371 CH 8

Which of the following is NOT one of the strategy types listed in the Miles and Snow typology?

Rescuer

GE competes in ranging from medical devices to appliances to televisions networks. GE's mixed strategy is an example of ______ strategy

corporate- level

Kraft Food offered to buy Cadbury, a confection and beverage company. Which advantage of related diversification could result from the merging of these 2 businesses?

synergy

___ Exists when the economic value together is greater than the value of the parts

synergy

An example of _____ would be when credit card and mortgage divisions of banks often get their customers from the bank's commercial loan customers.

synergy in related diversification

When one disposeable shaver maker introduced a 3 blade shaver, the other introduced 3 blades within months. They repeated the process with 4 blades. This is an example of

tactical imitation

The GE business screen is an expansion of the ideas from

the BCG matrix

Business-level strategy focuses primarily on

the areas in which the firm may have an advantage and how much various organizational parts enhance each other

____ is a useful framework for managers to use as they plot business strategy over time

the product life cycle

____ strategies in the Miles and Snow model represent a middle-of-the-road approach to business strategy

Analyzer

___ is the component of strategy that indicates what the organization does exceptionally well

distinctive competence

The production company that provided the television show "Who wants to marry my dad?" to be shown.... during Joe Millionaire... had to cut cash flow... example of a

dog

One characteristic of an SBU classified as a star is

a large amount of short-run cash support

GE noticed that finncial institutions had large profit margins. When GE entered the industry, its SBU was

a question mark

Strategy formulation is

a set of processes involving the organization's strategies

The ____ strategy is the most conservative approach in the Miles and Snow classifications of business strategies

defender

Which of these is concerned with the changes in the sales volume of a product during its existence?

product life cycle approach

The aircraft engine division of Genral Electric, which competes with Pratt & Whitney, has its own mission and a strategy that often differs considerably from other parts of the corporation. What is a division such as this called?

A strategic business unit

______ are corporate-level strategies for becoming a diversified firm.

ALL: -Internal developments of new products -Backward vertical integrations -mergers -Acquisitions

Forms of diversification

ALL: -acquisition -vertical integration -mergers -the internal development of new products

An organization implementing a prospector strategy needs to

ALL: -creates new opportunity -remain flexible -respond quickly -decentralize decision making

When implementing a differentiation strategy it is important to have

ALL: -marketing emphasize high-value distinction -control of funds without discouraging creativity -manufacturing adjust inventory -a culture focused on customer needs

The product life cycle

ALL: -shows how sales volume changes over time for products -can help managers recognize that strategies need to evolve over time -begins when a new product or technology is introduced -generally consists of 4 stages

In their book In Search Of Excellence, Peters and Waterman found that successful companies "stuck to their knitting" In other words, they concentrated on those things that they do well. To which component of organizational strategy does this idea most directly relate?

Distinctive competence

Texas Instruments got into the watch business as a result of developing a technology that radically changed the nature of wristwatches. Its strategy included the use of new equipment an automation to drive down costs. This example best represents which component of strategy?

Distinctive competence

Fox News covers stories from a right of center political point of view. They use a ____ strategy. All reporters say they have no bias.

Focus

Porters generic strategies classify firms by which of the following?

Focus

Franke, a swiss manufactyurer of sink and facet systems, sold accessories through retail stores and then added Internet sales. Franke used

Forward verticle integration

Which of the following is NOT an international business strategy?

Intercontinental

The toyota prius intitially had a waiting list and was excluded from all rebate offers. The Toyota Prius was at which stage of the producr life cycle?

Introduction

MNCs can exploit advantages over domestic businesses. Which of the following is NOT an advantage?

Multiple accounting systems

Krispy Kreme has a distribution network tht allows fresh doughnuts to be transported to convenience stores.... before dawn.... enjoy same day... this is an example of.

Organizational strengths

One action that an organization may take with respect to an SBU classified as a dog is to sell it. It seems odd that one organization would want to buy another's dog. WHat of the following might explain such a purchase?

Possible synergistic effects on the buying organization?

According to the MIles and Snow model of business strategy, which of these strategies is the most appropriate for use in an unstable environment?

Prospector

Whcich of the following is an example of one of the Miles and Snow typology classifications for business strategies?

Prospector

Which of the strategy types in the Miles and Snow model avoids long-term commitment to any single technology, is highly decentralized, and has a propensity to take risk?

Prospector

Food 4 All Inc sold it's three nonfood businesses and replaced them with firms in the food industry. What element of corporate strategy does this choice to compete in the food industry specifically address?

