Business Strategy Exam 1 questions from Connect

Which of the following are true of a company's core competencies? (Check all that apply.) Multiple select question. - They can be leveraged to create new markets. - They can be leveraged to keep the company's longtime products in - the market even though customer interest is dwindling. - They can be leveraged to create new product demand. - They can be leveraged to create new versions of the products that have failed in the past.

- They can be leveraged to create new markets. - They can be leveraged to create new product demand.

During the final stage of developing and implementing a company strategy, what factors often cause the company to adjust its objectives or mission statement? Multiple select question. - changing conditions - new opportunities - well-established company traditions - new ideas

- changing conditions - new opportunities - new ideas

A sound company is essentially about ___________ in comparison to company rivals. - carrying less debt - competing differently - being faster to market - having a better trained workforce

- competing differently

What choices must managers consider when committing to a company strategy for competing against rival companies?

- how to capitalize on growth opportunities - how to respond to market conditions - how to attract customers

Which circumstances commonly require the modification of a company's strategy?

- technological advances - new market opportunities - a shift in buyer needs

When a company strives to achieve an extreme stretch goal but fails because the goal was simply too difficult, what will most likely happen? - The company will have established a strong sense of teamwork. - Employees will lose their motivation. - Employees will become more confident because at least they tried. - The effort will nevertheless produce changes that will improve the company's performance.

Employees will lose their motivation.

True or false: The crafting and implementing of company strategy is exclusively a function of the top management of an organization.

False

What business practice is the most important factor that allows a company to seize the moment when a golden marketing opportunity presents itself? - identifying internal weaknesses - identifying external threats - diligent market reconnaissance - human resource development

diligent market reconnaissance

A company's sales revenues minus the cost of goods sold divided by the sales revenues is called the company's ______ margin. - net profit - operating profit - current profit - gross profit

gross profit

Capabilities that utilize various resources and result from collaboration across multiple departments, such as R&D, marketing, sales, and manufacturing, are known as ______ capabilities. Multiple choice question. intangible tangible cross-functional knowledge-based

cross-functional

Which of the following are short-term objectives? Multiple select question. - five-year objectives - annual objectives - three-year objectives - quarterly objectives

- annual objectives - quarterly objectives

In addition to human resources, which of the following are intangible assets of a company? Multiple select question. - its reputation - its manufacturing facilities - its image - its brands

- its reputation - its image - its brands

Information gleaned from a SWOT analysis can be used to create strategic actions that include which of the following? Multiple select question. - matching the company's strategy to its internal strengths - correcting significant weaknesses - defending against external threats - preparing for unknown, future market conditions

- matching the company's strategy to its internal strengths - correcting significant weaknesses - defending against external threats

A company's tangible resources, typically defined as resources that can be easily quantified, include which of the following? Multiple select question. - intellectual resources - organizational resources - technological resources - financial resources

- organizational resources - technological resources - financial resources

While developing a strategic vision, a company's managers might change which of the following? Multiple select question. - the amount of money the company will pay its sales staff - the products the company will offer - the markets in which the company will compete - the type of customers the company will serve

- the products the company will offer - the markets in which the company will compete - the type of customers the company will serve

A company's business model is comprised of which of the following?

1. the customer value 2. proposition the profit formula

What is one key characteristic of a focused low-cost strategy?

It seeks to sell to a narrow market niche.

The simplest tool for evaluating a company's overall market situation is known as ______ analysis. - RFID - R&D - VRIN - SWOT

SWOT

A competitive strength assessment would most likely use information obtained through Multiple select question. - SWOT analysis. - benchmarking. - VRIN testing. - resource and capability analysis.

SWOT analysis. benchmarking. resource and capability analysis.

In a small, privately owned company, the strategic plan is most likely something that the owner has - posted on the company's website. - summarized in annual reports. - pondered without writing down. - written down and shared with everyone in the organization.

pondered without writing down.

Employees at various levels within an organization are best served by performance objectives that - relate in a broad way to the entire organization. - relate to management only. - relate to individual workers only. - relate specifically to what their departments are doing.

relate specifically to what their departments are doing.

A competitive asset owned or controlled by a company is referred to as a(n) - resource. - capability. - innovation. - strategy.

resource.

