chapter 6 organization and management

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

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

corporate level

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

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

one of the three strategy levels; plan of action by each functional area of the organization to support higher level strategies "how will you grow?"

functional-level strategy

One of three grand strategies, this strategy involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served

growth strategies

the use of strategic management techniques and processes is associated with ______________ small business performance

increased

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

sustainable

Also known as a situational analysis, the search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization; helps asses the current reality

SWOT analysis

The "feedback loop" in the strategic-management process involves ______.

revising actions if necessary

One of three grand strategies, this strategy involves little or no significant change ex. company that makes the famous tabasco sauce, has only added seven flavors since it first started in 1868.

stability strategy

one of the five steps of the strategic management process; Monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed

strategic control

one of the five steps of the strategic management process; The implementation of strategic plans

strategic implementation

strategy that attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company

strategic position

Exists when other companies cannot duplicate the value delivered to customers

sustainable competitive advantage

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

true

When would a company use a VRIO analysis?

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

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

execution

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

false

A vision or projection of the future

forecast

Strategic positioning attempts to achieve sustainable competitive advantage by ______.

preserving what is distinctive about a company

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

control

What are the core processes of business identified by Bossidy and Charan? (Choose every correct answer.) 1. People 2. Competition 3. Operations 4. Strategy 5. Finance

1, 3, 4

Strategic position emerges from three sources: 1. _________ needs, _______ cutomers ex. crocs sells only shoes, but it provides them to all kinds of people 2. example: Buy Buy Baby sells clothing, strollers, and other items for babies 3. Allegiant Airlines is a low-cost travel company that not only offers flights across the United States, but also owns budget-friendly hotels.

1. few needs, many customers 2. broad needs, few customers 3. broad needs, many customers

A management strategy by which companies evaluate their strategic business units on the basis of (1) their business growth rates and (2) their share of the market

BCG matrix

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

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

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

the strategic-management process has five steps: 1. establish the __________, vision, and values statements 2. assess the current ____________ 3. formulate corporate, business, and ____________ strategies 4. _____________ implementation 5. maintain strategic ____________

mission; reality, functional; strategic, control

Environmental factors that the organization may exploit for competitive advantage

organizational opportunities

Why do potential employers value the skill of strategic thinking in job candidates? (Choose every correct answer.) 1. Strategic thinkers are globally-minded. 2. Strategic thinkers make for more informed employees. 3. Strategic thinkers are quick to recognize opportunities. 4. Strategic thinkers are focused on advancement opportunities.

1, 2, 3

Which of the following represent competitive forces used in Porter's model for industry analysis? (Choose every correct answer.) 1. Bargaining power of suppliers 2. Rivalry among competitors 3. Threats of new entrants 4. Training of new employees 5. Threat of substitute products or services 6. Failure of new entrants

1, 2, 3, 5

According to Bryan Barry, which of the following help a manager keep a strategic plan on track? (Choose every correct answer.) 1. Keep moving 2. Stay positive 3. Engage people 4. Stay focused 5. Mix it up 6. Keep it simple

1, 3, 4, 6

What are the goals of attending industry conferences before or while working in a certain industry? (Choose every correct answer.) 1. To make industry contacts 2. To collect more accomplishments for a resume 3. To gather intelligence on competitors 4. To learn about the specific industry

1, 4

What does the BCG matrix evaluate? (Choose every correct answer.) Multiple select question. 1. Economies of scale 2. Market share 3. Business growth rates 4. Cost of goods sold

2, 3

Which Porter's competitive strategies are appropriate when addressing a narrow market? (Choose every correct answer.) 1. Diversification 2. Cost-focus 3. Focused-differentiation 4. Cost-leadership

2, 3

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. Instructions 1. maintain strategic control 2. Assess the current reality 3. Formulate corporate, business, and functional strategies 4. Establish the mission, vision, and values statements 5. Execute the strategies

4, 2, 3, 5, 1

In addition to value, what characteristics are being addressed in a VRIO analysis? (Choose every correct answer.) 1. Replacement 2, Intent 3. Obsolescence 4. Organization 5. Imitability 6. Rarity

6, 5, 4

A process by which a company compares its performance with that of high-performing organizations

Benchmarking

Also known as scenario planning and scenario analysis; the creation of alternative hypothetical but equally likely future conditions

Contingency planning

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

People

Also called four generic strategies; (1) cost leadership, (2) differentiation, (3) cost-focus, and (4) focused-differentiation. The first two strategies focus on wide markets, the last two on narrow markets

Porter's four competitive strategies

What are functional strategies used to accomplish?

