mngt ch 7

One of your company's major competitors recently filed for bankruptcy, which has caused many of its customers to look for a new supplier. This presents your company with an organizational ________ (SWOT)

opportunity

Since its founding in 2002, Crocs has made shoes. It makes shoes for women, men, and children and for casual and work settings, but it doesn't make anything except footwear. Crocs is using a _________ strategy.

single-product

Multinational conglomerate GE emphasizes the efficiency of its operations "from hospitals to airport tarmacs, from power plants to software studios." GE is pursuing an ___________________ strategy.

unrelated diversification

Heattech clothes, which one else uses, are associated with a ________ strategy for UNIQLO.

differentiation

the set of procedures an organization uses if a disaster or other unexpected event occurs

Crisis management

If the company has decided to use Miles and Snow's defender strategy, which of the following actions would most likely be a priority? Optimize goal setting and controls to regulate the flow of resources. Develop a culture that values innovation. Adopt a functional organization design.

Adopt a functional organization design.

the number of different businesses in which an organization is engaged

Diversification

which of these fall under business level strat Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. Determine what kind of industries Theo Chocolate should be in. Evaluate the intensity of competition and competitors' pricing of candies. Choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.

Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. Determine what kind of industries Theo Chocolate should be in. Choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.

BCG matrix: These companies have low relative market share, but high market growth rates // are worth a gamble if you think the company will gain market share over time.

Question marks

comprehensive and ongoing management process aimed at formulating and implementing effective strategies. It is a way of approaching business opportunities and challenges.

Strategic management

thinking ab the BCG Matrix, which do you want to invest in?

The best investment opportunities are stars—companies that have high relative market share and high market growth rates. Next are question marks. These companies have low relative market share, but high market growth rates. Question marks are worth a gamble if you think the company will gain market share over time.

If the company uses Porter's cost leadership strategy, what should marketing and sales emphasize? The ability of the company's products to satisfy more than basic needs The good value of the company's products The prestige that the company's brand conveys The fact that the company's products are easily mass-produced

The good value of the company's products An overall cost leadership strategy seeks a competitive advantage through low costs and low prices. For marketing and sales, this means emphasizing to customers not just the low price of a product but also its good value.

During the first 10 months of 2014, spending-per-customer declined at UNIQLO's stores in Japan. As a result, beginning in October 2014, top management changed the focus of the company's marketing. Instead of emphasizing low prices, the company began highlighting its use of high-quality materials to restimulate interest in its current clothing lines, and it continued to look at aggressively expanding the number stores in various countries. Which type of strategy was UNIQLO using?

analyzer

busi or corporate level strat? Last week, senior managers in the Post-it® Note division at 3M met to determine the best way to handle their product. Regardless of how 3M positions its other products, Post-it Notes will continue to be widely sold at a premium price. The company will continue to develop new Post-it products to attract new buyers. At Apple, managers ask, "Should our next iPad product be innovative and new, so we can charge a higher price for it, or should we consider going down one more size, so people with less money can purchase an iPad?" PepsiCo makes and sells large numbers of products, from Pepsi Cola to Lay's potato chips to Cap'n Crunch cereal. Last Tuesday, PepsiCo analyzed the sales of Near East Rice Pilaf mix. Looking at the increase in sales for foreign foods, and considering the large amount of money PepsiCo has in its coffers, managers decided to continue selling Near East Rice Pilaf and advertise it more heavily.

business

BCG Matrix: A _________ is a company that has a high relative market share, but a low market growth rate. Because these companies have no future, it is best to "milk" them: Take the profits they give you and invest them somewhere else

cash cow

When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify: When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify:

company strengths and weaknesses

BCG matrix: the ________ are companies with a low relative market share and low market growth rate. There is no point in investing in them. It is better to sell it and focus your attention and resources on a star or a question mark.

dogs

ZombieSmith manufactures gaming miniatures. Its highly specialized products and targeted customer base indicate that ZombieSmith is using a(n) _______ strategy to gain a competitive advantage.

focus A focus strategy is one in which an organization concentrates on a specific regional market, product line, or group of buyers.

A maker of motorized scooters finds that its product line offers the same value proposition to people all over the world. This company probably uses a (global/multi-domestic) strategy.

global When a company can sell a standardized product line in all national markets, without encountering significant cultural, legal, or infrastructural differences, then it can use a global strategy in which it makes most decisions centrally. This allows the greatest amount of coordination and realization of efficiencies of scale.

