Crafting a Deliberate Strategy Involves Developing Strategy Elements That

question 17

Multiple Choice

Crafting a deliberate strategy involves developing strategy elements that:

• A) imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage.
• B) comprise a five-year strategic plan and then fine-tuning it during the remainder of the plan period;big changes in strategy are thus made only once every five years.
• C) consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods.
• D) doing everything possible (in the way of price,quality,service,warranties,advertising,and so on)to make sure the company's product/service is very clearly differentiated from the product/service offerings of rivals.
• E) All of these accurately characterize the managerial process of crafting a company's strategy.

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Definitions:

Expected Return

The weighted average of all possible returns from an investment, considering the probabilities of each outcome.

Efficient Market Hypothesis

The theory that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Stock Market

A public marketplace for buying, selling, and issuing shares of publicly held companies; facilitates economic transactions and information exchange regarding stock prices and company performance.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, widely used in finance to assess the volatility of an investment.