Chapter 1

Which of the following does NOT apply to a good business model? A) Providing customers with a good or service more cheaply than they can create it for themselves B) Sell goods or services for more than it cost the company C) It is essential to a strategic plan D) It outlines how the company hope to make a profit E) It stays away from new or untested ideas

It stays away from new or untested ideas

What is strategic management? Check all that appl A) Understanding how creativity affects management B) Applying government regulations to business models C) The use of formal analysis tools D) Examining how the actions of executives affect a company

Understanding how creativity affects management The use of formal analysis tools Examining how the actions of executives affect a company

Which of these is an aspect of a company's business model? Check all that apply. A) An engineering design B) A key element of the strategic plan C) A way to secure customers with a service or product offered D) The accounting software the company uses E) The plan of how the company will be profitable

A key element of the strategic plan A way to secure customers with a service or product offered The plan of how the company will be profitable

_____ stressed on how strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance. Thomas Friedman Frederick W. Taylor Niccolò Machiavelli Michael Porter Alfred Chandler

Alfred Chandler

_____ offered concepts such as Five Forces Analysis and Generic Strategies that continue to strongly influence how executives choose strategies. A) The Prince B) Competitive Strategy: Techniques for Analyzing Industries and Competitors C) The Principles of Scientific Management D) Strategy and Structure: Chapters in the History of the Industrial Enterprise E) The World is Flat: A Brief History of the Twenty-First Century

Competitive Strategy: Techniques for Analyzing Industries and Competitors

The _____ strategy consists of the elements of the intended strategy that are pursued over time by a company. A) emergent B) defined C) deliberate D) realized

Deliberate

Organizations begin with an intended strategy and then eventually identify ______ that they may choose to incorporate over time into their _________ strategy. The end result is the strategy the organization actually follows or their

Emergent; Deliberate Strategy; Realized Strategy

What is the second step in the strategic management process? A) Financial Evaluation B) Understanding Strategy and Performance C) Strategy Formulation D) Organizational Design E) Environmental and Internal Scanning

Environmental and Internal Scanning

_____ refers to a stage in the strategic management process wherein managers must constantly look out for trends and events in the external environment that affect the overall economy and also monitor changes in the particular industry in which the firm operates. A) Environmental and internal scanning B) Strategy implementation C) Strategy evaluation and control D) Strategy formulation E) Strategy evolution

Environmental and internal scanning

Taylor's emphasis on maximizing organizational performance became redundant when strategic management as a field developed. TRUE FALSE

FALSE

The capstone course established by the Ford Foundation focuses on the notion that a single way of addressing a problem leads to the success of a firm. True False

Fale

Run and Play, a well-known athletic wear company, operates through a number of outlets which are owned and managed by private individuals. The company has allowed these outlets to use its brand name and products. They can do so after paying a fee to Run and Play. The outlets also pay a part of their revenue to the Run and Play. This is an example of: A) positioning. B) differentiation. C) comparative scaling. D) franchising. E) brand essence.

Franchising

Which of the following statements holds true for strategy as a pattern? A) It is a specific move designed to outwit or trick competitors. B) It is a carefully crafted set of steps that a firm intends to follow in order to be successful. C) It refers to a company's place in the industry relative to its competitors. D) It focuses on the extent to which a firm's actions over time are consistent. E) It refers to how executives interpret the competitive landscape around them

It focuses on the extent to which a firm's actions over time are consistent.

Which of the following statements holds true for strategy as a plan? A) It is a carefully crafted set of steps that a firm intends to follow in order to be successful. B) It refers to a firm's place in the industry relative to its competitors. C) It is a specific move designed to outwit or trick competitors. D) It focuses on the extent to which a firm's actions over time are consistent. E) It refers to how executives interpret the competitive landscape around them.

It is a carefully crafted set of steps that a firm intends to follow in order to be successful.

Which of the following statements holds true for strategy as a position? A)It refers to a firm's place in the industry relative to its competitors. B) It focuses on the extent to which a company's actions over time are consistent. C) It refers to how executives interpret the competitive landscape around them. D) It is a carefully crafted set of steps that a firm intends to follow in order to be successful. E) It is a specific move designed to outwit or trick competitors.

It refers to a firm's place in the industry relative to its competitors

The book, The Prince, was written by _____. Thomas Friedman Niccolò Machiavelli's Alfred Chandler Michael Porter Frederick W. Taylor

Niccolò Machiavelli's

Which of these are characteristic of franchising? Check all that apply. A) Original organization is paid an ongoing royalty fee B) Franchising flourished in the 1990s but has largely disapperaed since 2000 C) New organization makes an up-front payment D) After up-front payment, no other fees are exchanged E) One organization grants another the right to use its brand name and products

Original organization is paid an ongoing royalty fee New organization makes an up-front payment One organization grants another the right to use its brand name and products

Licensing your company's proprietary software should be part of your company's strategy as _____. A) Ploy B) Perspective C) Plan D) Pattern

PLAN

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

What are the 5 Ps?

