MGT - Chapter 6
1. ABC Company has developed new products to appeal to more potential buyers. ABC is pursuing a ___________ strategy. A) growth B) stability C) defensive D) reorganization E) reactor
A
1. Managers need to do a __________ as a starting point in developing a grand strategy. A) SWOT analysis B) forecasting model C) contingency plan D) trend analysis E) planning analysis
A
1. Rocky Mountain Ski and Snowboard is a small shop that provides ski equipment for Rocky Mountain skiers. It has decided to increase advertising in the Denver Post and the Vail Voice as well as sponsor one of the mountain competitions. It is following which strategy? A) growth B) stability C) defensive D) reorganization E) reactor
A
1. When analyzing the "O" in SWOT analysis, a manager might be assessing A) competitors' actions. B) absenteeism among employees. C) good morale among workers. D) high service levels. good financial position
A
1. When analyzing the "T" in SWOT analysis, a manager might be assessing A) competitors' actions. B) employee absenteeism. C) strong corporate culture. D) high service levels. the firm's assets
A
1. Which of the following is a cause of bad planning? A) faulty assumptions about the future B) changes in the economic environment C) lack of competition in the industry D) changes in government policies E) strong leadership
A
1. Which of the following statements about strategic planning and strategic management is true? A) Strategic management is a process that involves managers from all parts of the organization. B) Managers at the top dictate ideas to be followed by people lower down. C) Middle managers need not understand the strategies; they simply need to follow them. D) Strategic planning is used to accomplish tactical goals. Strategic planning is not useful because it puts the organization into a straitjacket and does not allow for flexibility
A
1. XYZ has acquired a new company with a similar business service. XYZ is engaged in a ____________ strategy. A) growth B) stability C) defensive D) reorganization E) reactor
A
1. Zach manages a small video rental store. In order to determine if strategic planning will be likely to help his business, Zach should primarily assess A) how many competitors he has. B) foot traffic by his location. C) his profitability in the prior six months. D) industry trends. all of the above
A
1. __________ is the process of choosing among different strategies and altering them to best fit the organization's needs. A) Strategy formulation B) Strategic control C) Strategy implementation D) Contingency planning E) Situation analysis
A
1. A strategy that involves little or no significant change is the _________ strategy. A) growth B) stability C) defensive D) reorganization E) reactor
B
1. According to the text, a small firm is likely to benefit significantly from strategic planning A) regardless of the nature of its industry. B) when it is in a very competitive industry. C) when it is in a very non-competitive industry. D) when it is in a very stable industry. when it is in a very small market
B
1. Karen has just completed an assessment that indicates that her employees lack technological expertise to produce a new product line. She has discovered one of her firm's
B
1. SWOT" analysis is also known as A) strategic control. B) situational analysis. C) trend analysis. D) contingency planning. forecasting
B
1. Which of the following is the final step of the strategic management process? A) formulate the strategic plans B) maintain strategic control C) establish the grand strategy D) establish the mission and vision E) carry out the strategic plans
B
1. __________ attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. A) Strategic segmentation B) Strategic positioning C) Competitive planning D) Distinctive positioning E) Collaborative planning
B
1. __________ consists of monitoring the execution of strategy and making adjustments, if necessary. A) Strategy formulation B) Strategic control C) Strategy implementation D) Contingency planning E) Situation analysis
B
1. A company declares bankruptcy. Which of the following strategies has the company followed? A) growth B) stability C) defensive D) reorganization E) reactor
C
1. A large-scale action plan that sets the direction for an organization is called a A) mission. B) vision. C) strategy. D) forecast. central contingency plan
C
1. ABC Company phased out its line of typewriters last year. ABC is engaged in a _________ strategy. A) growth B) stability C) defensive D) reorganization E) reactor
C
1. Techno Tools is selling off land, buildings and some of its product inventory. It is pursuing which of these strategies? A) growth B) stability C) defensive D) reorganization E) prospector
C
1. The "grand strategies" are A) cost-leadership, differentiation, cost focus, focused differentiation. B) "SWOT." C) growth, stability, defensive . D) defender, prospector, analyzer, reactor. introduction, growth, maturity, decline
