MGMT3202 CHP 5 MINDTAP
Which of the following factors should be classified as a threat for the team?
During the off-season, the Los Angeles Dodgers signed players whose skills match or exceed those of the Giants.
T OR F. Businesses that do not adopt a differentiation, low-cost leadership, or focus strategy tend to be more successful than businesses that do adopt these strategies.
False
T OR F. Employee abilities to create innovative products are critical for companies that adopt a low-cost leadership strategy.
False
You have accepted a job as the president and CEO of a large transportation conglomerate. Over the years, the conglomerate has acquired a number of unrelated divisions. Your first action as CEO is to complete a strategic plan. Use the following table and the Boston Consulting Group matrix to answer the question that follows. Which of the following divisions would you invest in heavily?
Freight forwarding
Identify the type of grand strategy exhibited by each example in the following table. Walmart hopes to dominate the Chinese market, opening more stores, hypermarkets, and Sam's Club membership warehouses throughout the country.
Growth
When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify:
Company strengths and weaknesses
Which of the following strategies is Lonnie more likely to adopt for her business?
Continuing to run her business as she has done in the past and taking out advertisements explaining why she is better than her competitors
Diversification is useful because:
It prevents companies from becoming too dependent on any one business unit
T OR F. Companies that use a focus strategy have narrow buyer groups.
True
Lonnie is likely to see new methods of scheduling caregivers as ______
a threat
The biggest challenge that Lonnie faces in assessing the need for strategic change is ______
competitive inertia
this image (person with world on shoulders, person sitting on world) illustrates the influence of ___ on the strategy development process
strategic reference points
According to Michael Porter, the fact that people could easily watch TV or a movie instead of watching a YouTube video is an example of , which in this case is .
the threat of substitutes, high
When a company purchases another business that does something different from what the purchasing company does, the purchasing company is using a strategy of
unrelated diversification
When referring to a SWOT analysis, the letter W stands for _______, and it refers to factors that are _______ to the organization.
weaknesses, internal
Considering all of the factors listed in the preceding SWOT analysis question, what strategy would make the most sense for the Giants in the upcoming season?
Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.
Identify the type of grand strategy exhibited by each example in the following table. The Island Emporium is a small department store serving the 800 residents of the Great Barrier Island in New Zealand. Run by two retirees and open only a few days a week, the store has a steady stream of customers but is unlikely to open another location anytime soon.
Stability
Use your knowledge of the strategic process to select the three missing terms in the following diagram.
A. Assess Need for Strategic Change B. Conduct Situational Analysis C. Choose Strategic Alternatives
Use your knowledge of the Boston Consulting Group matrix to select the correct labels for the following image.
A. High B. Market Growth Rate C. High D. Relative Market Share
Which of the following factors should be classified as an opportunity for the team?
A number of free-agent outfielders are available for signing by the Giants this year. Many of them have better statistics than the current team members.
Lonnie's ______ lies in the way she schedules her caregivers and in her company's do anything attitude and culture of hard work.
core capability
A SWOT analysis, which takes place during strategy _____ , is an important part of the strategic planning process.
formulation
When competitive rivalry, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the number of new entrants into a business are all high, a business is likely to be _____ successful.
less
When referring to a SWOT analysis, the letter O stands for _________ , and it refers to factors that are to the organization.
opportunities, external
Which of the following are drawbacks to using a portfolio strategy such as the Boston Consulting Group matrix? Check all that apply.
Managers are often incorrect in categorizing companies as cash cows, dogs, stars, and question marks. Acquiring unrelated businesses can damage a company's profitability.
In-n-Out Burger acquires an independently owned chicken fast food chain. This is an example of
related diversification
Pretend that you own a small coffee shop. You have decided that this year is a good time to grow your business, and you have chosen to do so by acquiring another coffee shop one town over. This is an example of
related diversification
The is influenced by all of the other competitive forces.
rivalry among competitors
