Chapter 6 Management

Refer to Figure 6.2. Place the steps in the strategic-management process in the correct order, with the first step listed at the top.

1. Establish the mission, vision, and values statements 2.Assess the current reality 3.Formulate corporate, business, and functional strategies 4.Execute the strategies 5.Maintain strategic control

Corporate-level strategy does which of the following?

Answers questions such as "what business are we in?" and "what products and services shall we offer?" Focuses on the organization as a whole Involves senior executives in planning

Jordan plans to open a computer repair business this summer. As he plans, he writes down the long-term goals of the business so he can decide where he wants to go strategically. Which stage of the strategic management process is Jordan in?

Establish the mission, vision, and values statements

True or false: Since most strategic positions will fit with any company's products, a company doesn't need to be concerned about selecting the right strategy.

False

Select all of the true statements regarding the trade-offs required in competing.

Some strategies are incompatible Companies must choose what strategy not to follow Companies must choose what strategy to follow.

The second step of the strategic management process involves ______.

assessing the current reality

As the senior vice president of marketing, Andrew is responsible for determining how much of the budget to spend on marketing and how much to spend on product development. Which level of strategic management is Andrew responsible for?

business-level

The ______ strategy of a company is concerned with the individual business units or production and service lines of the business.

business-level

The president, chief financial officer, and chief operating officer of Jensen Mfg. meet annually to discuss the direction of the company including what products they will continue to offer and what new products they will introduce. Which level of strategic management does this represent?

corporate-level

True or false: It is common practice today for most small business owners to engage in strategic planning.

false

The sources from which strategic position emerges are having ______. (Choose every correct answer.)

few needs and many customers broad needs and few customers.

Strategy ______ is the process of choosing among different strategies and altering them to best fit the organization's needs.

formulation

To be successful, strategic planning requires a company to have a ______ orientation.

long-term

Strategic positioning attempts to achieve sustainable competitive advantage by ______.

preserving what is distinctive about a company

Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which ______ emerges.

strategic position

Michael Porter defined ______ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.

strategic positioning