C
1. The process of putting the company's strategic plans in place is called A) strategy formulation B) strategic control C) strategy implementation D) contingency planning E) trend analysis
C
1. Wal-Mart is guided by the following credo: "Find out what customers want, then provide it to them as cheaply and quickly as possible." This is Wal-Mart's A) mission. B) vision. C) strategy. D) forecast. central contingency plan
C
1. When analyzing the "W" in SWOT analysis, a manager might be assessing A) possible challenges in the market. B) competitors' actions. C) high turnover of employees. D) good financial resources of the firm. governmental actions
C
1. Which of the following is the second stage in the strategic-management process? A) formulate the strategic plans B) maintain strategic control C) establish the grand strategy D) establish the mission and vision E) carry out the strategic plans
C
1. The most important thing a good mission statement should express is the A) organization's attitude toward its employees. B) geographical areas in which the firm will compete. C) firm's basic technology. D) firm's purpose. firm's major strengths
D
1. When analyzing the "S" in a SWOT analysis, a manager might be assessing A) possible challenges in the market. B) competitors' actions. C) high turnover of employees. D) good financial resources of the firm. governmental actions
D
1. Which of the following points will most likely streamline an effective meeting? A) Cary makes sure to invite everyone to a meeting so she can get all points of view. B) John prepares a list of meeting objectives that he reveals at the meeting. C) Sarah finishes a lively, but somewhat off track discussion, even though it takes a bit longer because she wants to make everyone feel included. D) Marjorie does her homework in advance of the meeting and prepares an agenda with the most important items discussed first. Steve often stops the discussion short by offering his judgments as boss. This way the meeting stays on time and his people know what to do
D
1. Which of the following would be considered a reason for adopting strategic management and strategic planning? A) to keep corporate taxes at a minimum B) to be efficient in implementation of the ways the corporation has historically behaved C) to develop independent work from the staff D) to encourage new ideas E) to increase market dominance using promotion
D
1. A manager assessing the skills and capabilities of the organization is involved in analysis of A) strengths B) weaknesses C) opportunities D) threats E) strengths or weaknesses depending on the outcome of the assessment
E
1. Analysis of the local and regional labor force would be part of the assessment of a company's A) strengths B) weaknesses C) opportunities D) threats E) opportunities or threats depending on the outcome of the analysis
E
1. Bad planning usually is a result of which of the following? A) information overload B) ineffective group dynamics C) poor assessment of an organization's capabilities D) faulty assumptions about the future Bad planning usually results from all of the above
E
1. Effective strategic management involves A) only top management. B) only top and middle management. C) only middle and lower management levels. D) only lower management level. managers from all parts of the organization
E
1. How many steps are in the strategic-management process? A) 1 B) 2 C) 3 D) 4 E) 5
E
1. Research on strategic planning positively affected firm performance in A) only large firms. B) only large and medium-sized firms. C) only medium-sized firms. D) only medium-sized and small firms. firms of all sizes
E
1. Which of the following is a question that should be answered by a company's mission statement? A) Does it inspire enthusiasm and encourage commitment? B) Does it set standards of excellence? C) Is it appropriate for the organization? D) Is it well articulated? E) What is our basic technology?
E
1. Which of the following is a suggestion by Bryan Barry to keep a strategic plan on track? A) Engage people B) Stay focused C) Keep moving D) Keep it simple All of the above are Barry's suggestions to keep a strategic plan on track
E
1. Which of the following is an area a company needs to get in and stay ahead in order to sustain a competitive advantage? A) quality B) effectiveness C) being responsive to customers D) innovating All of the above are areas in which a company needs to get and stay ahead
E
1. Which of the following statements about strategy and strategic positioning is true? A) Strategic position emerges from three sources. B) Strategy requires trade-offs in competing. C) A company has to choose not only what strategy to follow but what strategy not to follow. D) Strategy involves creating a "fit" among activities. All of the above statements about strategy and strategic positioning are true
E
Which of the following is a question that should be answered by a company's vision statement?
