490W Exam 1

The goal of strategic management is to :

Achieve and maintain a competitive advantage

An organization's vision statement

Answers the Question "what Do we want to become?"

If suppliers are unreliable or too costly, which of these strategies may be appropriate? Backward Integration

Backward Integration

Strategic management enables an organization to ________, instead of just responding to threats in its business environment A) be proactive B) determine when the threat will subside C) avoid the threats D) defeat their competitors E) foresee into the future

Be proactive

A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called

Competitive Intelligence

According to Porter, what is usually the most powerful of the five competitive forces?

Differentiation

________ allows firms to sell products, advertise, purchase supplies, bypass intermediaries, track inventory, and eliminate paperwork.

E-Commerce

Identifying and evaluating key social, political, economic, technological and competitive trends and events comprise

External Factor Evaluation (EFE) Matrix

To perform an external audit, a company first must

Gather competitive intelligence information

The strategic-management processA) occurs once a year. B) is a sequential process. C) is a continuous process. D) applies mostly to companies with sales greater than $100 million. E) applies mostly to small businesses

Is a continuous process

What is the first step in designing an EFE Matrix?

List key external factors as identified in the external audit process

What are enduring declarations of purpose that distinguish one business from other similar firms?

Mission Statement

According to research, organizations using strategic management are ________ than those that do not.

More profitable

The I/O approach to competitive advantage advocates that external factors are ________ internal factors in a firm achieving competitive advantage.

More than important

It is predicted that the United States will have how many racial or ethnic majorities by the year 2075?

No ethnic or racial majority

Specific results an organization seeks to achieve in pursuing its basic mission are

Objectives

What are guides to decision making called?

Policies

Which is generally considered to be the first step in strategic planning?

Strategic Formulation

Internal ________ are controllable activities in an organization that are performed especially well.

Strengths

TRUE OR FALSE: Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research and development, and information systems to achieve organizational success.

TRUE

TRUE OR FALSE: The process of performing an external audit needs to include A) Gather competitive intelligence and information on social, economic, cultural, demographic, political, governmental, environmental and technological trends B) Info. Should be assimilated and evaluated C) a final list should be communicated

TRUE

Generally, external opportunities and threats are

Uncontrollable by a single organization

Anything that a firm does especially well compared to rival firms is referred to as:

strength

Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources. A) are irrelevant to B) are not enough to surmount C) can overcome D) can lead to E) unite

Can overcome

What level of bargaining power do consumers have when the products being purchased are standard or undifferentiated?

Consumer power is HIGHER when...

Long-term objectives should be all of the following EXCEPT A) measurable. B) continually changing. C) reasonable. D) challenging.https://quizlet.com/143379117/flashcards# E) consistent.

Continually changing

In recent years, the speedy flow of information through technology has:

Created a borderless world with global competitors, customers and citizens

All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT A) special tariffs B) environmental protection laws C) world oil, currency, and labor markets D) legislation on equal employment E) population changes by race, age, sex, and level of affluence

E) population changes by race, age, sex, and level of affluence

What are the means by which long-term objectives will be achieved?

Strategies

During what stage of strategic management are a firm's specific internal strengths and weaknesses determined?

Strategy Formulation

Which of the following is part of the strategic management model? a)measure and evaluate performance b)develop a mission and vision statement c)establish long term objectives d)implement strategy e) All of the above

ALL OF THE ABOVE

How do line managers become "owners" of the strategy?

By involvement in the strategic-management process

A firm's strengths that cannot be easily matched or imitated by competitors are called

Distinctive Competencies

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?

Highest is 4.0, lowest is 1.0

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to

Increase

The strategic-management process represents a(n. ________, ________, and ________ approach for determining an enterprise's future direction. A) logical; systematic; subjective B) intuitive; disorganized; subjective C) logical; systematic; objective D) intuitive; disorganized; objective E) intuitive; systematic; subjective

Logical, systematic and Objective

The one factor that has most significantly impacted the nature and core of buying and selling in nearly all industries has been

The Internet