Multiple Choice Answers

1. If a company has a good brand, it doesn’t need to have a customer-value proposition.

2. Which of the following is not an example of a trend?
a. Increase in interest rates
b. Decrease in customers buying on Sundays
c. People eating out a lot
d. Increase in the number of foreclosures
e. Rise in gasoline prices

3. Which of the following is not a strength?
a. Proven management
b. Corporate culture that supports the strategy
c. Strong brand reputation
d. Too narrow a product line
e. Low-cost leader

4. Which of the following is an example of a strength?
a. Existence of international markets
b. Increasing interest rates
c. Effective supply-chain management
d. Top-management turnover
e. Monitoring a key competitor

5. Which key area could be omitted when evaluating a company’s leaders?
a. What has been their salary history and record of getting raises?
b. How open to new ideas and new ways of doing things?
c. What ethical standards and values do they espouse?
d. Are they good motivators of people?
e. Do they command respect from their peers and direct reports?

6. Which of the following is not a criterion when choosing the best bundle?
a. Shareholder value
b. Selling price of product
c. Revenue growth
d. ROI
e. Degree of risk

7. Abell’s Scheme, originally conceived to help define a mission of a corporation, can also be used to look for opportunities.

8. Which of the following is not an example of an international strategy?
a. Global strategy
b. Universal strategy
c. Transnational strategy
d. Regional strategy
e. Multidomestic strategy

9. Which statement is untrue about brand equity?
a. It is a reputational asset
b. It gets stronger over time
c. It is the measure of the value of a brand
d. A reason why a company’s market value is higher than its book value
e. It can be calculated using net present value

10. Only core competences provide a sustainable competitive advantage.