Implementing and Executing Strategy Successfully Requires

question 6

Multiple Choice

Implementing and executing strategy successfully requires

• A)the same kinds of creative management talent and innovative thinking capabilities as crafting strategy.
• B)a financially driven process aimed at squeezing the most profit out of conducting daily operations.
• C)the efforts of a company's whole management team, not just a few senior managers.
• D)a high caliber CEO that possesses the business vision, industry and competitive analysis skills, and entrepreneurial creativity needed to navigate the competitive landscape.
• E)less managerial expertise and effort to perform well, at least in comparison with crafting a winning strategy.

---

Definitions:

Unlevered Cost of Capital

The cost of capital for a company that has no debt, representing only the cost of equity.

Financial Leverage

The use of borrowed money (debt) to finance the acquisition of assets, with the expectation that the income or capital gain from the new assets will exceed the cost of borrowing.

Par Bonds

Bonds that are issued and redeemed at their face value, or par value, which represents the nominal or dollar value printed on the bond.

Expected Perpetual EBIT

The forecasted continuous earnings before interest and taxes that a company expects to generate over an indefinite future period, assuming a steady state of operations.