Management Chapter 3

Which of the following companies is the best example of a single-product strategy? a. Marlboro b. Disney c. Burger King d. Hewlett-Packard (HP)

a. Marlboro

The following are key areas of a well-conceived strategy EXCEPT: a. Human resources b. Scope c. Resource deployment d. Distinctive competence

a. Human resources

___________refers to the choices an organization makes as to where and how much to invest. a. Resource deployment b. Distinctive competence c. Corporate-level strategy d. Scope

a. Resource deployment

What does SWOT stand for? a. Strengths, weaknesses, opportunities, and threats b. Strengths, weaknesses, openness to growth, and teaching moments c. Skills, worldview, operations, and technology d. Systems, workers, opportunities, and technology

a. Strengths, weaknesses, opportunities, and threats

Which of the following is LEAST important when it comes to executing tactical plans? a. The manager needs to make sure that everyone in the organization is involved in the plan. b. The manager needs to evaluate every course of action as it pertains to the end goal. c. The manager needs to monitor progress so that they can measure results. d. The manager needs to make sure that key decision makers have the appropriate information and resources.

a. The manager needs to make sure that everyone in the organization is involved in the plan.

What is the purpose of the BCG Matrix? a. To assist in strategic decisions regarding which business units to invest more heavily in b. To calculate which percentage of an organization's workforce needs to be laid off c. To increase a company's ability to practice unrelated diversification d. To calculate how much money is being lost annually by a given business unit

a. To assist in strategic decisions regarding which business units to invest more heavily in

According to the BCG matrix, _____ are businesses that have a very small share of a market that is not expected to grow. a. dogs b. stars c. cash cows d. question marks

a. dogs

A firm that specializes in alternative energy releases a new and highly efficient solar battery. During the _____ stage of the product cycle, other firms will begin to produce the product and sales will continue to increase. a. growth b. introduction c. maturity d. decline

a. growth

A wedding planner in Boston decides to open a specialty boutique for bridal gowns. This is an example of _____. a. related diversification b. unrelated diversification c. single-product strategy d. overall cost leadership strategy

a. related diversification

The General Electric (GE) business screen is an analytical method that would be most effectively utilized by: a. The board of trustees b. Mid-level managers c. Corporate-level leadership d. Assembly-line workers

c. Corporate-level leadership

It is important for businesses to develop strategy at two distinct levels. What are these two levels? a. Ground level and corporate level b. Business level and corporate level c. Human capital level and financial level d. Finance level and marketing level

b. Business level and corporate level

Which of the following is true of a differentiation strategy? a. It is a strategy through which a firm reduces its costs below the costs of competing firms. b. It is a strategy in which a firm distinguishes itself from competitors through the quality of its products. c. It is a strategy that concentrates on a specific regional market, product line, or group of buyers. d. It is also known as a corporate-level strategy.

b. It is a strategy in which a firm distinguishes itself from competitors through the quality of its products.

Which of the following is the best example of a standing plan? a. A McDonald's franchise choosing to lay off 10 percent of their workforce b. Microsoft implementing a new standard operating procedure for R&D project approval c. Chick-fil-A switching to a new recipe for their chicken nuggets d. Apple releasing a brand-new product

b. Microsoft implementing a new standard operating procedure for R&D project approval

Which of the following is FALSE regarding Organizational Weaknesses? a. Organizational members are often reluctant to admit where they are lacking, making it hard to identify weaknesses. b. Most companies are able to operate freely with very few weaknesses. c. Investments must be made to obtain the strengths needed to fix the weakness. d. The company mission may need to be modified in order to work around the current weaknesses.

b. Most companies are able to operate freely with very few weaknesses.

What are the four elements of an Organization's Mission? a. Policies, procedures, systems, and culture b. Purpose, premises, values, and directions c. Purpose, procedures, vision, and execution d. People, places, things, and ideas

b. Purpose, premises, values, and directions

Which of the following areas of the strategy specifies the range of markets in which an organization will compete? a. Resource deployment b. Scope c. Organizational strengths d. Distinctive competence

b. Scope

Which of the following is a type of corporate-level strategy? a. Overall cost leadership strategy b. Single-product strategy c. Differentiation strategy d. Focus strategy

b. Single-product strategy

What is a Distinctive Competence? a. Something the company does exceptionally poorly b. Something the company does exceptionally well c. The process by which the organization makes money d. The organization's mission statement

b. Something the company does exceptionally well

What is the difference between strategic goals and tactical goals? a. Strategic goals have to do with company culture, while tactical goals are focused on the bottom line. b. Strategic goals are set by and for top management, while tactical goals are set by and for middle managers. c. There is no difference. d. Strategic and tactical goals differ in terms of scope only.

b. Strategic goals are set by and for top management, while tactical goals are set by and for middle managers.

