BUS 211 - Ch. 7

Business-level strategy focuses primarily on

the areas in which the firm may have an advantage and how much various organizational parts enhance each other.

The filter specifies the range of markets in which an organization will compete.

False

The implementation stage focuses on what the strategy is.

False

Ugg makes footwear and accessories for men, women, and children. That is the company's resource deployment.

False

A(n) ____ strategy is a plan chosen and implemented to support specific goals, such as an increase of market share by 5 percent.

deliberate

Yahoo! has a business strategy that creates revenue by selling ads. Yahoo! uses a(n) ____ strategy.

deliberate

The primary concern of strategy implementation is

how the strategy is operationalized and executed.

St. Luke's Hospital started offering deeply discounted computerized tomography (CT) scans for smokers worried about lung cancer. St. Luke's willingness to change the price is an example of change in

resource deployment

When an airline uses profits from one region to lower prices in another region it is using

resource deployment

Coca-Cola sells soft drinks, bottled water, and sports drinks. This is an example of

scope

Which of the following areas does a well-conceived strategy address?

scope

Hewlett Packard made PCs. Projected industry sales of smartphones were expected to be almost double expected sales of PCs. HP went through the strategy change process looking first at the content of its strategy. That was

strategic formulation

Many companies make bead jewelry, but Chamilia is the only one with a licensing agreement with Disney to make beads of Disney characters. The agreement is a(n) ____ for Chamilia.

strength

The concept of product life cycle can be used to choose which strategy is appropriate for a given product at a particular point in time.

True

The function of accounting and finance in a business that is implementing a differentiation strategy is to control the flow of funds without discouraging the creativity needed to constantly develop new products and services to meet customer needs.

True

An international strategy in which the company attempts to combine the benefits of global scale efficiencies with the benefits and advantages of local responsiveness is called global strategy.

False

An international strategy in which the company manages itself as a collection of domestic markets is called a home replication strategy.

False

Business-level strategy is the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets.

False

Chanel, Monte Blanc, and Allen Edmonds pursue an overall cost leadership strategy.

False

Devising successful strategies is a simple task.

False

Each business or set of businesses within an organization is frequently referred to as a star business unrelated, or SBU.

False

Emergent strategies are ineffective and should be avoided.

False

In general, when the level of competitive rivalry, the power of suppliers and buyers, and the possibility of substitutes and new entrants are all low, an industry has relatively few opportunities and numerous threats.

False

The starting point in formulating strategies is usually

a SWOT analysis

Abercrombie & Fitch uses its ability to manage its supply chain more effectively than most of its competitors to create

a distinctive competence

Strategy formulation is

a set of processes involving the organization's strategies.

Effective strategies

align the organization and environment to achieve goals

GE competes in industries ranging from medical devices, to financial services, to turbine engines. GE's mixed strategy is an example of ____ strategy.

corporate-level

When Steve Jobs was CEO of Apple, his charisma, marketing skills, and technical vision helped create a(n) ____ at Apple that made it the leader in mobile devices.

distinctive competence

____ is the component of strategy that indicates what the organization does exceptionally well.

distinctive competence

In environmental SWOT analysis, the external organizational position is analyzed according to its

opportunities and threats

MySpace was the first big social network, but headlines about predator dangers created an opportunity for Facebook to arrive as the "safer" place to network. The safe perception of Facebook is a(n)

organizational strength

Most organizations start out diversified.

False

SWOT analysis determines the primary strategy, wages, operations, and tactics in an organization.

False

Strategic formulation is the set of processes involved in executing strategic plans.

False

An impulsive CEO can turn a deliberate strategy into an emergent strategy.

True

During the maturity stage of the product life cycle, sales volume for a product typically reaches its peak.

True

In general, a well-conceived strategy addresses three areas: distinctive competence, scope, and resource deployment.

True

Manufacturing creates the organization's products or services.

True

Most organizations have a difficult time focusing on weaknesses.

True

Ralston-Purina's products include a number of old standbys, but a large percentage of its revenues comes from products that did not exist five years ago. Ralston-Purina's approach represents a prospector strategy.

True

Stars, question marks, and dogs could all be net cash users

True

The key to implementing business strategies is integrating different functions.

True

There are three types of diversification strategies: single-product strategy, related diversification, and unrelated diversification.

True

A(n) ____ strategy is a pattern of action that develops over time in an organization in the absence of missions and goals, or despite missions and goals.

emergent

Google bought YouTube even though it operated at a loss. The business strategy for YouTube is ____.

emergent

Hewlett Packard contemplated selling its PC division. This is an example of change in ____.

scope

Southwest Airlines gained access to the Atlanta market when it purchased Air Tran. This is an example of a change in Southwest's

scope

In a small community in Michigan, there are two funeral homes. One of them clips all pictures from the local paper, laminates them, and mails them to the person photographed with a brief note. This is an attempt to build positive relations with potential customers during happy times. If the other funeral home chose to make similar customer contact, the competitors would have

strategic imitation

The Windows operating system is used in 90% of the world's PCs. Microsoft has an international

strength