CH 1 Quiz
In Taylor's book The Principles of Scientific Management, he proposed that companies would be more efficient if they pursued ______performing tasks in their organizations. After his methods were implemented, the _______ saved hundreds of millions of dollars.
"One best way" of Railroad industry
Within a company's strategic plan, management usually describes the ______strategy they hope to accomplish. Parts of the plan that do not come to fruition are the _______strategy.
Intended Nonrealized
While a company prepares a strategic plan with its ________strategy, changes in the market or an unexpected opportunity may open up a(n) _________strategy.
Intended Emergent
The ability of a company to purchase materials in bulk and________than an individual would is_______
Pay less for them Economies of scale
Two business partners, Amalia and Rob, own a small ice cream shop, "Cones 'n Stuff," in town. When a large ice cream franchise plans to open a location two blocks down the street, they need to adjust their business model. Amalia wants to price the ice cream at "Cones 'n Stuff" ten percent lower; Rob wants to pass out free cone cards to everyone walking down the street. While both are engaging in strategy as _________, Amalia is applying strategy as ______, while Rob is using strategy as _________
Perspective Position Ploy
Business executives use strategic management to understand how________as well as how their organization________
The world is changing Could be affected
In the personal computer business, Apple's practice of creating its own market area is an example of ________, a strategy proposed by Sun Tzu. Rather than engaging in _________ wars with other manufacturers, Apple developed unique features that created a loyal customer base.
Winning a battle without fighting Price
Effective strategic management is________. Applying its concepts requires a leader to apply strategies from_______
both an art & a science recent & ancient history
Identify whether each example is a realized or a nonrealized strategy.
1. David McConnell, Avon: Realized 2. David McConnell, Author: Nonrealized 3. Southern Bloomer Manufacturing, Gun patches: Realized 4. Fred Smith, Federal Express: Realized 5. Scott & Don Rasmussen, ESPN: Realized 6. Wrigley, Chewing gum: Realized 7. Lowell Paxon, Home Shopping Network: Realized 8. Wrigley, Soap & Baking powder: Nonrealized 9. Federal Express, ZapMail; Nonrealized
Choose a strategy for each company below.
1. David McConnell, California Perfume Company: Emergent 2. Southern Bloomer Manufacturing, Underwear: Intended 3. David McConnell, Author: Intended 4. Federal Express: ZapMail: Emergent 5. Fred Smith, Federal Express: Intended 6. Souther Bloomer Manufacturing, Gun patches: Emergent 7. William Wrigley Jr, Chewing gum: Emergent 8. William Wrigley Jr, Soap & baking powder: Intended
Put these significant events related to the evolution of strategic management in order.
1. Ford produces the 1st Model T Car 2. Taylor publishes The Principles of Scientific Management 3. A&W becomes USA's 1st franchised restaurant chain 4. Ford Foundation recommends capstone course for B school 5. Sam Walton opens 1st Walmart 6. Strategic Management Journal created 7. Jeff Bezos launches Amazon.com 8. Enron declares bankruptcy following fraud & corruption
Match the strategy from ancient times with the historical figure who developed it.
1. King Arthur: Centralized mission 2. Moses: Hierarchical delegation 3. Virgil: Strategic deception 4. Sun Tzu: Win without fighting
Match each example with the correct strategy.
1. Plan--Apple, 1996, Gilbert Amelio 2. Ploy--Post, Postum, C.W. Post 3. Position--General Motors [Cheverlet-Buick-Cadillac] 4. Pattern--K-Mart, 1980s, Diversification 5. Perspective--Amazon, 1990s, Jeff Bezos
Match each of the five Ps of strategy with the correct definition.
1. Position--Creates a specific place in the market for the company that is different than the competitors' 2. Perspective--Relies on how the company's executives interpret & react to the evolving events 3. Ploy--Offers a creative strategy to provide a unique advantage over competitors. 4. Pattern--Develops a consistent way of operating & stays true to that way over time 5. Plan--Uses a well-defined set of steps designed to guide a company to a successful future
Match each of these actions taken by Apple with the correct step of the strategic management process.
1. Strategy formulation--Develops unique products that complement each other 2. Strategy implementation--Maintains a consistent focus on innovation & creativity 3. Environmental & internal scanning--Creates the iPhone as the boundaries begin to blur between mobile phones & computers
The _____ strategy consists of the elements of the intended strategy that are pursued over time by a company.
