MGMT 320 Ch 6 – Flashcards
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Which strategy explains how an organizations mission is to be accomplished? a. Operational strategy b. grand strategy c. tactical strategy d. exit strategy e. implementation strategy
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b. grand strategy
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Which of the following elements are in a SMART goal? a. Results oriented b. adaptable c. target dates d. strategic e. measurable
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a. Results oriented c. target dates e. measurable
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Specialty stores with high-end products such as Cartier Jewelry offer products that are of unique and superior value compared to those of competitors. This is an example of the _______-differentiation strategy, one of Porter's competitive strategies.
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focused
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Which of Porter's four competitive strategies tries to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market? a. Cost leadership b. Diversification c. differentiation d. cost focus e. focused differentiation
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a. cost leadership
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Porters competitive strategies include which of the following? defensive single product related diversification cost-leadership differentiation focused-differentiation cost-focus
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cost-leadership, differentiation, focused-differentiation, cost-focus
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Strategic _______ is a process that involves managers from all levels of the organization in the formulation and the implementation of strategies and strategic goals.
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management
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Contingency planning is also known as: Competitive intelligence scenario analysis scenario planning model for industry analysis trend analysis
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scenario analysis scenario planning
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Which one of the following would be considered an organizational strength? a. increased government funding of research b. experienced management team c. growth in the local market d. declines in the level of competition
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b. experienced management team
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Experiencing new governmental regulations that reduce the availability of raw materials would be considered an organizational _______ in a SWOT analysis.
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threat
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Organizational _______ is a system of shared beliefs and values within an organization that guides the behaviors of its members.
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culture
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______ is the process that helps align the last two phases of the strategic-management process: strategic implementation and strategic control.
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execution
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When discussing strategic management, effective execution requires managers to build a foundation for execution within several core processes. Identify these core processes below. a. structure b. operations c. strategy d. planning e. competitors f. people
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b. operations c. strategy f. people
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All of the following are sources of competitive intelligence except: a. Sales people information b. corporate espionage c. investor information d. Internet databases of public prints and advertising e. industry trade shows
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b. corporate espionage
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The ______ strategy is a grand strategy that involves little or no significant change from the current situation.
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stability
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A _____ is used in planning to make predictions about the future.
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forecast
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Which of Porter's 4 competitive strategies keeps the costs and hence prices of a product or service below those of competitors but targets only a narrow market? a. differentiation strategy b. diversification strategy c. cost leadership strategy d. cost focus strategy e. focused differentiation strategy
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d. cost focus strategy
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Identify the public sources for gaining competitive intelligence: a. hire the former employees of competitors to gain sensitive information B. competitors press releases c. competitors reports filed with this SEC and posted on EDGAR d. competitors published annual reports e. industry gossip from sales people and marketers
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B. competitors press releases c. competitors reports filed with this SEC and posted on EDGAR d. competitors published annual reports e. industry gossip from sales people and marketers
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The _____ is a means of evaluating strategic business units on the basis of their business growth rates and their share of the market.
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BCG matrix
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Effective execution requires managers to build a foundation for execution within three or processes found in any business which of the following is (are) one of these processes: Operations people Facilities strategy
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Operations people strategy
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_____ means the sum is greater than the parts.
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Synergy
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_____ planning is done by top management to determine what the organizations long-term goals should be for the next 1 to 5 years with the resources they expect to have available.
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strategic
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Business strategy that deals with operating several businesses at the same time in order to spread the risk is called: diversification cost focused single product differentiation cost leadership
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diversification
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Identify all of the following that top managers must do in order to successfully implement strategic plans at the lower level of the organization. a. ensure the organization structure is prepared b. ensure the organizations CEO is prepared c. ensure the organization's culture is prepared d. ensure the organizations control system is prepared
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a. ensure the organization structure is prepared c. ensure the organization's culture is prepared d. ensure the organizations control system is prepared
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The use of brands to make a company stand out from its competitors is part of the ______ strategy. cost differentiation diversification planning
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differentiation
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A business ______ represents an educated guess about what must be done and how it must be done in the short term and the long term for the benefit of the company.
