Unit 2: Strategic Management Principles

1. Identify each SWOT factor as either internal or external to the firm. 1. Strengths 2. Weaknesses 3. Opportunities 4. Threats A. Internal B. External

1. A 2. A 3. B 4. B

O" in VRIO refers to which of these? A. Organization B. Official C. Object D. Open

A

According to the BCG Matrix, which of these business units should be scrapped/divested? A. Dogs and Question Marks B. Stars and Dogs C. Cash Cows and Stars D. Question Marks and Cash Cows

A. Dogs and Question Marks

A ______ strategy involves developing plans to increase the size of the firm in terms of revenue, market share, or geographic reach. A. growth B. stability C. defensive D. divestiture

A. Growth

XY Products has a horizontal organizational structure with many individuals across the company empowered to make organizational decision. XY Products can be described to have which of these structures? A. Technological B. Organic C. Transactional D. Mechanistic

B. Organic

XY Products has a horizontal organizational structure with many individuals across the company empowered to make organizational decision. XY Products can be described to have which of these structures? A. Mechanistic B. Organic C. Technological D. Transactional

B. Organic

In the context of Porter's model, a(n) ____ is any other product or service that can satisfy the same need for a customer as an industry's offerings. A. New entrant B. Competitive product C. Rivalry D. Substitute

D. Substitute

A firm's _____ is the progression of activities it undertakes to create a product or service that consumers will pay for. A. SWOT B. competitive advantage C. core competency D. value chain

D. Value Chain

Transformational change refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization. True False

False

Transformational change refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization. True False

False

"I" in VRIO refers to which of these? -Interest -Industry -Idea -Imitation

Imitation

An organization with a horizontal structure is also known as a flat organization because it often features only a few levels of organizational hierarchy. True False

True

Demographics includes facts about income, education levels, age groups, and the ethnic and racial composition of a population. True False

True

According to the BCG Matrix, business units that have high market share but are in a market that is not growing are called ______. A. Stars B. Cash Cows C. Question Marks D. Dogs

B. Cash Cows

ABC Products is described as having a _______ when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do. A. Value Chain B. Competitive advantage C. Strategic Positioning D. Differentiation Strategy

B. Competitive Advantage

Interest rates and exchange rates are part of which element of PESTEL? A. Political B. Economic C. Sociocultural D. Legal

B. Economic

"R" in SMART Framework refers to which of these? A. Results B. Relevant C. Retention D. Reasonable E. Rates

B. Relevant

Which of the following argues that leaders assume that people are inclined to embrace change when they are respected as individuals with intrinsic worth, agency, and capability? A. Deficit-based change B. Emergent approach C. Top-down change D. Appreciative mindset

D. Appreciative Mindset

____ is a process in which the performance standard is based on another firm's superior performance. A. Operational planning B. System-based planning C. Functional planning D. Benchmarking

D. Benchmarking

ABC Products is interested in identifying what technological opportunities exists for their business. ABC should use which of the following strategic analysis tools? A. Resources and Capabilities B. PESTEL C. Vision and Mission D. SWOT

NOT A or D

ABC Products is interested in identifying what technological opportunities exists for their business. ABC should use which of the following strategic analysis tools? A. PESTEL B. Resources and Capabilities C. SWOT D. Vision and Mission

NOT C

A firm's _____ is the progression of activities it undertakes to create a product or service that consumers will pay for. -Value Chain -Competitive advantage -core competency -SWOT

Value Chain

Which of the following represent the first step in the planning process? A. Set goals B. Design plan C. Implement plan D. Review results

A. Set goals

When a company decide to shrink its operations to reduce costs in order to survive, it is employing a ____ strategy. A. stability B. defensive C. growth D. intensive

B. Defensive

ABC Motors, a car manufacturing company, is organized in four divisions according to the four different models of the vehicle that they produce. Which of the following best describe the structure at ABC Motors? A. Geographic structure B. Product structure C. Vertical structure D. Matrix structure

B. Product structure

Demographic trends and market diversity are part of which element of PESTEL? A. Legal B. Sociocultural C. Political D. Economic

B. Sociocultural

According to the BCG Matrix, business divisions that are in a high market share, high growth quadrant are called ______. A. Question Marks B. Stars C. Cash Cows D. Dogs

B. Stars

Which of the following describe the high-level planning performed by company executives in order to set the overall direction of the company? A. Operational planning B. Strategic planning C. Tactical planning D. Functional planning

B. Strategic Planning

Which of these is the process of planning and implementing actions that will lead to success in competition? A.Capabilities B. Strategy C. Resources D. Value chain

B. Strategy

When a Sally assesses the external competitive environment facing her firm, she labels anything that would make it harder for her firm to be successful as a(n) _______. A. weakness B. threat C. opportunity D.strength

B. Threat

_____ refers to factors that prevent new firms from successfully competing in the industry. - Generic Strategies -Supplier Power -Threat of substitutes -Barriers to entry

Barriers to entry

Which of the following argues that leaders assume that people are inclined to embrace change when they are respected as individuals with intrinsic worth, agency, and capability? A. Emergent approach B. Deficit-based change C. Appreciative mindset D. Top-down change