Who is ultimately responsible for the results that a company strategy produces? - the chief financial officer (CFO) - the chief executive officer (CEO) - the chief managing officer (CMO) - the chief operating officer (COO)

the chief executive officer (CEO)

Which document spells out the direction a company will take as it anticipates future developments? - quarterly reports - statement of core values - the strategic vision - the mission statement

the strategic vision

Which document spells out the direction a company will take as it anticipates future developments? - the mission statement - the strategic vision - quarterly reports - statement of core values

the strategic vision

For managers to guide a company's strategy successfully, they must first identify its - target stock price. - underperforming employees. - least threatening business rivals. - market opportunities.

market opportunities.

The operating income of a company divided by its interest expenses is called the ______ ratio. - return on invested capital - dividend payout - long-term debt-to-equity - times-interest-earned

times-interest-earned

The letters in the acronym SWOT stand for strengths, ___________ ______________ _______________.

weaknesses, opportunities, threats

The actions that a company takes in accordance with its established business practices make up its ______ strategy, in contrast with actions the company takes in response to changing market conditions.

deliberate

There are times, such as the financial crisis of 2008-2009, when adverse market conditions can create ______ that plunges a company into crisis and put its future in jeopardy. - unexpected high demand - a spending frenzy - publicity overexposure - a sudden-death threat

a sudden-death threat

What company invented the business model for fast food restaurants?

McDonald's

Who is primarily responsible for crafting and implementing business strategy in a multibusiness organization? Multiple choice question. - The HR director of the organization - The head of each business unit - A low-level manager - The CEO of the organization

The head of each business unit

A toy-making business is part of a larger corporation that owns various other businesses. The toy-making business unit decides to increase its production of board games. This is an example of a(n) - functional-area strategy. - operating strategy. - business strategy. - differentiation strategy.

functional-area strategy.

Which of the following are factors that help indicate the success of a company's business strategy? Multiple select question. - employee compensation - sales and earnings growth - the company's stock price - the rate of customer retention

- sales and earnings growth - the company's stock price - the rate of customer retention

Which of the following are the components of a fit test that help evaluate how well a company's strategy matches its situation? (Check all that apply.) - Dynamic fit - External fit - Performance fit - Internal fit - Aesthetic fit

- Dynamic fit - External fit - Internal fit

Which performance indicators are signs of a winning strategy?

- Gains in competitive position - Increased market share - Above-average financial performance

Which strategic actions fall into the "should not do" category and are probably unethical?

- They have a negative effect on customers, employees, and the surrounding community. - They cause a public backlash and accusations of being irresponsible. - They make the company look bad.

Which of the following are external factors that pose threats to a company's profitability and competitive well-being? (Check all that apply.) Multiple select question. - too narrow a product line relative to rivals - Unfavorable demographic shifts - Burdensome new regulations - Higher costs than competitors - Lack of management depth - The emergence of lower cost or improved technologies

- Unfavorable demographic shifts - Burdensome new regulations - The emergence of lower cost or improved technologies

Which of the following are external factors that pose threats to a company's profitability and competitive well-being? (Check all that apply.) Multiple select question. - Higher costs than competitors - Unfavorable demographic shifts - Too narrow a product line relative to rivals - Lack of management depth - The emergence of lower cost or improved technologies - Burdensome new regulations

- Unfavorable demographic shifts - The emergence of lower cost or improved technologies - Burdensome new regulations

Which of the following are a company's internal weaknesses? (Check all that apply.) Multiple select question. - Unproven skills - Inferior capabilities - Hard-to-copy resources - Deficiencies in intangible assets

- Unproven skills - Inferior capabilities - Deficiencies in intangible assets

A company's competitive assets are made up of which of the following? Multiple select question. - resources - dividends - P/E ratios - capabilities

- resources - capabilities

A strategy that changes in response to new market conditions and challenges is known as

An Evolving Strategy

The profit ________ is the company's approach to determining a cost structure that will allow for acceptable profits, given the pricing tied to its customer value proposition.

Profit Formula

Closely integrated competitive assets that are tied to one or more cross-functional capabilities are called __________ bundles.