Scope

Krispy Kreme sells doughnuts. It markets them primarily to people who want something quick and sweet for breakfast or as a morning snack. This is an example of Krispy Kreme's

Scope

Which of the following is NOT an advantage inherent in related diverisifiction?

Scope

Datril was introduced into the pain-reliever market as a product just like Tylenol. The makers of Datril used ______ to copy Tylenol's distinctive competence

Strategic imitation

In 1987, Allegis Corporation consisted of United Airlines, Hertz Rent-a-Car, and Westin Hotels.....could accomplish more joined together than they could operating as separate units. Which advantage of related diversification does this best represent?

Synergy

Clorox Corporation owns Kingsford charcoal, Matchlight charcoal lighter, Prime Choice steak sauce, and a restaurant chain. This is an example of ___ diversification.q

Unrelated

Which of the following companies is noted primarily for employing an overall cost leadership strategy?

Wal-Mart

the starting point in formulating strategies is usually

a SWOT analysis

Assuming an SBU retained its share of the market, how would it be classified if it were a star and it's market subsequently became a low-growth market?

a cash cow

Siemens corporate research earns on average 20 patents in a day. The papents give Siemans a(n)______

sustained competitive advantage

Effective strategies

align the organization and environment to achieve strategic goals

_______ strategy refers to a mid-range strategy that attempts to move into new market areas at a deliberate and carefully planned pace

analyzer

For years Dell computers were only availible through dell. Then is contracted with Wal-Mart to sell there too. Dell used a(n)_________ strategy

anayzer

Ford once supplied every part to its automobiles, except the rubber (it even tried to grow trees, to no avail). This is an example of

backward vertical integration

Phillip Morris markets Marlboro cigaretts, the number-one selling cigarette brand in the world. Outside of the United States, Marlboro generates huge profits that Philip Morris uses to support other less successful SBUs. According to the BCG matrix, Marlboro is an example of a

cash cow

If the marketing department adopts a strategy calling for substantial test marketing aggressive advertising campaigns, and inducing consumer product trials, which of the following is most lieklt the business strategy being used by the company as a whole?

cost leadership

Smart cars are the only cars that can park perpendi ular to the curb, which is especially beneficial in cities. This is an example of

distinctive competence

AOL eliminated fees to some subscribers to try to attract more users. AOL was using a(n)___ strategy

defender

Prior to 1990 Campbell Soup company was languishing near the bottom of the food industry.... Then it got a new CEO, David W. Johnson... It's strategy prior to hiring of Johnson exemplified a _______ strategy

defender

A(n) _______ strategy is a plan chosen and implemented to support specific goals, such as an increase of market share by 5%

deliberate

Reality shoes became prevalent on televison shows after CBS introduced the first SUrvivor series. That type of television show is now in the maturity stage of its product life cycle. This means

demand for the product has reached a plateau

Gymboree sells high quality childrens clothingat high prices. It uses a(n)______ strategy

differentiation

Toyota is the most successful automaker selling hybrid vehicles. Toyota uses

differentiation

Warsteiner beer has the slogan "Life is too sshort to drink cheep beer' This slogan supports a ___ strategy

differentiation

In the 1980's, if you mentioned Harley-Davidon motorcycles to the average consumer, he or she immediately thought of motocycle gangs-, more specifically, Hell's Angels. Now the price of a Harly can top $20,000, and there are riding clubs that include executives, attorneys, and doctors. The club members are attracted to Harleys for their wild and free image. HD's image is a(n)_____ not easily imitated by competitors.

distinctive competence

A(n)____ strategy is a pattern of action thst develops over time in an organization in the absence of missions and goals, or despite missions and goals

emergent

Don opened a pizza shop. It was successful, so he opened a restaurant, it filed. So he opened a bed and breakfast, it succeded. He wanted to save a historic building, so he turned it into a retreat center. Don uses a(n) _______ strategy

emergent

Google bought YouTube even though it operated at a loss. The business strategy for You Tube is

emergent

Abercrombie and fitch sells young adult clohing with overtly sexual advertisinf at high prices with poor quality sewing. It uses a(n)______

focus

Pea-In-The_Pod is a small chain of retailers that sell only clothes to pregnant women and new mothers...______ strategy create a competitive advantage for the chain.

focus

The primary concern of strategy implementation is

how the strategy is operationalized and executed

Using the Boston Consulting group matrix, SBUs are classified on the basis of

market share and market growth rate

Porche Automobil Holding and Volkswagen own each others stock. They plan to integrate the companies in 2011. This diversification strategy is _______.