C. Appreciate Mindset

When a company decide to shrink its operations to reduce costs in order to survive, it is employing a ____ strategy. A. growth B. stability C. defensive D. intensive

C. Defensive

A ______ strategy involves developing plans to increase the size of the firm in terms of revenue, market share, or geographic reach. A. divestiture B. defensive C. growth D. stability

C. Growth

Which of the following model of change proposed an eight-step sequence and relies on a centralized, top-down process for creating planned change? A. Complex Adaptive Systems B. Lewin's Change Model C. Kotter's Change Model D. Appreciative Inquiry (AI) model

C. Kotter's change model

In a SWOT analysis, ________ are potential situations that a firm is equipped to take advantage of. A. Weaknesses B. Strengths C. Opportunities D. Threats

C. Opportunities

1. According to the BCG Matrix, business units that have a low market share but are in a high growth market are called ______. ( ) A. Dogs ( ) B. Cash Cows ( ) C. Question Marks ( ) D. Stars

C. Question Marks

According to the BCG Matrix, business units that have a low market share but are in a high growth market are called ______. A. Dogs B. Cash Cows C. Question Marks D. Stars

C. Question Marks

"S" in SMART Framework refers to which of these? A. Sociocultural B. Strategy C. Specific D. Systematic E. Stability

C. Specific

Which of the following represents the framework a firm uses to organize its activities, developed by the firm's top managers and includes examples such as cost leadership and differentiation? A. Corporate strategy B. BCG Matrix C. SMART framework D. Business-level strategy

D. Business-level strategy

In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price. ABC can be described as utilizing which of the following strategy? A. Global strategy B. Regional strategy C. Cost-leadership strategy D. Differentiation strategy

D. Differentiation Strategy

According to the BCG Matrix, business units that are doing poorly in a low growth market are called ______. A. Question Marks B. Stars C. Cash Cows D. Dogs

D. Dogs

Interest rates and exchange rates are part of which element of PESTEL? A. Legal B. Sociocultural C. Political D. Economic

D. Economic

The _____ is emergent, meaning that it is formed through the common conversations and relationships that often naturally occur as people interact with one another in their day-to-day relationships. A. organizational design B. organizational development C. organizational change D. informal organization

D. Informal organization

ABC Products has a highly vertical organizational structure that is designed to generate a high degree of standardization and control. ABC Products can be described to have which of these structures? A. Transformational B. Differentiation C. Strategic D. Mechanistic

D. Mechanistic

ABC Products has a highly vertical organizational structure that is designed to generate a high degree of standardization and control. ABC Products can be described to have which of these structures? A. Transformational B. Strategic C. Differentiation D. Mechanistic

D. Mechanistic

1. ABC Products is interested in understanding if new firms were coming into their market. ABC should use which of the following strategic analysis tools? ( ) A. SWOT ( ) B. Vision and Mission ( ) C. Resources and Capabilities ( ) D. Porter's 5 Forces

D. Porter's 5 Forces

ABC Products is interested in understanding if new firms were coming into their market. ABC should use which of the following strategic analysis tools? A. SWOT B. Vision and Mission C. Resources and Capabilities D. Porter's 5 Forces

D. Porters 5 Forces

According to the BCG Matrix, business units that have a low market share but are in a high growth market are called ______. A. Dogs B. Cash Cows C. Stars D. Question Marks

D. Question Marks

"R" in VRIO refers to which of these? A. Rate B. Retail C. Result D. Rarity

D. Rarity

ABC Products is good at marketing its sports products. In a SWOT analysis, this describes an ABC ___________. A. threat. B. opportunity. C. weakness. D. strength.

D. Strength

In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price. ABC can be described as utilizing which of the following strategy? -Cost-leadership strategy -Regional Strategy -Differentiation strategy -Global strategy

Differentiation strategy

Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers. True False

False

Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers. True False

False

A plan includes decisions about when and how actions should be accomplished and what resources will be required to complete the actions. True False

True

Which change model argues that an organization is constantly developing and adapting to its environment, much like a living organism? A. Kotter's Change Model B. Complex Adaptive Systems C. Appreciative Inquiry (AI) model D. Lewin's Change Model

B. Complex Adaptive Systems

Which of the following represents the broadest level of strategy, and is concerned with decisions about growing, maintaining, or shrinking very large companies? A. BCG Matrix B. Corporate strategy C. Business-level strategy D. International strategy

B. Corporate Strategy

Which of the following represents is one of the most difficult kinds of changes to create within an organizational system? A. Differentiation change B. Culture change C. Incremental change D. Technological change

B. Cultture Change

When BA Products managers assume that BA employees will change if they know they will otherwise face negative consequences, it refers to which of the following? A. Emergent approach B. Deficit-based change C. Abundance-based change D. Top-down change

B. Deficit-based change

Which of the following describes an officially defined set of relationships, responsibilities, and connections that exist across an organization? A. Level of organization B. Formal organization C. Organizational design D. Organizational change

B. Formal Organization

XY Deliveries, a package delivery company, is organized as XY North, XY South, XY East, XY West, and XY Central divisions in the United States. Which of the following best describe the structure at XY Deliveries? A. Product structure B. Geographic structure C. Matrix structure D. Vertical structure

