Unit 2: Strategic Management Principles
1. Identify each SWOT factor as either internal or external to the firm. 1. Strengths 2. Weaknesses 3. Opportunities 4. Threats A. Internal B. External
1. A 2. A 3. B 4. B
O" in VRIO refers to which of these? A. Organization B. Official C. Object D. Open
A
According to the BCG Matrix, which of these business units should be scrapped/divested? A. Dogs and Question Marks B. Stars and Dogs C. Cash Cows and Stars D. Question Marks and Cash Cows
A. Dogs and Question Marks
A ______ strategy involves developing plans to increase the size of the firm in terms of revenue, market share, or geographic reach. A. growth B. stability C. defensive D. divestiture
A. Growth
XY Products has a horizontal organizational structure with many individuals across the company empowered to make organizational decision. XY Products can be described to have which of these structures? A. Technological B. Organic C. Transactional D. Mechanistic
B. Organic
XY Products has a horizontal organizational structure with many individuals across the company empowered to make organizational decision. XY Products can be described to have which of these structures? A. Mechanistic B. Organic C. Technological D. Transactional
B. Organic
In the context of Porter's model, a(n) ____ is any other product or service that can satisfy the same need for a customer as an industry's offerings. A. New entrant B. Competitive product C. Rivalry D. Substitute
D. Substitute
A firm's _____ is the progression of activities it undertakes to create a product or service that consumers will pay for. A. SWOT B. competitive advantage C. core competency D. value chain
D. Value Chain
Transformational change refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization. True False
False
Transformational change refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization. True False
False
"I" in VRIO refers to which of these? -Interest -Industry -Idea -Imitation
Imitation
An organization with a horizontal structure is also known as a flat organization because it often features only a few levels of organizational hierarchy. True False
True
Demographics includes facts about income, education levels, age groups, and the ethnic and racial composition of a population. True False
True
According to the BCG Matrix, business units that have high market share but are in a market that is not growing are called ______. A. Stars B. Cash Cows C. Question Marks D. Dogs
B. Cash Cows
ABC Products is described as having a _______ when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do. A. Value Chain B. Competitive advantage C. Strategic Positioning D. Differentiation Strategy
B. Competitive Advantage
Interest rates and exchange rates are part of which element of PESTEL? A. Political B. Economic C. Sociocultural D. Legal
B. Economic
"R" in SMART Framework refers to which of these? A. Results B. Relevant C. Retention D. Reasonable E. Rates
B. Relevant
Which of the following argues that leaders assume that people are inclined to embrace change when they are respected as individuals with intrinsic worth, agency, and capability? A. Deficit-based change B. Emergent approach C. Top-down change D. Appreciative mindset
D. Appreciative Mindset
____ is a process in which the performance standard is based on another firm's superior performance. A. Operational planning B. System-based planning C. Functional planning D. Benchmarking
D. Benchmarking
ABC Products is interested in identifying what technological opportunities exists for their business. ABC should use which of the following strategic analysis tools? A. Resources and Capabilities B. PESTEL C. Vision and Mission D. SWOT
NOT A or D
ABC Products is interested in identifying what technological opportunities exists for their business. ABC should use which of the following strategic analysis tools? A. PESTEL B. Resources and Capabilities C. SWOT D. Vision and Mission
NOT C
A firm's _____ is the progression of activities it undertakes to create a product or service that consumers will pay for. -Value Chain -Competitive advantage -core competency -SWOT
Value Chain
Which of the following represent the first step in the planning process? A. Set goals B. Design plan C. Implement plan D. Review results
A. Set goals
When a company decide to shrink its operations to reduce costs in order to survive, it is employing a ____ strategy. A. stability B. defensive C. growth D. intensive
B. Defensive
ABC Motors, a car manufacturing company, is organized in four divisions according to the four different models of the vehicle that they produce. Which of the following best describe the structure at ABC Motors? A. Geographic structure B. Product structure C. Vertical structure D. Matrix structure
B. Product structure
Demographic trends and market diversity are part of which element of PESTEL? A. Legal B. Sociocultural C. Political D. Economic
B. Sociocultural
According to the BCG Matrix, business divisions that are in a high market share, high growth quadrant are called ______. A. Question Marks B. Stars C. Cash Cows D. Dogs
B. Stars
