Strategic Management Ch 1-4: Exam 1
What business arrangement involves an organization granting other organizations the right to use its brand name, products, or processes?
Franchising
___________ are aims that should provide clear and tangible guidance to employees as they perform their work.
Goals
Which organization's mission is "to organize the world's information and make it universally accessible and useful"?
Which of the five strategy elements addresses the question "how will we get there?"
Vehicles
Ploy
a specific move designed to outwit or trick competitors
Strategic ploy
a specific move designed to outwit or trick competitors
legal segment
centers on how the courts influence business activity. Examples of important legal factors include employment laws, health and safety regulations, discrimination laws, and antitrust laws
In his TED Talk, Simon Sinek presents the ___________.
Golden Circle
Which of the following risks does a company face if it consistently follows a strategic pattern over time?
Becoming predictable
___strategies arise unexpectedly.
emergent
Thus goals must also be realistic, meaning
that their achievement is feasible.
The Five P's
1. Plan 2. Pattern 3. Position 4. Perspective 5. Ploy
Strategic plan
A carefully crafted set of steps that a firm intends to follow to be successful.
Which of the following companies is featured most prominently in Chapter 1?
Apple
How did Apple's launch of the iPod differ from the launch of Apple's first computers in the 1970s?
Apple sought industry cooperation rather than keeping the product to itself
The EPA pulled approval for a mountaintop coal mining site from which coal company?
Arch Coal
Which surprising demographic trend is mentioned in Chapter 3?
Both China and India have more than twice as many English-speaking college graduates each year than the US does
Scoundrels
CEOs who display high levels of relative fame but low levels of reputation are in the group
Which of the following examples in Chapter 2 illustrates whether a goal is measurable?
Coca-Cola's goal of a 20 percent improvement in water efficiency
Which customers are mentioned in Chapter 3 as having little bargaining power?
College students buying textbooks
Which celebrity CEO, mentioned in Chapter 2, has a university named after him?
Cornelius Vanderbilt
___________ refers to the processes, practices, and decision-making styles of organizations that act entrepreneurially.
Entrepreneurial orientation
Which segment of the macroenvironment includes factors such as natural disasters, pollution levels, and weather patterns?
Environmental
Which of the following companies was founded with unkind intentions?
Facebook.
___________ are CEOs who lack fame but possess positive reputations.
Hidden gems
__________ refers to last year's income. An increase shoes the firm's profits are moving in the right direction.
Net income
Which of the following examples of using honesty to restore an organizational reputation is mentioned in Chapter 2?
The JetBlue CEO's public apology for the company's stranding passengers in airplanes
Which of the following examples is used in Chapter 3 to demonstrate how horrible events can present opportunities?
The March 2011 earthquake and tsunami in Japan
___________ are events and trends that create chances to improve an organization's performance.
Opportunities
__________ analysis may be used to diagnose where in the general environment important opportunities and threats arise.
PESTEL
___________ analysis examines an organization's macroenvironment.
PESTEL
__________ are firms that do not currently compete in an industry, but may in the future.
Potential entrants
Which of the following is mentioned in Chapter 1 as a ploy?
The Trojan horse
__________ are overlooked sources of harm to their firms.
Silent killers
Which industry is mentioned in Chapter 3 as an industry that may be susceptible to substitutes?
The satellite television industry
Which of the following individuals is used as an example of a celebrity CEO in Chapter 2?
Tony Stark
Plan
a carefully crafted set of steps that a firm intends to follow in order to be successful
Balanced Scorecard
a combination of performance measures directed toward the company's long and short term goals and used as the basis for awarding incentive pay
Position
a firm's place in the industry relative to its competitors
Deliberate strategy
a plan of action that an organization chooses and implements to support specific goals
A goal is aggressive if
achieving it presents a significant challenge to the organization.
A goal is ___________ if achieving it presents a significant challenge to the
aggressive
Franchising involves
an organization granting the right to its its brand name, products, and processes to other organizations in exchange for an up front payment and a percentage of franchises revenues.
emergent strategy
any unplanned strategic initiative bubbling up from the bottom of the organization
Hidden gems
are CEOs who lack fame but possess positive reputations.
Intellectual property rights
are a particularly daunting aspect of the legal segment for many organizations.
Opportunities
are events and trends that create chances to improve an organization's performance level.
Threats
are events and trends that may undermine an organization's performance.