Resource

A two-step process that provides managers with a powerful tool for sizing up a company's competitive assets and determining whether they can provide the foundation necessary for competitive success in the marketplace is known as _____________ ______ ______________

Resource and capability analysis

True or false: It is easier for rivals to imitate a company's product line than it is for them to duplicate its capabilities.

True

A blueprint that outlines the means for a company to deliver value to customers in a suitably profitable manner is known as its

business model.

The ability of a company to perform competently in carrying out a particular internal activity, such as product innovation or development, is called a Multiple choice question. capability. resource. pejorative. strategy.

capability.

Which elements form part of a company's strategic plan? Multiple select question. - company direction - basic business model - past accomplishments - intended competitive moves

company direction basic business model intended competitive moves

What business practice is the most important factor that allows a company to seize the moment when a golden marketing opportunity presents itself? Multiple choice question. human resource development diligent market reconnaissance identifying external threats identifying internal weaknesses

diligent market reconnaissance

If a company's competence level in some activity domain is superior to that of its rivals, it is known as a _____________ ____________.

distinctive competence

Who is the target audience of an organization's strategic vision statement? - top executives exclusively - only mid-level managers - everyone in the organization - clients and investors

everyone in the organization

To mobilize employee support for a new strategic vision for a company, executives should - remind employees that they failed to make the company prosper under the old system. - avoid discussing employee concerns and instead talk about the effort spent in creating the new vision. - give convincing reasons for taking the organization in a new direction. - summarize the plan on the internal company website rather than discussing it in person with all employees.

give convincing reasons for taking the organization in a new direction.

Stretch objectives are helpful because they Multiple select question. - help an organization perform at its full potential. - motivate employees to be more productive. - allow the company some extra time to accomplish its goals when unexpected obstacles slow the work. - prevent employees from settling for a comfortable level of performance.

help an organization perform at its full potential. motivate employees to be more productive. prevent employees from settling for a comfortable level of performance.

Debt-to-equity, long-term debt-to-capital, and total debt-to-assets are all examples of ______ ratios. - activity - profitability - leverage - liquidity

leverage

Something a firm does well or a quality it has that increases its competitiveness in the marketplace is a - strength. - triumph. - success. - victory.

strength.

Patents and copyrights are types of resources that are part of a company's - organizational resources. - reputational assets. - financial resources. - technological resources.

technological resources.

Patents and copyrights are types of resources that are part of a company's - technological resources. - organizational resources. - reputational assets. - financial resources.

technological resources.

A company's strategy should always be based on - the current employee makeup. - the company's internal strengths. - exploiting competencies that rivals have found successful. - the company's weak points.

the company's internal strengths.

Which of the following are true about how the content of a company's strategic plan is typically shared with different audiences? Multiple select question. - A summary of the plan is published in the company's annual report. - Excerpts of the plan are posted on the company website. - The plan is circulated to the managers within the company, - A copy with detailed explanations is handed out to every employee of the company.

- A summary of the plan is published in the company's annual report. - Excerpts of the plan are posted on the company website. - The plan is circulated to the managers within the company,

Why should the mission statement not focus on the company's goal of making a profit? Multiple select question. - All commercial businesses aim to make a profit. - The mission statement should define "who we are and what we do." - Making a profit is best seen as a result of the company's actual mission. - Making a profit will actually distract the company from achieving worthwhile goals.

- All commercial businesses aim to make a profit. - The mission statement should define "who we are and what we do." - Making a profit is best seen as a result of the company's actual mission.

What is a company slogan? - a short paragraph that describes the company's history and accomplishments - a catchphrase invented and repeated by employees to convey their feelings about the company - a sentence that identifies the company's products or services - a brief phrase that summarizes the company's vision

a brief phrase that summarizes the company's vision

What is a stretch objective? - a performance strategy that seeks to include as many personnel as possible - a performance target that will require significant effort to achieve - a goal that can be adjusted to accommodate changing conditions - a managerial tactic that involves adding numerous goods and services to what the company has traditionally offered

a performance target that will require significant effort to achieve

A company's realized strategy is a combination of

proactive and reactive elements.

The primary purpose of a vision statement is to - provide the company with a sense of direction. - show that the company is in the vanguard. - serve as a defense from lawsuits. - improve public relations.

provide the company with a sense of direction.

