Strategic Planning- Module 1 (Chapters 1 & 2)

The ______ segment of the general environment consists of influences from foreign countries, including market opportunities, foreign-based competition, and expanded capital markets.

global

A firm's vision, mission, and strategic objectives form a hierarchy of

goals

Strategic management is directed toward a company's ______.

goals and objectives

Social responsibility is the expectation that businesses or individuals will strive to ______.

improve the overall welfare of society

The ______ environment is composed of segments external to an industry that are usually beyond a firm's control, such as demographics and economic factors, that can affect a firm's strategy.

in general

Which of the following are effects of the digital economy? (Check all that apply.)

increased connection between products and the Internet decreased asset intensity increased globalization of business

______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities.

informational control

______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms.

intended

Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage.

internal

A buying group is considered powerful when it ______.

is responsible for a large volume of a seller's sales

Which of the following are characteristics of a well-written organizational vision statement? (Check all that apply.)

long-term overarching massively inspiring

In order for strategic objectives to be meaningful they need to be ______. (Check all that apply.)

measurable timely specific

_____ statements, like vision statements, should be massively inspiring to an organization's main stakeholders and include the purpose of the organization, its scope of operations, and the basis of its competitive advantage.

mission

A ______ includes both the company's purpose as well as the basis of competition and competitive advantage.

mission statement

The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business.

romantic

______ is an in-depth approach to environmental forecasting that involves experts' detailed assessments of social, economic, political, technology trends or other dimensions of the external environment.

scenario analysis

A CEO can improve perceptual acuity by ______. (Check all that apply.)

seeking out information meeting with and listening to others

The three primary participants in corporate governance are the ______, management, and board of directors.

shareholders

Corporate governance is the relationship among ______ in determining the direction and performance of corporations.

shareholders, management, board of directors

Financial markets often place an emphasis on managers meeting ______ performance goals.

short term

The ______ segment of the general environment consists of the values, beliefs, and lifestyles of a society.

sociocultural

The effect on the business clothing and restaurant industries caused by an increase of women in the workforce is an example of which segment of the general environment?

sociocultural

Increases in household income due to more women entering the workforce in white collar jobs is likely to affect which two segments the most?

sociocultural and economic

Which of the following is the most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization?

stakeholders

In which of the following ways can suppliers exert bargaining power? (Check all that apply.)

By reducing the quality of purchased goods and services By threatening to raise prices of raw materials By squeezing the profitability of firms

The SWOT framework is popular with managers for several reasons, including which of the following?

It forces managers to consider both the internal and external factors simultaneously.

According to the ______ view of leadership, the leader is assumed to be the most important element in a company's success or failure. (Enter only one word in the blank.)

Romantic

A technique for analyzing a basic list of internal and external conditions is called a ______ analysis.

SWOT

Which of the following are true of behavioral controls? (Check all that apply.)

They involve balancing rewards and incentives. They involve balancing culture and boundaries or constraints.

The ______ is the possibility that the profits of established firms in the industry may be eroded by new competitors.

Threat of new entrants

True or false: Intended strategy rarely survives in its original form.

True

True or false: Trends in one segment of the general environment can have an effect on other segments.

True Reason: No segment is truly independent of other segments of the general environment.

What are the four levels of a company's strategy formulation?

business, corporate, international, and entrepreneurial

Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______.

advantage

Match the strategic management process with its corresponding term.

analyses matches strategy analysis decisions matches strategy formulation actions matches strategy implementation

Strategies often fail when managers fail to do which of the following? (Check all that apply.)

analyze the company's overarching goals conduct a thorough analysis of the external and internal environments

Sound strategies are of no value if they ______.

are not properly implemented

Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage.

formulation

Developments in computer software and hardware, nanotechnology, and R&D in exotic materials are examples of trends in which segment of the general environment?

technological

Strategic management of an organization entails which of the following ongoing processes? (Check all that apply.)

actions analyses decisions

The two opposing ways of examining stakeholder management are called ______ and ______.

symbiosis; zero sum

Which of the following are included in the six segments of the general environment? (Check all that apply.)

-political/legal and technological -economic and global -demographic and sociocultural

What term is used to describe the challenge managers face to maximize existing products and markets while seeking new opportunities?

Ambidexterity

What is the effect of the digital economy on customer expectations?

Customers have become more knowledgeable and changeable.

Which of the following are examples of business-level strategies?

Differentiation Focus on niche market Cost leadership

Which of the following are evaluated during the analysis process of strategic management?

External environment Internal environment Strategic goals

True or false: The most effective organizations have strong leaders at the top who make all the decisions that the rest of the organization then carries out.

False

Which of the following are key attributes of strategic management? (Check all that apply.)

Includes multiple stakeholders in decision making Incorporates both short-term and long-term perspectives Directs the organization toward overall goals and objectives

Ambidexterity requires that managers balance a focus on existing markets and products with ______.

Innovation

Which of the following are true of strategy implementation?

It involves establishing appropriate controls and organizational designs. It involves coordinating and integrating activities within the firm and with suppliers and customers.

Which of the following statements about the competitive environment are correct? (Check all that apply.)

