Mgmt Ch 6 MC

Environmental factors that the organization may exploit for a competitive advantage are known as A. organizational strengths. B. organizational opportunities. C. organizational threats. D. organizational weaknesses. E. competitive strategies.

B. organizational opportunities.

Karen has just completed an assessment that indicates that her employees lack technological expertise to produce a new product line. She has discovered one of her firm's A. strengths. B. weaknesses. C. opportunities. D. threats. E. market challenges.

B. weaknesses.

the common grand strategies are A. star, question mark, cash cow, and dog. B. cost-leadership, differentiation, cost focus, and focused differentiation. C. growth, stability, and defensive. D. strengths, weaknesses, opportunities, and threats. E. defender, prospector, analyzer, and reactor.

C. growth, stability, and defensive.

When analyzing the "W" in SWOT analysis, a manager might take note of A. a decrease in the size of the market. B. competitors' actions. C. high turnover of employees. D. good financial resources of the firm. E. governmental actions.

C. high turnover of employees.

Actively selling strategic plans to middle and supervisory managers, rather than just announcing them, is helpful for A. situation analysis. B. strategy formulation. C. strategy implementation. D. contingency planning. E. strategic control.

C. strategy implementation.

A time series forecast, which is used to predict long-term trends, cyclic patterns and seasonal variations, is one type of A. organizational strength. B. contingency planning. C. trend analysis. D. balancing the scorecard. E. strategy formulation.

C. trend analysis.

Which of the following is NOT a stage in the strategic-management process? A. Conduct a trend analysis B. Maintain strategic control C. Establish the grand strategy D. Establish the mission and vision E. Carry out the strategic plans

A. Conduct a trend analysis

Which of the following carmakers pursues a focused-differentiation strategy? A. Ferrari B. Ford C. Volkswagen D. Honda E. Kia

A. Ferrari

Which of the following is NOT a question that Bossidy and Charan believe a strong strategic plan must address A. How will the company handle their social responsibility? B. What is the assessment of the external environment? C. Who is the competition? D. Can the business execute the strategy? E. Are the short term and long term balanced?

A. How will the company handle their social responsibility?

Jabra has been running a commercial real estate business for nearly thirty years. As he approaches retirement, he is content to simply lease the commercial space he currently has, rather than make new deals to develop additional properties. Jabra is using which grand strategy? A. Stability B. Retrenchment C. Inducement D. Defensive E. Growth

A. Stability

Which of the following is NOT an area in which a company needs to get and stay ahead in order to sustain a competitive advantage? A. Talented employees B. Quality C. Effectiveness D. Being responsive to customers E. Innovating

A. Talented employees

Creation of alternative hypothetical but equally likely future conditions is called A. contingency planning. B. trend analysis. C. balancing the scorecard. D. strategy formulation. E. forecasting.

A. contingency planning.

An organization is developing a low cost line of environmentally friendly cleaning products that it intends to distribute internationally. Here, the organization is following a ______ strategy. A. cost leadership B. differentiation C. cost focus D. retrenchment E. focused-differentiation

A. cost leadership

Timex Watch makes inexpensive but reliable watches sold throughout the U.S. and is an example of an organization pursuing a _________ strategy. A. cost leadership B. differentiation C. cost focus D. focused-differentiation E. retrenchment

A. cost leadership

When analyzing the "O" in SWOT analysis, a manager might take note of A. favorable government regulations. B. absenteeism among employees. C. good morale among workers. D. high service levels. E. good financial position.

A. favorable government regulations

Zach manages a small bike repair store. In order to determine if strategic planning will be likely to help his business, Zach should primarily assess A. how many competitors he has. B. foot traffic by his location. C. his profitability in the prior six months. D. industry trends. E. how much he intends to grow in the next five years.

A. how many competitors he has.

The skills and capabilities that give the organization advantages in executing strategies in pursuit of its mission are known as A. organizational strengths. B. organizational opportunities. C. organizational threats. D. organizational weaknesses. E. competitive strategies.

