BUS 490 Test 1
A nonprofit organization is considering holding a series of sessions to develop its mission, vision, goals, operation model, and strategic plan. Differentiate between planning for charities versus for companies. How will the process be different for the nonprofit? a. The strategic goals of the organization will include a combination of performance goals toward the charity's mission, revenue, and fundraising goals. b. A nonprofit organization will not utilize a SWOT analysis or employ strategic managers at a variety of levels to participate in their strategic planning process. c. Nonprofit organizations do not conduct strategic planning. This meeting would be primarily symbolic for the charity's stakeholders to energize them and help them feel like they're involved in the cause. d. The nonprofit organization will be most concerned about creating a strategic plan that creates a high income for its board of directors.
a
An analysis using the competitive forces model of an industry can indicate: a. areas of threat and areas of opportunity that can serve as the basis of strategy formulation and implementation. b. the extent to which globalization is having an impact on the industry. c. whether a company is a good choice for shareholders to invest in. d. the stage of the life cycle of industries in which the industry is currently operating.
a
Emotional intelligence is a term used to describe a group of psychological attributes that strong and effective leaders exhibit. Which of these is an emotional intelligence attribute? a. Self-regulation b. Dialectic inquiry skills c. Vision and eloquence d. Reasoning by analogy
a
Experts who study strategic leadership have identified the key characteristics of high-performing leaders. Which of these is a characteristic for strategic leadership? a. Willingness to delegate and empower b. Devil's advocacy c. Decentralized planning d. Autonomous action
a
In the toy industry, Mattel is one of the world leaders with its line of Barbie dolls. However, it has faced competition from MGA Entertainment with its Bratz dolls since the 1990s. Which of these statements is true about the strategic group in which these companies compete? a. By competing in the same strategic group, the two companies are dealing with customers who view their products as direct substitutes for each other. b. The companies are dealing with the same competitive forces as all other companies across the toy industry. c. As toy companies, they both have the ability to quickly pursue the toy truck market with minimal investment. d. The two companies occupy different strategic groups and likely will have very different competitive forces and different strategies.
a
Market saturation is an indication that an industry has entered the: a. mature phase. b. embryonic phase. c. growth phase. d. shakeout phase
a
Through research and development, a cable company has found a way to use its existing network lines to serve customers with a new product offering - home security systems. The company is offering the service for a lower monthly fee than most security companies. However, the sales force didn't see a lot of interest among its customers who had an existing security system from a competitor until they ran a promotion for reduced prices on equipment and free installation. Which of the competitive forces is at play? a. Customer switching costs b. Cost conditions c. Bargaining power of suppliers d. Complementors
a
Which of these companies is taking advantage of a macroenvironment force to attract new customers and increase sales? a. A travel website advertises that now is a great time for Americans to visit Europe because the strength of the U.S. dollar abroad enables tourists to spend less for a great experience. b. A skin care company redevelops its distribution network, negotiating with department stores and other retailers to establish a presence on their shelves and offer in-store trials. c. A smartphone company acquires a start-up that was making a good profit selling accessories that fit seamlessly onto the smartphone company's phones. d. A home goods manufacturer implements a new production process designed to reduce cost over its existing volume
a
Which of these does not represent a common pitfall of the strategic planning process? a. Utilizing information collected through the implementation of a strategic plan as inputs into the development of the next strategic plan b. Attaching too much importance to the role of top management and ignoring the input and strategic ideas of lower-level managers c. Refusing to adapt to breakthrough technologies and shifts in the competitive environment because the strategic plan didn't account for these changes d. Failing to take advantage of opportunities that arise that were unplanned for within the company's strategic plan
a
Which of these is characteristic of a well-constructed goal? a. My company has set a goal of launching five new products each year for the next five years through at least a 10% annual investment in research and development. b. My company's CEO has many pet projects. She's thinking about starting side businesses that are unrelated to our core competency and has set goals surrounding these new areas. c. My company's goal is to create a more diverse employee base. We've decided we want to attract employees of different races, but our management team is uncomfortable with any kind of system that would count the number of employees we have of different races. d. My company has decided that we will pursue a goal to become the largest, ranked by revenue, grocery retailer in North America within three years. We currently operate 50 stores in five states.