Silent killers
are the fourth and final group of CEOs
Many universities offer strategic management courses...
as a capstone course
A __ describes how a company proposes to offer its customers something they value and how the company plans to make a profit margin.
business model
economic segment
centers on the economic conditions within which organizations operate. It includes elements such as interest rates, inflation rates, gross domestic product, unemployment rates, levels of disposable income, and the general growth or decline of the economy
political segment
centers on the role of governments in shaping business.
industry (or competitive environment)
consists of multiple organizations that collectively compete with one another by providing similar goods, services, or both.
environment
consists of the set of external conditions and forces that have the potential to influence the organization.
Business model
describes the process through which a firm hopes to earn profits
Vision
describes what the organization hopes to become in the future.
Which segment of the macroenvironment includes interest rates, inflation rates, and levels of disposable income?
economic
technological segment
enters on improvements in products and services that are provided by science. Relevant factors include, for example, changes in the rate of new product development, increases in automation, and advancements in service industry delivery
If a company experiences bad publicity as a result of the layoffs that would result from shutting down operations, this is an example of a(n) ___________.
exit barrier
Icons are CEOs possessing
fame and strong reputations
The purpose of ___________ analysis is to identify how much profit potential exists in an industry.
five forces
In his TED Talk, Simon Sinek discusses ___________.
how are brain works
Perspective
how executives interpret the competitive landscape around them.
In 2001, Apple launched the ___________.
iPod
A goal is specific if
if it is explicit rather than vague.
general environment (or macroenvironment)
includes overall trends and events in society such as social trends, technological trends, demographics, and economic conditions.
environmental segment
involves the physical conditions within which organizations operate. It includes factors such as natural disasters, pollution levels, and weather patterns
performance referent
is a benchmark used to make sense of an organization's standing along a performance measure.
Entrepreneurial orientation (EO)
is a key concept when executives are crafting strategies in the hopes of doing something new and exploiting opportunities that other organizations cannot exploit.
Performance Measures
is a metric along which organizations can be gauged.
PESTEL analysis
is one important tool that executives can rely on to organize factors within the general environment and to identify how these factors influence industries and the firms within them. PESTEL is an anagram, meaning it is a word that created by using parts of other words. In particular, PESTEL reflects the names of the six segments of the general environment: (1) political, (2) economic, (3) social, (4) technological, (5) environmental, and (6) legal.
realized strategy
is the strategy that an organization actually follows
Intended strategy
is the strategy that an organization hopes to execute.
Proactiveness
is the tendency to anticipate and act on future needs rather than reacting to events after they unfold.
Competitive aggressiveness
is the tendency to intensely and directly challenge competitors rather than trying to avoid them.
Innovativeness
is the tendency to pursue creativity and experimentation. Some innovations build on existing skills to create incremental improvements, while more radical innovations require brand-new skills and may make existing skills obsolete
The current ratio is an example of a ___________.
liquidity measure
Goals
narrower aims that should provide clear and tangible guidance to employees as they perform their work on a daily basis.
According to the coal video, the stock prices of US coal companies have tumbled due to ___________.
new governmental regulations
social segment
of the general environment. Social factors include trends in demographics such as population size, age, and ethnic mix, as well as cultural trends such as attitudes toward obesity and consumer activism
A(n) ___________ is a metric, such as profits, stock price, and sales, along which organizations can be gauged.
performance measure
Companies sometimes design ___________ to outsmart their competition.
ploys
A ___ strategy is the strategy a company actually follows.
realized.
Triple Bottom Line
recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth
Organizational performance
refers to how well an organization is doing to reach its vision, mission, and goals.
non realized strategy
refers to the abandoned parts of the intended strategy
Risk taking
refers to the tendency to engage in bold rather than cautious actions. Starbucks, for example, made a risky move in 2009 when it introduced a new instant coffee called VIA Ready Brew.
Autonomy
refers to whether an individual or team of individuals within an organization has the freedom to develop an entrepreneurial idea and then see it through to completion.
Apple's consistent strategy pattern has been to...
respond to competitive challenges by innovating.
Chapter 1 states that strategic management is concerned with all of the following EXCEPT ___________.
sports
The strategic management process includes all of the following EXCEPT ___________.
strategic analysis
Chapter 1 provides examples of companies that changed their strategic position. Most of these examples are of companies ___________.
that were unsuccessful after changing position
Pattern
the degree of consistency in a firm's strategic actions
Mission Statement
the reasons for an organization's existence. Well-written mission statements effectively capture an organization's identity and provide answers to the fundamental question "Who are we?"
Goals should be
time bound
A goal is measurable
to the extent that achievement of it can be quantified
An organization's ___________ describes what the organization hope to become in the future.
vision
Which of the following changes in attitudes in the US is mentioned in Chapter 3?The shift in attitudes about ___________.
women working in the employed labor force