A. organizational strengths.

A strategy that involves reduction in the organization's efforts is the ______ strategy. A. retrenchment B. reorganization C. downsize D. growth E. stability

A. retrenchment

Amazon's Kindle has a very high percentage of the market for eBook readers, and this is also a quickly growing market. Thus, using the BCG matrix, the Kindle would be classified as a A. star. B. cloud. C. question mark. D. cash cow. E. dog.

A. star.

The process of choosing among different strategies and altering them to best fit the organization is called A. strategy formulation. B. contingency planning. C. strategic control. D. strategy implementation. E. trend analysis.

A. strategy formulation.

Which of the following is NOT a typical cause of bad planning? A. Information overload B. Inadequate planning budgets C. Ineffective group dynamics D. Poor assessment of an organization's capabilities E. Faulty assumptions about the future

B. Inadequate planning budgets

Which of the following steps of the strategic-management process is the source of its feedback loop? A. Carry out the strategic plan B. Maintain strategic control C. Establish the grand strategy D. Establish the mission and vision E. Formulate the strategic plans

B. Maintain strategic control

According to Bossidy and Charan, which business process is most important for effective execution? A. Strategy B. People C. Alignment D. Operations E. Research

B. People

A situational analysis is also known as A. strategic control. B. SWOT analysis. C. trend analysis. D. contingency planning. E. forecasting.

B. SWOT analysis.

______ consists of monitoring the execution of strategy and making adjustments, if necessary. A. Mission translation B. Strategic control C. Strategy implementation D. Contingency planning E. SWOT analysis

B. Strategic control

__________ refers to the idea that the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately. A. Structural benefit B. Synergy C. Selective function D. Alignment E. Interaction

B. Synergy

When analyzing the "T" in SWOT analysis, a manager might take note of A. the firm's assets. B. a competitor's new product. C. employee absenteeism. D. strong corporate culture. E. high service levels.

B. a competitor's new product.

An organization that is offering unique, superior products or services to a wide market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused-differentiation.

B. differentiation.

The benefit of the single-product company is A. synergy. B. focus. C. isolated systems. D. differentiation. E. lower costs.

B. focus.

A vision or projection of the future is called a(n) A. trend. B. forecast. C. contingency. D. strategy. E. opportunity.

B. forecast.

American Auto Parts recently acquired two smaller auto parts companies in the Southwest to gain a national presence. American Auto Parts is pursuing a(n) ______ A. escalation B. growth C. stability D. merger E. defensive

B. growth

According to the text, a small firm is likely to benefit significantly from strategic planning A. regardless of the nature of its industry or market. B. when it is in a very competitive industry. C. when it is in a very new industry. D. when it is in a very stable industry. E. when it has a very small market.

B. when it is in a very competitive industry.

A recent survey found that the top concern among CEOs worldwide is A. profit growth. B. customer loyalty. C. excellence in execution. D. stimulating innovation. E. finding qualified employees.

C. excellence in execution.

Which of the following statements about strategic planning and strategic management is true? A. Strategic planning is rarely used because it does not allow for flexibility in changing conditions. B. Strategic management is a process completed by top managers. C. Both can be used to develop a sustainable competitive advantage. D. Middle managers need not understand strategies; they simply follow them. E. Strategic planning is used to accomplish tactical goals.

C. Both can be used to develop a sustainable competitive advantage.

Consumers can use a national company called Service Magic to receive bids from quality providers of a variety of services, including home remodel, landscaping, plumbing and housecleaning. Which of the following is the source of Service Magic's strategic position? A. Low profit margin and many customers B. Broad needs and few customers C. Broad needs and many customers D. High profit margin and many customers E. High profit margin and few customers

C. Broad needs and many customers

A luxury cruise line was struggling with heavy debt and a sharp decline in customers, and it eventually declared bankruptcy. Which of the following strategies has the company followed? A. Growth B. Stability C. Defensive D. Reduction E. Reactive

C. Defensive

Which of the following is NOT one of Bryan Barry's recommendations to keep a strategic plan on track? A. Keep moving. B. Engage people. C. Don't second guess. D. Keep it simple. E. Stay focused.

