Management Chapter 6 - Strategic Planning

According to Michael Porter, the ______ of a company's strategy refers to the way a company's activities interact and reinforce one another.

"fit"

The sources from which strategic position emerges are having ______.

- broad needs and few customers. - broad needs and many customers. - few needs and many customers.

The Five Steps of the Strategic-Management Process

1. Establish the Mission, Vision, and Value Statement 2. Assess the current reality 3. Formulate corporate, business, and functional strategies 4. Strategic Implementation 5. Maintain Strategic control

As the senior vice president of marketing, Andrew is responsible for determining how much of the budget to spend on marketing and how much to spend on product development. Which level of strategic management is Andrew responsible for?

Business level

The ______ strategy of a company is concerned with the individual business units or production and service lines of the business.

Business level

In which step of the strategic management process would a company use a SWOT analysis? Multiple choice question.

Current reality assessment

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?

Establish corporate, business, and functional strategies

_______ -level strategy applies to the key functional departments or units within the business units

Functional

When conducting VRIO analysis, what question should you ask when considering the organization and its effect on a potential resource or capability?

Is the firm organized to exploit the resource or capability ?

In which step of the strategic-management process does the organization monitor progress and take corrective action, such as rethinking policies and revising budgets or personnel arrangements?

Maintain strategic control

A ______ analysis is an assessment of the strengths, weaknesses, opportunities, and threats affecting the organization. Multiple choice question.

SWOT

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?

Value

What are the characteristics of strategy formulation? a. it is a time-consuming process b. it is the basis for determining long-term goals c. it is designed to determine short-term goals d. it is a fast process

a and b

Corporate-level strategy does which of the following? a. Answers questions such as "what business are we in?" and "what products and services shall we offer?" b. Does not deal with acquisitions or significant investments in plant and equipment c. Involves senior executives in planning d. Focuses on the organization as a whole

a, c, d

Which of the following are accurate regarding Step 4 (Execute the Strategy) in the strategic management process? a. manager monitor strategic progress and make necessary adjustments b. this step poses the greatest challenge for managers c. managers determine what the organization's long-term goals should be for the next 1-5 years d. managers must check on possible roadblocks and see if it will be possible to execute the plans

b and d

The ______ strategy of a company is concerned with the individual business units or production and service lines of the business. Multiple choice question.

business level

Select all of the true statements regarding the trade-offs required in competing: a. a narrow positioning strategy increases sales, volume, and manufacturing efficiencies b. companies must choose what strategy not to follow c. some strategies are incompatible d. companies must choose what strategy to follow

companies must choose what strategy not to follow some strategies are incompatible companies must choose what strategy to follow

Which level of strategic management focuses on the organization as a whole?

corporate level strategic

Within a SWOT analysis, the companies threats would come from an _______ environment

external

True or false: Since most strategic positions will fit with any company's products, a company doesn't need to be concerned about selecting the right strategy.

false

Strategy ______ is the process of choosing among different strategies and altering them to best fit the organization's needs.

formulation

Ace Appliance is introducing a new line of kitchen appliances designed for smaller spaces. During the planning meeting, the marketing manager discusses how they should promote the new line to consumers through television and print advertisements while the production manager talks about new equipment being installed to manufacture the products. Which level of strategic management is taking place during the meeting?

functional level

At Superior Home Sales Inc., there is a manager for each of the three business units: marketing, finance, and sales. These three managers make decisions within each of their units. That makes these managers responsible for the ______ strategy of the company.

functional level

Sanjay knows it is costly for other companies to match the quality of his company's table linens, and this provides him with a competitive advantage. Which part of a VRIO analysis is Sanjay basing his opinion on?

imitability

Strategic positioning attempts to achieve sustainable competitive advantage by ______.

preserving what is distinctive about a company

At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized that most customers called Tow-It-Now Inc. and it would be difficult to match that company's service. Which part of a VRIO analysis helped Rohan evaluate this idea?

rarity

Michael Porter promoted the idea that a company's strategy must also create a "fit" with the ways a company's activities ______ one another towards a common goal.

reinforce

The "feedback loop" in the strategic-management process involves ______.

revising actions if necessary

In which step of the strategic-management process does an organization establish the mission and vision statements?

step one

Michael Porter defined ______ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.

strategic positioning

Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which ______ emerges.

strategic psoitioning

The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies in pursuit of its mission are called organizational ______.

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) ______.

sustainable competitive advantage

Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would be considered an external organizational ______ in a SWOT analysis.

threat

When would a company use a VIRO analysis ?

when deciding whether or not a new product might work in the marketplace