Chapter 6 Test Questions – Flashcards
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A forecast is a(n) _____.
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projection for the future
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In order, the steps of the strategic-management process are _____.
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establish the mission and vision; assess the current reality; formulate the grand strategy; implement the strategy; maintain strategic control
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Over the course of 40 years, Sal grew his company to six package shipping stores. With his retirement approaching and the increased competition, he decided to reduce the number of locations to two. Sal's reduction of effort represents a _____.
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defensive strategy
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When organizations endeavor to keep their costs, and hence prices, of their products or services below those of competitors and to target a wide market this is a _____ strategy.
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cost-leadership
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A 2013 survey found that among managers, the use of _____ is popular.
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mission and vision statements
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A SWOT analysis is _____.
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a search for the strengths, weaknesses, opportunities, and threats affecting an organization
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Porter's competitive strategies of cost-leadership and differentiation focus on ____ markets, and the cost-focus and focused-differentiation strategies focus on ____ markets.
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wide; narrow
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Contingency planning is also known as _____.
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scenario planning and scenario analysis
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Strategy formulation is the process of _____.
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choosing among different strategies and altering them to best fit the organization
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In the BCG matrix, organizations that have slow growth but high market share, and income from them often finances stars and question marks, are ____.
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cash cows
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A defensive strategy is also known as a(n) _____.
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retrenchment strategy
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Who are our customers? What are our major products or services? In what geographic areas do we compete? These are all questions that are answered in a good _____.
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mission statement
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Regarding the results of a SWOT analysis, organizational opportunities are ____.
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environmental factors that the organization may exploit for a competitive advantage
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The process by which a company compares its performance with that of high-performing organizations is known as ___.
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benchmarking
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The growth, stability, and defensive strategies are ____.
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common grand strategies
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In the BCG matrix, companies that have high growth and high market share, and are definite keepers are ____.
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Stars
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ABC Office Supply in Dayton sells high-quality, unique pens that are a real value to executives in the area. No other company in its area markets pens of such quality and value. By offering this type of product, ABC Office Supply is an example of a company utilizing a _____ strategy.
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Focused-differentiation
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Strategic control includes ____.
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monitoring the execution of strategy and making adjustments, if necessary
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A ______ is a large-scale action plan that sets the direction for an organization.
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Strategy
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Which one of the following is part of Porter's model for industry analysis?
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Threat of Substitute Products
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The BCG matrix is a means of evaluating strategic business units on the basis of their business growth rates and
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Their share of the market
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______ consists of using questioning, analysis, and follow-through in order to mesh strategy with reality, align people with goals, and achieve results promised.
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Execution
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Effective strategic management involves
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managers from all parts of the organization
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Which of the following would be considered a reason for adopting strategic management and strategic planning?
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To provide develop a sustainable competitive advantage
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Which of the following is not a stage in the strategic-management process?
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Conduct a trend analysis
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The common grand strategies are
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Growth, stability, and defensive
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A grand strategy that involves reduction in the organization's efforts is the ______ strategy.
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retrenchment
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The process of choosing among different strategies and altering them to best fit the organization is called
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Strategy Formulation
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______ consists of monitoring the execution of strategy and making adjustments, if necessary.
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Strategic Control
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Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately is called
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Competitive intelligence
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Careful monitoring of an organization's internal and external environment to detect early signs of opportunities and threats that may influence the firm's plans is called
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environmental scanning
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A situational analysis is also known as
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SWOT analysis
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The skills and capabilities that give the organization advantages in executing strategies in pursuit of its mission are known as
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Organizational strengths
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Environmental factors that the organization may exploit for a competitive advantage are known as
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Organizational opportunities
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A vision or projection of the future is called a(n)
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forecast
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Creation of alternative hypothetical but equally likely future conditions is called
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contingency planning
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Which of the following is not one of the forces that affects industry competition, according to Porter's model for industry analysis?
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Threats of government interference
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Porter's competitive strategies include
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Cost leadership, differentiation, cost focus, and focused differentiation
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An organization that is offering unique, superior products or services to a wide market is pursuing a strategy of
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differentiation
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An organization that keeps costs and prices low in targeting a narrow market is pursuing a strategy of
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cost focus
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An organization that offers unique, superior products or services to a narrow market is pursuing a strategy of
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Focused differentiation
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__________ refers to the idea that the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately.
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Synergy