To measure how well a company is moving in the intended direction, it is important to - rethink the basic guiding vision periodically. - set objectives. - include a checklist in the mission statement. - adjust core values to maximize profits.

set objectives.

A sense of "where we are going" is called the company's - operational strategy. - core values. - strategic vision. - performance objectives.

strategic vision.

What is the purpose of the fit test?

to determine how well a strategy matches the company's situation

What will a typical strategic plan accomplish? Multiple select question. - Explore the history of the company in some detail. - Establish a time period for accomplishing goals. - Be written in vague, broad language to allow managers to adapt it as needed. - Allocate resources that will help implement the plan.

- Establish a time period for accomplishing goals. - Allocate resources that will help implement the plan.

The key for a company to achieve competitive advantage is either to provide superior value to customers or to deliver value more _________. - efficiently - subtly - collaboratively - forcefully

- efficiently

What purposes are served by a company slogan? Multiple select question. - to define the organization's direction - to motivate personnel to overcome obstacles - to present the company's strategic vision with supporting details - to help employees maintain focus on the company's purpose

- to define the organization's direction - to motivate personnel to overcome obstacles - to help employees maintain focus on the company's purpose

Which statement about the connection between good strategy and good execution is true? - As long as a company has a strong strategy, successful execution is a sure thing. - The marker of good management is a solid strategy that focuses on customer value above all else. - Good management consists of good strategy and good strategy execution. - A company can enjoy long-term success with a weak strategy if the execution is strong and aggressive.

Good management consists of good strategy and good strategy execution.

A company's approach to meeting or exceeding its customers' needs at a price they consider a good value is called the

customer value proposition.

What are two characteristics of a broad differentiation strategy?

- Appealing to a wide range of consumers - Offering products or services that are difficult to imitate

What are some of the ways that companies typically implement a competitive strategy?

- by delivering superior customer service - by diversifying product lines - by focusing on quality

What are three of the most reliable ways a company can distinguish itself in the marketplace, build customer loyalty and achieve a competitive advantage? - broad imitation strategy -forced low-cost strategy - low-cost provider strategy - broad differentiation strategy

- forced low-cost strategy - low-cost provider strategy - broad differentiation strategy

Which of the following are impediments to a company's long-term industry success?

- imitative strategies - inadequate attempts to improve - illogical strategies

Who would be most often involved in the crafting and implementation of functional strategies? Multiple select question. - the people in charge of each function - the general manager of the business - top executives in the corporation - the CEO of the corporation

- the people in charge of each function - the general manager of the business

Which statements are true about specific, measurable goals? Multiple select question. - They help an organization remain focused on what it is trying to accomplish. - They help an organization track its progress. - They restrict an organization to an undesirably narrow course of action. - They motivate personnel to try harder.

- They help an organization remain focused on what it is trying to accomplish. - They help an organization track its progress. - They motivate personnel to try harder.

Which mission statement is written in the most effective manner? . - "to help people achieve their dreams" - "to make a profit every quarter of every year" - "to provide nutritious food at an affordable price, served with a smile" - "to inspire flights of fancy and be there whenever our customers need us"

"to provide nutritious food at an affordable price, served with a smile"

A company mission statement should do which of the following? Multiple select question. - Describe where the company expects to head in the future. - Identify the company's customers or markets. - Specify what services and products the company offers. - Establish the company's own identity.

- Identify the company's customers or markets. - Specify what services and products the company offers. - Establish the company's own identity.

Members of an organization are most likely to support a new strategic vision if the document Multiple select question. - is explained by top executives to as many people as possible. - explains where the organization is going and why. - is distributed throughout the organization. - is presented to higher-level managers only,

- Is explained by top executives to as many people as possible. - explains where the organization is going and why. - is distributed throughout the organization.

Which statements are true of a company's strategic vision? Multiple select question. - It is crafted by the company's top managers. - It explains why the vision makes sound business sense. - It steers the organization in a specific direction. - It achieves its effectiveness by being broad and vague.

- It is crafted by the company's top managers. - It explains why the vision makes sound business sense. - It steers the organization in a specific direction.

Which of the following are characteristics of a company's core competence? Multiple select question. - It is competitively valuable. - It is central to a company's strategy. - It contributes to the company's profitability. - It exceeds comparable competences of the company's rivals.

