Test Bank for Crafting & Executing Strategy, The Quest for Competitive Advantage, Concepts and Cases 23rd Edition Thompson

Test Bank for Crafting & Executing Strategy, The Quest for Competitive Advantage, Concepts and Cases 23rd Edition Thompson Chapter 1 What Is Strategy and Why Is It Important? 1) Managerial considerations in determining how to compete successfully do not normally include A) How can a company attract, keep, and please customers? B) How can a company modify its entire product line to emphasize its internal service attributes? C) How should a company respond to changing economic and market conditions? D) How should a company be competitive against rivals? E) How should a company position itself in the marketplace? Answer: B Explanation: Managerial considerations for successful strategies serve consumers better while increasing performance. Internal attributes are modified to meet product line changes based on changes in the market rather than vice versa. Difficulty: 1 Easy Topic: Strategy and the Strategic Management Process Learning Objective: 01-01 What we mean by a company's strategy and why it needs to differ from competitors' strategies. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 2) A pharmaceutical company selling prescription drugs in France for the past 10 years has had moderate sales in a crowded market, as its rivals manufacture and market drugs of similar efficacy and having similar safety precautions, but that have superior market share. This particular pharmaceutical company's greatest challenge is to increase French doctors' prescribing their drugs. What would be the most effective strategy to improve sales performance in the existing market? A) modifying marketing communication to increase brand familiarity within key physician segments B) relocating all the existing drug manufacturing facilities to developing countries to reduce operational costs C) employing hiring plans that aim at acquiring drug designers from rival companies D) exiting the market and entering a new unexplored geographical location E) engaging in new contract talks with suppliers about price breaks Answer: A Explanation: Modifying marketing communication to target the most preferred set of physicians would help increase the prescription of drugs, boosting sales and performance, and increasing market share. Relocation or reduced supplier costs might improve profits but would not affect sales performance. Employing drug designers does not add value as the rivals, too, offer drugs with similar efficacy and safety precautions. Difficulty: 3 Hard Topic: Strategy and the Strategic Management Process Learning Objective: 01-01 What we mean by a company's strategy and why it needs to differ from competitors' strategies. Bloom's: Apply AACSB: Analytical Thinking