Ch 8 SB

The risks associated with licensing is that the company granting the license: (Choose all that apply.)

-risks losing control of its secrets. -has to give access to its technological know-how.

Types of standing plans include: (Choose all that apply.)

-standard operating procedures (SOPs). -policies. -rules.

Managers use a ______ strategy to distinguish their products from those of their competitors by focusing on characteristics such as design, quality, and after-sale service.

differentiation

When the same situation occurs repeatedly, ______ plans are used.

standing

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is ______.

licensing

When companies utilize a global strategy for international expansion, they will undertake _______ of their products to suit the specific needs of customers in different countries.

little, if any, customization

A fine food chain based in the U.S. reached out to a world-renowned chef and a popular French winery, and suggested that they go into business together in the U.S., France, and Belgium. What kind of agreement was the food chain suggesting?

A joint venture

What should be the first critical component that the manager must define when determining an organization's mission?

Business

Identify the first step of the planning process.

Determining the organization's mission and goals

The planning process is designed solely to identify effective strategies. True false question.

False

Michael Porter identified two business-level strategies that only target one or two market segments. Match each strategy on the left with its description on the right.

Focused low-cost strategy- Serves one or a few market segments and tries to offer the lowest prices serving that reduced segment Focused differentiation strategy- Serves one or a few market segments and strives to differentiate their organization the most from the other competitors serving that segment

How do managers typically distinguish time horizons?

Long-term plans, intermediate-term plans, and short-term plans

If managers decide to pursue a global strategy for selling products in the national market, how does that impact how products are produced and marketed?

Products will be standardized and there will be one basic marketing approach.

Strengths, weaknesses, opportunities, and threats are components of a ______.

SWOT analysis

Which is a major advantage of a global strategy?

Significant cost savings associated with not having to customize products and marketing approaches to different national conditions

implementation is a five-step process.

Strategy or Strategic

Which of the following are features of successful business-level strategies? (Check all that apply.)

They reduce rivalry. They increase profits.

From a managerial perspective, what is the purpose of formulating a set of corporate strategies?

To help them achieve the corporation's mission

True or false: The low-cost strategy drives down an organization's costs below those of its competitors. This strategy is aimed at serving a broad market.

True

Expanding a company's operations into an industry that produces inputs for its products is ______ vertical integration.

backward

If a brewery decides to expand by buying the farms that produce the ingredients, this is an example of ______ integration.

backward vertical

The advantage of licensing is that the licenser does not have to ______ in a foreign country.

bear the development costs associated with opening up

The third step in the planning process is ___.

choosing the most effective ways to implement and put these strategies into action

People would come from all over the greater city lines for Sami's Sushi until the owner of Sami's decided to expand to some of the well-populated suburbs. This decision was a corporate-level strategy referred to as ______. Multiple choice question.

concentration on a single industry

A time horizon is the intended ______ of a plan.

duration

To perform the planning task, managers must first ______.

establish where the organization is at the present time

With exporting, there are ______ risks involved compared to opening a manufacturing plant abroad.

few

The model that helps managers focus on the most important competitive forces in the external environment is the ______.

five forces model

Companies that try to specialize in one segment of the market and undercut the prices of the other sellers in the market are using a ______ strategy.

focused low-cost

Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is called ______.

franchising

Michael Porter suggests that when managers choose a business-level strategy, their organization should ______ in a particular market.

gain a competitive advantage

The major disadvantage of pursuing a_ strategy is that by ignoring national differences, managers may leave themselves vulnerable to local competitors that differentiate their products to suit local tastes.

global or international

A corporate-level strategy is a plan of action that involves choosing in which industries and countries a company should invest its resources to achieve its: (Choose all that apply.)

goals. mission.

A company engaged in ______ sells products at home that are made abroad.

importing

When two or more companies form a strategic alliance to to jointly establish and share the ownership of a new business, it is a(n) ______.

joint venture

When managers make the decision to price their products below that of their competitors, they are using a ______ strategy.

low-cost

A strategy that is customized and marketed to accommodate particular national conditions is a strategy.

multidomestic

When a company decides to enter a new industry to gain a competitive advantage within one or more of the company's existing divisions, this is called ______.

related diversification

Jeremy forecasts what might happen if his company were to launch their new product into the market according to different schedules, prices, and features. He's thinking of making decisions to customize based on what he knows of his competitors' schedules and features. Jeremy is engaging in ______ planning.

scenario

The CEO and top managers use ______ to communicate to their managers and other employees a compelling vision of what they want the organization to accomplish.

strategic leadership

When the CEO and other top managers communicate their vision for the company to the rest of the managerial staff, this is referred to as ______.

strategic leadership

To achieve organizational goals, managers use ______ to launch courses of action that will move them towards their goals.

strategies

A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals is a(n) ______.

strategy

The five forces model includes level of rivalry among organizations, the potential for entry into an industry, the power of large suppliers, the power of large customers, and _________.

the threat of substitute products

The SWOT analysis components that are used to anticipate potential problems or opportunities for business growth outside an organization are ______, and for internal problems or assets of an organization are ______. Multiple choice question.

threats and opportunities; weaknesses and strengths

In large organizations, planning usually takes place at ______ level(s) of management.

three

A manager of a medical durable equipment company decides to establish an operation in a foreign country independent of any local direct involvement. This manager is creating a ______.

wholly owned foreign subsidiary

Production operations established in a foreign country independent of any local direct involvement is a ______.

wholly owned foreign subsidiary

Drag and drop the qualities of an effective plan on the left with their corresponding definitions on the right.

Unity- have only one guiding plan Continuity- build and refine previous plans on an ongoing basis Accuracy- collect and use all available information Flexibility- alter or change plans when necessary

While defining a business and answering questions about their company's products, managers can identify: (Choose all that apply.)

-who their true competitors are. -present customer needs. -future customer needs.

True or false: Managers only need to identify their customers when defining a business.

False

The advantage of licensing associated with opening up in a foreign country is that ______.

the licenser does not have to bear the development costs

Which of the following are principal corporate-level strategies? (Check all that apply.)

-Concentration on a single industry -Vertical integration -International expansion -Diversification

When a company reinvests its profits to strengthen its competitive position in its current industry, it is utilizing a(n) ______ strategy.

concentration on a single industry

The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals is known as ______.

strategy formulation

Which of the following is not a step in strategy implementation?

Establishing a long-term timeframe for implementation that only includes broad, general goals

Which of the following are steps in the planning process of an organization? (Check all that apply.)

Formulating strategies to achieve the goals Determining the organization's mission and goals Selecting the most effective way to implement organizational strategy

When a corporation sells the rights to use its name and expertise to a foreign company in exchange for a lump sum of money, it is called

Franchising

In large organizations, planning usually takes place at three levels of management. They are ___, ___, and ___.

business functional corporate

The downside of using the franchise strategy is that franchisers risk losing ______ over the way the franchisee operates the franchise.

control

Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service is an example of a ______ strategy.

differentiation

The advantage to franchising is ______.

that the franchiser does not have to bear the development costs

Fayol stated that effective plans should have four essential qualities, including ______.

unity, continuity, accuracy, and flexibility

The corporate-level strategy of related diversification means companies enter an industry that creates a competitive advantage for an organization's ______.

existing division or business

When a company customizes its products and marketing to fit specific national conditions, it is following a ______ strategy.

multidomestic

The generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions is ______.

scenario planning