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strategy
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Sam consistently monitors the execution of strategy and makes adjustments when necessary this is an example of strategic ______.
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control
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The process of monitoring an organizations internal and external environments to detect early signs of opportunities and threats that may influence the firms plans is called ______.
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environmental scanning
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Which of the following are included in porters five competitive forces? a. strong skills of the employees b. bargaining power of the suppliers c. bargaining power of buyers d. threat of new entrance e. rivalry among suppliers
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b. bargaining power of the suppliers c. bargaining power of buyers d. threat of new entrance
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Which of the following would be an example of an organizational weakness? a. the depressed state of the national economy b. increased competition in the industry c. inferior product quality d. unavailability of raw materials
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c. inferior product quality
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A strategy that involves expansion of some area of a business
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growth
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What type of strategy does a company make and sell only one product within its market?
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Single-Product
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The process of choosing among different strategies and altering them to best fit the organizations needs is called ________
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strategy formulation
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Strategic positioning emerges from which of the three following sources? a. few needs many customers b. broad needs many customers c. broad needs few customers d. few needs few customers
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a. few needs many customers b. broad needs many customers c. broad needs few customers
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When a manager analyzes the external environment looking for issues that might hinder the organizations ability to achieve a competitive advantage the manager is looking for ________.
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Organizational threats
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A ______ advantage is the ability of an organization to produce goods or services more effectively than its competitors do, thereby outperforming them
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Competitive
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A ______ statement describes a company's long-term direction and strategic intent
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Vision
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The ______ statement is the organizations purpose or reason for being
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Mission
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Strategy ______ is putting strategic plans into effect
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Implementation
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Which of the following are not quadrants in the BCG matrix? Cats exclamation marks question marks stars dogs
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Cats exclamation marks
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SWOT Analysis is also known as ______ analysis
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Situational
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Another name for ______ analysis is situational analysis
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SWOT
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Environmental factors that the organization may exploit for competitive advantage are _______
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Organizational opportunities
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A document that outlines a proposed firms goals the strategy for achieving them and the standards for measuring success is called a ________
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Business plan
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______ is the second core process of a business that determines the what and how a corporation operates
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Strategy
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Rolls-Royce corporation has a superior reputation. This is an example of an organizational ______.
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Strength
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What consists of monitoring the execution of strategy and making adjustments, if necessary, to the plan?
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Strategic control
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Which of the following can result in a bad plan? a. commitment to the plan b. poor assessments of an organization's capabilities c. ineffective group dynamics d. information overload e. faulty assumptions about the future
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b. poor assessments of an organization's capabilities c. ineffective group dynamics d. information overload e. faulty assumptions about the future
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Bowl-A-Rama had only one competitor in the local market and that competitor just went out of business. This is an example of an organizational ______.
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Opportunity
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Cost leadership strategies put tremendous pressure on managers to do which of the following? a. produce products inexpensively b. maintain low labor costs c. provide Quality customer service d. reach customers inexpensively
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a. produce products inexpensively b. maintain low labor costs d. reach customers inexpensively
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The drawbacks that hinder an organization in the executing strategies in pursuit of its mission are called _______
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Organizational weaknesses
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The feedback loop on the strategic management process consists of
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Revising actions if necessary based on feedback
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The strategy of operating several businesses under one ownership that are not related to one another is called:
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Unrelated diversification
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During a global economic downturn, very few companies will have a ______ type of grand strategy for the coming year
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growth
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Which one of the following attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company ? growth strategy strategic control stability strategy strategic positioning
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strategic positioning
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Identify the questions that should be answered by a good strategic plan. a. What is the assessment of the external environment? b. What are the critical issues facing the business? c. Does the plan optimize our bottom-line profits this year? d. Are the short-term and long-term objectives balanced? e. Who is the competition?
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a. What is the assessment of the external environment? b. What are the critical issues facing the business? d. Are the short-term and long-term objectives balanced? e. Who is the competition?
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Using statistical analysis of historical data to predict future events is called ______.
