TW MGMT 371 Chap 9 – Flashcards
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The plans for how the organization will do what its in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals
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Strategies
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How a company is going to make money Focuses on whether customers will value what the company is providing and whether the company can make nay money doing that
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Business Model
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Business Model
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A ________ describes the rationale of how a company is going to make money.
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Planning
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First four steps of Strategic management process describe the strategic that must take place in an organization
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What the organization is in business to do
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Defining the organizational mission forces managers to identify ________.
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What the organization is in business to do
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Defining the organizational mission forces mangers to identify_______
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What the competition is doing
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Managers do an external analysis so that they know about ________.
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External Environment
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When an organization is analyzing its labor supply, it is studying its ________.
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Opportunities
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________ are positive trends in the external environment.
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Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses.
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Computer peripherals provider Ascent plans to enter a new market in another country. Which of the following represents a threat for Ascent?
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Opportunities; threats
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A study of the external environment allows a manager to understand the ________ and ________ for the organization.
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There has been a trend toward personalized cupcakes for a variety of occasions.
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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?
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Internal Environment
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The third step in strategic management process is related to the analysis of the ________.
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The company's in-house designers have a knack for identifying and popularizing fashion trends.
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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?
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doing an internal analysis
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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 ________.
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Resources
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An organization's financial, physical, human, and intangible assets are known as its ________.
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Core Competencies
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The major value-creating capabilities of the organization are known as its ________.
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SWOT Analysis
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The combined external and internal analyses are called
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effectiveness of the strategies used
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The final step in the strategic management process allows an organization to understand the ________.
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corporate
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Top-level managers are responsible for ________ strategies.
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Functional
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Lower-level managers are responsible for ________ strategies.
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Corporate
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A ________ strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses.
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growth, stability and renewal
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What are the three main types of corporate strategies
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Growth
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A ________ strategy is when an organization expands the number of markets served or the products offered.
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concentration, integration, or diversification
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Organizations grow by using strategies of ________.
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Concentration
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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.
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backward vertical integration
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In ________, the organization becomes its own supplier so it can control its inputs.
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Forward vertical integration
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In ________, the organization gains control of its outputs by becoming its own distributor.
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Ronald's should buy out the farm and become its own supplier
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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?
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Horizontal integration
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In ________, a company grows by combining with competitors.
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Horizontal integration
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When L'Oreal acquired The Body Shop, it carried out ________.
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Growth Strategy
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An organization that is diversifying its product line is exhibiting what type of corporate strategy?
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Related Diversification
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________ takes place when a company combines with other companies in different, but associated, industries.
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unrelated diversification
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When a company combines with firms in different and dissimilar industries, it indulges in ________.
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Toy World acquired Unicorn Children's Books and now retails both toys and books from co-branded outlets.
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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?
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Stability
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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.
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Renewal
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________ strategies address declining performance through retrenchment and turnaround strategies.
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retrenchment
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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.
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A corporate portfolio matrix
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Which of the following provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources?
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question mark
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In the BCG matrix, a business unit that has a high anticipated growth rate but a low market share is known as a ________.
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Cash Cow
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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 ________.
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dog
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In the BCG matrix, a ________ has a low anticipated growth rate and a low market share.
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Star
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In the BCG matrix, a ________ enjoys a high anticipated growth rate and a high market share.
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Dogs
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________ should be sold off or liquidated as they have low market share and low growth potential.
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stars; question marks
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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 ________.
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Stars
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Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share.
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strategic business units
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In an organization, the single independent businesses which formulate their own competitive strategies are known as ________.
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design thinking
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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.
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Threat of Substitutes
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Which of the following is a competitive force under the five forces model?
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maintain the lowest cost structure
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A cost leadership strategy requires a firm to ________.
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differentiation strategy
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A company that competes by offering unique products that are widely valued by customers is following a ________.
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focus strategy
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Which of the following strategies involves a cost advantage or a differentiation advantage in a narrow segment?
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a cost or differentiation advantage
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A firm that is "stuck in the middle" cannot develop ________.
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Competitive strategy
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Functional-level strategy directly supports the ________.
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Strategic Leadership
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________ 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.
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It should have multiple alternatives when making strategic decisions.
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How can an organization develop strategic flexibility?
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Strategic Flexibility
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________ is the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision is not working.
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First mover
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An organization that initially brings a product innovation to the market is known as the ________.
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differentiator
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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 ________.
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a focuser
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Who targets a narrow market segment with customized products?
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clicks-and-bricks
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A ________ firm uses both online and traditional stand-alone locations.
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opportunity to begin building customer relationships
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Which of the following is an advantage of being a first mover?
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strengths and weaknesses
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An internal analysis will help Patrick identify the ________ of the company.
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Opportunity
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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) ________.
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Weakness
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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.
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A competitor, Pan Asia, has a similar product lineup and first mover advantage in the market.
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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?
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Concentration
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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?
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Backward vertical integration
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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 ________.
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unrelated diversification
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You decide to purchase a local five-store hardware chain because it was a good investment. This is an example of ________.
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Stability
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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.
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each business will be independent and will have its own competitive strategies
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No matter which business Colleen decides to buy, she intends that each company be a strategic business unit. This means that ________.
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Cash Cow
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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 ________.
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Question mark
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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 ________.