- It is competitively valuable. - It is central to a company's strategy. - It contributes to the company's profitability.

Sometimes a company's CEO is the main person who develops the organization's strategy. This most often happens in which of the following situations? Multiple select question. - The CEO is the owner and manager of a small company. - The CEO has unusually strong strategic leadership skills. - The CEO works under the close supervision of a board of directors. - The CEO is the founder of a company that grew into a larger corporation.

- The CEO is the owner and manager of a small company. - The CEO has unusually strong strategic leadership skills. - The CEO is the founder of a company that grew into a larger corporation.

Which of the following are reasons for crafting and executing strategies to be important managerial tasks? - They provide a path to competitive advantage. - They prohibit harassment and discrimination at workplace. - They define a company's best practices. - They lay out the means for pleasing customers. - They establish a formula for improving performance.

- They provide a path to competitive advantage. - They lay out the means for pleasing customers. - They establish a formula for improving performance.

A typical company's strategy is often both ______, meaning that it plans ways to improve the company's competitiveness, and ______, meaning that it responds to unforeseen market conditions.

proactive; reactive

Actions taken in response to new strategic maneuvers by rival firms or other unanticipated market circumstances make up a company's ______ strategy.

emergent strategy

A well-crafted vision statement should - be written in a lofty style to impress competitors. - explain where top executives plan to take the company in the future. - describe how the company looks in the style of a press release. - incorporate the opinions of managers from all levels of the organization.

explain where top executives plan to take the company in the future.

Which of the following types of market opportunities are the most relevant for a company to pursue? (Check all that apply.) Multiple select question. - Market opportunities that match up with the company's competitive assets. - Market opportunities that carry the least amount of risk. - Market opportunities that offer the best chances for profitability. - Market opportunities that offer the best chances for growth.

- Market opportunities that match up with the company's competitive assets. - Market opportunities that offer the best chances for profitability. - Market opportunities that offer the best chances for growth.

Which of the following types of market opportunities are the most relevant for a company to pursue? (Check all that apply.) Multiple select question. - Market opportunities that offer the best chances for growth. - Market opportunities that match up with the company's competitive assets. - Market opportunities that carry the least amount of risk. - Market opportunities that offer the best chances for profitability.

- Market opportunities that offer the best chances for growth. - Market opportunities that match up with the company's competitive assets. - Market opportunities that offer the best chances for profitability.

Which of the following are profitability ratios that help determine a company's financial performance? (Check all that apply.) Multiple select question. - Price-to-earnings ratio - Debt-to-equity ratio - Net return on total assets - Net profit margin - Total return on assets

- Net return on total assets - Net profit margin - Total return on assets

Which statements about a company's capabilities are true? Multiple select question. - A company's resources are more complex than its capabilities. - One method of identifying capabilities starts with a list of the company's resources. - A company's capabilities are easier to categorize than its resources. - One method of identifying capabilities starts with a survey of the functions performed within the company.

- One method of identifying capabilities starts with a list of the company's resources. - One method of identifying capabilities starts with a survey of the functions performed within the company.

Aggressive price-cutting to win customers away from a rival can be risky for which the following reasons? Multiple select question. - Other competitors might interpret such a move as an attack. - It can increase distribution partner profitability and independence. - Rivals with stronger relative cost positions might be able to better survive a price war. - A company's suppliers might charge higher prices to protest the price cuts.

- Other competitors might interpret such a move as an attack. - Rivals with stronger relative cost positions might be able to better survive a price war.

Long-term objectives are intended to do which of the following? Multiple select question. - Prevent a nearsighted management philosophy. - Focus on objectives one year into the future. - Allow the company to start realizing more revenue within two months. - Prompt action now to improve the organization's performance later.

- Prevent a nearsighted management philosophy. - Prompt action now to improve the organization's performance later.

Why might top executives involve lower-level managers in crafting and implementing a company strategy? Multiple select question. - The managers know more details about the operation of their specific operating units than the executives do. - The organization is so big and complex that top management cannot keep track of all the parts that make up the strategy. - The organization benefits when its various units compete fiercely against each other. - The company's operations are spread across various industries and geographic areas.

- The managers know more details about the operation of their specific operating units than the executives do. - The organization is so big and complex that top management cannot keep track of all the parts that make up the strategy. - The company's operations are spread across various industries and geographic areas.

