Chapter 9
A ________ describes the rationale of how a company is going to make money.
Business model
The major value-creating capabilities of the organization are known as its ________.
Core competencies
Top-level managers are responsible for ________ strategies.
Corporate
A company that competes by offering unique products that are widely valued by customers is following a ________.
Differentiation strategy
Which of the following strategies involves a cost advantage or a differentiation advantage in a narrow segment?
Focus strategy
Lower-level managers are responsible for ________ strategies.
Functional
________ takes place when a company combines with other companies in different, but associated, industries.
Related diversification
________ strategies address declining performance through retrenchment and turnaround strategies.
Renewal
An organization's financial, physical, human, and intangible assets are known as its ________.
Resources
The combined external and internal analyses are called ________.
SWOT analysis
________ is the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision is not working.
Strategic flexibility
________ is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization.
Strategic leadership
In ________, the organization becomes its own supplier so it can control its inputs.
backward vertical integration
The final step in the strategic management process allows an organization to understand the ________.
effectiveness of the strategies used
An organization that initially brings a product innovation to the market is known as the ________.
first mover
A ________ strategy is when an organization expands the number of markets served or the products offered.
growth
In ________, a company grows by combining with competitors.
horizontal integration
A cost leadership strategy requires a firm to ________.
maintain the lowest cost structure
________ are positive trends in the external environment.
opportunities
A study of the external environment allows a manager to understand the ________ and ________ for the organization.
opportunities; threats
If a bank estimates the capabilities of its employees who provide customer service prior to implementing a new training program designed to change their method of providing customer service, it is ________.
performing an internal analysis
When an organization continues serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations, it is following a ________ strategy.
stability
Managers perform an external analysis so that they know about ________.
what the competition is doing
Defining the organizational mission forces managers to identify ________.
what the organization is in business to do
What are the three main types of corporate strategies?
growth, stability, and renewal
