BMGT CHAPTER 6

MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a

Distinctive competence

Which of the following refers to a definition of an organization's fundamental purpose and its basic philosophy?

Mission

What term describes a technique that allows managers to visualize their businesses as a set or portfolio using certain common criteria, such as profitability or growth potential?

Portfolio analysis

What name is given to the evaluation of the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment?

SWOT Analysis

Which of the following characteristics relates to a business-level strategy?

The area of responsibility usually assigned to the divisional-level managers

What are conglomerates?

Firms that pursue unrelated diversification strategies

According to the Boston Consulting Group, what are question marks?

Businesses that have only minimal profits or even losses due to their low market share in slow growing markets

What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?

Differentiation

Which of the following characteristics relates to strategic management?

All the processes an organization undertakes to develop and implement its strategic plan

"Improving people's lives by providing gas and electric services in a sustainable way -- affordable, reliable and clean" is an example of

A mission statement

Which of the following is NOT a characteristic of a strategy?

A relatively permanent statement of mission based on constancies and stabilities in the environment

What is meant by corporate strategy?

The scope and resource deployment components of strategy for the enterprise as a whole

In stating a goal, the volume of sales or the extent of management training to be accomplished is

The target to be achieved

In plain language, diversification is

acquiring other businesses.

The first step in strategic planning is

determining the mission and strategic goals.

When a company fails to achieve its intended performance, it can use the strategic control process as a means of

feedback to help understand deficiencies.

One of the major advantages of the newer GE matrix for business portfolio assessment is that it

gives organizations a basis for plotting strategy.

At even the largest and most affluent corporation, the strategic management process begins with

limited resources.

What term is used to describe a formal written declaration of the organization's mission that often includes the firm's philosophy, its primary products and markets, the intended geographic scope, and the nature of the relationships between the firm, its stakeholders, and society?

mission statement

Generally, if the company can reliably assume that the organization and the external environment will remain relatively stable and similar to that of the recent past,

planning is much easier.

All of the following are steps in the planning process EXCEPT

request input from potential customers.

When an organization sets out to evaluate a strategy that it has implemented, it must often rely on

short-term indicators.

What name is given to those businesses that have high market shares and operate in industries experiencing major growth?

stars

Intermediate goals that are more specific and that are usually written by and directed to middle-level managers are

tactical goals.

Strategic planning differs from general planning in that it focuses on

the external environment and long-term goals.