Exam 2 Review
Organizational resources include all of the following except:
Employee Training
__________ strategists should recognize that achieving a successful outcome is more important than imposing the method of achieving it.
Equifinality
The two positive-rated dimensions on SPACE Matrix are
FS and IS
A lack of strategic management knowledge is ____________.
a serious obstacle for many small business owners.
Which strategy should be implemented when a division is responsible for an organization's overall poor performance?
divestiture
An organization that has a low relative market share position and competes in a slow-growth industry is referred to as a
dog
Retrenchment would be an effective strategy when an organization
is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance.
When a domestic company first begins to export to India, it is an example of
market development
How many cells are in a SWOT Matrix?
nine
Mergers and acquisitions are created for all of the following reasons except to
increase its number of employees.
Each of the nine techniques included in the strategy formulation framework rely on the use of
intuition and analysis
Adding new, unrelated products or services for present customers is called
unrelated diversification.
All of the following situations are conducive to market development except:
when an organization competes in a high-growth industry.
Staffing involves all of these activities except:
Customer Analysis
All of the following are principles of good organizational governance, as established by Business Week, except:
At least two directors are current or former company executives.
In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A strong industry
What kind of strategy is retrenchment?
A turnaround or reorganization strategy
The top row of a QSPM consists of alternative strategies derived from all of these except:
CPM Matrix
________ is the most important word in management.
Communication
What type of strategies would you recommend when a firm's SPACE Matrix directional vector has the coordinates (-2, +3)?
Conservative
All of the following are basic duties of a manager except:
Consolidating
Common organizational requirements for a successful differentiation strategy include strong coordination among the R&D and marketing functions and substantial amenities to attract scientists and creative people. A Type 3 differentiation strategy can be especially effective under the following conditions: 1. when there are many ways to differentiate the product or service and many buyers perceive these differences as having value. 2. When buyer needs and uses are diverse. 3. When few rival firms are following a similar differentiation approach. 4. When technological change is fast paced and competition revolves around rapidly evolving product features.
Differentiation Strategies
__________ is a defense strategy in the space matrix.
Divestiture
What refers to a strategy of seeking ownership of or increased control over a firm's competitors?
Horizontal integration
Forward integration, backward integration, and horizontal integration are sometimes collectively referred to as vertical integration strategies. Vertical integration strategies allow a firm to gain control over distributors, supplies, and/or competitors.
Integration strategies
Smithfield Foods, the world's largest pork processor, is closing 6 of its 40 plants, laying off 1,800 employees, and cutting production by 10 percent in 2009 in efforts to stop the liquidity drain on the firm. The retrenchment moves are expected to save the firm $55 million in 2010 and $125 million in 2011. Pork is the world's most consumed meat by volume.
Laying off employees and closing plants.
Which of the following is not a step of a SWOT Matrix?
List the firm's external weaknesses.
__________ is determining organizational strengths and weaknesses in the selling function of marketing is an important part of performing an internal strategic-management audit.
Market Function
According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position?
Market penetration
There are annually more than 10,000 mergers in the United States that total more than $700 billion. The proliferation of mergers is fueled by companies' drive for market share, efficiency, and pricing power, as well as by globalization, the need for greater economies of scale, reduced regulation and antitrust concerns, the Internet, and e-commerce.
Mergers in the United States
A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think and feel is called
Organizational Culture
The internal resource categories used in the resource-based approach are physical resources, human resources and
Organizational Resources
Which function of management includes areas such as job design, job specification, job analysis and unity of command?
Organizing
Which function of management is concerned with span of control and chain of command?
Organizing
The production/operations function of a business consists of all those activities that transform inputs into goods and services. Production/operations management deals with inputs, transformations, and outputs that vary across industries and markets. A manufacturing operation transforms or converts inputs such as raw materials, labor, capital, machines, and facilities into finished goods and services
Production Management
Which strategy formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies.
QSPM
The investment decision, also called capital budgeting, is the allocation and ________________ to projects, products, assets, and divisions of an organization.
Reallocation of Capital and Resources
The __________ prohibits manufacturers and wholesalers from discriminating in price among channel member purchasers (suppliers and distributors) if competition is injured.
Robinson-Patman Act
Which strategies use a firm's strengths to avoid or reduce the impact of external threats?
ST
In terms of ship container traffic processed annually, Singapore has the largest and busiest seaport in the world, followed by Hong Kong, Shanghai, Los Angeles, Busan (South Korea), Rotterdam, Hamburg, New York, and Tokyo. The Singapore seaport is five times the size of the New York City seaport.
Seaport
Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
The SO cell
What is a weakness associated with a SWOT Matrix?
The matrix has no temporal qualities
In which situation would horizontal integration be an especially effective strategy?
When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition.
Which of the following is not an example of when an organization should use an unrelated diversification strategy?
When the organization has a strong management team.
Bankruptcy
can be an effective type of retrenchment strategy.
A division with a high relative market share position in a low-growth industry can be described as a
cash cow
When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called
outsourcing.
Which strategy generally entails large research and development expenditures?
product development
Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments?
product development
Which strategy should an organization use if it competes in a no-growth or a slow-growth industry.
related diversification
Win-Dixie closing one-third of its stores and eliminating 22,000 jobs in an attempt to emerge from bankruptcy would be an example of:
retrenchment.