UNIQLO anticipates that demand will be very high for its patent-protected clothing line, particularly given climate concerns in its core markets. With nearly US $20 billion worldwide, which stage of the product life cycle is the company in? Maturity Introduction Decline Growth

growth

A fast-food business modifies its menu substantially in the different countries where it opens restaurants, as well as accommodating different expectations regarding customer service. This company probably uses a (home replication / multi-domestic / global) strategy.

multi-domestic When national markets are very different, firms often use a multi-domestic strategy. They manage business units in different countries almost as though they are independent subsidiaries. This permits the greatest amount of customization to local conditions but makes coordination and efficiencies of scale difficult to achieve.

A __________ technique used by Proctor & Gamble is meant to minimize risk by selling a large number of diverse products. // methods used by diversified organizations to determine which businesses to engage in and how to manage these businesses to maximize corporate performance. Examples include the BCG matrix and the GE Business Screen.

portfolio management technique

Though UNIQLO has typically been in an environment that allows for only moderate innovation, the leadership team would like the company to be more growth-oriented and take more risks. Which Mike & Snow strategy should UNIQLO develop?

prospector

UNIQLO tries to monitor its competitors' actions, but notices that one of these competitors seems to shift strategies often and does not anticipate trends in the environment. Which type of strategy does the competitor appear to have? Defender Prospector Reactor Analyzer

reactor

A restaurant chain decides to start a catering business. It will use the same kitchen layout and equipment as it already uses in its dine-in restaurants, and it will source ingredients from the same suppliers. However, the catering business will prepare food for delivery to different customers and operate under a different brand name. This company is pursuing a ____________ strategy.

related diversification This business is using shared vendor relationships and technologies as the basis for a related diversification strategy.

The corporation started as a manufacturer and distributor of gourmet candies, and it has worldwide brand recognition for this product. It has acquired a number of other businesses over the years, some in the food industry and some in different industries, and all have been less successful than hoped. The board of directors has informed you that key shareholders have little appetite for continued business failures. Based on this information, which corporate-level strategy would you lean toward?

single-product strat

BCG matrix: best to invest in: companies that have high relative market share and high market growth rates

stars

Manuel was asked to analyze businesses by classifying them as stars, question marks, cash cows, or dogs. He was most likely using the _________ , which helps managers determine which companies belong in their portfolios.

BCG matrix

organization's attempt to gain a competitive advantage by reducing its costs below those of other firms.

An overall cost leadership strategy involves an

UNIQLO has had strong demand for its products and it entered the growth stage quickly. Which of the following challenges is most common during this stage? Managing inventories Conducting new product research Lowering prices Depleting old inventories

Managing inventories

Employees at Jasmine Prudhome's company have an average of 8 years with the firm, and they consistently come up with extremely innovative ideas. These employees are a key organizational _______ (SWOT) .

strength

If the company uses Porter's differentiation strategy, what should be the focus of the company culture? Opportunities for efficiency Prestige and superiority Creativity and customer service Discipline and clear roles

Creativity and customer service

If the company has decided to use Miles and Snow's analyzer strategy, which of the following actions would best support this strategy? Develop decision-making processes that optimize goal setting. Hire from outside the company whenever possible. Encourage creativity by giving lower-level managers the resources to innovate.

Develop decision-making processes that optimize goal setting.

One of the corporation's businesses has a core competency in developing artificial intelligence (AI) that handles very complex scheduling, such as airline scheduling. Analysts forecast that businesses and governments will be looking to put this type of AI-enabled software to a wide range of new uses over the next decade. Based on this information, which corporate-level strategy would you lean toward?

Related diversification strategy

Analysts forecast extreme disruption to the economic, political/legal, and technological environments over the next decade. The board would like to reassure investors that profits will remain relatively stable. Based on this information, which corporate-level strategy would you lean toward?

Unrelated diversification strategy The choice that involves the greatest degree of diversification is unrelated diversification. This may be a desirable strategy for this corporation because the more diversified a corporation is, the less any particular disruption to the environment will affect a large proportion of its businesses. In fact, an event that is negative for some businesses may be positive for others. During a recession or depression, for example, fast-food, discount retail, and auto repair may see increased business as consumers seek less expensive products and get their cars repaired instead of buying new ones.

