Ch 6 mgmt

What are Porter's four competitive strategies?

-Cost-focus -Cost-leadership -Focused-differentiation -Differentiation

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

-Cost-focus -Focused-differentiation

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

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

-Imitability -rarity -organization

Corporate-level strategy does which of the following?

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

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

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

Why do potential employers value the skill of strategic thinking in job candidates?

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

What are the goals of attending industry conferences before or while working in a certain industry?

-To make industry contacts -To learn about the specific industry

What does the BCG matrix evaluate?

-market share -business growth rates

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 the mission, vision, and values statements 2. access the current reality 3. formulate corporate, business, and functional strategies 4. execute the strategies 5. Maintain strategic control

Pacific Specialty Bikes store gets customized parts for its high-end models from a local manufacturer, Premium Supply. When the manufacturer announced a price increase, the bike store tried to switch to other local manufacturers but learned they that they wouldn't be able to meet delivery schedules. As a result, Pacific Bike chose to pay the higher prices from Premium Supply. Which of Porter's competitive forces does this demonstrate?

Bargaining power of suppliers

Johanna has been asked by the department manager to prepare a SWOT analysis on two of the company's products. In which step of the strategic management process would a company use a SWOT analysis?

Current reality assessment

Jordan plans to open a computer repair business this summer. As he plans, he writes down the long-term goals of the business so he can decide where he wants to go strategically. Which stage of the strategic management process is Jordan in?

Establish the mission, vision, and values statements

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

False

Which of these situations provides an external opportunity that the company may exploit to gain competitive advantage?

Monica's rare book company has weak competition.

When considering SWOT analysis, what is an example of an organizational weakness?

Obsolete technology

What are functional strategies used to accomplish?

Putting strategic plans into effect

The ABC car company has a superior reputation within the industry and among car buyers. When applying SWOT analysis, this company's reputation is an example of a(n) ______.

STRENGTH

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

SWOT

In which step of the strategic-management process does an organization establish the mission and vision statements?

Step One

You own a small deli near campus and learn that the university is exploring whether it should open a Subway sandwich franchise in the student union. Which of Porter's competitive forces does this represent for you?

Threat of new entrants

Sasha has run a small diner near the train station for the past ten years. Six months ago, a chain restaurant serving gourmet burgers and sandwiches opened up near him and he has had to rethink his menu. He added some specialty sandwiches and free fries with every burger in order to retain his customers. Which of Porter's five competitive forces has affected Sasha's business?

Threats of new entrants

Why do many executives prefer visioning to execution?

Visioning is more exciting than execution.

The second step of the strategic management process involves ______.

assessing the current reality

Companies pursuing a cost-leadership strategy keep costs/prices ______ those of competitors and target a ______ market.

below; wide

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

Computer maker Dell tries to have the lowest prices for its computers in order to attract a large consumer group. In Porter's four competitive strategies, this would be an example of the ______ strategy.

cost-leadership

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

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

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

Environmental factors that an organization may exploit for competitive advantage are called organizational:

opportunities.

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

organizational

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

people

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

people, strategy, and operations

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

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

strategic thinkers

The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies in pursuit of its mission are called organizational ______.

strengths

Within a SWOT analysis, the letter "S" represents a company's ______.

strengths

When a company is readily able to switch to another company in order to get the raw materials it needs to make products, Porter would say that the bargaining power of ______ goes down.

suppliers

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

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

the speed of industry growth

In terms of a SWOT analysis, organizational ______ are environmental factors that hinder an organization from achieving a competitive advantage.

threats

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

true

Carlos is doing a VRIO analysis for a product his company is thinking about producing. The first question he asks is, "Does this new capability allow us to minimize the threat from the main competitor gaining more market share?" He decides the answer to this question is "yes." Which aspect of the VRIO analysis does this question answer?

value

In the large city where Cassandra lives, many people are asking for her restaurant to deliver food to their offices. Her restaurant has never delivered food before, but since so many people have requested this service Cassandra decides it is a good idea to do it. In a VRIO analysis, Cassandra has determined the ______ of this capability.

value

When would a company use a VRIO analysis?

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