a
A leader's use of power can influence his or her overall effectiveness as a strategic manager. Which of these statements is true? a. Jeffrey Pfeffer believes that only those with a title and official position can exert power within an organization. b. Jeffrey Pfeffer explains that ultimately a manager's power comes from his or her control over resources, such as budgets, capital, positions, information, and knowledge. c. Edward Wrapp argues that organizational leaders do not have anything in common with political leaders and should not behave democratically. d. Edward Wrapp says that effective leaders should use their power in a dictatorial fashion to ensure team members understand who the final decision maker is.
b
According to Hill and Schilling, which of these would be considered an important step in a formal strategic management process? a. Research and development into the company's first prototype product b. Defining the company's corporate mission and major corporate goals c. Building the company's organizational chart of strategic leaders d. Market research surveys of customer attitudes toward the recent product launch
b
In reviewing the competitive forces model through an industry life-cycle analysis, which of these could be true of an embryonic industry? a. Bargaining power of suppliers: The industry will have an established supplier network, making the bargaining power of suppliers weak and giving companies an opportunity to pit suppliers against each other for the best cost and quality. b. Complementors: The industry will likely have few complementors, with few products available that would add value when used in combination with the product or service. c. Bargaining power of buyers: The industry will have weak buyers who will be eager to take on the products and services of the new industry, regardless of its cost or level of customer awareness. d. Risk of entry by potential competitors: Potential competitors will be strong, with multiple companies working in the industry achieving economies of scale quickly.
b
Industry competitive structure identifies the number and size of companies. Fragmented industries often: a. follow prices set by the industry leader to achieve higher profits. b. suffer from excess capacity and price wars. c. avoid being commoditized because product and service offerings are varied. d. result in high barriers to entry and fewer companies operating in an industry.
b
Jonathan's mobile communications device company is conducting an industry analysis as it considers new strategies for its five-year strategic plan. The analysis reveals that recent government deregulation has reduced the barriers to entry and several start-ups are entering the industry. Which of these strategies could be a part of the plan to counteract this? a. Expand into a different industry, serving a different set of customers and their needs. b. Utilize an intensive advertising campaign to build brand loyalty. c. Acquire the company's biggest supplier, bringing the capability of manufacturing critical component parts into the business structure. d. Grow industry demand by educating consumers about the features and benefits of products in the mobile communications device industry
b
Lisa is the vice president of sales and marketing for a software development company. She's been working with her sales force in recent months to develop a promotion strategy to sell obsolete software quickly at a reduced price rather than the original suggested price. Which strategic manager role is Lisa fulfilling with this approach? a. Chief Financial Officer (CFO) b. Functional-level manager c. Business-level manager d. Corporate-level manager
b
Logan is an entrepreneur with a new idea for a software product. His start-up company grows quickly to a team of about 25. A new federal law recently passed by Congress will cause the software to become obsolete without a major change in the programming. The investment in the programming is going to be costly, and the company faces some hard choices. Logan announces that he will get back to his roots as a programmer to work alongside the software development team, taking the salary of a programmer, to ensure that the newest version of the software will be compliant with the new law. Which of these characteristics of an effective leader is Logan demonstrating the most? a. Being well informed b. Commitment c. Willingness to delegate and empower d. Outside view
b
Potential competitors may enter an industry and begin to take market share from existing companies. What would be one of the largest challenges a new entrant would need to overcome to be successful when entering the industry? a. Very few customers are currently buying a product. b. Production costs are high and require high volumes to achieve profitability. c. Products are lacking that go along with the product. d. Several powerful retailers provide the only access to customers.
