Business Policy Ch.5&6 and 10&11

The two internal dimensions represented on the axes of the SPACE Matrix are A) stability position and industry position. B) industry position and internationalization. C) internationalization and competitive position. D) competitive position and financial position. E) financial position and stability position.

D. competitive position and financial position.

Procter & Gamble's (P&G) sale of many of its brands in order to focus on its core brands is an example of which type of strategy?

Divestiture

Stage 1 (input)

EFE, CPM, IFE

Divestiture is selling all of a company's assets, in parts, for their tangible worth.

False

On the x-axis of the IE Matrix, an IFE total weighted score of 2.5 represents a weak internal position.

False

Company websites that sell products they produce directly to consumers are examples of which type of strategy?

Forward Integration

Stage 3 (Decision)

QSPM

In the SPACE analysis, what does a (+6, +3) strategy profile portray?

Strong industry position

Bribery

The offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing the judgment or conduct of a person in a position of trust

What term is defined as the product of multiplying the weights by the Attractiveness Scores in each row of the QSPM?

Total Attractiveness Scores

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

True

The stability position (SP) and competitive position (CP) dimension variables in a SPACE Matrix are assigned a numerical value ranging from -1 (best) to -7 (worst).

True

Whistle blowing refers to employees reporting unethical behavior that they discover or see in the firm.

True

IE dimensions

X-axis = IFE Y- axis = EFE

related diversification

adding new but related products or services

Communication between domestic headquarters and overseas operations is often made difficult by

cultural differences.

Protectionism involves all of the following EXCEPT

liberalizing restrictions on the import of foreign goods.

All of the following business actions are considered to be unethical EXCEPT

preventing environmental harm.

GoPro laid off one-fifth of its workforce and exited the drone market. This is an example of

retrenchment

Intensive Strategies

*market penetration *market development *product development

Long term objectives

2-5 year timeframe

Positive, Positive = ? A. Aggressive B. Conservative C. Competitive D. Defensive

A. Aggressive

Two external dimensions represented on the axes of the SPACE Matrix are A) stability position and industry position. B) industry position and internationalization. C) internationalization and competitive position. D) competitive position and financial position. E) financial position and stability position.

A. stability position and industry position.

The form of bankruptcy in which all the organization's assets are sold in parts for their tangible worth is

Chapter 7

Applies to municipalities

Chapter 9

Nature of long term objectives (5 out of 8)

*provide direction *allow synergy *minimize conflicts *reduce uncertainty *assist in evaluation

financial position and industry position numerical value is...

+1 (worst) to +7(best)

competitive position and stability position numerical value is...

-1(best) to -7(worst)

Integration Strategies

-Forward Integration -Backward Integration -Horizontal Integration

Defensive Strategies

1.Retrenchment 2.Divestiture 3.Liquidation

Negative, Positive= A. Aggressive B. Conservative C. Competitive D. Defensive

B. Conservative

Positive, Negative= A. Aggressive B. Conservative C. Competitive D. Defensive

C. Competitive

Allows org to reorganize and come back after filing a petition for protection.

Chapter 11

Definition of Outsourcing

Companies hiring other companies to take over various parts of their functional operations.

What type of strategies would you recommend when a firm's SPACE Matrix directional vector has the coordinates (-2, +3)?

Conservative

Levels of Strategies

Corporate-level strategy (President/Executive VP) Business-level (competitive) strategy(CFO, CIO,CMO,HRM) Functional strategy(Plant managers/Regional Sale Managers)

Negative, Negative= A. Aggressive B. Conservative C. Competitive D. Defensive

D. Defensive

________ is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations.

Globalization

Financial Objectives

Growth in revenue and earnings, higher dividends, larger profit margins, greater return on investment, higher earnings per share, rising in stock price, and improved cash flow, etc

What refers to a strategy of seeking ownership of, or increased control over a firm's competitors?

Horizontal Integration

IE Matrix Regions

I, II, IV = Grow + Build (Integration and Intensive) III, V, VII = Hold + Maintain (Market Penetration & Product Development) VI, VIII, IX= Harvest + Divest (Retrenchment & Divestiture)

Boston Consulting Group (BCG) Matrix quadrants

I- Question Marks (Intensive Strategy/ sell= divestiture) II- Stars (Integration and Intensive Strategies) III- Cash Cows ( Product Development, Diversification, Retrenchment, & Divestiture) IV- Dogs (Defensive Strategy)

Which of the following analytical tools consists of a nine-cell matrix?

Internal - External (IE) Matrix

Strategic Objectives

Larger market share, quicker on-time delivery than rivals, shorter design to market times than rivals, lower costs than rivals, higher product quality than rivals, wider geographic coverage than rivals, achieving technological leadership, consistently getting new/improved products to market ahead of rivals, etc

Which of the following is NOT one of the steps involved in constructing a SWOT Matrix?

List the firm's external weaknesses.

Which of the following is the first step in developing a QSPM?

Make a list of the firm's key external opportunities and threats and internal strengths and weaknesses in the left column of the QSPM.

If Gap opens five stores for the first time in China, this is an example of which type of strategy?

Market Development

Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?

Market Penetration

According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position?

Market penetration

________ asserts that organizations have no obligation to do any more for society than is legally required.

Milton Friedman

________ involves companies hiring other companies to take over various parts of their functional operations, such as human resources, information systems, payroll, accounting, customer service, and even marketing.

Outsourcing

Which matrix is included in the decision stage of the strategy formulation framework?

Quantitative Strategic Planning Matrix (QSPM)

________ proclaims that organizations have tremendous social obligations.

Ralph Nader

Definition of Reshoring

Refers to US companies planning to move some of their manuf. back to the United States.

Retrenchment aka a turnaround

Regrouping through cost and asset reduction to reverse declining sales and profit

________ refers to U.S. companies moving a portion of their manufacturing back to the United States.

Reshoring

Stage 2 (Matching)

SWOT, SPACE, BCG, IE, Grand Strategy

In the BCG Matrix, when a division of an organization has a high relative market share and is in a fast-growing industry, it is called a

Star

Strengths-opportunities strategies are based on using a firm's internal strengths to take advantage of external opportunities.

True

True or False: Companies usually pursue a combination of two or more strategies.

True but combination strategy is risky if carried too far.

Bad ethics can ________ strategic plans.

derail even the best

SPACE MATRIX

four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies

diversification strategies

related diversification; unrelated diversification

Product development

seeking increased sales by improving present products or services or developing new ones

backward integration

seeking ownership/increased control of firm's supplies

liquidation

selling all of a company's assets, in parts, for their tangible worth

A pasta manufacturer's purchase of some video game brands is an example of

unrelated diversification