Management 428 Chapter 1
Which of the following elements comprise strategic management? 1) Implementation 2) Formulation 3) Definition 4) Realization 5) Analysis
1, 2, 5
Which of the following are primary strategy objectives? 1) Creating values 2) Strengthening relationships 3) Controlling costs 4) Maximizing sales
1, 3
Which of the following are questions that managers are likely to ask when beginning the strategic management process? 1) What do we ultimately hope to achieve? 2) Is our vision product or customer oriented? 3) How can we achieve our goals? 4) What are our values?
1, 3, 4
According the the AFI framework, which of the following are elements of a good strategy? 1) A guiding policy to address the competitive challenge 2) Strong stakeholder involvement in the strategy formulation process 3) A set of coherent actions to implement the firm's guiding policy 4) A leadership group with relevant prior industry experience 5) A diagnosis of the competitive challenge
1, 3, 5
A firm can gain competitive advantage by providing goods and services ____________. 1) The are of similar quality to competitors' offerings but can be sold at a lower price due to lower costs 2) That cost less to produce than competitors' offerings, independent of the value it creates 3) Similar to competitors' offerings at a higher price 4) That create more value for consumers than competitors' offerings
1, 4
Which of the following factors would be examined in the External Analysis stage of the AFI strategy framework? 1) Competitive forces 2) Corporate strategy 3) The firm's own resources 4) Company culture 5) Strategic groups
1, 5
A well-devised strategy helps a firm understand _____________. 1) Market trends in unrelated industries 2) what to do 3) what not to do 4) Past successes or failures
2, 3
Which of the following is an example of a strategy for competitive advantage? A) "We will implement an HR strategy" B) "We will leverage our IT systems to provide superior customer service" C) "We will destroy the competition" D) "We will keep our eyes on the prize, undeterred by what others are doing"
B
Based on its long dominance as a coffeehouse chain, Starbucks has _________.
a sustainable competitive advantage
Merck's choice to pull the drug Vioxx off the market in 2004 is an example of what?
adhering to core organizational values
What is the first step in the AFI strategy network?
analysis
A(n) __________ can help employees feel that they are doing something worthwhile and are part of something important and meaningful.
aspirational vision
In a(n) __________ strategy formulation, managers focus on deciding HOW the firm should compete.
business
If a firm has a 10% return on invested capital while the industry average return on invested capital is 18%, the firm has a(n) ____________.
competitive disadvantage
A statement of guiding principles that typically provides very specific ethical considerations is a(n) ____________.
core values statement
A company with a _________ vision statement tends to be more flexible and more likely to succeed.
customer-oriented
Merck's decision to donate more than one billion treatments to help end river blindness free of charge was _________.
driven by its organizational core values
Using a(n) _______ strategy formulation, managers examine where and how the firm should compete around the world.
global
"How do we implement the formulated strategy through an organizational strcuture, culture, and control system that values and encourages ethical behaviors?" would most likely be examined by managers in the _____ phase of the AFI strategy framework.
implementation
Tesla's current success can first and foremost be attributed to __________.
its implementation of its secret strategy
A ________ outlines what an organization does, while a vision outlines what the organization wants to do.
mission
In the ________ step of the strategy implementation phase of the AFI strategy framework, managers would examine how the firm should be structured in order to implement the desired strategy.
organizational design
The overall purpose of a firm's strategy is to ___________.
perform better than other companies in the same industry
A _________ vision statement defines a business by describing the goods or services it produces or offers.
product-oriented
___________ vision statements do not describe how to provide solutions to customer needs.
product-oriented
________________ are actions that are costly, long-term oriented, and difficult to reverse
strategic commitments
Andrew's Home Center has created a unique position for itself in its industry that allows the company to not only provide excellent value to its customers but also to control its costs. This is known as ________.
strategic positioning
Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that uses locally sourced, organic ingredients. This is known as Burger Bomb's _________.
strategy
In a nutshell, strategy is the art and science of __________.
success and failure
Employees tend to adhere to organizational core values when _________________.
the leaders of the organization also adhere the values
In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to ___________.
the performance of other firms in its industry
Walmart and Nordstrom maintain very different strategic positions, one based on cost-leadership and the other based on differentiation through superior customer service. This is an example of ________.
the trade-offs required by strategic positioning
Why might a company develop organizational core values?
to encourage employees to make ethical choices
Managers often have to make decisions between two conflicting strategic options, otherwise known as _________.
trade-offs
Competitive parity occurs when __________.
two or more firms achieve the same performance results
The element of a firm's strategy that summarizes the ultimate goals of the firm is known as the ______________.
vision
