Chapter 6 Quizzes

______ requires a manger to visit an earlier step in the strategic-management process in order to revise actions if necessary. The planning process The current reality assessment The feedback loop Correct Strategy formulation The organizational mission

The feedback loop

Many customers shop at Organic Foods because of the employees' extensive product knowledge. In a SWOT analysis, the employees' high levels of product knowledge are an example of the company's Multiple Choice strengths. opportunities. intelligence. threats. weaknesses.

STRENGHTS

The owners of Smith's Yard Mart, a family-owned garden center in a rural community, are concerned over the news that a large retailer with a garden center is building a new store on the other side of town. According to a SWOT analysis, this new retailer is a(n) ____ to Smith's. Multiple Choice opportunity strength weakness threat intelligence

THREAT

The managers of a small bakery, Butter & Batter, decided to do a SWOT analysis to study the strengths and weaknesses within the organization and the external environment. A key benefit of conducting a SWOT analysis is being able to better formulate strategies in pursuit of the firm's mission. TRUE OR FALSE

TRUE

A local karate studio offers many services: karate lessons to young children (under age 10), judo lessons to preteens, kickboxing courses for teenagers and adults, and self-defense courses for older people. We can say that the studio has achieved _____ because the studio's activities interact and reinforce one another. an effective defensive strategy a blue ocean strategy diversification contingency fit

fit

The Golden Bed in Dayton, Ohio, sells high-quality, unique bedding that is a real value to upscale homes in the area. No other company in its local area markets bedding of such quality and value. By offering this type of product, The Golden Bed is utilizing a _____ strategy. Multiple Choice cost-leadership strategy cost-focus differentiation uniquely focused focused-differentiation

focused-differentiation

The growth, stability, and defensive strategies are common Multiple Choice leadership strategies. cost-leadership strategies. types of differentiation plans. stabilization strategies. grand strategies.

grand strategies

A company's overall ability to execute is a function of effectively executing according to three processes, but Bossidy and Charan believe that the _____ process is the most important. Multiple Choice people strategy leading planning operations

people

A company's overall ability to execute is a function of effectively executing according to three processes, but Bossidy and Charan believe that the _____ process is the most important. Multiple Choice operations leading people planning strategy

people.

_________ is another term for a defensive strategy. Multiple Choice A retrenchment strategy A fixed plan The aggressive approach A growth strategy A stability strategy

A retrenchment strategy

In the 1970s, Atari singlehandedly created a market for home video games, offering a console and cartridges that contained games like Space Invaders, Centipede, and Asteroids. At the time, Atari effectively implemented a ______ strategy. multiproduct greenfield blue ocean diversification defensive

BLUE OCEAN

Pedro, CEO of a successful IT company, is constantly reading press releases, ads, and news articles about his competition. He regularly checks information about new competitive products and visits trade shows to study his competition. Pedro is involved in Multiple Choice TQM. competitive intelligence. corporate spying. management by observation. environmental observation.

COMPETITIVE INTELLIGENCE

Brilliante Pens, a 125-year-old pen manufacturer, markets very high-quality pens, many of which cost more than $1,000 each, to executives globally, always maintaining its reputation of superior value in its narrow market. Brilliante is using a cost-focus strategy. True or False

False

Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be good. However, even with her forecast of continued strong sales, Donna and her business partner need to develop a plan in case sales drop unexpectedly. ________ is the type of planning for alternative future conditions. Multiple Choice A vision plan Trend analysis A managerial pact Contingency planning Background planning

Contingency planning

Which of the following questions is NOT useful for evaluating a company's values statement? Does it set standards of excellence and reflect high ideals? Does it express the company's distinctiveness, its view of the world? Is it tough, serving as the foundation on which difficult company decisions can be made? Will it be unchanging, as valid 100 years from now as it is today? Would you wish the organization to continue to hold these values, even if at some point they become a competitive disadvantage?

Does it set standards of excellence and reflect high ideals?

