profit formula C. Strategic plan and strategic vision D. Personnel and resources 20. Which of the following statements is true of company objectives?

A. They need to be broken down into performance targets for each separate business, product line, functional department, and individual work unit. B. They’re important because they help guide managers in deciding what the company’s strategic intent should be. C.

They should be set in a manner that doesn’t conflict with the performance targets of lower-level organizational units D. They’re needed only in those areas directly related to a company’s short-term and long-term profitability.

Paper for above instructions

Understanding Strategic Management Choices in Companies

Strategic management is critical for maintaining competitiveness and ensuring business growth within a rapidly changing market landscape. Company managers face complex choices when determining the strategic direction of their organizations. Each decision can profoundly impact the company's performance, customer loyalty, and overall existence in the marketplace. This paper discusses some critical considerations and frameworks that managers must examine when selecting strategic pathways, responding to the questions derived from strategic management concepts.

1. Key Considerations for Strategic Choices

A. Customer Loyalty: One immediate consideration for company managers when selecting strategies is customer loyalty. Understanding whether customers are likely to remain dedicated to the brand is fundamental. Loyal customers tend to drive repeat sales and may act as influencers within their networks, thereby aiding brand advocacy (Bennett & Rundle-Thiele, 2005).
B. Changing Market Conditions: Managers must evaluate the changing market and competitive conditions that can affect the company’s outlook. Understanding these dynamics can help managers identify opportunities and threats, allowing them to adapt their strategies accordingly (Porter, 2008).
C. Technological Systems: The need for a strategic overhaul of the company’s technological systems could significantly enhance operational efficiency. Investing in technology can lead to innovation in products and services, thereby improving market share (Christensen et al., 2016).
D. Business Model Competitiveness: Lastly, assessing whether the company's business model is superior to those of key rivals is crucial. A strong business model can provide a competitive edge by ensuring sustainability and profitability against rival companies (Teece, 2010).
Thus, with these considerations in mind, managers can make well-informed decisions on the most suitable strategic courses.

2. Focus of Company Strategy

The primary focus of a company’s strategy is on how to attract and please customers. Ultimately, satisfied customers are central to achieving profitability, market share, and organizational success. Strategies should be customer-centric to ensure long-term engagement (Kumar & Reinartz, 2016).

3. Purpose of a Company’s Business Model

A company’s business model accurately describes how the business will achieve revenues sufficient to cover costs and generate profits. This framework is pivotal as it sets the foundations for operational and strategic decision-making and is fundamental to the overall success of any organization (Osterwalder & Pigneur, 2010).

4. Essence of Strategy

At its core, strategy revolves around developing lasting success to secure the company’s future in the long term. This highlights the imperative for firms to develop sustainable competitive advantages, rather than focusing solely on short-term gains or matching competitors (Barney, 1991).

5. Financial and Strategic Objectives

Establishing a set of "stretch" financial and strategic objectives serves as an effective tool for avoiding mediocre results. Goals that push the boundaries challenge personnel to maximize performance and achieve greater outcomes, thus driving the organization towards superior results (Locke & Latham, 2002).

6. Integral Parts of Crafting Strategy

The managerial process of crafting and executing strategy encompasses several integral parts, including crafting a strategy, implementing and executing the chosen strategy, and deciding how to best employ company resources for competitive advantage (Mintzberg & Waters, 1985).

7. Strategic Vision

A company’s strategic vision encompasses the direction and future priorities of the company, including its product-market ambitions. It serves to guide strategic initiatives and informs employees about the general goals and objectives of the company (Collins & Porras, 1996).

8. Good Strategy and Execution

Good strategy and good execution together provide the most trustworthy signs of good management. Effective execution of a well-conceived strategy is vital for achieving organizational goals (Kaplan & Norton, 2008).

9. Evolving Strategy

The inherent nature of markets necessitates that a company’s strategy evolves over time. This evolution is primarily driven by the need to keep pace with changing market conditions and customer needs (Ansoff, 1988). Regular evaluations and adaptations allow companies to remain relevant in their industries.

10. Distinctive Strategy

A creative, distinctive strategy is a company’s ticket to sustainable competitive advantage and is indicative of successful alignment between the company's strategy and business model. Such an approach usually leads to superior profitability through differentiation (Kim & Mauborgne, 2005).

11. Stages of Strategy-Making Process

Among the critical stages of the strategy-making, strategy-executing process, setting objectives stands out as essential for translating the strategic vision into actionable performance outcomes. Clear objectives lay the groundwork for measuring success (Drucker, 1954).