C. Don't second guess.

Rocky Mountain Ski and Snowboard is a small shop that provides ski equipment for Rocky Mountain skiers. It has decided to increase advertising in the Denver Post and the Vail Voice as well as sponsor one of the mountain competitions. It is following which strategy? A. Inducement B. Defensive C. Growth D. Stability E. Enhancement

C. Growth

An example of a firm that pursues a differentiation strategy is A. Cartier. B. Bic. C. Lexus. D. San Francisco Bay Area discount gas station chain. E. Rolls Royce.

C. Lexus.

A ______ represents an "educated guess" about what must be done in the long term for survival or the prosperity of the organization or its principal parts. A. trend analysis B. mission C. strategy D. forecast E. contingency plan

C. Strategy

Andy is interested in learning more about what one of his competitors is doing so that he can anticipate its upcoming moves and react quickly. Which of the following would you suggest to him for this purpose? A. Go through the competitor's trash on its property B. Pose as an applicant for a job with the competitor C. Use investor information D. Call the competitor, explain who you are, and ask directly E. Pay the competitor's customers for information

C. Use investor information

An organization that keeps costs and prices low in targeting a narrow market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. stability. E. focused-differentiation.

C. cost focus.

Porter's competitive strategies include A. prospector, defender, analyzer, and reactor. B. growth, stability, and retrenchment. C. cost leadership, differentiation, cost focus, and focused differentiation. D. strengths, weaknesses, opportunities, and threats. E. stars, questions marks, cash cows, and dogs.

C. cost leadership, differentiation, cost focus, and focused differentiation.

Lane Office Products phased out its line of typewriters several years ago as part of its ______ strategy. A. growth B. stability C. defensive D. reorganization E. reactor

C. defensive

Time Warner runs different divisions specializing in television, music, and publishing. Time Warner is using a(n) ______ strategy. A. stability B. defensive C. diversification D. differentiation E. infiltration

C. diversification

Emily has prepared a report that details how prices for several of the raw materials her firm uses in production have risen up to 30% in the last year. Her report would be an input into the __________ part of a SWOT analysis. A. strengths B. weaknesses C. opportunities D. threats E. structure

D. threats

Which of the following is most likely to use a diversification strategy? A. A tax preparation business B. A flower shop C. A lawn service D. A grocery store E. A shoe store

D. A grocery store

Which of the following is NOT a likely source of information for competitive intelligence? A. Competitors' press releases B. Industry gossip C. Competitors' annual reports D. Competitor's customer records E. Field visits to customers

D. Competitor's customer records

Techno Tools is selling off land, buildings and some of its product inventory. This is a variation of which of these grand strategies? A. Right-size B. Growth C. Stability D. Defensive E. Reorganization

D. Defensive

Which of the following should be included in a good vision statement? A. Firm's attitude toward its employees. B. Geographical areas in which the firm will compete. C. Firm's basic technology. D. Firm's standards of excellence and high ideals. E. Firm's major products or services.

D. Firm's standards of excellence and high ideals.

Which of the following strategy tools suggests that an organization will do better in fast-growing markets in which it has a high market share rather than in slow-growing markets in which it has a low market share? A. SWOT analysis B. Porter's model for industry analysis C. Porter's competitive strategies D. The BCG matrix E. Trend analysis

D. The BCG matrix

Which of the following is NOT one of the forces that affects industry competition, according to Porter's model for industry analysis? A. Threats of new entrants B. Threats of substitute products and services C. Bargaining power of buyers D. Threats of government interference E. Bargaining power of suppliers

D. Threats of government interference

Which of the following would be considered a reason for adopting strategic management and strategic planning? A. To enhance employee loyalty B. To keep corporate taxes at a minimum C. To develop independent work from the staff D. To provide direction and momentum E. To increase market dominance with repeat purchase

D. To provide direction and momentum

Adriana is assessing her company's portfolio of products. One of them is the best-selling brand of mouthwash, although this is now a slow growing market. If Adriana uses the BCG matrix, she would classify this product as a A. star. B. cloud. C. question mark. D. cash cow. E. dog.