Which of the following are developed during the first stage in crafting a company strategy? Multiple select question. - a loyal customer base - a set of core values - a strategic vision - a mission statement

- a set of core values - a strategic vision - a mission statement

The general profit formula for fast-food restaurants as invented by McDonald's involves which of the following?

- advertising and in-store promotions - strict specifications for ingredients - standardized store design

What aspect of a company's operations is usually the easiest thing for competitors to duplicate? - expertise of the company's personnel - the company's experience - attributes of the company's product or services - specialized capabilities that the company has developed

- attributes of the company's products or services

Most of a firm's organizational capabilities can be characterized as being either of which two of the following? Multiple select question. - driven by fiscal policy - relating to brands - being based on knowledge - existing in a firm's processes and systems

- being based on knowledge - existing in a firm's processes and systems

What are some of the ways that companies typically implement a competitive strategy? - by diversifying product lines - by isolating the managerial staff - by delivering superior customer service - by focusing on quality

- by delivering superior customer service - by focusing on quality

When a business is more successful than its rival at attracting customers and handling competition, it is said to have an _____________ advantage. - long-term -marketing -competitive - organizational

- competitive

Strategic objectives are goals concerned primarily with an organization's - competitive position. - employee relations. - market standing. - financial performance.

- competitive position. - market standing.

Information gleaned from a SWOT analysis can be used to create strategic actions that include which of the following? Multiple select question. - correcting significant weaknesses - defending against external threats - preparing for unknown, future market conditions - matching the company's strategy to its internal strengths

- correcting significant weaknesses - defending against external threats - matching the company's strategy to its internal strengths

As a type of company resource, relationships include which of the following? Multiple select question. - dealer networks - partnerships - employee benefits - joint ventures

- dealer networks - partnerships - joint ventures

What are the two basic ways that companies achieve competitive advantage over their business rivals? - deliver higher perceived value to customers - design more effective advertisements - appeal to a larger target market - produce products or services at a lower cost

- deliver high perceived value to customers. - produce products or services at a lower cost

A company's ultimate success or failure is fundamentally tied to how well its management team does which of the following? - develops competitively effective strategies - copies other companies' successful strategies - charts the company's direction - facilitates internal operating excellence

- develops competitively effective strategies - charts the company's direction - facilitates internal operating excellence

A business strategy becomes unethical when it involves what elements?

- disreputable behavior - deceitfulness - unreasonable damage to the environment

Which factors do managers consider when establishing performance objectives? Multiple select question. - economic conditions within the industry - competition from other businesses - the strategic visions of rival businesses - the company's internal capabilities

- economic conditions within the industry - competition from other businesses - the company's internal capabilities

What are basic approaches in company strategy to improve chances of success in competing against rivals? Select all that apply - establish a position in an uncroweded market - soften ethical guidelines - always aim for a low-cost strategy - clearly differentiate a company from its rivals

- establish a position in an uncrowded market - clearly differentiate a company from its rivals

What choices must managers consider when committing to a company strategy for competing against rival companies? Select all that apply - how to attract customers - how to hide the company's structural weakness -how to respond to market conditions - how to capitalize on growth opportunities

- how to attract customers - how to respond to market conditions - how to capitalize on growth opportunities

Business strategy, in contrast to corporate strategy, involves which of the following? Multiple select question. - establishing a competitive advantage through cross-business synergies - improving the performance of individual business units - managing all the businesses owned by a corporation - strengthening the market position of individual business units

- improving the performance of individual business units - strengthening the market position of individual business units

It is generally best for companies to craft objectives that Multiple select question. - are broad and flexible. - include a deadline for achieving the objective. - can be measured. - will be relatively easy to accomplish.

- include a deadline for achieving the objective. - can be measured.

Performance targets should be set for the organization's Multiple select question. - individual work units. - separate businesses. - product lines. - top managers only.

