Crafting and Executing a Strategy Is a Top-Priority Managerial Task

question 17

Multiple Choice

Crafting and executing a strategy is a top-priority managerial task because

• A) it helps management create tight fits between a company's strategic vision and business model.
• B) it allows all company personnel, and especially senior executives, to know the answer to "who are we, what do we do, and where are we headed?"
• C) it is management's prescription for doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance.
• D) it provides clear guidance as to what the company's business model and strategic intent are, and helps keep managerial decision-making from being rudderless.
• E) it establishes how well executives perform these tasks and are the key determinants of executive compensation.

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Definitions:

Decrease

A reduction or decline in quantity, size, or overall value of an item or entity.

Investing Activity

Transactions involving the purchase and disposal of long-term assets and other investments, not including cash equivalents, part of a company’s cash flow statement.

Other Income

Revenue from non-primary business activities, such as rent, patents, or interest earnings, not related to the company's main business operations.

Gain on Sale

The profit realized when an asset is sold for a price higher than its book value.