MGMT Chapter 6 SmartBook

Refer to Figure 6.2. Place the steps in the strategic-management process in the correct order, with the first step listed at the top.

1. Establish 2. Assess 3. Formulate 4. Execute the strategies 5. Maintain

What are Porter's four competitive strategies?

1. cost-leadership 2. differentiation 3. cost-focus 4. focused-differentiation

Corporate-level strategy does which of the following? (Choose every correct answer.)

Answers questions such as "what business are we in?" and "what products and services shall we offer?" Focuses on the organization as a whole Involves senior executives in planning

Which of the following represent competitive forces used in Porter's model for industry analysis? (Choose every correct answer.)

Bargaining power of suppliers Threat of substitute products or services Rivalry among competitors Threats of new entrants

What does the BCG matrix evaluate? (Choose every correct answer.)

Business growth rates Market share

What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products that American Tile does not currently offer?

Diversification

According to Bryan Barry, which of the following help a manager keep a strategic plan on track? (Choose every correct answer.)

Engage people Keep moving Stay focused Keep it simple

True or false: It is common practice today for most small business owners to engage in strategic planning.

False

Which Porter's competitive strategies are appropriate when addressing a narrow market? (Choose every correct answer.)

Focused-differentiation Cost-focus

What are the core processes of business identified by Bossidy and Charan? (Choose every correct answer.)

Operations Strategy People

Of the three core processes of business identified by Bossidy and Charan, which do they believe is the most important?

People

What are functional strategies used to accomplish?

Putting strategic plans into effect

In addition to value, what characteristics are being addressed in a VRIO analysis? (Choose every correct answer.)

Rarity Imitability Organization

A ______ analysis is an assessment of the strengths, weaknesses, opportunities, and threats affecting the organization.

SWOT

Why do potential employers value the skill of strategic thinking in job candidates? (Choose every correct answer.)

Strategic thinkers make for more informed employees. Strategic thinkers are quick to recognize opportunities. Strategic thinkers are globally-minded.

Which "unwritten" skill did the Harvard Business Review consider essential to being promoted on the job?

Strategic thinking

What does business growth rate refer to, as used in the BCG matrix?

The speed of industry growth

What are the goals of attending industry conferences before or while working in a certain industry? (Choose every correct answer.)

To make industry contacts To learn about the specific industry

True or false: According to Bossidy and Charan, execution is the central part of any company's strategy.

True

Why do many executives prefer visioning to execution?

Visioning is more exciting than execution.

Juanita feels it is important for her taxi company to continually measure itself against its best competition. She keeps track of the number of rides per hour and turnaround times for all her drivers and compares it to that of other high-performing taxi companies in the area. Juanita is using the process of ______ to compare her company with others.

benchmarking

The process by which a company compares its performance with that of other high-performing organizations is known as ______.

benchmarking

Strategic ______ involves monitoring the execution of strategy and taking corrective action when necessary.

control

The president, chief financial officer, and chief operating officer of Jensen Mfg. meet annually to discuss the direction of the company including what products they will continue to offer and what new products they will introduce. Which level of strategic management does this represent?

corporate-level

Which level of strategic management focuses on the organization as a whole?

corporate-level

Strategic thinkers should have a knowledge base shaped like the letter "T," where the top of the "T" represents breadth of knowledge and the stem of the "T" represents ______.

depth of expertise

The strategy of moving into new lines of business is called ______.

diversification

Aligning people with goals, achieving promised results, and integrating strategy with reality are all part of the ______ process.

execution

A ______ is a vision or projection of the future that is made following a SWOT analysis.

forecast

Leonore's Luxury Leather Footwear Corp. conducts a SWOT analysis and determines that at least 57 percent of consumers demand high-end footwear, and, as a result, its sales should increase by 18 percent in the next year. This vision of what could happen is known as a ______.

forecast

When corporate departments such as marketing, human resources, and information technology implement plans of action that support higher-level strategies, they are following a(n) ______ strategy.

functional

A business that wants to reach more customers and hires more employees to get this done is focusing on a ______ strategy.

growth

A grand strategy that involves expansion of things like sales revenues, market share, or number of employees is known as a ______ strategy.

growth

Porter's five competitive forces form a model for ______ analysis.

industry

To be successful, strategic planning requires a company to have a ______ orientation.

long-term

A system of shared beliefs and values that needs to be aligned with the goal of producing efficient, quality work is called ______ culture.

organizational

Strategic positioning attempts to achieve sustainable competitive advantage by ______.

preserving what is distinctive about a company

Refer to Figure 6.2. The "feedback loop" in the strategic-management process involves ______.

revising actions if necessary

Michael Porter defined ______ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.

strategic positioning

When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) ______ competitive advantage.

sustainable

Luxury Linens Inc. produces the highest thread-count sheets available anywhere and does so at a price that none of its competitors can duplicate. It can be said that Luxury Linens has a(n) ______.

sustainable competitive advantage

When would a company use a VRIO analysis?

when deciding whether or not a new product might work in the marketplace