MGMT 3000 CH. 6, chp 6, MGT Module 8, MGT Ch 6 Smartbook

1. The research and development department and the marketing department make some alterations to a current product with the intention of attracting new customers. A. Growth Strategy B. Defensive Strategy C. Stability Strategy

A

According to Harvard Business School professor Michael Porter, strategic positioning means ________ to achieve sustainable competitive advantage. A. distinctive positioning B. aggressive growth C. retrenchment D. collaborative planning E. strategic alliances

A

CVS' purchase of Aetna is a ________ level strategy. corporate tactical business operational functional

A

In 2018, Novartis, a Swiss multinational pharmaceutical company, acquired Avexis, a clinical-stage gene therapy company. A. Related Diversification B. Vertical Integration C. Unrelated diversification

A

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? A. current reality assessment B. establish the mission C. prepare values statement D. maintain strategic control

A

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? A. Establish the mission, vision, and values statements B. Execute the strategies C. Assess the current reality D. Formulate corporate, business, and functional strategies

A

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 another. A. benchmarking B. sustainability C. manufacturing D. diversification

A

Luxury fashion brand Coach, Inc. acquired Kate Spade New York—another luxury fashion and lifestyle brand—in 2017. A. Related Diversification B. Vertical Integration C. Unrelated diversification

A

Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company. A. strategic positioning B.domestic rivalry C. cost-leadership D. economy of scale

A

Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would be considered an external organizational ______ in a SWOT analysis. A. threat B. strength C. weakness D. opportunities

A

Starbucks serves premium quality coffee beverages and food items and has over 28,000 locations across the globe. The company also offers bottled versions of some of its products in grocery stores and has a branded liqueur through its partnership with Jim Beam. A. Differentiation strategy B. Focused differentiation strategy C. Cost leadership strategy D. Cost-focus strategy

A

Strategic positioning attempts to achieve sustainable competitive advantage by: A. preserving what is distinctive about a company B. changing key aspects of a company's identity C. performing similar activities as those of rivals and in similar ways

A

The "feedback loop" in the strategic-management process involves A. revising actions if necessary. B.understanding employee preference. C. implementing the strategy. D. formulating the corporate strategy.

A

The goal of this strategy is to offer unique products or services of superior value to a wide target market. A. Differentiation strategy B. Focused differentiation strategy C. Cost leadership strategy D. Cost-focus strategy

A

The strategy of moving into new lines of business is called _____. diversification arbitration fabrication accommodation

A

The top managers are considering a merger. A. Growth Strategy B. Defensive Strategy C. Stability Strategy

A

To be successful, strategic planning requires a company to have a _____ orientation. A.long-term B. short-term

A

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 competitors buyers investors

A

When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) _____ competitive advantage. A. sustainable B. VRIO C. benchmark D. ambiguous

A

Which of Porter's four competitive strategies offers products or services that are of unique or superior value compared to those of competitors and that target a wide market? Differentiation strategy Diversification strategy Cost leadership strategy Cost-focus strategy

A

Which of the following is NOT part VRIO? A. resource B. imitability C. rarity D. value E. organization

A

Within a SWOT analysis, an organizational threat will come from _____ the company. A.outside B. inside

A

de Bono's Six Thinking Hats

A tool for group discussion and individual thinking involving six colored hats. White hat - provides objective facts and figures to help the group understand what information they have. Red hat - deals with positive and negative emotions. Yellow hat -- looks for positive aspects. Black hat - devil's advocate, challenging assumptions. Green hat -provides creative and innovative solutions. Blue hat -- process, organization, planning action.

After the recent recession, the company sold off vacant buildings. A. Growth Strategy B. Defensive Strategy C. Stability Strategy

B

Afterglow Cosmetics sells cosmetics that are manufactured in a gluten-free facility, and all of its products are certified gluten-free. Afterglow cosmetics prices are in line with other high-end cosmetics brands. A. Differentiation strategy B. Focused differentiation strategy C. Cost leadership strategy D. Cost-focus strategy

B

An offensive strategy is a grand strategy that involves reduction in the organization's efforts. For example, some large publishers are no longer publishing children's books because they are too expensive to produce and distribute, and because the profit margins are too low to justify the investment. True False

B

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 of 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? A. rarity B. value C. organization D. imitability