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trend analysis
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Mancuso Inc. is using old, outdated manufacturing facilities. This is an example of an organizational ________.
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Weakness
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What are the two types of forecasting?
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Trend analysis and contingency planning
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A(n) ______ is a large-scale action plan that sets the direction for an organization.
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Strategy
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Sustainable competitive advantage occurs when an organization is able to stay ahead of competition in which of the following areas? Innovation being responsive to customers effectiveness hiring processes quality
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Innovation being responsive to customers effectiveness quality
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Which questions should be considered when developing a company's vision statement? a. Is this statement positive and inspiring? b. Does this statement outline our basic products and services? c. Does this statement clarify what we want to become? d. Does this statement express our long-term goals?
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a. Is this statement positive and inspiring? c. Does this statement clarify what we want to become? d. Does this statement express our long-term goals?
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The main benefit of ______ planning is that it equips an organization to prepare for emergencies and uncertainty, and gets managers to think strategically about what could happen in the future.
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Contingency
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The process of choosing among different strategies and altering them to best fit the organizations needs is called _______.
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strategy formulation
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Operations is the third core ______ process
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Business
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Which questions sure organization ask itself as it develops a mission statement? a. Is the statement ambitious? b. What are our major products and services? c. Who are our customers? d. What is our basic technology? e. Does it show our stockholders how much profit we intend to make?
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b. What are our major products and services? c. Who are our customers? d. What is our basic technology?
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______ constitutes a feedback loop in which a problem arises that requires a manager to turn to an earlier step to rethink policies, redo budgets, or revise personnel arrangements to get the plan back on track and eliminate the problem.
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Corrective action
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When a company reduces its workforce due to a decrease demand for its products or services, it is involved in a ______ strategy.
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Defensive
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What is the first core process of business?
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People
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A prime advantage of _______ diversification is the management efficiencies created by spreading administration costs over several similar businesses.
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Related
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When a company is readily able to switch suppliers in order to get raw materials, the _______ goes down.
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Bargaining power of suppliers
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Walmart is such a large retailer, it is able to dictate the price it will pay for products it buys to sell in its retail stores. This is an example of which of porters five competitive forces? a. bargaining power of buyers b. Threats of new entrants c. Threats of substitute products d. Rivalry among competitors
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a. Bargaining power of buyers
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The major risk that a single product strategy brings to a company is ______, as there are no alternative products or services.
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Vulnerability
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A(n) ______ strategy means the company is trying to maintain the status quo.
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Stability
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The _____ strategy is often executed with low and products sold in discount stores, such as generic beer and cigarettes.
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Cost focus
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_____ is considered the leading authority on competitive strategy today.
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Michael Porter
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Which of the following is not an example of a defensive strategy? a. Phase out product lines for services b. liquidate assets overseas c. reduce costs by freezing hiring d. declare bankruptcy e. expand operations overseas
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e. expand operations overseas
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The main benefit of a single product strategy is _____.
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Focus
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It is important for every organization to follow a strategic management process. However, the process is often started due to a(n) _______ situation.
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crisis
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Because all work ultimately involve some form of human interaction or effort, the _____ process is the first stage and considered the most important of the three core processes of business.
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people
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Companies trying to differentiate themselves from competitors, using differentiation strategy, use ______ as a method for customers to identify with the product.
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Brands
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Strategy _____ is the ability to reinvent the basis of competition within existing industries by creating bold new business models that put competitors on the defensive, trying to catch up with the new ideas.
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Innovation
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Entrepreneurs should develop a strong and clearly defined _______ before starting a new company.
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Business plan
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All of the following are advantages of diversification except: a. higher production costs due to small runs of multiple products b. Synergy by bonding products and sharing expertise among products c. Increased efficiency spreads costs over more products d. Reduced risks due to multiple products
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a. higher production costs due to small runs of multiple products
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Weather projections are sometimes based on _______ analysis.
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trend
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To keep a strategic plan on track, a company needs to do all of the following except: stay focused downsize personnel engage people keep moving toward vision keep it simple
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downsize personnel