Putting strategic plans into effect

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

SWOT

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

Strategic thinking

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

The speed of industry growth

Is a framework for analyzing a resource of capability to determine its competitive strategic potential by answering four questions about its Value, Rarity, Imitability, and Organization

VRIO

Why do many executives prefer visioning to execution?

Visioning is more exciting than execution.

Mcdonalds's, Burger King, and Wendy's are constantly watching and _____________ against each other in order to maximize efficiency, cut costs, and increase profits. This has led to innovations in drive-thru configurations and ordering approaches.

benchmarking

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

benchmarking

one of the three levels of strategy; focuses on individual business units or product/service lines "how will you compete?"

business-level strategy

Netflix has an uphill battle since their customers do not get charged if they leave and they can acquire competitor's services simply by downloading an app. This demonstrates the bargaining power of who?

buyers

the preceding four competitive forces influence the fifth force: rivalry among ___________

competitors

one of the three levels of strategy; Focuses on the organization as a whole senior levels referred to as the "C" Suite "what do you want to achieve"

corporate-level strategy

one of the five steps of the strategic management process; Assessment to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organization's mission

current reality assessment

Also called retrenchment strategy, one of three grand strategies, this strategy involves reduction in the organization's efforts

defensive strategy

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

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

industry

Grows market share or profits by innovating improvements in products or services ex. Lululemon expanding their men's clothes

innovation strategy

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

long-term

Disney purchasing 21st century Fox is an example of?

related diversification

When a company purchases a new business that is related to the company's existing business portfolio

related diversification

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

strengths

What does SWOT stand for? HINT: each letter represents something

strengths, weaknesses, (internal) opportunities, threats (external)

Netflix has to ensure that customers continue to prefer its offerings to the many other options available (other streaming services but also traditional cable providers and satellite television) this is an example of threats of ___________ products or services

substitute

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

Netflix switching from in-store and mail-order DVD rentals to online streaming, which lead to other networks (NBC, HBO, CBS) to do the same aftter seeing how successful netflix became is an example of what?

threats of new entrants

A hypothetical extension of a past series of events into the future

trend analysis

The drawbacks that hinder an organization in executing strategies in pursuit of its mission

organizational weaknesses

having obsolete technology, outdated facilities, and a shaky marketing operation are all examples of what?

organizational weaknesses

research has found that organizations that clearly articulate their values in their mission statement perform ____________.

better

having to deal with new regulations, a shortage of resources, and/or substitute products are all examples of what?

organizational threats

Amazon buying Whole Foods and CVS buying Aetna is called?

diversification

Strategy by which a company operates several businesses in order to spread the risk (grow revenue or reduce risk)

diversification

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

diversification

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

three fundamental types of corporate strategies are: 1. g 2. s 3. d

growth; stability, and defensive

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

organizational

having weak rivals, emerging markets, and a booming economy are all examples of what?

organizational opportunities

The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission

organizational strengths

Model proposes that business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors

porter's model for industry analysis

Netflix changes the movies and tv shows they offer, but may provide suppliers with higher power since there are limited companies producing media and entertainment content. Netflix found a solution in producing its own original content, demonstrating the _____________ power of suppliers

power

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

strategic positioning

The process of choosing among different strategies and altering them to best fit the organization's needs

strategy formulation

Occurs when a company acquires another company in a completely unrelated businesses

unrelated diversification

strategy is the creation of a unique and ____________ position strategy requires ________-off in competing strategy involves creating a "____" among activities

valuable, trade, fit

By Starbucks buying and roasting all its own coffee and then selling it through Starbucks stores, they are practicing what type of diversification strategy?

vertical integration

Diversification strategy where a firm expands into businesses that provide the supplies it needs to make its products or that distribute and sells its products

vertical integration

What are Porter's four competitive strategies? 1. Cost-focus 2. Vertical integration 3. Related diversification 4. Focused-differentiation 5. Differentiation 6. Cost-leadership

1, 4, 5, 6

having a skilled workforce, a superior reputation, strong financing are examples of what?

organizational strengths

Environmental factors that hinder an organization's achieving a competitive advantage

organizational threats


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