b
Ramon works for a large company that is considering starting a new business unit to sell personalized coffee mugs. He has been tasked with the preliminary research for the industry analysis. His analysis should begin with: a. detailing the customer needs for the new product. b. defining the new company's industry and strategic group. c. describing the macroenvironment for the new company. d. identifying potential rivals and competitor companies.
b
The extended competitive forces model includes all of the following forces that shape competition within an industry except: a. risk of entry by a potential competitor. b. rate of innovation and change. c. bargaining power of suppliers. d. closeness of substitutes to an industry's products.
b
The hubris hypothesis of takeovers is a term that describes: a. a commitment by managers to continue investing in a strategic plan even after they have received information that the project is failing. b. the overconfidence of leaders in their ability to create value by acquiring another company. c. a strategic plan for building a company through mergers and acquisitions. d. a manager deciding an acquisition is the right choice for a company because serendipity put the other firm in his or her path.
b
The most immediate threat to a company's profitability comes from: a. companies in other industries who have substitute products that meet the same customer needs. b. its closest competitors, companies within the same strategic group. c. companies within the same industry but in different strategic groups. d. a lack of investment from capital stakeholders.
b
Which of these could be an example of a competitive advantage? a. The status of a company with the largest top line sales number in an industry b. A solid company with predictable sales and profitability every year, delivering predictability for its shareholders c. A start-up company with an innovative new product that changes an industry d. The ability of a firm to outperform its rivals by achieving greater profitability and growth than others in the industry
d
There are four main categories of strategies that managers may define to create and sustain a competitive advantage. Which of these is an example of a business-level strategy? a. A finance director developing a plan to improve the return on invested capital (ROIC) by negotiating more favorable payment terms with customers and vendors b. A general manager defining a superior customer service strategy for his division to better deliver its products c. A local grocery store buyer choosing to stock a local farmer's unique, sweet-and-spicy jellies d. A CEO of a multidivisional company selecting a new customer market segment to pursue and establishing a new business unit to serve the segment
b
Which of these mission statements is customer-focused? a. Levi Strauss: People love our clothes and trust our company. We will market the most appealing and widely worn casual clothing in the world. We will clothe the world. b. Nike: To bring inspiration and innovation to every athlete in the world. c. AutoNation: To be America's best run, most profitable automotive retailer. d. Manpower: To be the best worldwide provider of higher-value staffing services and the center for quality employment opportunities.
b
Why should strategic managers be concerned with the life cycle of the industry in which their companies operate? a. The stage an industry is in will predict if the company can be successful. b. They must learn to recognize the crucial points in an industry's development to forecast and strategize for the future. c. The life cycle of an industry will only indicate the amount of investment a manager should put into research and development. d. An industry life cycle is the driver for developing a mission and vision statement
b
A business-level manager in a multi-divisional company is: a. a member of the Board of Directors, responsible for setting the strategic direction for the entire multi-divisional company. b. a strategic manager responsible for a specific business function, such as marketing or human resources. c. a strategic manager who is the head of an entire division, responsible for translating the corporate strategy into concrete strategies for the business unit. d. a vice president, C-suite, or other company officer, responsible for the financial performance of the company across all business units.
c
A discount membership general merchandise store has been educating customers about its business model of a membership fee based on the volume of products they buy. The store has been focused on reducing cost through the development of its supply chain and inventory systems. What would you add to the company's strategy as the industry moves from the shakeout phase to the mature phase? a. The company should educate customers about the features of discount store membership because not enough customers are aware of the benefits. b. The company should close its lowest-performing stores, regardless of their profitability, to reduce its excess capacity. c. The company should monitor prices of similar products at other discount membership stores, such as Costco and Sam's Club, matching prices to maximize profitability and avoid a price war. d. The company should expand the number of stores to serve the growing number of customers who are joining discount membership stores.
c
A mission statement describes: a. the competitive environment in which a company chooses to conduct business. b. the company's marketing approach and slogan. c. what the company does in terms of its customers, their needs, and through what core competencies. d. the strategic direction of the company and its major goals.
