Business Strategy midterm ch.1,2,3,5,6

The Blank______ is the possibility that the profits of established firms in the industry may be eroded by new competitors. Multiple choice question. bargaining power of buyers rivalry among competitors threat of new entrants threat of substitute products and services

threat of new entrants

During the analysis step of the strategic management process, managers are concerned with the company's Blank______. Multiple choice question. vision, mission, and business strategy vision, mission, and operational effectiveness vision, mission, and corporate strategy vision, mission, and strategic objectives

vision, mission, and strategic objectives

Corporate-level strategy focuses on Blank______.

what business(es) should the company compete in

The Blank______ view of stakeholder management views the management process as groups competing for the organization's resources. Multiple choice question. zero sum symbiosis stakeholder claims corporate governance

zero sum

Managers must determine how to create a(n) Blank______ advantage in the marketplace to be successful over the long-term. Multiple choice question. short-term competitive realized business

competitive

Business-level strategy is concerned with how companies Blank______.

compete and outperform rivals achieve and sustain a competitive advantage

Which of the following are part of a firm's competitive environment? (Check all that apply.) Multiple select question. competitors stockholders suppliers customers

Competitors suppliers customers

Which of the following are key attributes of strategic management? (Check all that apply.) Directs the organization toward overall goals and objectives Recognizes the importance of effectiveness over efficiency Includes multiple stakeholders in decision making Incorporates both short-term and long-term perspectives

Directs the organization toward overall goals and objectives Includes multiple stakeholders in decision making Incorporates both short-term and long-term perspectives

______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. Multiple choice question. Behavioral control Informational control Organizational design Entrepreneurial strategy

Informational control

Which of the following are reasons managers should use Porter's five forces model? (Check all that apply.) Multiple select question. It can help them decide whether to enter, remain, or exit an industry. It can help them assess how to improve the firm's competitive position within the industry. It can help them develop their supply chains through developing strong relationships with both suppliers and customers. It can help managers better understand social, legal, and technological trends.

It can help them decide whether to enter, remain, or exit an industry. It can help them assess how to improve the firm's competitive position within the industry. It can help them develop their supply chains through developing strong relationships with both suppliers and customers.

Which of the following statements regarding corporate-level strategy are correct? (Check all that apply.) Multiple select question. It determines whether managers should use cost leadership or differentiation strategy. It determines whether managers should focus on narrow or industry-wide market segments. It determines how to manage the company's portfolio of businesses to create synergies among business units. It determines which business(es) should be in the company's portfolio.

It determines how to manage the company's portfolio of businesses to create synergies among business units. It determines which business(es) should be in the company's portfolio.

Which of the following statements about an industry's composition are correct? (Check all that apply.) Multiple select question. It includes companies that use similar methods of production. It includes companies that sell to similar customers. It includes companies that produce similar products or services. It includes companies in the same geographic area.

It includes companies that use similar methods of production. It includes companies that sell to similar customers. It includes companies that produce similar products or services.

Which of the following are true of strategy implementation? Multiple select question. It involves establishing appropriate controls and organizational designs. It involves the leader doing the learning for the organization. It ensures that the organization will attract global rather than domestic business opportunities. It involves coordinating and integrating activities within the firm and with suppliers and customers.

It involves establishing appropriate controls and organizational designs. It involves coordinating and integrating activities within the firm and with suppliers and customers.

______ is an in-depth approach to environmental forecasting that involves experts' detailed assessments of social, economic, political, technology trends or other dimensions of the external environment. Multiple choice question. Scenario analysis Competitive intelligence Reintermediation Environmental monitoring

Scenario analysis

______ analysis is the starting point of the strategic management process and includes the advanced work that must be done to effectively formulate and execute strategies. Multiple choice question. Realized Strategy Leadership Business

Strategy

Companies enter foreign market to access which of the following? (Check all that apply.) Multiple select question. Technical professionals Factors of production, such as raw materials and labor Easily influenced overseas governments Larger potential markets

Technical professionals Factors of production, such as raw materials and labor Larger potential markets

Which of the following play a role in increasing the bargaining power of the buyer? (Check all that apply.) Multiple select question. The industry's product is important to the quality of the buyer's products or services. The products being purchased from the industry are standard or undifferentiated. The buyers pose a credible threat of backward integration. The buyers make large purchases relative to the industry's sales.

The products being purchased from the industry are standard or undifferentiated. The buyers pose a credible threat of backward integration. The buyers make large purchases relative to the industry's sales.

Which of the following statements about the strategic management process is true? Multiple choice question. Once implemented, the actions step cannot be altered. The three processes usually take place in a sequential manner. The three processes are highly interdependent. Firms can select just one of the processes to focus on and still succeed.

The three processes are highly interdependent.

Which of the following are true of behavioral controls? (Check all that apply.) Multiple select question. They involve responding to threats and opportunities. They involve balancing culture and boundaries or constraints. They involve balancing rewards and incentives. They involve monitoring and scanning the external environment.

They involve balancing culture and boundaries or constraints. They involve balancing rewards and incentives.

