P.O.B. Chapter 3 Study Guide

Which of the following is most closely associated with an overall cost leadership strategy? a. Manufacturing highly-customized products b. Manufacturing products in bulk c. Providing highly efficient customer service that is better than any other competitor d. Selling products at high prices e. Using expensive raw materials

b. Manufacturing products in bulk

In the GE Business Screen matrix, which of the following is a determinant of industry attractiveness? a. Market share b. Market size c. Product quality d. Operating costs e. Service network

b. Market size

What is a potential downfall when using the SWOT analysis? a. Weak mission statement b. Subjective assessment c. Lack of distinctive competencies d. Lack of differentiation strategy e. Inability to eliminate threats

b. Subjective assessment

In a BCG matrix, _____ are businesses that have a large share of a markets that is not expected to grow substantially. a. stars b. cash cows d. portfolios d. question marks e. dogs

b. cash cows

What does an organization use to manage its operations across several industries and several markets simultaneously? a. Corporate-level strategy b. Tactical plans c. SWOT analysis d. Distinctive competence e. Business-level strategy

a. Corporate-level strategy

Which of the following would be considered as an organizational weakness in the context of SWOT analysis? a. Insufficient cash reserves b. Government policies c. Surplus capital d. Motivated employees e. High import tariffs

a. Insufficient cash reserves

Alpha Inc. is a large show manufacturer that has a large online customer base. In addition to the high volume of shows it manufactures, the company sells simply designed sneakers for low prices. Which of the following strategies is illustrated in the scenario? a. Overall cost leadership strategy b. Market diversification strategy c. Differentiation strategy d. Divesting strategy e. Market development strategy

a. Overall cost leadership strategy

Which of the following is used to show how sales volume of a product can change over time? a. Product life cycle b. Diversification c. Single-product strategy d. Differentiation e. Portfolio management

a. Product life cycle

An organizational strength that is possessed by only a small number of competing firms is a firm's ______. a. distinctive competency b. mission c. operational goal d. strategy e. scope

a. distinctive competency

SuperWheels is a large firm that manufactures bicycles. The company sells a line of mountain bikes targeted at experience off-road cyclists. SuperWheels has introduced several innovations to distinguish bicycles from those of its competitors. Which of the following strategies is illustrated in this scenario? a. Overall cost leadership strategy b. Differentiation strategy c. Focus strategy with differentiation focus d. Focus strategy with cost leadership focus e. Cost leadership strategy with differentiation focus

c. Focus strategy with differentiation focus

According to the BCG matrix, what should a company do with the cash that is generated by cash cows? a. Return it to shareholders b. Invest it in question marks c. Invest it in stars d. Use it to incentivise employees e. Apply it to R&D for new products

c. Invest it in stars

The exact description of how specific activities are to be carried would be found in which type of plan? a. Policy b. Single-use plan c. Rules and regulations d. Standard operating procedures e. Project plans

c. Rules and regulations

What is the component of a strategy that specifies the range of markets in which an organization will compete? a. Divesture b. Competency d. Scope d. Resource deployment e. Deskilling

c. Scope

What does proper execution of tactical plans depend on? a. Maximizing inconsistent activities b. A SWOT analysis c. Vertical and horizontal communication d. Maximizing conflict e. Evaluating just one course of action

c. Vertical and horizontal communication

Which of the following is an organizational strength? a. High employee turnover b. High production costs c. Well-established distribution channels d. High purchasing power of customers e. New competitors

c. Well-established distribution channels

When devising a new strategy, it is best to start with _____. a. strategy formulation b. a tactical plan c. a SWOT analysis d. operational plan e. a tactic plan

c. a SWOT analysis

A strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals is a(n) _____. a. distinctive strategy b. competent strategy c. effective strategy d. tactical competence e. distinctive competence

c. effective strategy

The choices a firm makes as to where and how much to invest reflects issues of _____. a. scope b. distinctive competencies c. resource deployment d. operational planning e. goal setting

c. resource deployment

When a firm identifies a weakness within its organization, what can it do to address that weakness? a. It can look for organization opportunities that will eliminate the weaknesses b. It can modify its objectives for strengths c. It can develop a distinctive competence d. It can modify its mission e. It can consider it a distinctive competence and exploit it

d. It can modify its mission

In a BCG matrix, _____ are businesses that have a very small share of a market that is not expected to grow. a. question marks b. cows c. stars d. dogs e. rate busters

d. dogs

Curl Up and Dye is a local hair salon that has a steady clientele from the surrounding community. However, a new salon has just opened in the area, and some clients have mentioned that the new salon offers similar services at lower prices. Curl Up and Dye now needs to pursue a strategy that will _____. a. narrow the target market b. revise internal operating procedures c. pursue new investment opportunities d. neutralize the impending threat e. find a new distinctive competence

d. neutralize the impending threat

Relish has a chain of outlets that sells baked products. Relish requires all its employees to complete a month's training before they can work in the kitchen. This is an example of a _____. a. standard operating procedure b. contingency plan c. regulation d. policy e. standing plan