Which of the following describe the high-level planning performed by company executives in order to set the overall direction of the company? A. Operational planning B. Strategic planning C. Tactical planning D. Functional planning
B. Strategic Planning
Which of these is the process of planning and implementing actions that will lead to success in competition? A.Capabilities B. Strategy C. Resources D. Value chain
B. Strategy
When a Sally assesses the external competitive environment facing her firm, she labels anything that would make it harder for her firm to be successful as a(n) _______. A. weakness B. threat C. opportunity D.strength
B. Threat
_____ refers to factors that prevent new firms from successfully competing in the industry. - Generic Strategies -Supplier Power -Threat of substitutes -Barriers to entry
Barriers to entry
Which of the following argues that leaders assume that people are inclined to embrace change when they are respected as individuals with intrinsic worth, agency, and capability? A. Emergent approach B. Deficit-based change C. Appreciative mindset D. Top-down change
C. Appreciate Mindset
When a company decide to shrink its operations to reduce costs in order to survive, it is employing a ____ strategy. A. growth B. stability C. defensive D. intensive
C. Defensive
A ______ strategy involves developing plans to increase the size of the firm in terms of revenue, market share, or geographic reach. A. divestiture B. defensive C. growth D. stability
C. Growth
Which of the following model of change proposed an eight-step sequence and relies on a centralized, top-down process for creating planned change? A. Complex Adaptive Systems B. Lewin's Change Model C. Kotter's Change Model D. Appreciative Inquiry (AI) model
C. Kotter's change model
In a SWOT analysis, ________ are potential situations that a firm is equipped to take advantage of. A. Weaknesses B. Strengths C. Opportunities D. Threats
C. Opportunities
1. According to the BCG Matrix, business units that have a low market share but are in a high growth market are called ______. ( ) A. Dogs ( ) B. Cash Cows ( ) C. Question Marks ( ) D. Stars
C. Question Marks
According to the BCG Matrix, business units that have a low market share but are in a high growth market are called ______. A. Dogs B. Cash Cows C. Question Marks D. Stars
C. Question Marks
"S" in SMART Framework refers to which of these? A. Sociocultural B. Strategy C. Specific D. Systematic E. Stability
C. Specific
Which of the following represents the framework a firm uses to organize its activities, developed by the firm's top managers and includes examples such as cost leadership and differentiation? A. Corporate strategy B. BCG Matrix C. SMART framework D. Business-level strategy
D. Business-level strategy
In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price. ABC can be described as utilizing which of the following strategy? A. Global strategy B. Regional strategy C. Cost-leadership strategy D. Differentiation strategy
D. Differentiation Strategy
According to the BCG Matrix, business units that are doing poorly in a low growth market are called ______. A. Question Marks B. Stars C. Cash Cows D. Dogs
D. Dogs
Interest rates and exchange rates are part of which element of PESTEL? A. Legal B. Sociocultural C. Political D. Economic
D. Economic
The _____ is emergent, meaning that it is formed through the common conversations and relationships that often naturally occur as people interact with one another in their day-to-day relationships. A. organizational design B. organizational development C. organizational change D. informal organization
D. Informal organization
ABC Products has a highly vertical organizational structure that is designed to generate a high degree of standardization and control. ABC Products can be described to have which of these structures? A. Transformational B. Differentiation C. Strategic D. Mechanistic
D. Mechanistic
ABC Products has a highly vertical organizational structure that is designed to generate a high degree of standardization and control. ABC Products can be described to have which of these structures? A. Transformational B. Strategic C. Differentiation D. Mechanistic
D. Mechanistic
1. ABC Products is interested in understanding if new firms were coming into their market. ABC should use which of the following strategic analysis tools? ( ) A. SWOT ( ) B. Vision and Mission ( ) C. Resources and Capabilities ( ) D. Porter's 5 Forces
D. Porter's 5 Forces
ABC Products is interested in understanding if new firms were coming into their market. ABC should use which of the following strategic analysis tools? A. SWOT B. Vision and Mission C. Resources and Capabilities D. Porter's 5 Forces
D. Porters 5 Forces
According to the BCG Matrix, business units that have a low market share but are in a high growth market are called ______. A. Dogs B. Cash Cows C. Stars D. Question Marks
D. Question Marks
"R" in VRIO refers to which of these? A. Rate B. Retail C. Result D. Rarity
D. Rarity
ABC Products is good at marketing its sports products. In a SWOT analysis, this describes an ABC ___________. A. threat. B. opportunity. C. weakness. D. strength.