D. cash cow.

According to Bossidy and Charan, effective ______ requires managers to build a foundation for it within three core process: people, strategy, and operations. A. tactics B. strategy C. follow-through D. execution E. operations

D. execution

Bossidy and Charan believe that to excel at execution, a leader should A. be hands-off once the strategy is set. B. micromanage the tactics. C. empower employees to take over the execution. D. probe for weaknesses in the substance and details. E. let the plan run its course before attempting to revise it.

D. probe for weaknesses in the substance and details.

"Find out what customers want, then provide it to them as cheaply and quickly as possible" is Wal-Mart's A. growth plan. B. technical plan. C. synergy. D. strategy. E. forecast.

D. strategy.

When analyzing the "S" in a SWOT analysis, a manager might take note of A. a decrease in the size of the market. B. competitors' actions. C. high turnover of employees. D. strong financial resources of the firm. E. governmental actions.

D. strong financial resources of the firm.

JT runs a small bakery on the main street of a resort town. Though his was the only bakery around, the business had been suffering in the recent recession and he was contemplating whether he should attempt strategic planning. JT should be aware of what research finding regarding strategic planning? A. Only large firms show performance gains from strategic planning. B. Only small firms show performance gains from strategic planning. C. Performance gains from strategic planning are equal among small and large firms. D. Both small and large firms benefit from strategic planning, but small firms get a larger boost in performance. E. Both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms.

E. Both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms.

Which of the following statements about strategy and strategic positioning is FALSE? A. Many customers with broad needs can be a source of strategic position. B. A company has to choose not only what strategy to follow but what strategy not to follow. C. Few customers with broad needs can be a source of strategic position. D. Strategy involves creating a "fit" among activities. E. Few customers with narrow needs can be a source of strategic position.

E. Few customers with narrow needs can be a source of strategic position.

__________ means performing different activities from rivals or performing similar ones in different ways A. Competitive planning B. Distinctive positioning C. Collaborative planning D. Strategic segmentation E. Strategic positioning

E. Strategic positioning

Oil companies must be aware of other firms' development of ethanol products since this is an example of which one force in Porter's model for industry analysis? A. Bargaining power of buyers B. Rivalry among competitors C. Bargaining power of suppliers D. Threats of new entrants E. Threats of substitute products and services

E. Threats of substitute products and services

Which of the following is NOT a behavior of a leader who executes? A. Set clear priorities B. Insist on realism C. Follow through D. Know yourself E. Understand employee limitations

E. Understand employee limitations

Which of the following is a question that should be answered by a company's mission statement? A. Does it inspire enthusiasm and encourage commitment? B. Does it set standards of excellence? C. Is it appropriate for the organization? D. Is it well articulated? E. Who is our customer?

E. Who is our customer?

Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately is called A. SWOT analysis. B. forecasting model. C. contingency plan. D. trend analysis. E. competitive intelligence.

E. competitive intelligence.

Careful monitoring of an organization's internal and external environment to detect early signs of opportunities and threats that may influence the firm's plans is called A. competitive intelligence. B. forecasting. C. contingency planning. D. trend analysis. E. environmental scanning.

E. environmental scanning.

An organization that offers unique, superior products or services to a narrow market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused-differentiation.

E. focused-differentiation.

Effective strategic management involves A. only top management. B. only top and middle management. C. only middle and lower management levels. D. only lower management level. E. managers from all parts of the organization.

E. managers from all parts of the organization.

Analysis of changing demographics of the population would be part of the assessment of a company's A. strengths. B. weaknesses. C. opportunities. D. threats. E. opportunities or threats depending on the outcome of the analysis.

E. opportunities or threats depending on the outcome of the analysis.

A manager assessing the organization's access to capital is involved in analysis of A. strengths. B. weaknesses. C. opportunities. D. threats. E. strengths or weaknesses depending on the outcome of the assessment.

E. strengths or weaknesses depending on the outcome of the assessment.