- individual work units - separate businesses - product lines

Which of the following are key components of a company's competitive strategy? Multiple select question. - information technology - human resources - accounts payable - marketing

- information technology - human resources - marketing

Which three companies have broad differentiation strategies that have allowed them to maintain long-term competitive advantages? - Johnson & johnson - walmart - apple - BMW

- johnson & johnson - apple - BMW

In what ways does a competitive advantage benefit a business? select all that apply - smaller payroll - larger profits - greater success in the marketplace - more extensive product line

- larger profits - greater success in the marketplace

Which of the following are part of the fifth and final stage for crafting and executing a company's strategy? Multiple select question. - monitoring developments - beginning to define core values - adjusting the mission statement - evaluating performance

- monitoring developments - adjusting the mission statement - evaluating performance

A well-designed strategic vision is important to an organization because it Multiple select question. - motivates personnel at all levels to help achieve the vision. - helps top executives clarify their sense of direction. - lists specific objectives and ways to evaluate the organization's performance. - helps managers coordinate efforts toward common goals.

- motivates personnel at all levels to help achieve the vision. - helps top executives clarify their sense of direction. - helps managers coordinate efforts toward common goals.

A company's mission statement describes the organization's Multiple select question. - future strategic course. - aspirations. - present business. - present purpose.

- present business. - present purpose.

What performance indicators reveal the most about the merits of a company's strategy?

- profitability and financial strength - competitive strength and market standing

Performance targets should be set for the organization's Multiple select question. - separate businesses. - top managers only. - product lines. - individual work units.

- separate businesses. - product lines. - individual work units.

Which of the following are potential market opportunities that managers try to identify when tailoring strategy to a company's situation? Multiple select question. - serving additional customer groups or market segments - expansion into new geographic markets - acquiring rival companies with attractive capabilities - falling demand for the industry's product

- serving additional customer groups or market segments - expansion into new geographic markets - acquiring rival companies with attractive capabilities

What are the best tactics to convince lower-level managers and employees to support the company's strategic vision? Multiple select question. - sharing updates and progress reports - emphasizing that employees must respect management's authority - avoiding arguments by revealing few details about the plan - explaining why the company is taking a particular direction

- sharing updates and progress reports - explaining why the company is taking a particular direction

Operating strategies are designed to manage Multiple select question - the businesses that together from a larger corporation. - the overall operation of complex corporations. - specific activities, such as Internet sales. - key units, such as distribution centers.

- specific activities, such as Internet sales. - key units, such as distribution centers.

When setting objectives, which types of performance targets must be established? Multiple select question. - operational - functional-area - strategic - financial

- strategic - financial

To appraise a company's strengths, managers determine how well the firm performs key aspects of the business, such as Multiple select question. - organizing the mail room. - supply chain management. - sales and marketing. - customer service.

- supply chain management. - sales and marketing. - customer service.

Under what circumstances would an extreme stretch goal involving radical expectations be most likely to succeed? Multiple select question. - when most of the top managers have been replaced by new, younger recruits - when the company has plenty of resources available - when employees are so demoralized that they are strongly motivated to change - when the company's recent performance has been strong

- when the company has plenty of resources available - when the company's recent performance has been strong

Which of the following should a company consider doing when it has competitive strengths in areas where its rivals are weak? - Taking defensive moves - Forming a cartel - Taking offensive moves - Bargaining

Taking offensive moves

When a company's proficiency rises from that of mere ability to perform an activity to the point of being able to perform it consistently well and at acceptable cost, it is said to have a(n) _________ or a true capability.

competence

When Company A's rivals have much higher competitive strength, Company A is said to have a ____________ ______________ ________________

net competitive disadvantage

A manager of a plant owned by a food and beverage company for producing canned goods develops a strategy for updating its production lines while maintaining its quality controls. This is an example of a(n) - operating strategy. - corporate strategy. - functional-area strategy. - business strategy.

operating strategy.

When charting a company's direction, why do managers set objectives? - to help employees see the difference between the company's vision and mission - to establish a strategic hierarchy for the entire company - to establish performance targets that the managers hope to achieve, using the company's mission and vision - to help define the company's mission statement

to establish performance targets that the managers hope to achieve, using the company's mission and vision

What is the purpose of a company's strategic vision? - to produce a catalog of all the company's products - to steer the company toward long-term growth and profits - to predict what the market will look like in future decades - to expand the company's operations as broadly as possible

to steer the company toward long-term growth and profits

An activity that a company performs poorly in comparison to its competitors is an example of a competitive deficiency, or _____________

weakness