c
An analysis of the macroenvironment includes the: a. environmental factors that are impacted by the company's operations, such as its consumption of water, effect on air quality, and consumption of natural resources. b. internal leadership structure of a company, including CEO, CFO, and board of directors. c. economic, global, technological, demographic, social, and political context within which a company operates. d. geographic locations in which a company operates, manufactures products, and serves customers.
c
An industry that is attracting large numbers of new customers through increased interest and education is: a. embryonic. b. declining. c. growth. d. shakeout
c
As an industry environment evolves over time, the: a. strategic groups become less attractive to new entrants. b. number of companies is reduced and the industry becomes more consolidated. c. strength of the competitive forces in the industry change. d. industry becomes more profitable.
c
Bhascar was recently named general manager of a newly created business unit of a multidivisional company. His first order of business will be to implement the new division's strategic plan. Which of these statements about Bhascar's responsibilities for the company is true? a. Bhascar isn't concerned with the performance of the other business units in his company. The other general managers are on their own. b. Bhascar will manage the entire corporation's finance structure, working with the finance directors of each division to implement the company's strategies. c. Bhascar works with managers within his business unit to develop and implement concrete strategies for his division that align with corporate goals. d. Bhascar should spend the majority of his time concerned with the human resources operations of his business unit, focusing on the employee team.
c
During the shakeout stage, companies are in fierce competition. Which of these might be an effective strategy in an industry experiencing the shakeout stage? a. A manufacturer realizes that customers are viewing its product as a commodity and chooses to close plants and consolidate the workforce to reduce capacity b. Establishing a new network of distributors for a new technology product c. A frequent shopper card for grocery store customers that tracks their purchases and automatically offers discounts on the products they buy most often d. A public relations campaign to educate potential customers about the features and benefits of a revolutionary new software platform
c
Robert is the manager of sales and marketing for one of the products offered by his organization. He was invited to participate in the strategic planning process for launching a new type of sunglasses to the millennial market. Robert, age 25, was excited to be able to contribute to this product because he liked these new sunglasses and, when he showed them to his three best buddies, they also liked them. During the planning session, Robert convinced the team that they did not need to conduct expensive focus groups to test the viability of the sunglasses. He was convinced the glasses would sell because every time he wore a pilot pair of the sunglasses, he got lots of compliments on them. Ultimately, the management team decided to go with his strategy and did not conduct focus groups before launching the new product. Which cognitive bias was at work in this situation? a. Illusion of control b. Reasoning by analogy c. Representativeness d. Escalating commitment
c
Strategic managers may believe that they have to choose between what is best for the shareholders versus what is best for the company's customers and employees to achieve a competitive advantage. However, there is good evidence to suggest that the best way to maximize the return to shareholders is to focus on the customers and employees. Which of these scenarios is an illustration of that evidence? a. A restaurant company decides to operate with fewer employees, causing customer service to suffer, in order to increase its return to shareholders. b. A manufacturing business routinely hires full-time employees to fill seasonal spikes in demand and then cuts their hours during slow times to lower costs and continue to pay high shareholder dividends. c. A tech company determines that it should pay its top-performing employees above-market wages, decreasing shareholder returns in the short-term. But the employee longevity pays off through sustained research and development and breakthrough products that result in sales growth and lower recruitment costs. d. An airline decides to revamp its loyalty program to create more blackout dates, ensuring it can sell more tickets at full price and return greater profitability to shareholders. Customers call to complain and stop utilizing the loyalty program.
c
The idea that the strategy-making process is constantly ongoing and adapting over time with the input of additional information is: a. autonomous action. b. a SWOT analysis. c. the feedback loop. d. scenario planning.
