MGMT 320 Chapter 6 Connect Quiz

Strategic position emerges from three sources:

(1) few needs, many customers; (2) broad needs, few customers; and (3) broad needs, many customers

Dave and his partner are studying the strengths and weaknesses of their construction business, Ajax Construction, as well as researching the opportunities and threats in the external environment. Dave and his partner are conducting a

SWOT analysis

Jeff, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap games made of cardboard and paper. He knows he will be selling his toys to both adults and children; for example, his expensive chess and backgammon sets are quite expensive because the board and pieces are all made of wood by local artists and craftsmen. He knows that his customer base will not include parents who are looking for an inexpensive toy for their children or to give as a birthday gift; there is another store in town that offers mass-produced games. As part of his marketing outreach, Jeff offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10 percent discount to a game at the Toy Box. All of Jeff's activities are aimed at giving Jeff a

blue ocean strategy and defensive strategy (both wrong)

_______ involves gathering information about your competitors' activities so that you can anticipate their moves and react appropriately. For example, you may attend a trade show to learn what types of new products and new iPhone apps your competitors are planning to launch in the next six months.

competitive intelligence

Strategic positioning involves performing the same activities as rivals in a similar way, but at a lower cost.

false

______________ focus(es) on developing a comprehensive program for long-term success.

strategic planning

The owners of a computer repair shop want to better formulate strategies, so they are doing a SWOT analysis to understand the strengths and weaknesses within their company and the opportunities and threats of the external environment. These are some of the benefits of doing a SWOT analysis.

true

An organization's vision statement states _____. For example, the Cleveland Clinic's vision statements says that it "strives to be the world's leader in patient experience, clinical outcomes, research, and education."

what the company wants to become, where it wants to go strategically

An offensive strategy is a grand strategy that involves reduction in the organization's efforts. For example, some large publishers are no longer publishing children's books because they are too expensive to produce and distribute, and because the profit margins are too low to justify the investment.

false

Several studies found that strategic planning does not benefit smaller companies, as they very seldom see improvements in financial performance from this type of planning.

false

The organizational-management process consists of seven steps: (1) doing research, (2) establishing the mission and vision, (3) assessing the current reality, (4) formulating the grand strategy, (4) implementing the strategy, (6) maintaining strategic control, and (7) maintaining the feedback loop.

false

To achieve a sustainable competitive advantage, La Grand Parfumerie (a company that develops women's perfumes and men's colognes) must benchmark its competition so that La Grand Parfumerie can produce the same products as its competition but at a lower price.

false

Leela's Home Decorators believes that the demand for its services will expand greatly, because a real-estate developer has just purchased 100 acres in town. The developer is planning to build 1,000 condominium units on the property. The managers of Leela's Home Decorators are making a projection for the future, also known as a

forecast

Francis, who is starting a painting business, plans to write down the purpose of his painting business and his company's reason for being. Francis is writing his

mission statement

Stars are _____, according to the BCG matrix. Stars have included Apple and the diamond company DeBeers.

organizations with high growth and high market share which are definite keepers

Many customers have visited Sally's Diner for decades because of the diner's friendly service. Most customers feel that Sally's is the friendliest placed around. In a SWOT analysis, the friendly service at Sally's is an example of a company

strength

A stability strategy is a grand strategy that involves little or no significant organizational change. For example, Love Forever is a jewelry store that sells only one type of item: engagement and wedding rings. The management of Love Forever does not plan to branch out into selling different types of jewelry; the company has a reputation for being the go-to store to purchase wedding rings, and it plans to maintain that strategy.

true

Johnson's Fruit Farm is one of several stores in the county where customers can purchase locally grown fruits and vegetables. However, Mrs. Johnson also offers weekly workshops in her store on topics such as canning, healthy eating, and how to grow a garden, which no other store in the county does. By offering these unique workshops, the Johnsons are engaging in strategic positioning.

true

Strategy implementation is putting strategic plans into effect, which means dealing with roadblocks within the organization's structure and culture and seeing if the right people and control systems are available to execute the plans.

true

Sue and Jane Smith are writing the vision statement for their new consignment shop, Then & Now. Because they want their employees and business to grow and reach goals, Then & Now's mission statement should be positive and inspiring, pushing their organization and the workers to achieve goals that they believe are beyond its reach.

true