Because all work ultimately entails some human interaction, effort, or involvement, Bossidy and Charan believe that focusing on organization synergy is the most important process in strategy execution. True or False

FALSE

The vision statement is an organization's purpose or reason for being, and a company's mission statement is its long-term goal of what it wants to become. TRUE OR FALSE

FALSE

___________ is(are) included in strategic control. Multiple Choice Implementing MBO Seldom making adjustments to a strategy A strong employee diversity and synergy agenda Monitoring the execution of strategy and making adjustments, if necessary, Developing a diversity plan

Monitoring the execution of strategy and making adjustments, if necessary,

Strategy formulation is the process of gaining information about competition and then selecting which information to react to. choosing among different strategies and altering them to best fit the organization's needs. strategically controlling your employees' actions. selecting the employees who best fit the organization. developing a strong diversity plan.

choosing among different strategies and altering them to best fit the organization's needs

Don knows that one of the reasons people do not return to his electronics store is because of the slow service. How would a SWOT analysis classify the slow service at Don's electronic store? Multiple Choice as a strength as a threat as a weakness as an opportunity as intelligence

as a weakness

In the 1970s, Atari singlehandedly created a market for home video games, offering a console and cartridges that contained games like Space Invaders, Centipede, and Asteroids. At the time, Atari effectively implemented a ______ strategy. Multiple Choice greenfield diversification blue ocean defensive multiproduct

blue ocean

Instructor Services is a technology company that offers many IT services in highly populated southern Ohio. The company's services and products include computer training, support, monitoring, repair, network design, virus removal, and software upgrades. It even sells refurbished computers. The source of Instructor Services' strategic position is low-profit margin and many customers. broad needs and few customers. broad needs and many customers high-profit margin and many customers. high-profit margin and few customers.

broad needs and many customers

The BCG matrix is a means of evaluating strategic business units on the basis of their Multiple Choice product quality and profitability. business growth rates and share of the market. differentiation and profitability. business costs and share of the market.

business growth rates and share of the market.

The BCG matrix is a means of evaluating strategic business units on the basis of their business costs and share of the market. differentiation and profitability. business growth rates and share of the market. BCG ratio.

business growth rates and share of the market.

When organizations endeavor (1) to keep their costs (and hence the prices of their products or services) below those of competitors and (2) to target a wide market, they are utilizing a _____ strategy. Multiple Choice focused-differentiation differentiation cost-leadership reinventing cost-focus

cost- leadership

The second step in the strategic-management process is a(n) ________, where managers look at where the organization stands, and then determine what is working and what could be different to maximize efficiency and effectiveness in achieving the organization's mission. Multiple Choice grand strategy ethical and diversity evaluation current reality assessment company synergy assessment organizational vision statement

current really assessment

Organic Market sells high-quality products and grocery items that are unique to its area; in addition it offers delivery for customers who are unable to leave their home and a number of regular workshops regarding healthy eating. By offering these types of products and services, Organic Market is pursuing a _____ strategy. cost-savings cost-focus value-focused differentiation focus- differentiation

differentiation

According to Harvard Business School professor Michael Porter, strategic positioning means _____ to achieve sustainable competitive advantage. Aggressive growth distinctive positioning collaborative planning strategic alliances retrenchment

distinctive positioning

Quality Services is an organization that operates several companies that market food products, restaurant equipment, and paper and plastic products, and it even has a division that counsels restaurant owners, helping them launch new restaurants successfully. Quality Services is pursuing a _____ strategy. focused-differentiation strategy differentiation multiproduct single-product diversification

diversification

Susana keeps a close eye on her company's internal and external environment to discover possible opportunities for new products and to discern possible threats from the competition. In which activity is Susana engaged? Multiple Choice corporate spying the synergistic approach environmental scanning management by observation competitive intelligence

environmental scanning

Organic Foods International has decided to increase its market share by hiring a marketing rep to visit businesses in the area and invite their employees to shop at Organic Foods and attend monthly health events that take place at Organic Foods stores. Each of the individual stores has hired two new employees to handle the anticipated increase in customer traffic. Organic Foods is using a _____ strategy. cutting-edge stability defensive growth diverse

growth

Christopher's Restaurant and Catering serves delicious vegetarian and vegan dishes. So when the local community became interested in eating a healthier diet, Christopher's benefited. In a SWOT analysis, the changing community attitudes are an example of a(n) _____ for Christopher's Restaurant. Multiple Choice threat weakness intelligence opportunity strength

opportunity

A forecast is a(n) glimpse of what just happened. execution of strategy and adjustments. projection for the future. analysis of the past. plan for implementing strategic plans.

projection for the future

Contingency planning is also known as scenario goal-setting and plans. a trend analysis. organizational opportunities. scenario planning and scenario analysis. strategic planning.

scenario planning and scenario analysis.