E
"Strategic effectiveness" is the term for putting strategic plans into effect
False
1. A stability strategy is sometimes called "retrenchment."
False
A business plan is a document with the purpose of outlining a proposed firm's profit and loss statements
False
A constant strategy is a grand strategy that involves little or no significant change
False
A good vision statement should tell what a company's major strengths and competitive advantage are in their industry
False
Contingency planning and scenario planning are different planning techniques
False
Firms with formal business plans are less apt to survive because of the time it takes to write and agree upon the plan
False
General Electric sells lighting products and also plastics, broadcasting, and financial services. GE uses a related diversification strategy
False
Good strategy allows a company to be everything to everyone
False
In a cost-leadership strategy, an organization offers products of services of unique and superior value compared to competitors
False
In a holistic strategy, a company makes and sells only one product within its market
False
In the introduction phase of the product life cycle, organizations should follow a cost-leadership strategy
False
Management of a small company in an industry that is not very competitive should engage in strategic planning because it will significantly increase financial performance
False
Meetings are often longer than needed when action agendas are distributed in advance
False
Organizational threats are the drawbacks that hinder an organization in executing strategies in pursuit of its mission
False
Small College in Anytown, USA has done a SWOT analysis and discovered that the number of college-bound high-school juniors is at its highest number in the recent past. This is a strength for Small College
False
Strategic management and strategic planning provide direction and momentum to an organization but do not encourage new ideas
False
Strategic management is the process of involving selected managers from the top echelons of the organization in the formulation and implementation of strategies and strategic goals
False
Strategic planning is appropriate for large companies, but does not help the performance of small companies
False
The basic assumption of a contingency plan is that what happened in the past can be projected into the future
False
The period in which the product starts to fall out of favor and sales and profits begin to fall off is called the "decline" stage of the product life cycle
False
The third step in the strategic-management process is to carry out the strategic plans
False
The three core processes of business include people, products, and prices
False
The two types of forecasting are trend analysis and tactical planning
False
There are five steps in the strategic-management process with first step being establishing the grand strategy
False
"Knowing yourself" is a behavior of a leader who executes
True
"Strategy formulation" is the process of choosing among different strategies and altering them to best fit the organization's needs
True
"Trend Analysis" is a hypothetical extension of a past series of events into the future
True
A "grand strategy" explains how the organization's mission is to be accomplished
True
A building block that underlies the process of effective execution contends that leadership must be based on seven essential behaviors
True
A focused-differentiation strategy targets a narrow market
True
A good vision statement challenges and inspires people
True
A grand strategy can be established by using tools including a SWOT analysis and forecasting
True
A growth strategy is a grand strategy that involves expansion
True
A small florist most likely follows the single-product strategy
True
A strategy is a large-scale action plan that sets direction for an organization
True
A sustainable competitive advantage is the ability of an organization to produce goods or services more effectively than its competitors and outperform them
True
According to Burt Nanus, good vision statements prevent people from being overwhelmed by immediate problems because they help distinguish what is truly important from what is merely interesting
True
An advantage of related diversification is the creation of synergy
True
An example of an organization pursuing a differentiation strategy is Pepsi-Co
True
Execution is a central part of any company's strategy
True
Forecasting is a strategic-planning tool used to make long-term strategy
True
Informal sources are a way for a company to gain competitive intelligence
True
Managers must be willing to make large, painful decisions to suddenly alter strategy
True
Many good mission statements state the geographical areas in which a firm will compete
True
Michael Porter is the single most important strategist working today, and maybe of all time
True
Obsolete technology and outdated facilities are examples of organizational weaknesses
True
One cause of bad planning is faulty assumptions about the future
True
One of the ways to keep a strategic plan on track is to keep it simple
True
Part of the value of contingency planning is that it gets managers thinking strategically
True
Porter's model for industry analysis states that business-level strategies originate in five primary competitive forces in the firm's environment
True
Pressure to keep costs down is most intense in a cost-focus strategy
True
SWOT analysis helps management to develop a realistic understanding of the organization in relation to internal and external environments
True
Some people object that planning can foster rigidity
True
Strategic control consists of monitoring the execution of strategy and making adjustments, if necessary
True
Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company
True
Strategic positioning means performing different activities from rivals, or performing similar activities in different ways
True
Strategy is the creation of a unique and valuable position
True
The starting point in establishing a grand strategy is often a SWOT analysis
True
