Robinson Midterm Chapter 6

Business-level strategy refers to _______.

A plan to gain a competitive advantage in a market or industry

The first step in implementing a strategy is to _______.

Allocate responsibility for implementation to the appropriate individual or group

Which level of strategy includes a plan to gain competitive advantage by countering or reducing the threat of the five industry forces?

Business-level

Which of the following are reasons that virtually all managers have to engage in some form of planning?

To predict threats To predict opportunities

In a low cost strategy, managers _______.

Try to gain competitive advantage by reducing costs below industry rivals

In strategy formulation, managers work to develop the set of strategies that will allow an organization to _______.

Accomplish its mission Achieve its goals

When the same situation occurs repeatedly, _______ plans are used.

Standing

When a company reinvests its profits to strengthen its competitive position in its current industry, it is utilizing a(n) _______ strategy.

Concentration on a single industry

In a large organization, at which levels do planning take place?

Corporate Business or division Department or functional

Concentration on a single industry is one type of _______ strategy.

Corporate-level

The type of plan that defines an organization's mission and goals, overall strategy, and structure is the _______ plan.

Corporate-level

Vertical integration, diversification, and international expansion are examples of _______ strategies

Corporate-level

In a multi-domestic strategy, managers _______.

Customize products and marketing strategies to specific national conditions

When managers ask "who are our customers?", "what customer needs do we satisfy?", and "how do we satisfy customer needs?", the manager is _______.

Defining the business

Corporate level plans _______.

Detail top management decisions on mission, goals, overall strategy and structure

Which of the following represents the correct order of the planning process?

Determining the mission and major goals Choosing or formulating strategies Selecting the most effective ways to implement the strategies

Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service is an example of a _______ strategy.

Differentiation

Expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services is an example of the strategy of _______.

Diversification

In a diversification strategy, organizations _______.

Expand operations into a new industry to make new kinds of valuable products and services

In a vertical integration strategy, the organization _______.

Expands its business operations into a new industry that produces inputs for its products or sells its company's products

A company that makes products in its home country and then sells them abroad is engaged in _______.

Exporting

Terry wants to expand his firm's operations overseas. He wants to assume as little risk as possible and does not have the money to invest in developing a manufacturing plant abroad. Which form of global expansion would be best for Terry?

Exporting

Failure to plan can lead to _______?

False steps Mistaken changes of direction Hesitation in actions

Strategy implementation is a _______-step process.

Five

Companies that try to specialize in only one or a few segments of the market and undercut the prices of the other sellers in the market are using a _______ strategy.

Focused low-cost

Which of the following captures the essence of the planning task?

Forecast what may happen in the future to decide what to do in the present.

Planning, in large companies, takes place at the corporate, business and _______ levels.

Functional

The second step in a SWOT analysis is to _______.

Identify potential external opportunities and threats

When a company sells _______ in each national market it serves, it is pursuing a global strategy.

The same basic product using the same marketing techniques

The strategy that drives down an organization's costs below those of its competitors is the _______ strategy.

Low-cost

The purpose of Porter's Five Forces Model is to help managers focus on the five ___ in the external environment.

Most important potential threats

When a company customizes its products and marketing to fit specific national conditions, it is following a _______ strategy

Multidomestic

Time horizons define _______.

Periods of time over which plans endure

Identifying and selecting appropriate goals and courses of action is the process of ________ , which is a critical task of management.

Planning

______ is the process managers use to identify and select appropriate goals and courses of action for a company.

Planning

Examples of standing plans?

Policies Standard operating procedures (SOPs)

A model that helps managers focus on the five most important competitive forces in the external environment is known as _______.

Porter's Five Forces

The intended duration of a plan is referred to as its _______ horizon.

Time

For the CEO and top managers of a company, the role of strategic leadership is _______.

To convey a compelling vision of what they want the organization to achieve

When managers follow a differentiation strategy, they seek to distinguish their organization's products from the products of competitors on dimensions such as _______.

Product design After-sales service Quality

After identifying appropriate business and corporate strategies to attain an organization's mission and goals, managers confront the challenge of _______.

Putting those strategies into action

Steps in the planning process

Selecting the most effective ways to implement and put strategies into action Determining the firm's mission and goals Formulating strategies to achieve the goals

In a global strategy, managers focus on _______.

Selling a standardized product in all markets with the same marketing approach

In a focused low-cost strategy, managers _______.

Serve one or a few markets to be the lowest-cost company in that segment

The ability of top management to convey a compelling vision to their subordinates is referred to as _______.

Strategic leadership

The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals refers to _______ formulation.

Strategy

Companies concentrate on a single industry to _______.

Strengthen their competitive position

The first step in a SWOT analysis is to identify an organization's ______.

Strengths and weaknesses

The planning process can be difficult for managers due to _______.

Uncertainties in the external environment Incomplete information Bounded rationality

The corporate-level strategy that is used when a company enters an industry that either supplies products to the company or purchases the company's products is _______.

Vertical integration

Managers must first define their business so they can identify _______.

What kind of value customers will receive