D. Strength
In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price. ABC can be described as utilizing which of the following strategy? -Cost-leadership strategy -Regional Strategy -Differentiation strategy -Global strategy
Differentiation strategy
Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers. True False
False
Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers. True False
False
A plan includes decisions about when and how actions should be accomplished and what resources will be required to complete the actions. True False
True
Which change model argues that an organization is constantly developing and adapting to its environment, much like a living organism? A. Kotter's Change Model B. Complex Adaptive Systems C. Appreciative Inquiry (AI) model D. Lewin's Change Model
B. Complex Adaptive Systems
Which of the following represents the broadest level of strategy, and is concerned with decisions about growing, maintaining, or shrinking very large companies? A. BCG Matrix B. Corporate strategy C. Business-level strategy D. International strategy
B. Corporate Strategy
Which of the following represents is one of the most difficult kinds of changes to create within an organizational system? A. Differentiation change B. Culture change C. Incremental change D. Technological change
B. Cultture Change
When BA Products managers assume that BA employees will change if they know they will otherwise face negative consequences, it refers to which of the following? A. Emergent approach B. Deficit-based change C. Abundance-based change D. Top-down change
B. Deficit-based change
Which of the following describes an officially defined set of relationships, responsibilities, and connections that exist across an organization? A. Level of organization B. Formal organization C. Organizational design D. Organizational change
B. Formal Organization
XY Deliveries, a package delivery company, is organized as XY North, XY South, XY East, XY West, and XY Central divisions in the United States. Which of the following best describe the structure at XY Deliveries? A. Product structure B. Geographic structure C. Matrix structure D. Vertical structure
B. Geographic Structure
"I" in VRIO refers to which of these? A. Idea B. Imitation C. Interest D. Industry
B. IMitation
Which of the following is the final step of strategic management process? A. Vision and Mission B. Measure and evaluate performance C. Strategic analysis D. Create and choose strategies
B. Measure and evalutate performance
ABC Products has a highly vertical organizational structure that is designed to generate a high degree of standardization and control. ABC Products can be described to have which of these structures? A. Transformational B. Mechanistic C. Differentiation D. Strategic
B. Mechanistic
1. Tariffs and trade agreements are part of which element of PESTEL? A. Sociocultural B. Political C. Legal D. Economic
B. Political
From a value chain perspective, _____ are the actions a firm takes to directly provide a product or service to customers, whereas, ______ are actions required to sustain the firm that are not directly part of product or service creation. A. support activities; primary activities B. primary activities; support activities C. substitutes; resources D. capabilities; resources
B. Primary activities; Support activities
Garden Tools, Inc. (GTI) offers customers its product or service at a lower price than its rivals can. GTI can be described as utilizing which of the following strategy? A. Local strategy B. Differentiation strategy C. Cost-leadership strategy D. Global strategy
C. Cost-leadership strategy
Tariffs and trade agreements are part of which element of PESTEL? -Economic -Sociocultural -Political -Legal
Political
"R" in VRIO refers to which of these? -Rarity -Result -Rate -Retail
Rarity
While a firm's _______ is a general statement about its values, a firm's ______ is more specific. A. vision statement; mission statement B. mission statement; objective statement C. SMART framework; SWOT D. SWOT; SMART framework
A. Vision Statement; Mission Statement
The mission statement takes the ____ of a vision statement and gives a broad description of _____ the firm will try to make its vision a reality. A. why; how B. where; what C. what; where D. how; why
A. Why; How
Match the stage in the organizational life cycle with the correct definition. 1. Entrepreneurship 2. Survival and Early Success 3. Sustained Success 4. Renewal A. Organization usually very small and agile, focusing on new products and markets; founders typically focus on a variety of responsibilities and often share frequent and informal communication with all employees in the company. B. Organizations have to be reorganized or restructured to achieve higher levels of coordination between and among different groups or subunits. C. Organization expands; hierarchy deepens with multiple levels of employees; lower-level managers given greater responsibility; managers for significant areas of responsibility identified. D. Mechanistic structures introduced that support the standardization and formalization required to create effective coordination across the organization.
1. A 2. D 3. C 4. B =0.75/1
Match the type of change to the correct definition. 1. Incremental Change 2. Transformational Change 3. Planned Change 4. Unplanned Change A. Unintentional and is usually the result of informal organizing B. Refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization C. Refers to significant shifts in an organizational system that may cause significant disruption to some underlying aspect of the organization, its processes, or structures D. Intentional activity or set of intentional activities designed to create movement toward a specific goal or end
1. B 2. C 3. D 4. A
When a Sally assesses the external competitive environment facing her firm, she labels anything that would make it harder for her firm to be successful as a(n) _______. A. threat B. strength C. opportunity D. weakness
A
ABC Products is described as having a _______ when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do. A. competitive advantage B. value chain C. strategic positioning D. differentiation strategy
A. Competitive Advantage
The final phase of an Appreciative Inquiry (AI) practice, ______, occurs as employees put into practice the plans they have developed. A. Destiny B. Discover C. Define D. Design
A. Destiny
In a SWOT analysis, ________ are potential situations that a firm is equipped to take advantage of. ( ) A. opportunities ( ) B. weaknesses ( ) C. strengths ( ) D. threats
A. Opportunities
"R" in SMART Framework refers to which of these? A. Relevant B. Retention C. Rates D. Results E. Reasonable
A. Relevant
Which of the following represent the first step in the planning process? A. Set goals B. Design plan C. Implement plan D. Review results
A. Set Goals
Demographic trends and market diversity are part of which element of PESTEL? A. Sociocultural B. Political C. Economic D. Legal
A. Sociocultural
A _____ strategy is a strategy for a company to maintain its current income, market share, or geographic reach. A. stability B. defensive C. growth D. divestiture
A. Stability
1. According to the BCG Matrix, business divisions that are in a high market share, high growth quadrant are called ______. ( ) A. Stars ( ) B. Question Marks ( ) C. Dogs ( ) D. Cash Cows
A. Stars
In the context of Porter's model, a(n) ____ is any other product or service that can satisfy the same need for a customer as an industry's offerings. A. substitute B. rivalry C. competitive product D. new entrant
A. Substitute
____ is mid-level planning that consists of broad ideas of what the company should do to pursue its mission. ( ) A. Tactical planning ( ) B. Operational planning ( ) C. Strategic planning ( ) D. Functional planning
A. Tactical PLanning
In a SWOT analysis, a firm's _____ are what it is not good at—things that it does not have the capabilities to perform well. A. Weaknesses B. Strengths C. Opportunities D. Threats
A. Weaknesses