c
There are multiple techniques for improving decision making in the formulation and implementation of strategic plans. Which of these is not a means of improving decision making? a. Presenting an alternative viewpoint, also called devil's advocacy b. Comparing a strategic plan against previous similar plans and reviewing the results of those experiences to gain an outside view c. Imagining the outcome and results of your strategic plan and deciding it will work because you believe there will be positive results d. Creating a plan and an alternate plan using dialectic inquiry to better understand the complexity and implications of a decision
c
Which of these is an example of a product or service in an industry operating in the growth phase? a. Residential solar panels b. Video and record stores c. Employee performance management software d. Legal services
c
Why should strategic managers pay attention to cognitive biases and be able to recognize them in their strategic planning process? a. So that they can reward and promote managers who demonstrate these characteristics of high-performing leaders b. So that they can exclude or fire managers who exhibit these biases and remove these potentially negative impacts from the business c. So that they can identify them when they are having an impact on the planning process and analyze whether the decision is being made strategically or relying on a "rule of thumb" or heuristic d. So that they can use them to the greatest advantage when building a business, improving the planning process and resulting strategy
c
A telecommunications company is impacted by government regulations of the wireless spectrum, cell tower locations, and Internet accessibility. The company decides to hire a lobbying firm to represent its interests with the U.S. government, specifically the FCC, FTC, and Congress. This is an example of a company managing which forces in the macroenvironment? a. Technological forces b. Global forces c. Social forces d. Political and legal forces
d
Adriana is vice president for product management at a Brazilian-based skin care company. As a functional leader, she led a strategy planning process with her team to create a new tan-enhancing cream. After a thorough strategy process, she and her team built consensus around a deployment plan for this new product. They introduced the tan enhancer to a regional segment of the marketplace as a prototype. Sales were dismal. After some focus groups, the team learned that consumers were not interested in it. But Adriana didn't give up, insisting her team continue to promote the product. She pushed her deployment plan and launched it in the entire market, along with a robust and expensive television and magazine ad campaign. Just like during the regional trial, it was a dismal failure with very limited sales. The executive team suggested that Adriana's strategy planning was flawed in selecting this type of new product as the core of her strategy. Consider the potential techniques for improving decision making that Adriana could have utilized to avoid defects in her planning process. a. Astute use of power: Adriana could have shut down the entire strategy by unilaterally deciding it was not workable. b. Representativeness: Adriana could have realized that the strategy would fail due to her own experience. c. Escalating commitment: Adriana could have rescued the project by assigning additional team members to it and giving it more time. d. Devil's advocacy: Adriana could have assigned one member of the team to argue strongly against the prevailing strategy, identifying potential flaws in the plan.
d
An HVAC contractor is considering expanding into a new business line, offering commercial facility maintenance and service in addition to construction contracting services. As the contractor considers this potential strategy, it conducts a strategic planning process for this business unit, analyzing external and internal factors. Which of these can be classified as a part of the external operating environment of the company? a. The company has a handful of HVAC technicians with prior experience working for a service firm. b. The skills required to construct, assemble, and install HVAC equipment currently possessed by the contractor's employees would be required to service the equipment in existing buildings. c. Selling HVAC services is different from selling construction services. The contractor's team doesn't have anyone with experience selling to facilities managers. d. Local commercial properties are most often served by one of three big national HVAC service firms and a handful of local smaller firms.
d
An industrial tool manufacturer relies on a distributor network with the largest online outlet and store network aimed at construction workers. The distributor network is seeking a manufacturer to provide them with private label products. They've decided they will offer only their own product line and not any other brand in this category of industrial tools. Now, the industrial tool company must decide whether or not to agree to this proposition or lose this company as a customer. This is an example of which of the competitive forces at play in this industry? a. Rivalry among established companies b. Industry competitive structure c. Bargaining power of suppliers d. Bargaining power of buyers
d
Christopher is a mid-level manager who has been working with an executive coach to become a better leader within his organization. One of the goals has been to develop his emotional intelligence. Recently, he scheduled a meeting with a challenging objective - to inform his team of employees that the executive team has decided to abandon the project they've been working on. When he discusses the situation with the team, which of these approaches should he use to demonstrate emotional intelligence? a. He should take a few promising leaders aside and tell them first that the project is being killed but that their jobs are safe. Then he should announce the change in direction to everyone else and tell them that their inferior work is the reason management is stopping the project. b. He should blame the executive management for killing this project and tell everyone on the team that he was passionate about their work, but the company is dropping the project anyway. c. He should inform them all that the project they are working on is no longer aligned with the company and that all of their work has been in vain. d. He should start by complimenting the team on their hard work on the project so far and then explain that the company is shifting direction and is no longer pursuing the project. He should have as much information as is available for the employees on how this change will affect their job status.