A. Emergent B. Realized C. Defined D. Deliberate Answer: D
Which of these would be a part of step two of the strategic management process, environmental and internal scanning? Check all that apply. *****Extra Focus*****
A. Evaluate the internal resources of the company B. Develop specific strategies & actions C. Create an effective organizational structure D. Identify how to react to change in the business environment E. Observe the business environment for events & trends that impact the overall economy F. Analyze the specific industry in which the business operates Answers: A, D, E, F
What is strategic management? Check all that apply.
A. Examining how actions of executives affect a company B. Applying government regulations to business models C. Use of formal analysis tools D. Understanding how creativity affects management Answer A, C, D
Which of these is an aspect of a company's business model? Check all that apply.
A. Key element of the strategic plan B. Way to secure customers with a service/product offered C. Engineering design D. Accounting software the company uses E. Plan of how the company will be profitable Answer: A, B, E
Which of these are characteristic of franchising? Check all that apply.
A. One organization grants another right to use brand name & products B. New organization makes up-front payment C. Franchising flourished in 1900s but largely disappeared since 2000 D. After up-front payment, no other fees exchanged E. Original organization paid ongoing royalty fee Answer A, B, E
Licensing your company's proprietary software should be part of your company's strategy as _____.
A. Perspective B. Pattern C. Ploy D. Plan Answer D
Which of these are the two pivotal events that firmly led to strategic management being established as a field of study? Check two.
A. Publication of Strategy & Structure: Chapters in the History of the Industrial Enterprise B. Publication of Competitive Strategy: Techniques for Analyzing Industries & Competitors C. Publication of The World is Flat: A Brief History of the Twenty-First Century D. Creation of strategic management course "business policy" E. Publication of The Principles of Scientific Management F. Creation of the Strategic Management Journal Answer: B, F
In 1959, the Ford Foundation recommended business schools create a 'capstone' course to _______by integrating knowledge from different business fields. The goal of the course would be to study________rather than relying on Taylor's "one best way" solution.
Address complex business problems Multiple ways of problem solving
Organize the list by author, book title, and concept as proposed by the author in the book. Organize the list from most recent to oldest.
Author, Date/Book/Concept 1. Friedman, 2005//The World is Flat: A Brief History of the Twenty-First Century//Advantages developed countries take for granted are disappearing 2. Porter, 1980//Competitive Strategy: Techniques for Analyzing Industries & Competitors// Five forces analysis & generic strategies 3. Chandler, 1962//Strategy & Structure: Chapter in the History of the Industrial Enterprise//Strategy & organizational structure need to align to ensure strong performance 4. Taylor, 1911//The Principles of Scientific Management//Identify the "one best way" of performing important tasks
Organize these examples of strategic management in ascending order by date, source, and the lesson.
Date/Source/Strategic Lesson 1. 1532//Machiavelli's The Prince//Acts of deceit & manipulation 2. 1775//American Revolutionary War//Guerilla warfare & targeting of officers 3. 1815//Napolean at Waterloo//Spreading resources too thin 4. 1865//American Civil War//Good strategies do not always beat a stronger adversary 5. 1944//Allied Forces//Deceptions to confuse & fool others
Organizations begin with an intended strategy and then eventually identify ______ strategies that they may choose to incorporate over time into their ______. The end result is the strategy the organization actually follows or their _______
Emergent Deliberate strategy Realized strategy
Scooter's BBQ-Shak is a huge success, and Scooter is ready to sell the rights to his brand name, restaurant decor, and recipes to others, becoming a ________. Debbie is the first ________ and pays Scooter an up-front _________ fee. Over time, Debbie pays Scooter a percentage of her revenues, a _______, from her Scooter's BBQ-Shak location.
Franchisor Franchisee Franchise Royalty fee
A corporation might operate several brands to appeal to different types of consumers, an example of strategy as _______. Offering a free mug after purchasing five cups of coffee or tea is an example of strategy as ______
Position Ploy
Put the four steps of the strategic management process in order and match the action item the best represents that step.
Steps//Action Item 1. Understanding Strategy & Performance//Analyze & interpret operations 2. Environment & Internal Scanning//Monitor industry changes & assess company resources 3. Strategy Formulation//Identify specific actions to take 4. Strategy Implementation//Create an effective corporate culture
Analyzing why some companies are more successful than other companies is the critical question examined through ________. This analysis uses both formal tools as well as creativity and is considered __________
Strategic Management part art and part science