B

Companies pursuing a cost-leadership strategy keep costs/prices _____ those of competitors and target a _____ market. above; wide below; wide above; narrow below; narrow

B

Environmental factors that an organization may exploit for competitive advantage are called organizational ______. A. threats B. opportunities C. weaknesses D. strengths

B

Fast fashion retail giant, Zara is able to get designs from the catwalk to the retail store at incredible speeds. Zara can do this because it has acquired most of its supply chain, including designers, manufacturers, and distributors. A. Related Diversification B. Vertical Integration C. Unrelated diversification

B

In 2018, Boeing aerospace company announced its plans to buy KLX, a company that distributes aerospace fasteners and consumables. A. Related Diversification B. Vertical Integration C. Unrelated diversification

B

Several studies found that strategic planning does not benefit smaller companies, as they very seldom see improvements in financial performance from this type of planning. True False

B

Smartwater is a brand of bottled water that promotes health benefits and features a tall, smooth, clear bottle not found in competitor brands. Based on this, which of Porter's competitive strategies is the company using? integration differentiation cost-leadership cost-focus

B

The goal of this strategy is to offer unique products or services of superior value to a narrow target market. A. Differentiation strategy B. Focused differentiation strategy C. Cost leadership strategy D. Cost-focus strategy

B

The process by which a company compares its performance with that of other high-performing organizations is known as _______. A. forecasting B. benchmarking C. competitive analysis D. offshoring

B

The recent expansion has been successful, but we don't want to spread ourselves too thin. A. Growth Strategy B. Defensive Strategy C. Stability Strategy

B

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

B

When Johnson & Johnson promoted its baby shampoo as a gentle cleanser suitable for adults, it did this without changing the formulation of the product. Which type of corporate strategy does this exemplify? A. innovative B. stability C. defensive D. growth

B

When would a company use a VRIO analysis? A. when determining manufacturing work schedules B.when deciding whether or not a new product might work in the marketplace C. when analyzing current market share among competing brands D. when reorganizing staff

B

Which of these situations provides an external opportunity that the company may exploit to gain competitive advantage? A. Norm's engine manufacturing facility is outdated and needs new equipment. B. Monica's rare book company has weak competition. C. Kevin's insurance group received a superior rating. D. Jack's food processing plant faces strict government scrutiny.

B

Within a SWOT analysis, the letter "S" represents a company's _____. A.sources B. strengths C. services D. selection

B

You have been asked by a new a hair salon, Twist & Braid, to identify whether or not they should expand the business either by opening a new salon or expanding the current salon to offer new services. As a first step, you interview the owner and clients as they come in for their appointments. You also visit a few other local businesses and conduct interviews of people as they pass by. You also review Yelp and Facebook for reviews of the salon. Which of the following best describes the process you are implementing? A. re-envisioning B. SWOT C. MBO D. branding

B

The Internet has enabled consumers to "price shop" several retailers in order to find the best price for items such as appliances, electronics, and even cars. This has increased the consumer's ability to better negotiate favorable prices with retailers, demonstrating which of Porter's five competitive forces?

Bargaining power of buyers

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

After recent expansion, the company wants to avoid growing too quickly. A. Growth Strategy B. Defensive Strategy C. Stability Strategy

C

Before introducing the new software, Star Software Inc., conducted benchmark activities to assess how popular the product would be in the marketplace. Which stage of the strategic management process is being used in this situation? A. implement the strategy B. maintain strategic control C. assess the current reality D. establish the vision

C

Clorox Company, best known for bleach and cleaning products, purchased Burt's Bees, best known for its natural beauty and personal care products, in 2007. A. Related Diversification B. Vertical Integration C. Unrelated diversification

C

In developing its future strategy, CVS is focusing on Amazon, which is expanding into the healthcare business. What stage of the strategic management process does this represent? A. Maintain strategic control B. Establish the mission, vision, and values statements C. Assess the current reality D. Formulate corporate, business, and functional strategies E. Execute the strategies

C

In the 1930s, Mars Incorporated (maker of Snickers and other popular candies) purchased Chappell Brothers canned dog food company. Much of Mars' business today comes from pet food brands such as Whiskas and Pedigree. In 2017, Mars acquired VCA, a company that owns hundreds of dog day care facilities and animal hospitals, to add to its Mars Petcare portfolio. A. Related Diversification B. Vertical Integration C. Unrelated diversification