d
Companies can reduce the impact of the substitute products force in the competitive forces model by: a. working with affiliated companies in other industries to develop accessories for their products that enhance the benefits and functionality of their offerings. b. increasing its sales volume to spread its overhead and reduce its per-piece production costs. c. pitting component parts manufacturers in competition against each other to reduce production costs and improve quality. d. identifying an industry by the customers that it serves and the needs it fulfills rather than by the products it sells and staying focused on ensuring its products meet those needs.
d
Compare these four companies. Which of these companies has achieved a sustained competitive advantage? a. A technology company that just launched a breakthrough product, but has not yet earned enough in sales to cover the research and development b. A start-up boutique retailer went from three stores to 120 in just two years. Even with this explosive growth and the investment in new stores, the firm turned a profit in both of its two years of operation. c. A manufacturer that posted profits for several decades that were higher than the industry average, but lessening demand for its product category is causing profit erosion. In the most recent year, ROIC was below the industry average. d. A company in the airline industry with an ROIC recorded above 25% in each of the last five years
d
Michael Porter's theory of punctuated equilibrium suggests periods of freezing and reshaping of industries. Which of these represents a formerly declining industry now in a reshaping period? a. The trucking industry has seen cyclical demand for the delivery of products from manufacturers to distribution centers and then to stores and customers. b. The gas-powered car industry is experiencing a rebound after a period of decline, but without meaningful innovation. c. The river barge transportation system has sustained barriers to entry, mainly because of the cost of equipment and availability of appropriate, cost-effective riverside property. d. The global mass transit industry is reshaping as people in developed countries seek environmental benefits and those in developing nations look for ways to serve dense populations.
d
Michael is the CEO of a multidivisional company who has determined that it is time for his company to revisit its strategic plan. He is working on the agenda for the meeting and is beginning with a review of the company's mission, vision, and values. On day 2, he plans to conduct an analysis of internal and external forces affecting the company. His invitee list for the strategic planning session includes the CFO, the COO, the Vice President of Human Resources, and the Vice President of Sales. He believes this smaller team will be able to reach a greater consensus and be efficient in developing the strategic plan for the next five years. Which potential pitfall could impact the strategic plan for this company? a. The cognitive bias of the illusion of control could lead the CEO to believe he should be the only person directing the company's strategic plan. b. The utilization of outside view could lead the strategic plan to exclude data that doesn't reinforce the team's preconceived ideas about the company's direction. c. The scenario planning approach could lead the company to split its focus and prevent any meaningful progress toward the development of a competitive advantage. d. An "ivory tower" approach could lead the executive team to a plan created in a vacuum without an understanding of current operating realities.
d
Scenario planning is one methodology strategic managers can use to avoid pitfalls in their planning process. In scenario planning, managers: a. develop a single deliberate strategy through an organized process with its top leaders. b. change directions, adapt a strategy, or develop a new strategy based on the results of an accidental event or unexpected opportunity. c. plan a sequence of events that a manager will execute in order, regardless of the circumstances or changing industry environment. d. create a what-if scenario for the future and develop strategic options associated with that future state.
d
Strategic groups exist because: a. government regulators have different rules for companies based on the size of the company, geographic headquarters, and number of employees. b. customers want variety in the products and services they select, and different brands can serve customers' needs differently. c. industries are one-dimensional, and all businesses within an industry utilize the same resources and same strategies to achieve their goals. d. companies within the same industry may position themselves differently regarding distribution channels, market segments, and other differentiators, which affects their strategies.