12. Challenges in Crafting Strategy

When crafting a company’s strategy, managers must balance their approach to replicate successful strategies of industry leaders while also carving unique paths in sustainable competitive advantages. The challenge lies in establishing this differentiation without compromising flexibility (Ghoshal & Bartlett, 1994).

13. Strategic Vision Components

A strategic vision provides insights into the company’s long-term direction, clarifying the optimal product-market-customer mix that aligns with overall company values and goals (Hamel & Prahalad, 1994).

14. Competitive Differentiation

One of the effective methods for competitive differentiation is to offer a high-quality, distinct product or service. This strategy not only serves to attract customers but also fosters brand loyalty and can facilitate premium pricing (Treacy & Wiersema, 1993).

15. Communication of Vision

What executives communicate regarding the company's future constitutes its strategic vision. This communication sets the stage for understanding the intended direction and approaches taken to achieve that future (Kotter, 1996).

16. Strategic Moves in New Markets

When entering new markets, such as for a pharmaceutical company, strategic moves should focus on creating a sales plan based on customer needs rather than solely on pricing. A balanced approach to capturing market share is essential (Barney, 1991).

17. Vision Statement Payoffs

Clear vision statements provide greater preparation for future uncertainties, assisting organizations in navigating strategic inflection points (Collins & Porras, 1996).

18. Integral to Operating Strategies

Setting objectives is crucial in crafting and executing operating strategies. These objectives act as benchmarks for measuring progress against broader organizational goals (Kaplan & Norton, 2008).

19. Elements of Business Models

The two fundamental elements of a company’s business model include its customer value proposition and profit formula (Osterwalder & Pigneur, 2010). These components work together to ensure the company delivers value while also remaining profitable.

20. Significance of Objectives

Objectives need to be strategically broken down into performance targets for various business units. This ensures that all levels of the organization are aligned with the overarching goals and fosters a collaborative effort towards achieving them (Rumelt, 2011).

Conclusion

Strategic choices are foundational to a company's success and sustainability in competitive environments. Company managers must consider customer loyalty, market conditions, technological capabilities, and distinct business models when formulating strategies. By focusing on a customer-centric approach and crafting compelling vision statements, organizations can enhance governance and foster long-term growth.

References

1. Ansoff, I. (1988). The New Corporate Strategy. Wiley.
2. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
3. Bennett, R. & Rundle-Thiele, S. (2005). The Brand Loyalty Life-Cycle. Journal of Marketing Management, 21(5-6), 405-419.
4. Christensen, C. M., Raynor, M. E., & McDonald, R. (2016). What Is Disruptive Innovation? Harvard Business Review.
5. Collins, J. & Porras, J. I. (1996). Built to Last: Successful Habits of Visionary Companies. HarperBusiness.
6. Drucker, P. F. (1954). The Practice of Management. HarperCollins.
7. Ghoshal, S., & Bartlett, C. A. (1994). Linking Organizational Context and Managerial Action: The Dimensions of Quality Management. Strategic Management Journal, 15(Winter Special Issue), 17-34.
8. Hamel, G., & Prahalad, C. K. (1994). Competing for the Future. Harvard Business School Press.
9. Kaplan, R. S., & Norton, D. P. (2008). The Execution Premium: Linking Strategy to Operations for Competitive Advantage. Harvard Business School Press.
10. Kim, W. C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.
11. Kotter, J. P. (1996). Leading Change. Harvard Business Review Press.
12. Kumar, V., & Reinartz, W. (2016). Creating Enduring Customer Value. Harvard Business Review.
13. Locke, E. A., & Latham, G. P. (2002). Building a Practically Useful Theory of Goal Setting and Task Motivation: A 35-Year Odyssey. American Psychologist, 57(9), 705-717.
14. Mintzberg, H., & Waters, J. A. (1985). Of Strategies, Deliberate and Emergent. Strategic Management Journal, 6(3), 257-272.
15. Osterwalder, A. & Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley.
16. Porter, M. E. (2008). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
17. Rumelt, R. P. (2011). Good Strategy Bad Strategy: The Difference and Why It Matters. Crown Business.
18. Treacy, M., & Wiersema, F. (1993). Customer Intimacy and Other Value Disciplines. Harvard Business Review.
19. Wiggins, J., & Ruefli, T. (2002). Sustained Competitive Advantage: Temporal Dynamics and the-Changing Face of Competition. Management Science, 48(8), 1351-1364.
20. Zott, C., & Amit, R. (2010). Business Model Design: An Activity System Perspective. Long Range Planning, 43(2-3), 216-226.