TW MGMT 371 Chap 9 – Flashcards
73 test answers
Unlock all answers in this set
Unlock answers 73question
What the organization is in business to do
answer
Defining the organizational mission forces managers to identify ________.
Unlock the answer
question
What the organization is in business to do
answer
Defining the organizational mission forces mangers to identify_______
Unlock the answer
question
What the competition is doing
answer
Managers do an external analysis so that they know about ________.
Unlock the answer
question
External Environment
answer
When an organization is analyzing its labor supply, it is studying its ________.
Unlock the answer
question
Opportunities
answer
________ are positive trends in the external environment.
Unlock the answer
question
Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses.
answer
Computer peripherals provider Ascent plans to enter a new market in another country. Which of the following represents a threat for Ascent?
Unlock the answer
question
Opportunities; threats
answer
A study of the external environment allows a manager to understand the ________ and ________ for the organization.
Unlock the answer
question
There has been a trend toward personalized cupcakes for a variety of occasions.
answer
Helen, the owner of Crazy Cupcakes, is conducting a SWOT analysis of her company to find out where she can improve her business and to identify possibilities for expansion. Which of the following represents an opportunity for expansion?
Unlock the answer
question
Internal Environment
answer
The third step in strategic management process is related to the analysis of the ________.
Unlock the answer
question
The company's in-house designers have a knack for identifying and popularizing fashion trends.
answer
Bella Vista Clothing targets teenage girls with a range of affordable ready-to-wear clothing. The company is opening two new outlets, as sales have been excellent. Which of the following represents a strength for the company?
Unlock the answer
question
doing an internal analysis
answer
If a bank estimates the capabilities of its employees who provide customer service prior to implementing a new training program designed to change their method of providing customer service, it is ________.
Unlock the answer
question
Resources
answer
An organization's financial, physical, human, and intangible assets are known as its ________.
Unlock the answer
question
Core Competencies
answer
The major value-creating capabilities of the organization are known as its ________.
Unlock the answer
question
SWOT Analysis
answer
The combined external and internal analyses are called
Unlock the answer
question
effectiveness of the strategies used
answer
The final step in the strategic management process allows an organization to understand the ________.
Unlock the answer
question
corporate
answer
Top-level managers are responsible for ________ strategies.
Unlock the answer
question
Functional
answer
Lower-level managers are responsible for ________ strategies.
Unlock the answer
question
Corporate
answer
A ________ strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses.
Unlock the answer
question
growth, stability and renewal
answer
What are the three main types of corporate strategies
Unlock the answer
question
Growth
answer
A ________ strategy is when an organization expands the number of markets served or the products offered.
Unlock the answer
question
concentration, integration, or diversification
answer
Organizations grow by using strategies of ________.
Unlock the answer
question
Concentration
answer
An organization that grows using ________ focuses on its primary line of business and increases the number of products offered or markets served in this primary business.
Unlock the answer
question
backward vertical integration
answer
In ________, the organization becomes its own supplier so it can control its inputs.
Unlock the answer
question
Forward vertical integration
answer
In ________, the organization gains control of its outputs by becoming its own distributor.
Unlock the answer
question
Ronald's should buy out the farm and become its own supplier
answer
Ronald's has been in the fast food business for five years. After struggling for two years, it finally broke even, and the french fries it offers are its most popular product. However, during the past year, its business has suffered because the farm that used to supply it with potatoes has increased its prices drastically. What should Ronald's do to control its production costs?
Unlock the answer
question
Horizontal integration
answer
In ________, a company grows by combining with competitors.
Unlock the answer
question
Horizontal integration
answer
When L'Oreal acquired The Body Shop, it carried out ________.
Unlock the answer
question
Growth Strategy
answer
An organization that is diversifying its product line is exhibiting what type of corporate strategy?
Unlock the answer
question
Related Diversification
answer
________ takes place when a company combines with other companies in different, but associated, industries.
Unlock the answer
question
unrelated diversification
answer
When a company combines with firms in different and dissimilar industries, it indulges in ________.
Unlock the answer
question
Toy World acquired Unicorn Children's Books and now retails both toys and books from co-branded outlets.
answer
Florance is a chain of flower shops in the Chicago area. The company recently acquired Knick-knacks, which owns three gift shops. Which of the following is most similar to this acquisition?
Unlock the answer
question
Stability
answer
When an organization continues serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations, it is following a ________ strategy.
Unlock the answer
question
Renewal
answer
________ strategies address declining performance through retrenchment and turnaround strategies.
Unlock the answer
question
retrenchment
answer
A ________ strategy is used to deal with minor performance problems. It helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.
Unlock the answer
question
A corporate portfolio matrix
answer
Which of the following provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources?
Unlock the answer
question
question mark
answer
In the BCG matrix, a business unit that has a high anticipated growth rate but a low market share is known as a ________.