Plan Ploy Pattern Position Perspective

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

One of the following is NOT one of Mintzberg's "5 Ps of strategy." Position Plan Perspective Priority Ploy

Priority

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

_____ refers to a stage in the strategic management process which involves developing specific strategies and actions. A) Environmental and internal scanning B) Strategy evolution C) Strategy evaluation and control D) Strategy implementation E) Strategy formulation

Strategy Formulation

_____ refers to a stage in the strategic management process which entails crafting an effective organizational structure and corporate culture. Strategy evaluation and control Strategy evolution Strategy implementation Strategy formulation Environmental and internal scanning

Strategy Implementation

Taylor believed that businesses would be much more efficient if principles for management were derived through scientific investigation False True

TRUE

_____ offers an insightful guide for conquering and ruling territories and recipes for success to government leaders. A) The World is Flat: A Brief History of the Twenty-First Century B) The Principles of Scientific Management C) The Prince D) Strategy and Structure: Chapters in the History of the Industrial Enterprise E) Competitive Strategy: Techniques for Analyzing Industries and Competitors

The Prince

_____ stressed on how organizations could become more efficient through identifying the one best way of performing important tasks. A) The Principles of Scientific Management B) The World is Flat: A Brief History of the Twenty-First Century C) Competitive Strategy: Techniques for Analyzing Industries and Competitors D) Strategy and Structure: Chapters in the History of the Industrial Enterprise E) The Prince

The Principles of Scientific Management

_____ argued that many of the advantages that firms in developed countries like the United States, Japan, and Great Britain take for granted are disappearing. A) The World is Flat: A Brief History of the Twenty-First Century B) Competitive Strategy: Techniques for Analyzing Industries and Competitors C) The Prince D) Strategy and Structure: Chapters in the History of the Industrial Enterprise E) The Principles of Scientific Management

The World is Flat: A Brief History of the Twenty-First Century

Which of these are the two pivotal events that firmly led to strategic management being established as a field of study? Check two. A) The publication of Competitive Strategy: Techniques for Analyzing Industries and Competitors B) The creation of a strategic management course "business policy" C) The publication of The Principles of Scientific Management D) The publication of Strategy and Structure: Chapters in the History of the Industrial Enterprise E) The creation of the Strategic Management Journal F) The publication of The World is Flat: A Brief History of the Twenty-First Century

The publication of Competitive Strategy: Techniques for Analyzing Industries and Competitors The creation of the Strategic Management Journal

Strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance True False

True

According to the chapter, which of the following does NOT apply to an emergent strategy? A) Can be a response to unexpected opportunities B) Can result in either economic success or disaster C) Can be a response to unexpected challenges D) Usually part of the initial business plan E) It is considered an unplanned strategy

Usually part of the initial business plan

Define nonrealized strategy

abandoned parts of intended strategy

Define Emergent Strategy

an unplanned stratedgy that arises in response to unexpected opportunties and challenges

Strategic management is a process that requires the ability to manage _______. pricing community people change expectations

change

In The Art of War, Sun Tzu's emphasized which two aspects of strategy? A) creative; considerate B) cautionary; discrete C) pragmatic; discrete D) pragmatic; deceptive E) creative; deceptive

creative; deceptive

Define pattern

degree of consistency in a firm's strategic actions

Based on the success Frederick Smith's intended strategy, FedEx ranked _______ among the World's Most Admired Companies in 2017, according to Fortune magazine. first fifth eleventh fifteenth second

eleventh

Mike owns a store which sells baseball bats. He soon realizes that the customers who buy baseball bats also ask for baseball jerseys. Therefore, he starts stocking baseball apparel to cater to the needs of his customers. This is an example of a(n) _____ strategy. intended realized marked emergent pre-termed

emergent

Jeff wants to open a fast-food shop near a mall in order to attract the crowds that visit the shopping mall. This is an example of a(n) _____ strategy. marked intended pre-termed realized emergent

intended

Define Ploy

move designed to outwit or trick competitors

Glen is an artist who started an online business of selling hand-painted cards. He intended to mail the cards to the customer's address. He started a Web site where customers could specify the type of designs they wanted. Glen would then paint the cards according to the specifications of the customer. He later dropped the idea of mailing the cards to the customers as he found it too costly. The fact that Glen dropped the idea of mailing the cards to the customers is an example of a _____ strategy. nonrealized pre-termed make over marked deliberate

nonrealized

Define Deliberate strategy

parts of the intendedstrategy that the company continues to pursue over time

Glen is an artist who started an online business of selling hand-painted cards. He intended to mail the cards to the customer's address. He started a Web site where customers could specify the type of designs they wanted. Glen would then paint the cards according to the specifications of the customer. Glen soon started offering cash refunds in case the customer was not satisfied with the cards because he realized that other online businesses had also started offering the same facilities. He now runs a booming business. This is an example of a(n) _____ strategy. intended realized marked emergent pre-termed

realized

Define Realized strategy

strategy an organization actually follows. are a product of a company's intended strategy

Define Intended Strategy

strategy that an organization hopes to execute

When an organization's environment is very stable and predictable, strategic planning can provide enough of a strategy for the organization to gain and maintain success. True False

true

Which of the following statements holds true for strategy as a ploy? A) It is a carefully crafted set of steps that a firm intends to follow in order to be successful. B) It refers to how executives interpret the competitive landscape around them. C) It refers to a firm's place in the industry relative to its competitors. D) It is a specific move designed to outwit or trick competitors. E) It focuses on the extent to which a firm's actions over time are consistent.

It is a specific move designed to outwit or trick competitors.

Which of the following statements holds true for strategy as a perspective? A) It refers to a firm's place in the industry relative to its competitors. B) It refers to how executives interpret the competitive landscape around them. C) It is a carefully crafted set of steps that a firm intends to follow in order to be successful. D) It focuses on the extent to which a company's actions over time are consistent. E) It is a specific move designed to outwit or trick competitors.

It refers to how executives interpret the competitive landscape around them

Glen is an artist who started an online business of selling hand-painted cards. He intended to mail the cards to the customer's address. He started a Web site where customers could specify the type of designs they wanted. Glen would then paint the cards according to the specifications of the customer. He later dropped the idea of mailing the cards to the customers. The fact that he still runs an online card selling business, which caters to the needs of individual customers, is an example of a _____ strategy. nonrealized pre-termed deliberate marked make over

deliberate