C

Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that at least 57% of consumers would demand high-end footwear and their sales should increase by 18% in the next year. This vision of what could happen is known as a _____. A. strategic position B. strategy C. forecast D. mission statement

C

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) _____. A. organizational weakness B. economies of scale C. sustainable competitive advantage D. forecast analysis

C

Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would be considered an external organizational ______ in a SWOT analysis. A. strength B. weakness C. threat D. opportunities

C

Strategic position emerges from three sources: Multiple Choice A. (1) no needs, many customers; (2) broad needs, few customers; and (3) broad needs, many customers. B. (1) high profits, many customers; (2) low profits, few customers; and (3) broad needs, many customers. C. (1) few needs, many customers; (2) broad needs, few customers; and (3) broad needs, many customers. Correct D. (1) low-profit margin, many customers; (2) no needs, many customers; and (3) broad needs, few customers. E. (1) high-profit margin, few customers; (2) few needs, many customers; and (3) broad needs, few customers.

C

The goal of this strategy is to keep the costs, and therefore prices of a product or service low and target a wide market. A. Differentiation strategy B. Focused differentiation strategy C. Cost leadership strategy D. Cost-focus strategy

C

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? A. functional-level B. task-level C. corporate-level D. business-level

C

The research and development department and the production department do a great job when we ramp up production, but the customer service department takes time to catch up. A. Growth Strategy B. Defensive Strategy C. Stability Strategy

C

The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies in pursuit of its mission are called organizational ______. A. opportunities B. threats C. strengths D. weaknesses

C

The strategy of moving into new lines of business is called _____. A. fabrication B. accommodation C. diversification D. arbitration

C

Uber's initial public offering (IPO) ambitions represent a ________ strategy, and its interest in developing Uber Air can be considered a(n) ________ strategy. A. stability; innovation B. defensive; growth C. growth; innovation D. growth; stability E. defensive; stability

C

Waffle House has over 2,000 locations, keeps a simple menu that rarely changes (and hence spends little on R&D to develop new menu items), and most customers' tickets are around $7 or $8. Waffle House appeals to a broad range of consumers, including truck drivers, business travelers, college students, and families. Cost-leadership strategy A. Differentiation strategy B. Focused differentiation strategy C. Cost leadership strategy D. Cost-focus strategy

C

What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products which American Tile doesn't currently offer? A.fabrication B. isolationism C. diversification D. arbitration

C

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. competitors buyers investors suppliers

C

Which level of strategic management focuses on the organization as a whole? A. task-level B. business-level C. corporate-level D. functional-level

C

Which of Porter's four competitive strategies keeps the costs, and hence prices, of a product or service below those of competitors but targets only a narrow market?

Cost-focus strategy

Bethany wants to buy a pair of designer boots. To find the best price, she searches the Internet and compares prices among the eight sites that sell the boots. Which of Porter's five competitive forces is demonstrated in this scenario? rivalry among competitors bargaining power of suppliers threats of new entrants bargaining power of buyers

D

Business growth rate, as used in the BCG matrix, is concerned with how fast the _____ is(are) growing. A. number of employees B. closest competitor's sales C. individual firm's sales D. entire industry

D

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 of 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? A. imitability B. rarity C. organization D. value

D

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. focused differentiation vertical integration differentiation cost-leadership

D

Dollar Tree sells all items for $1 and caters to middle-class customers. A. Differentiation strategy B. Focused differentiation strategy C. Cost leadership strategy D. Cost-focus strategy

D

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's a good idea to do it. In a VRIO analysis, Cassandra has determined the ____ of this capability. A. imitability B. organization C. rarity D. value

D

In which step of the strategic-management process does an organization establish the mission and vision statements? A. Step Five B. Step Two C. Step Three D. Step One E. Step Four

D

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? A. Execute the strategies B. Assess the current reality C. Formulate corporate, business, and functional strategies D. Establish the mission, vision, and values statements

D

Organizational opportunities in a SWOT analysis are A. weaknesses within the organizational hierarchy. B. problems that a specific industry needs to correct. C. skills and capabilities that give an industry advantages in executing its strategies. D. environmental factors that the organization may exploit for a competitive advantage. E. MBO skills and opportunities that should be emphasized.

