Chapter 07: Managing Strategy and Strategic Planning

When referring to a SWOT analysis, the letter O stands for ____________________, and it refers to factors that are _________________ to the organization.

opportunities; external

At Apple, managers ask, "Should our next iPad product be innovative and new, so we can charge a higher price for it, or should we consider going down one more size, so people with less money can purchase an iPad?"

Business-level strategy

Last week, senior managers in the Post-it® Note division at 3M met to determine the best way to handle their product. Regardless of how 3M positions its other products, Post-it Notes will continue to be widely sold at a premium price. The company will continue to develop new Post-it products to attract new buyers.

Business-level strategy

When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify: Company strengths and weaknesses Company opportunities and threats Environmental strengths and weaknesses Environmental opportunities and threats

Company strengths and weaknesses

One of the corporation's businesses has a core competency in developing artificial intelligence (AI) that handles very complex scheduling, such as airline scheduling. Analysts forecast that businesses and governments will be looking to put this type of AI-enabled software to a wide range of new uses over the next decade. Based on this information, which corporate-level strategy would you lean toward? Single-product strategy Unrelated diversification strategy Related diversification strategy

Related diversification strategy

A restaurant chain decides to start a catering business. It will use the same kitchen layout and equipment as it already uses in its dine-in restaurants, and it will source ingredients from the same suppliers. However, the catering business will prepare food for delivery to different customers and operate under a different brand name. This company is pursuing _______________________ strategy. an unrelated diversification a related diversification a single-product an analyzer

a related diversification

Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes CEO Etienne Patout. Suppose Patout were deciding on a pricing strategy for the company's chocolate bars but no other company products. This is a ____________________ strategic decision. To make this decision, Patout would have to take which of the following actions? Check all that apply.

business-level

A company is creating a __________________________when it asks, "What business are we in?" business-level strategy corporate-level strategy resource deployment scope

corporate-level strategy

Employees at Jasmine Prudhome's company have an average of 8 years with the firm, and they consistently come up with extremely innovative ideas. These employees are a key _______________________________. product life cycle focus strategy organizational opportunity organizational strength

organizational strength

Some aspects of UNIQLO's strategy appear to be in line with Porter's differentiation strategy, while others are more aligned with overall cost leadership. Selling a large quantity of relatively few products can help to increase economies of scale. This tactic is associated with ________________________. focus differentiation overall cost leadership

overall cost leadership

Janet has been asked to analyze the introduction, growth, maturity, and decline stages projected for a new product at her company. By doing so, she is analyzing the _______________________. product life cycle overall cost leadership strategy single-product strategy differentiation strategy

product life cycle

Which of the following divisions would you continue to run in order to earn profits to invest in other businesses? Railroad loading Cargo inspection Shipping Freight forwarding

Railroad loading

A fast-food business modifies its menu substantially in the different countries where it opens restaurants, as well as accommodating different expectations regarding customer service. This company probably uses a ____________________ strategy. home replication global multidomestic

multidomestic

Never previously known as a computer hardware company, Microsoft decides to enter the tablet manufacturing business, producing the Microsoft Surface.

Corporate-Level Strategy

Use your knowledge of the Boston Consulting Group matrix to select the correct labels in the diagram. a: star (invest heavily b: cash cow (take profits) c: question mark, invest cautiously d: dog, sell business

A: High B: Market Growth Rate C: High D: Relative Market Share

Simply having a strategy does not ensure success. ___________________________________ results when the strategy is actually implemented in a way that leads to the desired results. Contingency planning An effective strategy A distinctive competence Effective diversification

An effective strategy

During the first 10 months of 2014, spending-per-customer declined at UNIQLO's stores in Japan. As a result, beginning in October 2014, top management changed the focus of the company's marketing. Instead of emphasizing low prices, the company began highlighting its use of high-quality materials to restimulate interest in its current clothing lines, and it continued to look at aggressively expanding the number stores in various countries. Which type of strategy was UNIQLO using? Reactor Prospector Analyzer Defender

Analyzer

Cisco managers sat down recently to review the portfolio of their company. They looked at all of the businesses the company had acquired in the last year and determined how much money each acquisition was making for Cisco. They then decided which companies to keep and which to spin off.

Corporate-Level Strategy

Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes CEO Etienne Patout. Suppose Patout were deciding on a pricing strategy for the company's chocolate bars but no other company products. This is a business-level strategic decision. To make this decision, Patout would have to take which of the following actions? Check all that apply. Evaluate the intensity of competition and competitors' pricing of candies. Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. Determine what kind of industries Theo Chocolate should be in. Choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.

Evaluate the intensity of competition and competitors' pricing of candies. Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. Choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.

Larry was asked to analyze businesses by classifying them as winners, losers, question marks, average businesses, and profit producers. He was most likely using the ______________________. BCG Matrix single-use plan Standard Operating Procedure (SOP) GE Business Screen

GE Business Screen

Given all of the factors listed in the preceding question, what strategy would make the most sense for the championship team as it prepares for the upcoming season? Assume that as the players age, they will continue to produce at their current levels. Keep the team intact and do not hire any new players because the team was good enough to win the World Series. Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts. Trade the team's younger pitchers to another team for minor-league prospects who aren't ready for the major league.

Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.

If the company uses Porter's differentiation strategy, what should be the focus of the company culture? Prestige and superiority Opportunities for efficiency Creativity and customer service Discipline and clear roles

Creativity and customer service

If the company has decided to use Miles and Snow's analyzer strategy, which of the following actions would best support this strategy? Develop decision-making processes that optimize goal setting. Hire from outside the company whenever possible. Encourage creativity by giving lower-level managers the resources to innovate.

Develop decision-making processes that optimize goal setting.

Which of the following factors should be classified as a threat for the team? A number of free-agent outfielders are available to sign by the team this year. Many of them have better statistics than the current team members. During the off-season, another team in the league signed players whose skills matched or exceeded those of the current champions. Several of the team's players have had extraordinary seasons, but now some of them are not playing as well as they did when they were younger. The team's starting pitchers are exceptionally strong and young and can potentially keep the current champions at the top of the league for years to come.

During the off-season, another team in the league signed players whose skills matched or exceeded those of the current champions.

Given that UNIQLO is in the growth stage, with demand high and little competition, which of the following would be appropriate activities to include in the company's short-term plan? Research whether supplies will be sufficient to provide necessary inputs to the manufacturing plants Advertise on a local radio station Research demographic projections for U.S. consumers and their shopping habits Examine data from the 17 existing U.S. stores to understand the shopping habits of UNIQLO's U.S. customers

Research whether supplies will be sufficient to provide necessary inputs to the manufacturing plants

Having successfully led a global diversification strategy for your organization, you have been asked to be the keynote speaker at a conference on globalization. Which of the following are advantages of diversifying internationally that you might cite in your address? Check all that apply. Companies may be able to use one facility to serve a larger number of customers. After gaining entry to a country's market, companies may be able to leverage their presence in the country to expand their product offerings there. International companies become highly efficient because they can make decisions in a standard way for all their businesses. Companies may be able to locate their facilities closer to customers or to raw materials.

Companies may be able to use one facility to serve a larger number of customers. After gaining entry to a country's market, companies may be able to leverage their presence in the country to expand their product offerings there. Companies may be able to locate their facilities closer to customers or to raw materials.