d. policy

A(n) ______ is an operational plan that is developed to carry out a course of action that is not likely to be repeated in the future. a. policy b. standing plan c. SOP d. single-use plan e. rule or regulation

d. single-use plan

Rumi has found that selling gluten-free products at her bakery has been an effective strategy and has allowed her to achieve some of her strategic goals for sales. Which of the following makes this an effective strategy for Rumi? a. SWOT analysis b. Strong resource deployment c. Better identification of the scope of her competition d. Superior alignment with her environment e. A comprehensive plan for accomplishing her goals

a. SWOT analysis

What do organizations use to operationalize or execute strategies, while it focuses on the processes through which strategies are achieved? a. Strategy implementation b. Strategy mapping c. Strategy formulation d. Strategy visualization e. Strategy conceptualization

a. Strategy implementation

Organization opportunities are _____. a. areas in the environment that may generate higher performance b. an organization's skills that enable it to implement strategies c. a firm's capabilities to formulate goals and plans d. factors that increase the difficulty of an organization performing at a high level e. ways to counteract organizational weaknesses

a. areas in the environment that may generate higher performance

An organization's _____ is a statement of its fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business' operations in product and market terms. a. mission b. code of ethics c. article of incorporation d. operational goal e. tactical plan

a. mission

A difference between tactical and strategic plans is that _______. a. tactical plans have a more concrete focus b. tactical plans are set for and by the board of directors c. tactical plans have broader horizons d. strategic plans are developed by first-line managers e. strategic plans deal with the day-to-day operations of an organization

a. tactical plans have a more concrete focus

Which of the following questions that companies consider is most closely related to the scope component of a strategy? a. How much money should we invest in each of our divisions? b. What are the markets in which we want to compete? c. What feedback have we received from customers about our product? d. What are the strengths and weaknesses of our competitors? e. How can we improve out customer service after the sale?

b. What are the markets in which we want to compete?

WexAll Industries has seen demand for its RB37 start to slow down. In addition, the number of other companies producing a similar product has started to go down as well, and there have not been any new entrants into this market. The RB37 is most likely in the ______ stage of the product life cycle. a. growth b. post-prime c. introduction d. maturity e. decline

b. post-prime

In the context of the BCG matrix, _____ are businesses that have the largest share of a rapidly growing market. a. question marks b. stars c. cows d. dogs e. portfolios

b. stars

Why is it important to identify weaknesses in a SWOT analysis? a. To exploit them b. To correct them c. To neutralize threats d. To focus on strengths e. To turn them into opportunities

b. to correct them

Aries Inc. manufactures dairy products and detergents. This is an example of _____ diversification. a. horizontal b. unrelated c. single-product d. concentric e. related

b. unrelated

Ahmed is responding to a situation that does not happen often. He talked with a colleague about how to resolved the issue. When a colleague suggested Ahmed change his tactical plan, he did not. Why wouldn't Ahmed change his tactical plan to resolve this situation? a. He didn't have a time frame for resolving the issue b. It was exclusively developed by the board of directors c. The organization would then have to change the mission d. Performance could be improved with unrelated diversification e. A new business screen analysis would have been required

e. A new business screen analysis would have been required

What are the unique skills and capabilities that enable an organization to create and implement its strategies? a. Market opportunities b. Organizational opportunities c. Market strengths d. Environmental strengths e. Organizational strengths

e. Organizational strengths

_____ is a portfolio management technique that considers industry attractiveness and competitive position rather than focusing solely on market growth and market share. a. Tactical planning b. SWOT analysis c. Product diversification d. The BCG matrix e. The GE Business Screen

e. The GE Business Screen

Libra Travels LLC. has a few back-up buses at key locations where the business operates. This is to be prepared in case any of its day-tour buses break down. This is an example of a _____. a. project b. program c. regulation d. single-use plan e. contingency plan

e. contingency plan

Gadgetbug Inc. is known for its extremely efficient after-purchase service. None of Gadgetbug's competitors provide the same kind of customer service. Gadgetbug's _____ is described in the scenario. a. scope b. divestiture strategy c. strategic limitation d. process loss e. distinctive competence

e. distinctive competence

Strategic plans _____. a. focus on how to operationalize actions necessary to achieve goals b. are concerned more with actually getting things done with deciding what to do c. have a short-term focus and are relatively narrow in scope, dealing with a fairly small set of activities d. typically involve upper and middle management and have a somewhat shorter time horizon and a more specific and concrete focus e. generally have an extended time horizon, and address questions of scops, resource deployment, competitive advantage, and synergy

e. generally have an extended time horizon, and address questions of scope, resource deployment, competitive advantage, and synergy

A(n) _____ goal for a waste management plant could be to "identify barriers to recycling as well as means to overcome those barriers, as well as determine recycling rates by neighborhood and find correlations, if any, between barriers and neighborhoods". It would develop naturally out of a strategic goal to "increase recycling by 10% everywhere". a. strategic b. departmental c. functional d. divestiture e. tactical

e. tactical