merger

In environmental SWOT analysis, the external organizational position is analyzed according to its

opportunities and threats

Howard Schultz traveled in Italy and liked the coffee. He founded Starbucks with a plan to introduce American coffee drinkers to his italian-style drink. This is an example of _____

organizational opportunity

Network new programs have been losing viewers for years. They all cover stories from left of center in the political spectrum. Fox News saw a(n) _____ and covers stories from right of center. The reporters all say they have no bias.

organizational opportunity

___ is the proportion of the market controlled by the product.

relative market share

The expiration of a pharmaceutical drug patent allows generic drug makers to introduce the same chemical compound under a different name and at lower prices. This is an example of _____ for the developer of the original drug.

organizational threat

AirTran Airlones has an airplane fleet that is older than those owned by other airline. This is a potential ____ because it can give the company an image of poor quality or unsafe plans

organizational weakness

Chelsea Milling company produces Jiffy Mix and other mixes. The company is th 4th largest baking mix producer, has never spent a cent advertising, and sells its product for one-half to one-third the cost of its competitors. The company pursues a(n)____ strategy

overall cost leadership

3M is a highly innovtive firm that is constantly seeking new markets and is oriented toward growth and taking risks. It uses a(n) ________ strategy

prospector

News Networks operates in a very dynamic environment. Its managers have decided to be on the lookout for new market and product opportunities and to take advantage of them when they arise.... You would probably be safe in predicting that New Networks will be a(n)

prospector

Aldoph Coors Company heavily developed Zima brand beer that was targeted to Generation Xers, but Zima gained only a small share of a rapidly growing market. According to the BCG matrix, Zima is an example of a

question mark

Bausch & Lomb has a large share of the growing contact lens market. B&L is an example of a

question mark

Companies should invest carefully and monitor closely a ______, which is a product that has a small share of a growing market.

question mark

Compu Desk has a small share of the growing desktop computer market. Compu Desk is an example of a

question mark

Jordache was ince a dominant brand in the American blue-jean market, commanding high prices. Now jordache is sold in Wal-Mart. This strategy is called

reactor

Kmart has strugglef for years competing with Wal-Mart and Target. It tried celebrity labels, but that did not help. It cannot lower prices as low as Walmart, because it does not have cost cutting expertise. This is an example of a(n)__________strategy

reactor

Rekitt &Coleman Inc, manufacturers Spray n' Wash laundry stain remover, Resolve fabric refresher, and Woolite fabric wash. This is an example of ________ diversification

related

When Turner Broadcasting purchases a movie studio with its cault of old movies, it was an example of a(n)______ diversification strategy. Turner was able to geta source of movies to show on its various cable television stations

related

Wal-Mart sought approval for an industrial bank charter. This is an example of hanging

resource development

When an airline uses profits from one region to lower prices in another region it is using

resource development

Coca- Cola sells soft drinks, bottled water, and sports drinks. This is an example of

scope

The Culinary Institute of America teaches cooking and operates French, Italian, and American restaurants. It also sells cooking supplies. This is an example of CIA's _____.

scope

Which of the following is NOT an example of a basis of relatedness for implementing related diversification?

similar human resources

For years, the Tobasco Company used a(n)_____ strategy and manufactured only its famous hot sauce

single- product

YouTube has a high market share and high market growth rate, which would make it a __. However it still does not have a profitable business plan

star

extra funds should be channeled to the _______, which is a product with a high share of a fast-growing market.

star

After so many people complimented Robin Heder's honey mustard, she decided to start a small business called Naples Vally Products to manufature and market her mustard. at this juncture, Hoder was engaged in

strategic formulation

In a small community in Michigan, there are two funeral homes. one of them clips all pictures from the local paper, laminates them, and mails them to the person photographed with a brief note. This is an attempt to build positive relations with potential customers during happy times. If the other funeral home choe to make similar customer contact, the competitors would have

strategic imitation

Starstuck Eateries has been very successful over the years by monitoring what successful restaurants in other cities are doing and copying them. This is known as

strategic imitation

When the CBS network introduced the reality show Survivor, the show was an immediate success for the network. As a result ABC, NBC, and Fox tried to imitate it with their own reality shows. In this instance ABC, NBD, and Fox used

strategic imitation

Fort Howard Paper Company hass a cost-saving manufacturing process that its competitors cannot imitate. Fort Howard Paper enjoys a(n)

sustained competitive advantage