It is also referred to as the task environment. The competitive environment consists of factors such as competitors, customers, and suppliers. The competitive environment often influences the nature of the competition in an industry.

Which of the following statements about scenario analysis are true? (Check all that apply.)

It is an in-depth approach to forecasting. It incorporates the ways in which societal trends may affect an issue. It draws on a range of disciplines.

How does digitizing business processes affect companies?

It makes them more efficient.

Which of the following statements regarding strategic management is true?

It requires incorporating both short-term and long-term perspectives.

Spotting key trends requires a combination of which of the following? (Check all that apply.)

Knowing one's business. Understanding one's customers. Keeping an eye on what's happening.

The six major entry barriers in Porter's five forces model include which of the following? (Check all that apply.)

Limited access to distribution channels and cost disadvantages independent of scale. Capital requirements and switching costs. Economies of scale and product differentiation.

Drag the type of leader to its corresponding description.

Local line leaders matches have significant profit-and-loss responsibility Executive leaders matches ideas, create a learning infrastructure, and call for action Internal networkers matches have little formal authority, inspire others with conviction and clarity of ideas

Which of the following is an example of a CEO with perceptual acuity?

Marga starts a ride-sharing business in a city with few parking garages.

Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of _____ versus individual rationality.

Organizational

Which form of stakeholder management views stakeholders as interdependent?

Symbiosis

Which of the following are stakeholder groups that managers should consider when making decisions? (Check all that apply.)

The community Stockholders Board of directors

Which of the following are among Porter's five forces? (Check all that apply.)

The intensity of rivalry among competitors in an industry The threat of new entrants The threat of substitute products and services The bargaining power of suppliers

Supplier groups are powerful under which of the following conditions? (Check all that apply.)

The supplier group poses a credible threat of forward integration. One or more suppliers have built-in switching costs for buyers. The industry is not an important customer of the supplier group.

Which of the following statements about the strategic management process is true?

The three processes are highly interdependent.

Vision statements represent ______.

a destination that is driven by and evokes passion

Which of the following are social responsibility expectations that go beyond a firm's product and service quality?

accurate financial and accounting reporting environmental sustainability fair labor standards

Business-level strategy is concerned with how companies ______. (Check all that apply.)

achieve and sustain a competitive advantage compete and outperform rivals

Managers execute or implement their decisions as ______ in the third step of the strategic management process.

actions

The third step of the strategic management process is the ______ step.

actions

Which of the following threaten an industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other?

buyers

Michael Porter's five forces model is the most commonly used analytical tool for examining which of the following type of environment?

competitive

In terms of analyzing the external environment of the firm, the industry environment consists of ______ and other organizations that may threaten the company's success.

competitors

Which is the best example of digital transformation?

creating an online venue for virtual conferences

Examples of key elements of the global segment of the general environment include which of the following? (Check all that apply.)

currency exchange rates trade agreements between nations

Which of the following are part of a firm's competitive environment? (Check all that apply.)

customers, suppliers, competitors

The process of examining large data sets to uncover hidden patterns, market trends, and customer preferences is known as ______.

data analytics

During the ______ step in the strategic management process, managers answer two questions: what industries should we compete in and how should we compete in those industries?

decisions

The ______ segment of the general environment consists of changes in a market's characteristics such as age, race, ethnicity, and education.

demographic

Which of the following elements of the general environment is the easiest to understand and quantify?

demographic

Decisions, broadly speaking, address two basic questions: What industries should we compete in? How should we compete in those industries? These questions also often involve an organization's ______ and ______ operations.

domestic; international

Interest rate increases, currency exchange rates, and the Dow Jones are examples of factors to be considered in which segment of the general environment?

economic

The ______ segment of the general environment consists of the characteristics of the economy, including national income and monetary conditions.

economic

______ involves surveillance of a firm's external environment to predict environmental changes and detect changes already underway.

environmental scanning

Managers are analyzing the firm's ______ when managers are studying its competitors.

external environment

Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. This perspective is known as ______.

organizational versus individual rationality

The Sarbanes-Oxley Act of 2002 greatly increased the accountability of auditors, executives, and corporate lawyers. This law is an example of which segment of the general environment?

political/legal

The ______ segment of the general environment consists of how a society creates and exercises power, including rules, laws, and taxation policies.

political/legal

The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

strategic management

______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame.

strategic objectives

A firm's hierarchy of goals include its ______. (Check all that apply.)

strategic objectives mission vision

______ analysis is the starting point of the strategic management process and includes the advanced work that must be done to effectively formulate and execute strategies.

strategy

A one-time cost that customers pay when changing vendors is known as ______.

switching costs

The ______ segment of the general environment is concerned with innovation and state of knowledge in industrial arts, engineering, applied sciences, and pure science, and their interaction with society.

technological

The extent of the threat of potential entrants into an industry depends on which of the following? (Check all that apply.)

the combined reaction from existing competitors existing barriers to entry

Firms use "Big Data" to accomplish which of the following goals?

to better customize their offerings to customers

During the analysis step of the strategic management process, managers are concerned with the company's ______.

vision, mission, strategic objectives

The ______ view of stakeholder management views the management process as groups competing for the organization's resources.

zero-sum