Which of the following is true of firms that successfully implement a differentiation strategy? a. They reduce their costs below costs of competing firms. b. They are able to charge more than competitors. c. They benefit when consumers avoid higher-priced products. d. They focus on quantity over quality.

b. They are able to charge more than competitors.

Organizational strengths are: a. areas that may generate higher performance. b. capabilities that enable an organization to implement its strategies. c. skills that do not enable an organization to choose strategies that support its mission. d. areas that increase the difficulty of an organization performing at a high level.

b. capabilities that enable an organization to implement its strategies.

An automobile company that is the first of its kind to manufacture a car that runs solely on solar energy is said to: a. be norming. b. have a distinctive competence. c. be soldiering. d. be a star.

b. have a distinctive competence.

According to the BCG matrix, _____ are businesses that have the largest share of a rapidly growing market. a. question marks b. stars c. cash cows d. dogs

b. stars

In practice, organizations have a hard time focusing on _____. a. opportunities b. weaknesses c. strengths d. threats

b. weaknesses

A company setting themselves apart from the competition through the quality of its product is referred to as: a. Organizational opportunity b. Product life cycle c. Differentiation strategy d. Organizational threat

c. Differentiation strategy

Which of the following is true regarding operation plans? a. Operational plans are broad in scope. b. Operational plans determine corporate-level strategies. c. Operational plans tend to involve lower-level managers. d. Operational plans have extended time frames.

c. Operational plans tend to involve lower-level managers.

What are the two categories of single-use plans? a. Policies and procedures b. Rules and regulations c. Programs and projects d. Processes and purchases

c. Programs and projects

Which of the following is true of operational goals? a. They are set by middle managers. b. They focus on broad, general issues. c. They concern themselves with short-term issues. d. They are set by an organization's top managers.

c. They concern themselves with short-term issues.

Product differentiation is an important management issue during the _____ stage of the product life cycle. a. maturity b. decline c. growth d. introduction

c. growth

In the SWOT analysis, evaluating organizational _____ requires analyzing an organization's environment. a. hazards b. weaknesses c. opportunities d. strengths

c. opportunities

A national news event leads to a surge of interest in education policy. For an education think tank, this represents an organizational _____. a. threat b. weakness c. opportunity d. strength

c. opportunity

What is a tactical plan? a. An onboarding plan used to transition employees to new roles b. A course of action designed to accomplish a strategic goal c. An intentional modification of company culture d. A specific process created to achieve a tactical goal in a short time frame

d. A specific process created to achieve a tactical goal in a short time frame

Capitalizing on a SWOT Aanalysis entails which of the following? a. Avoid strengths and opportunities; invest in threats and weaknesses. b. Exploit strengths; minimize opportunities, threats, and weaknesses. c. Minimize strengths, maximize opportunities and threats, and eliminate weaknesses. d. Exploit opportunities and strengths; neutralize threats and weaknesses.

d. Exploit opportunities and strengths; neutralize threats and weaknesses.

Which of the following is the best example of Focus Strategy? a. Anheuser-Busch investing heavily in keeping their product consistent across all breweries b. Walmart streamlining their supply-chain processes in order to cut costs c. Timex using high-volume production to keep retail prices for their watches low d. Fitbit purposely targeting active customers with their advertising and product placement

d. Fitbit purposely targeting active customers with their advertising and product placement

What are the four stages of the Product Life Cycle? a. Introduction, assimilation, ascension, and extinction b. Development, marketing, sales, and profit c. Growth, stagnation, decline, and reflection d. Introduction, growth, maturity, and decline

d. Introduction, growth, maturity, and decline

_____ goals are set by and for an organization's top management. a. Tactical b. Operational c. Diversification d. Strategic

d. Strategic

How is tactical planning related to strategic planning? a. Tactical plans are implemented after strategic plans. b. Tactical plans are more important than strategic plans. c. Tactical plans are implemented prior to strategic plans. d. Tactical plans are used to execute specific parts of a larger strategic plan.

d. Tactical plans are used to execute specific parts of a larger strategic plan.

Which of the following is NOT a basic guideline of all tactical plans? a. Tactical plans must specify resources and time frames. b. Tactical planning requires the use of human resources. c. Tactical plans must address tactical goals drawn from an overarching strategic plan. d. Tactical plans must be carried out by middle management.

d. Tactical plans must be carried out by middle management.

Which of the following is true of strategic plans? a. They have specific and concrete focus. b. They have a short time horizon. c. They are developed by middle- and lower-level managers d. They address questions of competitive advantage and synergy.

d. They address questions of competitive advantage and synergy.

A line manager at a brewery sets a target for the minimum number of beer cartons that have to be shipped out by the end of each day. This is an example of a(n) _____ goal. a. tactical b. strategic c. program d. operational

d. operational

The set of processes involved in creating or determining the organization's strategies is called ___. a. business-level strategy b. strategy implementation c. strategy d. strategy formulation

d. strategy formulation