Chapter 6 MGT 301 – Flashcards

Is it appropriate for the organization and for the times? Does it set standards of excellence and reflect high ideals? Is it ambitious? These are all questions that are answered in a good _____. A.) management belief statement B.) mission statement C.) belief agreement D.) code of ethics E.) vision statement

To provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage are reasons why an organization should adopt _____. A.) a strong business plan B.) strategic management and strategic planning C.) an aggressive cost-cutting plan D.) a positive synergy agenda E.) a diversity policy

George, a chef and owner of a popular restaurant, is always visiting his competition to observe how they are doing things in their restaurants. He told one of his managers that "I do this because I want to know what is going on. I am always concerned that one of our competitors will surprise us with a new service or menu item like us, but better." George is utilizing ___. A.) competitive intelligence B.) TQM C.) corporate spying D.) management by observation E.) environmental scanning

Many customers shop at Organic Foods because of the employees' extensive product knowledge. This is an example of the company's _____. A.) weaknesses B.) strengths C.) threats D.) intelligence E.) opportunities

When an organization is able to get and stay ahead in the four areas of (1) being responsive to customers, (2) innovating, (3) quality, and (4) effectiveness, that company can develop ____. A.) a sustainable competitive advantage B.) an environment with few or no competitors C.) company diversity D.) increased MBO E.) strong employee morale

Organic Market sells high-quality products and grocery items that are unique to their area; in addition it offers delivery for customers who are unable to leave their home and a number of regular workshops regarding eating healthy. By offering these types of products and services, Organic Market is pursuing a _____ strategy. A.) value-focused B.) cost-savings C.) differentiation D.) cost-focus E.) focused-differentiation

Instructor Services is a technology company that offers many IT services in highly populated southern Ohio. Services and products include computer training, support, monitoring, repair, network design, virus removal, and software upgrades. It even sells refurbished computers. The source of Instructor Services' strategic position is _____. A.) broad needs and many customers B.) low-profit margin and many customers C.) broad needs and few customers D.) high-profit margin and few customers E.) high-profit margin and many customers

The second step in the strategic-management process is to look at where the organization stands and see what is working and what could be different to maximize efficiency and effectiveness in achieving the organization's mission. This step is the process of completing a(n) _____. A.) organizational vision statement B.) grand strategy C.) ethical and diversity evaluation D.) current reality assessment E.) company synergy assessment

Quality Services is an organization that operates several companies that market food products, restaurant equipment, and paper and plastic products, and it even has a division that counsels restaurant owners, helping them become established. Quality Services is involved in a _____ strategy. A.) differentiation B.) single-product C.) multiproduct D.) diversification E.) focused-differentiation strategy

In the strategic-management process, the final step, maintaining strategic control, is the source of _____. A.) the organizational mission B.) strategy formulation C.) the current reality assessment D.) feedback and evaluation E.) the planning process

Mountain Rescue Incorporated sells emergency safety and rescue products to ski patrols and rescue workers at prices that are below those of its competitors, who offer a larger line of products and focus on broader markets. Mountain Rescue Incorporated is pursuing a ____ strategy. A.) cost-focus B.) differentiation C.) narrow D.) focused-differentiation E.) cost-leadership

With small businesses in very competitive industries, small differences in performance may affect that company's survival. So in this case, it is worth the effort to implement _______. A.) a synergy agenda B.) TQM C.) MBO D.) organizational diversity E.) strategic planning

Pedro, CEO of a successful IT company, is constantly reading press releases, ads, and news articles about his competition, and he regularly checks information about new competitive products and visits trade shows to study his competition. Pedro is involved in ____. A.) management by observation B.) environmental observation C.) competitive intelligence D.) corporate spying E.) TQM

Developing a comprehensive program for long-term success is the focus of ____. A.) mission and vision statements B.) strategic planning C.) a synergy agenda D.) TQM E.) organizational diversity

Doug is the CEO of Johnson Motors, a business consisting of Chevrolet, Buick, Cadillac, and Mercedes-Benz dealerships. He also sells Fleetwood and American Coach RVs. Doug mentioned to his sales manager that "there is economic value in having many related businesses managed by one ownership group. They are worth more than if they are separate companies." This is an example of ____. A.) synergy B.) multiproduct C.) differentiation D.) diversification E.) diversity

According to Harvard Business School professor Michael Porter, strategic positioning means _____ to achieve sustainable competitive advantage. A.) aggressive growth B.) retrenchment C.) strategic alliances D.) distinctive positioning E.) collaborative planning

Bryan Barry suggests that to keep a strategic plan on track, organizations should ____. A.) engage people, keep it simple, stay focused, and offer a good benefit package B.) engage people, keep people happy, provide fun activities, and provide good benefits C.) aggressively compete, cut costs, focus on customer service, and engage people D.) engage people, keep it simple, stay focused, and keep moving E.) provide fun activities, provide good benefits, and keep it simple

Michael Porter proposed that business-level strategies originate with the primary competitive forces in the firm's environment; these forces are _____. A.) threats of substitute products and services and competitive rivalries B.) threats of new entrants and substitute products or services, bargaining power of suppliers and buyers, and competitive rivalries C.) bargaining power of suppliers D.) threats of new entrants and bargaining power of buyers and suppliers E.) threats of government paperwork and tax increases, bargaining power of suppliers, and competitive rivalries

Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be good. However, even with her forecast of continued strong sales, Donna and her partner need to develop a plan in case sales drop unexpectedly. This type of planning for alternative future conditions is known as ____. A.) a vision plan B.) a managerial pact C.) a trend analysis D.) contingency planning E.) background planning

More important than profit growth, stimulating innovation, customer loyalty, and finding qualified employees, global CEOs desire ____. A.) excellence in execution B.) an ethical workplace C.) organization diversity D.) happy employees E.) increased usage of MBO

Rashid, the CEO of Top Productions, was telling his new vice president of accounting that "In the past I had resistance to new ideas by people who felt that one of our plans threatens their influence or jobs. So when you tell your collections department that we just hired a collection agency to handle bad debt, you may have to sell your collections manager and his supervisors on using the agency and that nobody is going to be laid off." Selling middle and supervisory managers on changes to overcome their resistance is often a necessary part of _____. A.) operational control B.) strategy implementation C.) strategic control D.) strategy formulation E.) reality assessment

The basic assumption that the picture of the present can be projected into the future is the basis of a _____. A.) trend analysis B.) managerial pact C.) business plan D.) trend goal E.) vision statement

Delux Technology has a reputation of reliability and winning customer service, building this highly respected name brand over the last 15 years. As a speaker at a business conference, Steve, the CEO of Delux, told his audience that "We have built our reputation by changing little over the last several years, but consistently helping customers with great, caring service and a reliable product." Delux Technology utilizes a ____. A.) growth strategy B.) defensive strategy C.) retrenchment strategy D.) merger approach E.) stability strategy

The owners of Smith's Yard Mart, a family-owned garden center in a rural community, is concerned over the news that a large retailer with a garden center is building a new store on the other side of town. This new retailer is a(n) ____ for Smith's. A.) opportunity B.) weakness C.) intelligence D.) strength E.) threat

Tom and his family have developed a successful business selling fertilizer to other farmers in his area, consisting of rich, organic compost material. Recently ABC Seed, a national seed company, has been marketing a chemical fertilizer to his customers that is less expensive than Tom's product. ABC's efforts are an example of ___ in Porter's model for industry analysis. A.) buyers' negotiating influence B.) threats of new ideas C.) competitive rivalry among competitors D.) threats of substitute products and services E.) power of the suppliers