CH 6 BAD 301

Companies can achieve growth mainly by _____.

growing internally through direct expansion or creating new businesses

In a situational analysis, a strategic group is a group of _____ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities.

other firms within an industry

A company that is seeking to grow by taking risks and looking for innovations is best characterized as a(n) _____.

prospector Prospectors seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.

A(n) ​ _____ is a committee within a company that analyzes the company's own weaknesses to determine how competitors could exploit them for competitive advantage.

shadow-strategy task force A shadow-strategy task force is a committee within a company that analyzes the company's own weaknesses to determine how competitors could exploit them for competitive advantage.

Companies often choose a _____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

stability Companies often choose a stability strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

The _____ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.

BCG matrix The BCG matrix is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share, which helps them decide how to invest corporate funds.

According to Michael Porter, which of the following is one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?

Character of the rivalry

Aries Inc. is a large a computer manufacturer which has been in the market for several years. Many other companies have started manufacturing compact, portable gadgets to keep up with the new technological developments. Aries, however, has been reluctant to adopt these changes because it thinks that its products are already popular. Which of the following concepts is illustrated in the scenario?

Competitive inertia Competitive inertia refers to a reluctance to change strategies or competitive practices that have been successful in the past.

_____ strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.

Portfolio Portfolio strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines

The strategy-making process begins with:

the assessment of the need for strategic change. The three steps of the strategy-making process are: assess the need for strategic change, conduct a situational analysis, and then choose strategic alternatives.