Which of the following are true of behavioral controls? (Check all that apply.) They involve responding to threats and opportunities. They involve balancing rewards and incentives. They involve balancing culture and boundaries or constraints. They involve monitoring and scanning the external environment.

They involve balancing rewards and incentives. They involve balancing culture and boundaries or constraints.

Business-level strategy is concerned with how companies Blank______. (Check all that apply.) Multiple select question. manage their portfolio of businesses achieve and sustain a competitive advantage create synergies between divisions compete and outperform rivals

achieve and sustain a competitive advantage compete and outperform rivals

Managers execute or implement their decisions as Blank______ in the third step of the strategic management process. Multiple choice question. objectives actions analyses operations

actions

Strategies often fail when managers fail to do which of the following? (Check all that apply.) Multiple select question. analyze the company's overarching goals conduct a thorough analysis of the external and internal environments ask the Board of Directors to vote on them check with government officials

analyze the company's overarching goals conduct a thorough analysis of the external and internal environments

Sound strategies are of no value if they Blank______. Multiple choice question. are not properly implemented do not include entrepreneurial strategies are not immediately profitable do not include international strategies

are not properly implemented

Which of the following are stakeholder groups that managers should consider when making decisions? (Check all that apply.) Multiple select question. board of directors stockholders competitors the community

board of directors stockholders the community

What are the four levels of a company's strategy formulation? Multiple choice question. business, corporate, supply chain, and entrepreneurial business, corporate, mission, and vision business, corporate, intellectual, and international business, corporate, international, and entrepreneurial

business, corporate, international, and entrepreneurial

Which of the following threaten an industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other? Multiple choice question. profits buyers brands suppliers

buyers

Michael Porter's five forces model is the most commonly used analytical tool for examining which of the following type of environment? Multiple choice question. competitive sociocultural internal political/legal

competitive

Michael Porter's five forces model is the most commonly used analytical tool for examining which of the following type of environment? Multiple choice question. sociocultural competitive political/legal internal

competitive

The second step in the strategic management process is Blank______. Multiple choice question. decisions actions strategies analyses

decisions

Strategic management of an organization entails which of the following ongoing processes? (Check all that apply.) Multiple select question. decisions inventory actions analyses incremental management

decisions actions analyses

Efficiency, in terms of strategic management, can best be described as Blank______. Multiple choice question. doing the right thing the trade-off between intended and emergent strategy tailoring actions to the needs of the organization rather than wasting effort doing things right

doing things right

Strategy Blank______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. Multiple choice question. analysis value implementation formulation

formulation

Strategic management is directed toward a company's Blank______. Multiple choice question. short-term perspectives goals and objectives mission and vision competitive advantages

goals and objectives

Competitive intelligence Blank______. Multiple choice question. is not only unethical but is also illegal in the United States predicts the direction, scope, and speed of change helps companies avoid surprises by anticipating competitors' moves and response time can provide companies with an unfair advantage

helps companies avoid surprises by anticipating competitors' moves and response time

Firms must exercise which of the following two types of strategic controls? (Check all that apply.) Multiple select question. informal formal informational behavioral

informational behavioral

Which of the following are evaluated during the analysis process of strategic management? Multiple select question. internal environment leadership compensation strategic goals external environment

internal environment strategic goals external environment

A buying group is considered powerful when it Blank______. Multiple choice question. is responsible for a large volume of a seller's sales earns high profits faces high switching costs requires high-quality raw materials or services

is responsible for a large volume of a seller's sales

A CEO can improve perceptual acuity by Blank______. (Check all that apply.) Multiple select question. relying on instincts even when trusted advisors disagree meeting with and listening to others seeking out information not getting distracted by "what-ifs" and focusing on one strategy

meeting with and listening to others seeking out information

Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of ______versus individual rationality.

organizational

Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. This perspective is known as Blank______. Multiple choice question. the integration of long- and short-term goals multiple stakeholder analysis the external control view of leadership organizational versus individual rationality

organizational versus individual rationality

Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. This perspective is known as Blank______. the external control view of leadership organizational versus individual rationality the integration of long- and short-term goals multiple stakeholder analysis

organizational versus individual rationality

Multiple Choice Question The three primary participants in corporate governance are the Blank______, management, and board of directors. Multiple choice question. stakeholders customers shareholders bondholders

shareholders

Corporate governance is the relationship among Blank______ in determining the direction and performance of corporations. Multiple choice question. institutional investors and higher-level employees all stockholders the creditors shareholders, management, and the board of directors

shareholders, management, and the board of directors

Which of the following is the most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization? Multiple choice question. shareholders stockholders stakeholders strategists

stakeholders

The Blank______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. Multiple choice question. external control romantic leadership individual rationality strategic management

strategic management

______ products and services limit the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge. Multiple choice question. Complementary Luxury Non-profit Substitute

substitute

Which of the following are stakeholder groups that managers should consider when making decisions? (Check all that apply.) Multiple select question. competitors the community board of directors stockholders

the community board of directors stockholders

Which of the following must a firm's strategy be consistent with? (Check all that apply.) the strategy of the firm's competitors the firm's organizational structure the vision of the firm's founder the firm's design

the firm's organizational structure the firm's design