In a SWOT analysis, organizational strengths are external opportunities that a company can take advantage of. environmental factors that the organization may exploit for competitive advantage. MBO skills that should be emphasized. skills and capabilities that give a company advantages in executing its strategies. means that give a specific industry an advantage in a down economy.

skills and capabilities that give a company advantages in executing its strategies.

Delux Technology has a reputation of reliability and a winning customer service, qualities that helped to build this highly respected name brand over the last 15 years. Speaking at a recent business conference, Steve, the CEO of Delux, told his audience, "We have built our reputation by changing little over the last several years, but consistently helping customers with great, caring service and a reliable product." Which type of strategy does Delux Technology use? Multiple Choice merger approach growth strategy defensive strategy stability strategy retrenchment strategy

stability strategy.

In the BCG matrix, _____ are companies that have high growth and high market share, and are definite keepers. sleeping giants stars cash cows turtles sleepers

stars

The three key principles of ______ are the creation of a unique and valuable position, trade-offs in competing, and creating a "fit" among activities. Multiple Choice an increased MBO an environment with few or no competitors a strong employee morale strategic positioning company diversity

strategic positioning

What is the assessment of the external environment? What are the critical issues facing the business? Can the business execute the strategy?" According to Bossidy and Charan, a ______ should address these some of these questions. code of ethics value statement diversity agenda mission statement strong strategic plan

strong strategic plan

Michael Porter proposed that business-level strategies originate with the primary competitive forces in the firm's environment; these forces are Multiple Choice the threats of government paperwork and tax increases, the bargaining power of suppliers, and competitive rivalries. the threats of substitute products and the services and competitive rivalries. the threats of new entrants and substitute products or services, the bargaining power of suppliers and buyers, and competitive rivalries. the bargaining power of suppliers. the threats of new entrants and the bargaining power of buyers and suppliers.

the threats of new entrants and substitute products or services, the bargaining power of suppliers and buyers, and competitive rivalries.

Tom and his family have developed a successful business selling a liquid spray fertilizer to farmers. The fertilizer consists of rich, organic, composted material. Recently NuBreed Seed, a national seed company, has been marketing a powdered chemical fertilizer to its customers; NuBreed's fertilizer is less expensive than Tom's product. Multiple Choice power of the suppliers threats of substitute products and services threats of new ideas competitive rivalry among competitors buyers' negotiating influence

threats of substitute products and services

A and B Office Supply, a small family-owned company, sells high-priced desks, some as expensive as $10,000, to executives in its area. Very few companies have chosen to market this product, and A and B has enjoyed record profits over the last 25 years. A and B Office Supply is an example of a company that would typically not choose to utilize strategic planning. True or false

true

Competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately. For example, managers gain competitive intelligence by reading business publications in order to understand competitors' business plans, goals, and strategies. True or False

true

Donna's Restaurant is a popular café that specializes in home-cooked meals, friendly service, and a menu that contains vegan and vegetarian dishes, (menu items that no other restaurant in the area offers). Donna's Restaurant is engaging in strategic positioning by offering the unique menu items of vegan and vegetarian dishes. True or false

true

Organizational threats are an environmental factor that can hinder an organization's ability to achieve a competitive advantage. For example, managers may realize that the government is about to place restrictions on exports, which will limit the company's ability to sell its products overseas (which will in turn greatly reduce its profits). true or false

true

The best ways to avoid faddish management ideas are to understand your own core values, and use this knowledge to create or accept the core values of your company. adopt management by consensus and business process reengineering. adopt MBO and TQM. emphasize employee diversity and expand the business's operations globally. implement a six-sigma quality system and manage by "walking around."

understand your own core values, and use this knowledge to create or accept the core values of your company.

Porter's competitive strategies of cost-leadership and differentiation focus on ____ markets, while the cost-focus and focused-differentiation strategies focus on ____ markets. Multiple Choice narrow; wide specific; broad diverse; narrow wide; narrow growth; specific

wide; narrow