MAN3025 Chapter 6

Porter's five competitive forces form a model for ______ analysis. A. production B. industry C. staff D. cost

B. industry

A system of shared beliefs and values that needs to be aligned with the goal of producing efficient, quality work is called ______ culture. A. competitive B. organizational C. professional D. executive

B. organizational

The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies in pursuit of its mission are called organizational ______. A. threats B. strengths C. opportunities D. weaknesses

B. strengths

True or false: According to Bossidy and Charan, execution is the central part of any company's strategy.

True

Refer to Figure 6.2. Place the steps in the strategic-management process in the correct order, with the first step listed at the top.

1. Establish the mission, vision, and values statements 2. Assess the current reality 3. Formulate corporate, business, and functional strategies 4. Execute the strategies 5. Maintain strategic control

What does the BCG matrix evaluate? A. Cost of goods sold B. Business growth rates C. Economies of scale D. Market share

B. Business growth rates D. Market share

When considering SWOT analysis, what is an example of an organizational weakness? A. Minimal competition B. Obsolete technology C. Skilled workforce D. Strong financing

B. Obsolete technology

Of the three core processes of business identified by Bossidy and Charan, which do they believe is the most important? A. Finance B. People C. Strategy D. Competition E. Operations

B. People

Carlos is doing a VRIO analysis for a product his company is thinking about producing. The first question he asks is, "Does this new capability allow us to minimize the threat from the main competitor gaining more market share?" He decides the answer to this question is "yes." Which aspect of the VRIO analysis does this question answer? A. Organization B. Value C. Imitability D. Rarity

B. Value

In the large city where Cassandra lives, many people are asking for her restaurant to deliver food to their offices. Her restaurant has never delivered food before, but since so many people have requested this service Cassandra decides it is a good idea to do it. In a VRIO analysis, Cassandra has determined the ______ of this capability. A. rarity B. value C. imitability D. organization

B. value

Pacific Specialty Bikes store gets customized parts for its high-end models from a local manufacturer, Premium Supply. When the manufacturer announced a price increase, the bike store tried to switch to other local manufacturers but learned they that they wouldn't be able to meet delivery schedules. As a result, Pacific Bike chose to pay the higher prices from Premium Supply. Which of Porter's competitive forces does this demonstrate? A. Threats of substitute products or services B. Threats of new entrants C. Bargaining power of suppliers D. Bargaining power of buyers

C. Bargaining power of suppliers

What are functional strategies used to accomplish? A. Completing Porter's four competitive strategies B. Assessing a firm's competitiveness C. Putting strategic plans into effect D. Strengthening a firm's core competencies

C. Putting strategic plans into effect

A ______ analysis is an assessment of the strengths, weaknesses, opportunities, and threats affecting the organization. A. benchmark B. trend C. SWOT D. VRIO

C. SWOT

According to Bryan Barry, which of the following help a manager keep a strategic plan on track? (Choose every correct answer.) A. Mix it up B. Stay positive C. Stay focused D. Engage people E. Keep moving F. Keep it simple

C. Stay focused D. Engage people E. Keep moving F. Keep it simple

In which step of the strategic-management process does an organization establish the mission and vision statements? A. Step Two B. Step Four C. Step One D. Step Three E. Step Five

C. Step One

What does business growth rate refer to, as used in the BCG matrix? A. The growth of a firm's competition B. The rate of hiring within an industry C. The speed of industry growth D. A firm's forecasted sales

C. The speed of industry growth

Aligning people with goals, achieving promised results, and integrating strategy with reality are all part of the ______ process. A. differentiation B. operations C. execution D. diversification

C. execution

When corporate departments such as marketing, human resources, and information technology implement plans of action that support higher-level strategies, they are following a(n) ______ strategy. A. executive B. foundational C. functional D. comprehensive

C. functional

Within a SWOT analysis, the letter "S" represents a company's ______. A. sources B. services C. strengths D. selection

C. strengths

Luxury Linens Inc. produces the highest thread-count sheets available anywhere and does so at a price that none of its competitors can duplicate. It can be said that Luxury Linens has a(n) ______. A. economy of scale B. organizational weakness C. sustainable competitive advantage D. forecast analysis

C. sustainable competitive advantage

A grand strategy that involves expansion of things like sales revenues, market share, or number of employees is known as a ______ strategy. A. sustainable B. growth C. stability D. defensive

B. growth

What are Porter's four competitive strategies? A. Differentiation B. Cost-focus C. Focused-differentiation D. Related diversification E. Cost-leadership F. Vertical integration

A. Differentiation B. Cost-focus C. Focused-differentiation E. Cost-leadership

Jordan plans to open a computer repair business this summer. As he plans, he writes down the long-term goals of the business so he can decide where he wants to go strategically. Which stage of the strategic management process is Jordan in? A. Establish the mission, vision, and values statements B. Execute the strategies C. Formulate corporate, business, and functional strategies D. Assess the current reality

A. Establish the mission, vision, and values statements

In addition to value, what characteristics are being addressed in a VRIO analysis? (Choose every correct answer.) A. Organization B. Intent C. Imitability D. Obsolescence E. Replacement F. Rarity

A. Organization C. Imitability F. Rarity

What are the core processes of business identified by Bossidy and Charan? (Choose every correct answer.) A. People B. Competition C. Finance D. Strategy E. Operations

A. People D. Strategy E. Operations

Which of the following represent competitive forces used in Porter's model for industry analysis? (Choose every correct answer.) A. Threat of substitute products or services B. Rivalry among competitors C. Training of new employees D. Bargaining power of suppliers E. Failure of new entrants F. Threats of new entrants