Unlock the answer
question
Cash Cow
answer
In the Boston Consulting Group (BCG) matrix, a business unit that has a low anticipated growth rate but a high market share is known as a ________.
Unlock the answer
question
dog
answer
In the BCG matrix, a ________ has a low anticipated growth rate and a low market share.
Unlock the answer
question
Star
answer
In the BCG matrix, a ________ enjoys a high anticipated growth rate and a high market share.
Unlock the answer
question
Dogs
answer
________ should be sold off or liquidated as they have low market share and low growth potential.
Unlock the answer
question
stars; question marks
answer
Managers should "milk" cash cows for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in ________ and ________.
Unlock the answer
question
Stars
answer
Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share.
Unlock the answer
question
strategic business units
answer
In an organization, the single independent businesses which formulate their own competitive strategies are known as ________.
Unlock the answer
question
design thinking
answer
Kiva Systems, manufacturer of robots used in flexible automation systems, demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.
Unlock the answer
question
Threat of Substitutes
answer
Which of the following is a competitive force under the five forces model?
Unlock the answer
question
maintain the lowest cost structure
answer
A cost leadership strategy requires a firm to ________.
Unlock the answer
question
differentiation strategy
answer
A company that competes by offering unique products that are widely valued by customers is following a ________.
Unlock the answer
question
focus strategy
answer
Which of the following strategies involves a cost advantage or a differentiation advantage in a narrow segment?
Unlock the answer
question
a cost or differentiation advantage
answer
A firm that is "stuck in the middle" cannot develop ________.
Unlock the answer
question
Competitive strategy
answer
Functional-level strategy directly supports the ________.
Unlock the answer
question
Strategic Leadership
answer
________ is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization.
Unlock the answer
question
It should have multiple alternatives when making strategic decisions.
answer
How can an organization develop strategic flexibility?
Unlock the answer
question
Strategic Flexibility
answer
________ is the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision is not working.
Unlock the answer
question
First mover
answer
An organization that initially brings a product innovation to the market is known as the ________.
Unlock the answer
question
differentiator
answer
An Internet-based knowledge management system that shortens customer response times would be an e-business technique that contributes to the competitive advantage of a ________.
Unlock the answer
question
a focuser
answer
Who targets a narrow market segment with customized products?
Unlock the answer
question
clicks-and-bricks
answer
A ________ firm uses both online and traditional stand-alone locations.
Unlock the answer
question
opportunity to begin building customer relationships
answer
Which of the following is an advantage of being a first mover?
Unlock the answer
question
strengths and weaknesses
answer
An internal analysis will help Patrick identify the ________ of the company.
Unlock the answer
question
Opportunity
answer
Casey majored in marketing and really enjoyed studying market research as a subject. Through research on the Internet and in the university library, she discovers that this industry appears to have significant positive external trends. She interprets this as a(n) ________.
Unlock the answer
question
Weakness
answer
Casey realizes that she has a personal characteristic that suggests she is not comfortable interacting with strangers. She interprets this as a(n) ________ if she is to get a job as a salesperson.
Unlock the answer
question
A competitor, Pan Asia, has a similar product lineup and first mover advantage in the market.
answer
Noting the growing popularity of South-East Asian food, you decide to open a new outlet called Rice Rocket. Which of the following, if true, could prove to be a threat to this plan?
Unlock the answer
question
Concentration
answer
You decide to concentrate on Taco Rocket's primary business by only increasing the menu to include new items such as enchiladas and rice bowls. This is an example of what type of growth strategy?
Unlock the answer
question
Backward vertical integration
answer
Your oldest supplier, Zorro Distributors, is a family-owned firm. Recently, the firm's president, Diego De La Vega, made the decision to retire. To his disappointment, none of his five children stepped forward to take his place at the helm of the firm. Sr. De La Vega is concerned that if he sells his company to a larger distributor, many of his employees will lose their jobs. You approach your old friend with a generous offer to buy Zorro and continue its current operations. Should your offer be accepted, Taco Rocket would be undertaking ________.
Unlock the answer
question
unrelated diversification
answer
You decide to purchase a local five-store hardware chain because it was a good investment. This is an example of ________.
Unlock the answer
question
Stability
answer
Because of the good profits and a fear of growing too fast, you decide to keep Taco Rocket in the same business and do not change the menu. You hope to retain the same market share and return-on-investment record. This is considered a ________ strategy.
Unlock the answer
question
each business will be independent and will have its own competitive strategies
answer
No matter which business Colleen decides to buy, she intends that each company be a strategic business unit. This means that ________.
Unlock the answer
question
Cash Cow
answer
Your oldest holding, Taco Rocket, has not grown much in recent years, but due to low debt, it generates a huge amount of cash. According to BCG, Taco Rocket would be considered a ________.
Unlock the answer
question
Question mark
answer
Recently, you also purchased a company that manufactures a new satellite dish, allowing you to enter into the cable television market. The business is profitable and growing, but the technological unknowns make it risky. BCG considers it a ________.
Unlock the answer