D

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 buyers Threats of substitute products or services Threats of new entrants Bargaining power of suppliers

D

The Internet has enabled consumers to "price shop" several retailers in order to find the best price for items such as appliances, electronics, and even cars. This has increased the consumer's ability to better negotiate favorable prices with retailers, demonstrating which of Porter's five competitive forces? Bargaining power of suppliers Threat of new entrants Threat of substitute products or services Bargaining power of buyers

D

The goal of this strategy is to keep the costs and prices of a product or service low and target a narrow market. A. Differentiation strategy B. Focused differentiation strategy C. Cost leadership strategy D. Cost-focus strategy

D

What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products which American Tile doesn't currently offer? A. arbitration B. fabrication C. isolationism D. diversification

D

Which of Porter's four competitive strategies offers products or services that are of unique or superior value compared to those of competitors and that target a wide market?

Differentiation strategy

If Uber compares its performance in Canada to the performance of Lyft, it would be A. contingency planning. B. forecasting. C. environmental scanning. D. trend analyzing. E. benchmarking.

E

Jim and his partner are studying the strengths and weaknesses of their construction business, Open Concept Construction, as well as researching the opportunities and threats in the external environment. Jim and his partner are conducting a A. strength statement. B. forecast. C. synergy plan. D. contingency plan. E. SWOT analysis.

E

Purchasing Aetna allows CVS to move into a new line of business. This is also known as A. benchmarking. B. control. C. execution. D. contingency planning. E. diversification.

E

Uber does not own its fleet of cars; rather, it relies on contracted drivers. These drivers represent which competitive force in Uber's environment? A. threat of new entrants B. bargaining power of buyers C. threat of substitute products or services D. rivalry among competitors E. bargaining power of suppliers

E

Uber's high growth rate and high market share in the United States would categorize it as a ________ on the BCG matrix. A. question mark B. cash cow C. dog D. winner E. star

E

According to Bryan Barry, which of these are things a manager can do to keep a strategic plan on track? (select all that apply)

Engage people Stay focused Keep moving Keep it simple

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

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: Since most strategic positions will fit with any company's products, a company doesn't need to be concerned about selecting the right strategy.

False

Which of Porter's four competitive strategies offers products or services that are of unique and superior value compared to those of competitors and targets only a narrow market?

Focused-differentiation strategy

____-level strategy applies to the key functional departments or units within the business units.

Functional

What is an example of an organizational weakness based on a SWOT analysis?

Inferior product quality

When conducting VRIO analysis, what question should you ask when considering the organization and its affect on a potential resource or capability?

Is the firm organized to exploit the resource or capability?

What effect has the Internet had on Porter's fifth competitive force, rivalry among competitors?

It has intensified rivalries among organizations

What are two characteristics of strategy formulation? Choose all that apply.

It is a time-consuming process. It is the basis for determining long-term goals.

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

Refer to Table 6.2. What are two things a company might do when using a defensive strategy?

Phase out product lines or services Declare bankruptcy

Apple's iPhone competes with offerings such as Google's Android and each company continually attempts to leapfrog the others' technology. This demonstrates which of Porter's competitive forces?

Rivalry among competitors

A(n) _____ analysis is an assessment of the strengths, weaknesses, opportunities, and threats affecting the organization.

SWOT

Match the BCG matrix category (on the left) with its description (on the right).

Stars-High growth and high market share Question Marks-Risky new ventures Cash cows-Slow growth but high market share Dogs-Low growth and low market share

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

Step One

Which core process of business involves analyzing and understanding how success will be accomplished?

Strategy

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

The growing popularity of reading news online has significantly reduced the sales of print copies of US newspapers. Which of Porter's five competitive forces does this demonstrate?

Threats of substitute products or services

McAllister's Fruit Farm is one of several stores in the county where customers can purchase locally grown fruits and vegetables. However, Mrs. McAllister also offers weekly workshops in her store on topics such as canning, healthy eating, and how to grow a garden, which no other store in the county does. By offering these unique workshops, the McAllisters are engaging in strategic positioning. True False

True

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

True

True or false: According to the text, setting aside time to reflect is one way to develop strategic thinking.