A. Threat of substitute products or services B. Rivalry among competitors D. Bargaining power of suppliers F. Threats of new entrants

Sasha has run a small diner near the train station for the past ten years. Six months ago, a chain restaurant serving gourmet burgers and sandwiches opened up near him and he has had to rethink his menu. He added some specialty sandwiches and free fries with every burger in order to retain his customers. Which of Porter's five competitive forces has affected Sasha's business? A. Threats of new entrants B. Bargaining power of buyers C. Bargaining power of suppliers D. Threats of substitute services

A. Threats of new entrants

When would a company use a VRIO analysis? A. When deciding whether or not a new product might work in the marketplace B. When determining manufacturing work schedules C. When reorganizing staff D. When analyzing current market share among competing brands

A. When deciding whether or not a new product might work in the marketplace

Which level of strategic management focuses on the organization as a whole? A. corporate-level B. business-level C. functional-level D. task-level

A. corporate-level

To be successful, strategic planning requires a company to have a ______ orientation. A. long-term B. forward-looking C. short-term D. diversity-focused

A. long-term

Strategic positioning attempts to achieve sustainable competitive advantage by ______. A. preserving what is distinctive about a company B. performing similar activities as those of rivals and in similar ways C. changing key aspects of a company's identity D. creating a meaningful mission statement

A. preserving what is distinctive about a company

Refer to Figure 6.2. The "feedback loop" in the strategic-management process involves: A. revising actions if necessary. B. implementing the strategy. C. formulating the corporate strategy. D. understanding employee preference.

A. revising actions if necessary.

Michael Porter defined ______ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company. A. strategic positioning B. domestic rivalry C. economy of scale D. cost-leadership

A. strategic positioning

When a company is readily able to switch to another company in order to get the raw materials it needs to make products, Porter would say that the bargaining power of ______ goes down. A. suppliers B. competitors C. buyers D. investors

A. suppliers

Which Porter's competitive strategies are appropriate when addressing a narrow market? (Choose every correct answer.) A. Cost-leadership B. Focused-differentiation C. Cost-focus D. Diversification

B. Focused-differentiation C. Cost-focus

Companies pursuing a cost-leadership strategy keep costs/prices ______ those of competitors and target a ______ market. A. above; narrow B. below; wide C. below; narrow D. above; wide

B. below; wide

Juanita feels it is important for her taxi company to continually measure itself against its best competition. She keeps track of the number of rides per hour and turnaround times for all her drivers and compares it to that of other high-performing taxi companies in the area. Juanita is using the process of ______ to compare her company with others. A. manufacturing B. benchmarking C. sustainability D. diversification

B. benchmarking

The process by which a company compares its performance with that of other high-performing organizations is known as ______. A. offshoring B. benchmarking C. forecasting D. competitive analysis

B. benchmarking

Strategic ______ involves monitoring the execution of strategy and taking corrective action when necessary. A. supply B. control C. integration D. differentiation

B. control

The president, chief financial officer, and chief operating officer of Jensen Mfg. meet annually to discuss the direction of the company including what products they will continue to offer and what new products they will introduce. Which level of strategic management does this represent? A. functional-level B. corporate-level C. task-level D. business-level

B. corporate-level

Computer maker Dell tries to have the lowest prices for its computers in order to attract a large consumer group. In Porter's four competitive strategies, this would be an example of the ______ strategy. A. differentiation B. cost-leadership C. vertical integration D. focused differentiation

B. cost-leadership

A ______ is a vision or projection of the future that is made following a SWOT analysis. A. cyclic pattern B. forecast C. strategy D. market analysis

B. forecast

A business that wants to reach more customers and hires more employees to get this done is focusing on a ______ strategy. A. stability B. growth C. sustainable D. defensive

B. growth

What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products that American Tile does not currently offer? A. Arbitration B. Isolationism C. Fabrication D. Diversification

D. Diversification

You own a small deli near campus and learn that the university is exploring whether it should open a Subway sandwich franchise in the student union. Which of Porter's competitive forces does this represent for you? A. Bargaining power of suppliers B. Rivalry among competitors C. Bargaining power of buyers D. Threat of new entrants

D. Threat of new entrants

Why do many executives prefer visioning to execution? A. Visioning involves a greater attention to detail than execution. B. Visioning is less expensive than execution. C. Visioning creates more jobs than execution. D. Visioning is more exciting than execution.

D. Visioning is more exciting than execution.

The strategy of moving into new lines of business is called ______. A. arbitration B. accommodation C. fabrication D. diversification

D. diversification

Leonore's Luxury Leather Footwear Corp. conducts a SWOT analysis and determines that at least 57 percent of consumers demand high-end footwear, and, as a result, its sales should increase by 18 percent in the next year. This vision of what could happen is known as a ______. A. strategic position B. strategy C. mission statement D. forecast

D. forecast

Environmental factors that an organization may exploit for competitive advantage are called organizational: A. strengths. B. weaknesses. C. threats. D. opportunities.

D. opportunities.

When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) ______ competitive advantage. A. ambiguous B. VRIO C. benchmark D. sustainable

D. sustainable

In terms of a SWOT analysis, organizational ______ are environmental factors that hinder an organization from achieving a competitive advantage. A. strengths B. weaknesses C. opportunities D. threats

D. threats

True or false: It is common practice today for most small business owners to engage in strategic planning.

False