A _________-level strategy refers to the set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market. Resource deployment refers to how an organization distributes its resources across the areas in which it competes. Scope specifies the range of markets in which an organization will compete.

business

A company is creating a _______-level strategy when it asks, "What business are we in?" refers to a set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets. It is the highest level of strategic planning, taking place above business-level strategy.

corporate

busi or corporate level strat? Google managers ask, "Which company should we acquire next to access new technologies and customers?" The manufacturer of Chobani Yogurt decided to open a flagship store in Soho, where customers can order special yogurt creations, such as fig and walnut or cucumber and olive oil. Though it was in the business of manufacturing yogurt for 7 years, the company never tried to run a restaurant before. Tesco managers sold their Fresh & Easy U.S. grocery-store chain after looking at the returns from that division and comparing them with returns from Tesco's other divisions around the world. The analysis led managers to decide that the market couldn't deliver acceptable returns for the company, which is based in England. A company's managers ask, "Does it make sense for our vacuum-cleaner company to buy a company that manufactures space heaters?"

corporate

A big issue at a company's budget meeting relates to whether it should open new store locations or focus on updating the existing stores. This is a question of _________ refers to how an organization distributes its resources across the areas in which it competes.

resource deployment

Sally's company makes children's books that are expensive to ship throughout the country. As a result, she may decide that the ________ of distribution will be limited to stores within 500 miles of the company's headquarters specifies the range of markets in which an organization will compete.

scope

Sam owns a small cafe that faces competition from a new restaurant across the street. Sam may want to perform a SWOT analysis, or a systematic evaluation of the internal and external environments, to inform his what

strategy formulation

refers to the processes involved in creating or determining an organization's strategies, Analytical tools, such as a SWOT analysis, would be used to assist with it

strategy formulation

Which of the following are advantages of diversifying internationally that you might cite in your address? Check all that apply. -Companies may be able to locate their facilities closer to customers or to raw materials. -Companies may be able to use one facility to serve a larger number of customers. -International companies become highly efficient because they can make decisions in a standard way for all their businesses. -After gaining entry to a country's market, companies may be able to leverage their presence in the country to expand their product offerings there.

Companies may be able to locate their facilities closer to customers or to raw materials. Companies may be able to use one facility to serve a larger number of customers. After gaining entry to a country's market, companies may be able to leverage their presence in the country to expand their product offerings there.

If the company has decided to use Miles and Snow's prospector strategy, which of the following actions would best support this strategy? Adopt a flat, decentralized organization design. Develop a culture that values cost consciousness. Use controls to ensure that new ideas are pursued only if risk is low.

Adopt a flat, decentralized organization design. The prospector strategy seeks a competitive advantage by developing new products and finding new markets. Innovation is very important, and employees tend to be more innovative when they have access to a lot of information and participate fully in decision making. Thus, a flat structure with fewer layers of management and decentralized decision making will best serve the organization. A company can't pursue a prospector strategy without being willing to invest in as yet unproven ideas, so cost consciousness and risk avoidance are not priorities.

If the company uses Porter's differentiation strategy, what should operations emphasize? Ensuring that the products customers want are available Ensuring that resources are permitted to flow toward innovation of future products Ensuring that the products the company sells are easy to make Ensuring that production is set up to enable the efficient manufacture of large quantities of product

Ensuring that the products customers want are available A differentiation strategy seeks a competitive advantage through quality and distinctive features. Manufacture of such products tends to be more complicated than manufacture of simple, low-cost products, but it is important that the goods be available when and where customers want them. Therefore, the company might speed up manufacturing, keep more inventory of inputs or outputs on hand, or set up the factory to allow customization of small batches to order. All of these measures will probably incur higher costs, but they support the differentiation strategy, which allows the company to charge higher prices. Ensuring that resources, such as money, can be applied to innovation of future products will be very important to the success of this business. However, this is a concern of finance, and the question asks about operations.

Tim was asked to analyze businesses by classifying them as winners, losers, question marks, average businesses, and profit producers. He was most likely using the ________

GE Business Screen .

Suppose Patout were considering whether Theo Chocolate should branch out and start selling other items in addition to its chocolates, such as locally made baked goods. This is ___________-level strategic decision. To make this decision, Patout would have to take which of the following actions? Check all that apply. Determine what kinds of industries Theo Chocolate should be in. Evaluate the resources the company has available to allocate between the chocolate industry and the baked goods industry. Choose whether to adopt a low-cost, differentiation, or focus structure for the new industry. Identify the profitability profile for different types of products.

corporate (When CEO Etienne Patout considers expanding the kinds of products the company sells, he is making a corporate-level decision. He is considering what industries the company should pursue. To do that, he will have to look at the profitability profiles for the industries under consideration and determine how to allocate resources across industries. Deciding how to market a particular product is done during business-level strategic planning.) Determine what kinds of industries Theo Chocolate should be in. Evaluate the resources the company has available to allocate between the chocolate industry and the baked goods industry. Identify the profitability profile for different types of products.