MGT 496 Ch 1

Which of the following does NOT apply to a good business model?

It stays away from new or untested ideas

According to the chapter, which of the following does NOT apply to an emergent strategy?

Usually part of the initial business plan

Strategic plans

A carefully crafted set of steps that a company intends to follow to be successful.

strategy as position

A company's place in the industry relative to its competitors.

economies of scale

A cost advantage created when a company can produce a good or service at a lower per unit price due to producing the good or service in large quantities.

strategic ploy

A specific move designed to outwit or trick competitors.

_____ stressed on how strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance.

Alfred Chandler

franchising

An organization (called a franchisor) grants the right to use its brand name, products, and processes to other organizations (known as franchisees) in exchange for an up-front payment (a franchise fee) and a percentage of franchisees' revenues (a royalty fee).

emergent strategy

An unplanned direction that arises in response to unexpected opportunities and challenges.

Strategic management is a process that requires the ability to manage _______.

Change

_____ offered concepts such as Five Forces Analysis and Generic Strategies that continue to strongly influence how executives choose strategies.

Competitive Strategy: Techniques for Analyzing Industries and Competitors

business model

Describes the process through which a company hopes to earn profits.

What is the second step in the strategic management process?

Environmental and Internal Scanning

_____ refers to a stage in the strategic management process wherein managers must constantly look out for trends and events in the external environment that affect the overall economy and also monitor changes in the particular industry in which the firm operates.

Environmental and internal scanning

strategic management

Examines how actions and events involving top executives (such as Elon Musk), firms (Tesla), and industries (the auto market) influence a company's success or failure.

Taylor's emphasis on maximizing organizational performance became redundant when strategic management as a field developed.

False

The capstone course established by the Ford Foundation focuses on the notion that a single way of addressing a problem leads to the success of a firm.

False

Strategy as perspective

How executives interpret the competitive landscape around them.

Which of the following statements holds true for strategy as a pattern?

It focuses on the extent to which a firm's actions over time are consistent.

Which of the following statements holds true for strategy as a plan?

It is a carefully crafted set of steps that a firm intends to follow in order to be successful.

Which of the following statements holds true for strategy as a ploy?

It is a specific move designed to outwit or trick competitors.

Which of the following statements holds true for strategy as a position?

It refers to a firm's place in the industry relative to its competitors.

Which of the following statements holds true for strategy as a perspective?

It refers to how executives interpret the competitive landscape around them

The book, The Prince, was written by _____.

Niccol&?ograve; Machiavelli's

deliberate strategy

Parts of the intended plan that an organization continues to pursue over time.

nonrealized strategy

Parts of the intended plan that are abandoned.

One of the following is NOT one of Mintzberg's "5 Ps of strategy."

Priority

_____ refers to a stage in the strategic management process which involves developing specific strategies and actions.

Strategy formulation

_____ refers to a stage in the strategic management process which entails crafting an effective organizational structure and corporate culture.

Strategy implementation

_____ offers an insightful guide for conquering and ruling territories and recipes for success to government leaders.

The Prince

____ stressed on how organizations could become more efficient through identifying the one best way of performing important tasks.

The Principles of Scientific Management

_____ argued that many of the advantages that firms in developed countries like the United States, Japan, and Great Britain take for granted are disappearing.

The World is Flat: A Brief History of the Twenty-First Century

Strategy as pattern

The extent to which a company's actions over time are consistent.

realized strategy

The plan of action that an organization actually follows.

intended strategy

The plan that an organization hopes to execute.

Strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance.

True

Taylor believed that businesses would be much more efficient if principles for management were derived through scientific investigation.

True

When an organization's environment is very stable and predictable, strategic planning can provide enough of a strategy for the organization to gain and maintain success.

True

n The Art of War, Sun Tzu's emphasized which two aspects of strategy?

creative; deceptive

Glen is an artist who started an online business of selling hand-painted cards. He intended to mail the cards to the customer's address. He started a Web site where customers could specify the type of designs they wanted. Glen would then paint the cards according to the specifications of the customer. He later dropped the idea of mailing the cards to the customers. The fact that he still runs an online card selling business, which caters to the needs of individual customers, is an example of a _____ strategy.

deliberate

As of 2017, according to Fortune magazine. Based on the success Frederick Smith's intended strategy FedEx ranked _______ among the World's Most Admired Companies in 2017.

eleventh

Mike owns a store which sells baseball bats. He soon realizes that the customers who buy baseball bats also ask for baseball jerseys. Therefore, he starts stocking baseball apparel to cater to the needs of his customers. This is an example of a(n) _____ strategy.

emergent

Run and Play, a well-known athletic wear company, operates through a number of outlets which are owned and managed by private individuals. The company has allowed these outlets to use its brand name and products. They can do so after paying a fee to Run and Play. The outlets also pay a part of their revenue to the Run and Play. This is an example of:

franchising.

Jeff wants to open a fast food shop near a mall in order to attract the crowds that visit the shopping mall. This is an example of a(n) _____ strategy.

intended

Glen is an artist who started an online business of selling hand-painted cards. He intended to mail the cards to the customer's address. He started a Web site where customers could specify the type of designs they wanted. Glen would then paint the cards according to the specifications of the customer. He later dropped the idea of mailing the cards to the customers as he found it too costly. The fact that Glen dropped the idea of mailing the cards to the customers is an example of a _____ strategy.

non-realized

Glen is an artist who started an online business of selling hand-painted cards. He intended to mail the cards to the customer's address. He started a Web site where customers could specify the type of designs they wanted. Glen would then paint the cards according to the specifications of the customer. Glen soon started offering cash refunds in case the customer was not satisfied with the cards because he realized that other online businesses had also started offering the same facilities. He now runs a booming business. This is an example of a(n) _____ strategy.

realized