B. Geographic Structure

"I" in VRIO refers to which of these? A. Idea B. Imitation C. Interest D. Industry

B. IMitation

Which of the following is the final step of strategic management process? A. Vision and Mission B. Measure and evaluate performance C. Strategic analysis D. Create and choose strategies

B. Measure and evalutate performance

ABC Products has a highly vertical organizational structure that is designed to generate a high degree of standardization and control. ABC Products can be described to have which of these structures? A. Transformational B. Mechanistic C. Differentiation D. Strategic

B. Mechanistic

1. Tariffs and trade agreements are part of which element of PESTEL? A. Sociocultural B. Political C. Legal D. Economic

B. Political

From a value chain perspective, _____ are the actions a firm takes to directly provide a product or service to customers, whereas, ______ are actions required to sustain the firm that are not directly part of product or service creation. A. support activities; primary activities B. primary activities; support activities C. substitutes; resources D. capabilities; resources

B. Primary activities; Support activities

Garden Tools, Inc. (GTI) offers customers its product or service at a lower price than its rivals can. GTI can be described as utilizing which of the following strategy? A. Local strategy B. Differentiation strategy C. Cost-leadership strategy D. Global strategy

C. Cost-leadership strategy

Tariffs and trade agreements are part of which element of PESTEL? -Economic -Sociocultural -Political -Legal

Political

"R" in VRIO refers to which of these? -Rarity -Result -Rate -Retail

Rarity

While a firm's _______ is a general statement about its values, a firm's ______ is more specific. A. vision statement; mission statement B. mission statement; objective statement C. SMART framework; SWOT D. SWOT; SMART framework

A. Vision Statement; Mission Statement

The mission statement takes the ____ of a vision statement and gives a broad description of _____ the firm will try to make its vision a reality. A. why; how B. where; what C. what; where D. how; why

A. Why; How

Match the stage in the organizational life cycle with the correct definition. 1. Entrepreneurship 2. Survival and Early Success 3. Sustained Success 4. Renewal A. Organization usually very small and agile, focusing on new products and markets; founders typically focus on a variety of responsibilities and often share frequent and informal communication with all employees in the company. B. Organizations have to be reorganized or restructured to achieve higher levels of coordination between and among different groups or subunits. C. Organization expands; hierarchy deepens with multiple levels of employees; lower-level managers given greater responsibility; managers for significant areas of responsibility identified. D. Mechanistic structures introduced that support the standardization and formalization required to create effective coordination across the organization.

1. A 2. D 3. C 4. B =0.75/1

Match the type of change to the correct definition. 1. Incremental Change 2. Transformational Change 3. Planned Change 4. Unplanned Change A. Unintentional and is usually the result of informal organizing B. Refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization C. Refers to significant shifts in an organizational system that may cause significant disruption to some underlying aspect of the organization, its processes, or structures D. Intentional activity or set of intentional activities designed to create movement toward a specific goal or end

1. B 2. C 3. D 4. A

When a Sally assesses the external competitive environment facing her firm, she labels anything that would make it harder for her firm to be successful as a(n) _______. A. threat B. strength C. opportunity D. weakness

A

ABC Products is described as having a _______ when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do. A. competitive advantage B. value chain C. strategic positioning D. differentiation strategy

A. Competitive Advantage

The final phase of an Appreciative Inquiry (AI) practice, ______, occurs as employees put into practice the plans they have developed. A. Destiny B. Discover C. Define D. Design

A. Destiny

In a SWOT analysis, ________ are potential situations that a firm is equipped to take advantage of. ( ) A. opportunities ( ) B. weaknesses ( ) C. strengths ( ) D. threats

A. Opportunities

"R" in SMART Framework refers to which of these? A. Relevant B. Retention C. Rates D. Results E. Reasonable

A. Relevant

Which of the following represent the first step in the planning process? A. Set goals B. Design plan C. Implement plan D. Review results

A. Set Goals

Demographic trends and market diversity are part of which element of PESTEL? A. Sociocultural B. Political C. Economic D. Legal

A. Sociocultural

A _____ strategy is a strategy for a company to maintain its current income, market share, or geographic reach. A. stability B. defensive C. growth D. divestiture

A. Stability

1. According to the BCG Matrix, business divisions that are in a high market share, high growth quadrant are called ______. ( ) A. Stars ( ) B. Question Marks ( ) C. Dogs ( ) D. Cash Cows

A. Stars

In the context of Porter's model, a(n) ____ is any other product or service that can satisfy the same need for a customer as an industry's offerings. A. substitute B. rivalry C. competitive product D. new entrant

A. Substitute

____ is mid-level planning that consists of broad ideas of what the company should do to pursue its mission. ( ) A. Tactical planning ( ) B. Operational planning ( ) C. Strategic planning ( ) D. Functional planning

A. Tactical PLanning

In a SWOT analysis, a firm's _____ are what it is not good at—things that it does not have the capabilities to perform well. A. Weaknesses B. Strengths C. Opportunities D. Threats

A. Weaknesses