Leading Strategically :Business Strategy (Strategic Leadership and Management Specialization) Answers 2025

Question 1

Which of the following are characteristics of a good mission statement?

❌ Does not lose sight of the customer needs or problems that the company was built to address
❌ Is a memorable, inspiring, brief statement
❌ Emphasizes the creation of some type of customer or social value
✅ All of the above

Explanation:
A strong mission statement is customer-focused, clear and inspiring, and emphasizes value creation. All listed options together define a good mission statement.

Question 2

Why did Blockbuster shut down or close?

❌ The company ran into labor problems
❌ The company was badly run and so it ran out of cash
✅ The same needs of the customer were met with a better business model
❌ Blockbuster substituted its business with more in-demand liquor business

Explanation:
Blockbuster failed because companies like Netflix met the same customer need (entertainment) using a superior business model (digital streaming, subscriptions).

Question 3

A business’ strategy to “realize value” by capturing some of its economic value added is also called its:

❌ Profit model
❌ EVA model
✅ Revenue model
❌ Profit margin model

Explanation:
A revenue model explains how a company captures value—that is, how it earns money from its products or services.

Question 4

The true impact of vision and mission statements does not depend on the actions of the company’s leaders.

❌ True
✅ False

Explanation:
Vision and mission statements only matter if leaders actively reinforce them through actions, decisions, and behavior.

Question 5

Which of the following is NOT true about Uber’s business model?

❌ Uber employs a rating system where both the driver and passenger can rate each other after the ride
✅ Uber ensures high quality of customer experience by directly employing its drivers
❌ Uber does not own the fleet of vehicles it uses for its services
❌ Uber paid around 80% of the fare from a ride to the driver and kept 20% to itself

Explanation:
Uber does not directly employ drivers; they are independent contractors. Quality is managed via ratings, not employment.

🧾 Summary Table