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 of 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

Match each of De Bono's Six Thinking Hats with its description.

White hat-Gather the facts known or needed Yellow hat- Explore and probe for the value of what you are discussing Black hat- Explore the reasons why something may not work Red hat- discuss emotions, feelings, fears, hunches, likes, and dislikes Green hat- Explore new ideas, concepts, alternatives, anbd perceptions Blue hat- ensure that all six hats are being used

Corporate-level strategy: (select all that apply)

answers questions such as "what business are we in?" and "what products and services shall we offer?" focuses on the organization as a whole involves senior executives in planning

Corporate-level strategy: (select all that apply)

answers questions such as "what business are we in?" and "what products and services shall we offer?" involves senior executives in planning focuses on the organization as a whole

Before introducing the new software, Star Software Inc., conducted benchmark activities to assess how popular the product would be in the marketplace. Which stage of the strategic management process is being used in this situation?

assess the current reality

The second step of the strategic management process involves

assessing the current reality

bethany wants to buy a pair of designer boots. To find the best price, she searches the Internet and compares prices among the eight sites that sell the boots. Which of Porter's five competitive forces is demonstrated in this scenario?

bargaining power of buyers

Bethany wants to buy a pair of designer boots. To find the best price, she searches the Internet and compares prices among the eight sites that sell the boots. Which of Porter's five competitive forces is demonstrated in this scenario?

bargaining power of the buyers

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 another

benchmarking

the three sources from which strategic position emerges are having:

broad needs and few customers broad needs and many customers few needs and many customers

The three sources from which strategic position emerges are having:

broad needs and few customers few needs and many customers broad needs and many customers

What two things does the BCG matrix evaluate?

business growth rates market share

As the senior vice president of marketing, Andrew is responsible for determining how much of the budget to spend on marketing and how much to spend on product development. Which level of strategic management is Andrew responsible for?

business level

As the senior vice president of marketing, Andrew is responsible for determining how much of the budget to spend on marketing and how much to spend on product development. Which level of strategic management is Andrew responsible for?

business-level

The _____ strategy of a company is concerned with the individual business units or production and service lines of t

business-level

The _____ strategy of a company is concerned with the individual business units or production and service lines of the business.

business-level

Business units that have slow growth but high market share are considered to be _____ by the BCG matrix.

cash cows

The creation of alternative hypothetical but equally likely future conditions is known as _____ planning.

contingency

Kevin realized that while it was likely that the cost of importing fabric from India would remain about the same, it was also likely that it could increase by at least 5% because of recent government tax regulations. For this reason, he decides to stock up on certain fabrics in case prices increase. This creation of an alternative scenario is an example of _____.

contingency planning

Some companies have "business recovery centers" in place where the company can continue to conduct business in the event of a power failure or some type of disaster that prevents the company from doing business at their normal location. These "business recovery centers" are an example of _____.

contingency planning

Strategic _____ involves monitoring the execution of strategy and taking corrective action when necessary.

control

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

Multiple Choice Question 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

What are Porter's four competitive strategies?

cost-leadership, differentiation, cost-focus, focused-differentiation

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

When a company freezes hiring and tightens expenses due to decreased demand for its products or services, it is involved in a(n) _____ strategy.

defensive

Smartwater is a brand of bottled water that promotes health benefits and features a tall, smooth, clear bottle not found in competitor brands. Based on this, which of Porter's competitive strategies is the company using?

differentation

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 which American Tile doesn't currently offer?

diversification

Business growth rate, as used in the BCG matrix, is concerned with how fast the _____ is(are) growing.

entire industry

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. Position 1 of 5 Establish the mission, vision, and values statements correct toggle button unavailable

establish, assess, formulate, execute, maintain

_____ is the process that helps align the last two phases of the strategic-management process: strategic implementation and strategic control.

execution

Within a SWOT analysis, an organizational threat will come from _____ the company.

external

True or false: Ferrari and Lamborghini automobiles are marketed based on the cost-focus strategy

false

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

false

True or false: Since most strategic positions will fit with any company's products, a company doesn't need to be concerned about selecting the right strateg

false

According to the BCG matrix, a company will do better in a _____ market in which it has a high market share

fast-growing

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

first

According to Michael Porter, the _____ of a company's strategy refers to the way a company's activities interact and reinforce one another.

