Management Ch 6- Dr. Loes (Belmont University)

What name is given to the evaluation of the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment?

SWOT Analysis

Which of the following characteristics relates to a business-level strategy?

The area of responsibility usually assigned to the divisional-level managers

Which of the following characteristics relates to the product life cycle?

The cycle of birth, growth, maturity, and decline of a product

Which of the following characteristics relates to contingency plans?

Alternate courses of action to be undertaken if certain organizational or environmental conditions change

What is meant by focus?

A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

What are strategic goals?

Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

What is meant by decline?

The product life cycle stage marked by decreases in the product's market share

What is meant by corporate strategy?

The scope and resource deployment components of strategy for the enterprise as a whole

"Improving people's lives by providing gas and electric services in a sustainable way -- affordable, reliable and clean" is an example of

a mission statement

In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called

a strength

In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called

an opportunity

Which of the following refers to the initial stage of the product life cycle when the product is introduced?

birth

What term describes a business-level strategy aimed at achieving the overall lowest cost structure in an industry?

cost leadership

The first step in strategic planning is

determining the mission and strategic goals

What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?

differentiation

When a firm offers a unique good or service to a customer at a premium price, it is following the business-level strategy of

differentiation

MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a

distinctive competence

What term describes what a firm does well relative to its competitors?

distinctive competence

Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a

distinctive competence.

You sell Gourmet Mushrooms (GMs) at $100 an ounce. You have a secret source of supply, jealously guarded. Your GMs are better than your competitors' mushrooms, and only the very wealthiest Americans buy them. You are using the business strategy called

focus

What name is given to the final result that a firm wishes to achieve?

goal

What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share?

growth

_____ of a plan is where the organization goes from the "thinking" mode to the "doing" mode.

implementation

At even the largest and most affluent corporation, the strategic management process begins with

limited resources

What name is given to the product life cycle stage when the product's market share either slows or has no growth?

maturity

When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in?

maturity

Which of the following refers to a definition of an organization's fundamental purpose and its basic philosophy?

mission

What term is used to describe a formal written declaration of the organization's mission that often includes the firm's philosophy, its primary products and markets, the intended geographic scope, and the nature of the relationships between the firm, its stakeholders, and society?

mission statement

Which of the following refers to a set of activities intended to achieve goals, whether for an entire organization, department, or an individual?

plan

Which of the following refers to a general statement of actions an organization intends to take or is taking that is based on the fit of the organization with its external environment?

strategy

The purpose of a strategy is to

take advantage of what the organization does well, or hopes to do well.

Strategic planning differs from general planning in that it focuses on

the external environment and long-term goals