d
Suppliers are most powerful when: a. a company has the capability of producing the end product without the supplier. b. a company has multiple suppliers to choose from who produce similar components at similar quality. c. a company buys from a supplier in large quantities, making up 50% or more of the supplier's total sales. d. a company would experience switching costs if it chose to utilize a different supplier because the current supplier's products are unique.
d
The Baby Boomer generation is aging. A local healthcare network is looking at several expansion strategies. Which strategy might be the best response to this demographic force in the macroenvironment? a. The company will add more than 100 maternity beds to three of its suburban hospitals. b. The network will enter into official referral agreements with six new physician practice groups that focus on pediatrics. c. The company will invest in genetic testing options tailored to identifying the future health needs of people currently in their 20s. d. The network will build a blended-use community that offers independent retirement living, assisted living, and skilled nursing care.
d
The country's largest landscape company, BrightView, a $2 billion firm, is the result of a merger between two multi-state firms, Brickman Group and ValleyCrest, in 2015. The company is operating in a fragmented industry dominated by small, local businesses. Which of the following identifies a relevant competitive force and a way the company might leverage it? a. Bargaining power of suppliers: BrightView will have difficulty leaving the landscape industry because of its investment in this merger and the cost of all of the landscape equipment included among both companies' assets. b. Complementors: BrightView will need to collaborate with other companies to develop outdoor products because there are not enough complementary products in the marketplace to make homeowners value their landscaping. c. Bargaining power of buyers: BrightView can expect customers to purchase from it because of brand loyalty. d. Risk of entry by potential competitors: BrightView may be able to lessen the impact of this force in a low-barrier industry through economies of scale, specifically discounts on bulk purchases of raw material inputs
d
The industry life-cycle analysis has several potential limitations. Which of these is a limitation that strategic managers should be aware of? a. Companies cannot do anything to alter the course of an industry as it evolves through the life-cycle stages. b. Industry life cycles have very few strategic implications and shouldn't be used to determine potential strategies. c. All companies within an industry should employ similar strategies based on the life cycle of the industry they're operating in. d. Industries will not always travel through the stages in a predictable way.
d
The pace of technological change has accelerated. Technological forces can have an impact on the macroenvironment, creating conditions that are: a. easy for established companies to take advantage of to introduce their products to new markets. b. threats to embryonic industries, preventing them from growing to maturity. c. raising the cost of entry for potential new entrants into industries and protecting established companies in mature industries. d. both creative and destructive, making established products obsolete overnight and creating new product possibilities at the same time
d
The primary objective of managers participating in a SWOT analysis is to: a. impress the CEO and other leaders in the organization with their knowledge and strategic decision making. b. define at least two future states of the company and build strategies that address those specific scenarios. c. utilize a consultant group to gain an outside perspective on how the company's strategies can be improved. d. identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses.
d
Where a company operates and sells its product can have an impact on its profitability because: a. companies operating solely within a single country have greater opportunities for higher profits. b. government-owned companies set the prices for most of the world's products and will raise or lower prices based on local economies. c. companies selling their goods in countries that have a negative growth rate can raise their prices and gain greater profitability. d. the health of a country's economy, measured by growth rate and other factors, can affect both the customers' ability to purchase products and the price they're willing to pay.
d
Which of these is a definition for an emergent strategy making process? a. A process that leaves strategies up to chance and happenstance, waiting for technological discoveries, acquisition opportunities, and changes in the industry environment to drive action b. Planning that relies on rules of thumb and cognitive biases to define strategies that will be successful despite a competitive industry environment c. A strategy process that utilizes "what-if" scenarios to arrive at a company's corporate strategy, including multiple views of the company's future state d. Strategies that evolve as the unplanned responses to unforeseen circumstances, arising from autonomous action by individual managers, serendipitous events, and changed circumstances
d
Which of these is not a cognitive bias that can lead to poor strategic decisions? a. Escalating commitment b. Illusion of control c. Prior hypothesis bias d. Willingness to delegate
d