fit

Which two of Porter's competitive strategies are appropriate when addressing a narrow market? Choose all that apply.

focus differentiation, cost focus

Specialty manufacturers with high-end products such as Tesla automobiles offer products that are of unique and superior value compared to those of competitors. These companies target a very narrow market and are using the ______-differentiation strategy, one of Porter's competitive strategies.

focused

A _____ is a vision or projection of the future that is made following a SWOT analysis

forecast

Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that at least 57% of consumers would demand high-end footwear and their sales should increase by 18% in the next year. This vision of what could happen is known as a _____.

forecast

Strategy _______ is the process of choosing among different strategies and altering them to best fit the organization's needs.

formulation

Ace Appliance is introducing a new line of kitchen appliances designed for smaller spaces. During the planning meeting, the marketing manager discussed how they would promote the new line to consumers through television and print advertisements while the production manager talked about the new equipment being installed to manufacture the products. Which level of strategic management is taking place during the meeting?

functional-level

At Superior Home Sales Inc., there is a manager for each of the three business units: marketing, finance, and sales. These three managers make decisions within each of their units. That makes these managers responsible for the _____ strategy of the company.

functional-level

Jerome asked each of his employees to come to the meeting ready to explore new ideas for the product line. Which of the Six Thinking Hats does Jerome want his employees to wear?

green

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(n) _____ strategy.

growth

Multiple Choice Question One question within a VRIO analysis is, "Is the resource or capability costly for other companies to produce in the same manner?" Which aspect of the VRIO analysis does this represent?

imitability

Sanjay knew it would be costly for other companies to match the quality of table linens his company made which provided him with a competitive advantage. Which part of a VRIO analysis is Sanjay basing his opinion on?

imitability

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

industry

A growth strategy that focuses on increasing market share or profits by creating improvements in products or services is called a(n) _____ strategy.

innovation

Hair Today/Gown Tomorrow is an organization that provides low-cost prom dresses and styling services in underprivileged communities. It recently found a way to reach more communities by partnering with food pantries in different areas around the Midwest. Hair Today/Gown Tomorrow increased its market share by using a(n) _____ strategy.

innovation

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

long-term

In which step of the strategic-management process does the organization monitor progress and take corrective action, such as rethinking policies, and revising budgets or personnel arrangements?

maintain strategic control

Luis owns an online clothing store. Customers receive a brief survey after ordering from the store and Luis uses the feedback from these surveys to improve his systems. Which step in the strategic management process does this represent?

maintain strategic control

When pursuing a cost-focus strategy, a company would target a _____ market.

narrow

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

obsolete technology

Marketing, production, and sales are all involved in the the core business process known as _____.

operations

Within the core business process of _____, an organization provides a path for the company to follow and defines short-term objectives for the major activities in which the organization will engage.

operations

What are the three core processes of business identified by Bossidy and Charan?

operations people strategy

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

opportunities

After completing his competitor analysis, Justin realized his company was the only one with all-natural ingredients in their pizza crust and could use this to get the pizza into more health food grocery stores. What aspect of a SWOT analysis has Justin uncovered?

opportunity

Skate/24 had only one competitor in the local market and that competitor just went out of business. Within a SWOT analysis, this is an example of an organizational _________ for Skate/24.

oppourtunity

Miles is a managing partner at Winslow Financial Services and is analyzing a new investment product the company would like to offer. He isn't sure the company has the right software systems in place to offer the product. What aspect of the VRIO analysis is Miles considering to make his decision?

organization

Within a SWOT analysis, an organizational threat will come from _____ the company.

outside

According to Bossidy and Charan, the first core process of business is _____.

people

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

people

One way Chip's Coffee House retains staff is by offering two-weeks paid vacation and health insurance benefits for part-time employees. Which of Bossidy and Charan's core processes is this business focusing on?

people

Strategic positioning attempts to achieve sustainable competitive advantage by:

preserving what is distinctive about a company

At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized that most customers called Tow-It-Now Inc. and it would be difficult to match that company's service. Which part of a VRIO analysis helped Rohan evaluate this idea?

rarity

When conducting a VRIO analysis, one question that must be answered is, "Is the resource or capability currently controlled by only a few firms or no other firms? This would determine the _____ associated with the resource.

rarity

What four characteristics are being addressed in a VRIO analysis?

rarity, value, imitability, organization

Select all of the true statements regarding unrelated diversification:

reduce risk, unrelated business

Michael Porter promoted the idea that a company's strategy must also create a "fit" with the way's a company's activities _____ one another towards a common goal.

reinforce

A company that grows its business by purchasing a business that is related to its existing portfolio is engaging in _____.

related diversification

Refer to Figure 6.2. The "feedback loop" in the strategic-management process involves

revising actions if necessary.

