What Separates a Powerful Strategy from a Run-Of-The-Mill or Ineffective

question 15

Multiple Choice

What separates a powerful strategy from a run-of-the-mill or ineffective one is

• A) the ability of the strategy to keep the company profitable.
• B) the proven ability of the strategy to generate maximum profits.
• C) the speed with which it helps the company achieve its strategic vision.
• D) management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, tilts the playing field in the company's favor, and produces sustainable competitive advantage over rivals.
• E) whether it allows the company to maximize shareholder value in the shortest possible time.

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Definitions:

Cost flow assumption

An accounting method that determines how costs are allocated to inventory and cost of goods sold, such as FIFO, LIFO, or weighted average.

Gross profit

The difference between sales revenue and the cost of goods sold before accounting for operating expenses, interest, taxes, etc.

Ending merchandise inventory

The worth of products on hand for purchase at the conclusion of a financial period.

Rising prices

A situation in an economy where the general level of prices for goods and services is increasing over a period of time.