What are the four activities for developing strategic thinking identified in the text?

see pg.213

Select all of the true statements regarding the trade-offs required in competing

some strategies are incompatible companies must choose what strategy not to follow companies must choose what strategy to follow

Select all of the true statements regarding the trade-offs required in competing:

some strategies are incompatible companies must choose what strategy not to follow companies must choose what strategy to follow

A(n) ______ strategy requires little or no change to a company's product or service

stability

A(n) ______ strategy requires little or no change to a company's product or service.

stability

When Johnson & Johnson promoted its baby shampoo as a gentle cleanser suitable for adults, it did this without changing the formulation of the product. Which type of corporate strategy does this exemplify?

stability

Which quadrant in the BCG matrix represents business units that are definite keepers?

stars

Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which _____ emerges

strategic position

Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which _____ emerges

strategic positioning

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

strategic positioning

In which core process of business developed by Bossidy and Charan would a company ask "Who is my competition?" and "How will my business make money on a sustainable basis?"

strategy

Putting strategic plans into effect is referred to as _____.

strategy implementation

The BMW 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

Precise work processes and high-ranking customer service are examples of organizational ______ in a SWOT analysis.

strengths

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

Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would be considered an external organizational ______ in a SWOT analysis

threat

Which of the following represent competitive forces used in Porter's model for industry analysis?

threat of substitute products or services threats of new entrants bargaining power of suppliers rivalry among competitors bargaining power of buyers

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

threats

Within a SWOT analysis, the letter "T" represents a company's _____.

threats

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 re-think 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

Joan runs a drop-in play center and until recently she was the only business in town where families could find reasonably-priced entertainment for their children. Joan learned that two fast-food restaurants with play areas are being built nearby so she is coming up with ways to convince her customers that her center is preferable. Which of Porter's five competitive forces is Joan specifically worried about?

threats of substitute products or services

Which of the following are accurate regarding Step 4 (Execute the Strategy) in the strategic management process? (select all that

top managers must check on possible roadblocks and see if it will be possible to execute the plans this step poses the greatest challenge for managers

After analyzing the sales reports from the past five years, Mallory knows that peak times for the sale of her flip-flops are from June to September so she directs the warehouse to increase the stock during that time period. What did Mallory use to help her make this determination?

trend analysis

Using statistical analysis of historical data to predict future events is called _____.

trend analysis

True or False Question True or false: The prediction of a business cycle based upon historical data is an example of using trend analysis in business.

truet

What are the four activities for developing strategic thinking identified in the text?

understand the business broaden task and functional knowledge engage in lateral thinking set aside time to reflect

Wisconsin Dairy Farms wants to grow revenue and feels the best way to do this is by purchasing a business that is not in the dairy industry. After a lengthy analysis, it purchases Hydro Generator Corp. which supplies energy along the Pacific coast. What type of strategy is the company using?

unrelated diversification

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 of 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's a good idea to do it. In a VRIO analysis, Cassandra has determined the ____ of this capability.

value

Netflix began as a video rental business but has expanded into producing and distributing its own programming. What type of diversification strategy is Netflix using?

vertical

Which strategy is a company pursuing when it expands into businesses that provide the supplies it needs to make its products or that distribute and sell its products?

vertical

Which strategy is a company pursuing when it expands into businesses that provide the supplies it needs to make its products or that distribute and sell its products

vertical intergration

Peterson Electric Inc. has outdated manufacturing facilities. Within a SWOT analysis, this would be an example of an organizational ______ of the company.

weakness

When would a company use a VRIO analysis?

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

Which of the Six Thinking Hats focuses on positivity and optimism?

yellow