Business Strategy Chapter 2
strategic initiative
A ________ is best described as any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures
the company organizational structure and systems will be designed to support bottom up strategic initiatives
A company uses the planned emergence approach in the development of its strategies. Which of the following is an implication of this?
solve a problem for a consumer
A customer- oriented vision statement focuses employees to think about how best to
makes productive contributions through motivation, talent, knowledge, and skills
According to the level 5 leadership pyramid a manager in level 1 typically
intended strategy
After carefully assessing the market potential for hybrid motorcycles, it was decided at the corporate HQ of HyCycles Inc. that the company would be launching a hybrid version of all its motorcycle models within the next two years. which of the following strategies in the planned emergence model does this best illustrate?
how to implement business strategy
As a part of strategy formulation, a firms functional strategy primarily concerns questions relating to
where to compete
As a part of strategy formulation, corporate strategy concerns question relating to
strategic leadership
As the CEO of a conglomerate Juana Mark had strong commitment toward the companies core value. Juana has demonstrated
corporate strategy
Bauer Inc. is a company that manufactures plastics, tractors, and headphones. Which of the following strategies does this best illustrate?
strategic business units
Blue Billion Inc. is a large company that sells a variety of products such as cosmetics, jewelry, frozen foods. also has a strong presence in the service industry through its chain dance studios, casinos and nightclubs. these product divisions under Blue Billion can be referred to as
all nations around the globe should have access to a sustainable energy source
Free winds Inc. is a company that manufactures a variety of generators that run on wind power. the company wants to ensure that wind technology replaces all forms of exhaustible energy sources in the near future. which of the following statements will make an accurate vision for Free Winds?
functional strategy
Green Rabbit Products Inc. is a large conglomerate. they want to reduce its employee turnover by encouraging internal promotions. which of the following strategies does this scenario best illustrate?
tob e the pioneering manufacturer of electronic tools
Handy Pro Inc. is a company hat manufactures electronic tools like drills, screwdrivers, and saws. Which of the following best illustrates a product-oriented vision for Handy Pro?
relative to strategic planning and scenario planning, strategy as a planned emergence model is a less formal and less stylized approach to the development of strategy
How are the two approaches, strategic planning and scenario planning, different from the strategy as planned emergence approach?
she used an emergent strategy
IN strategy highlight 2.2 what type of strategy did Diana, the Starbucks manager in southern California use to develop the new iced beverage for her store?
the CEO of the company
In a large company, who is most responsible for devising the corporate strategy?
level 4
Jason does the right things and effectively organize and deploy resources. According to the level 5 leadership pyramid, which of the following levels would be the immediate next step for Jason?
level 2
Jorge is part of sales team. Jorge is in ________ of the level 5 leadership pyramid
strategy implementation
Lower level employees focus mainly on ____________ when a firm is using top down or scenario planning as an approach to the strategic management process
unrealized strategy
Molly Hue Apparels Inc. had been outsourcing its production to less developed countries in order to reduce its cost of production. what are such obsolete strategies referred to as in the planned emergence model?
GH Medicines will be more flexible than Poineer Pharma when adapting to changing environments
Pioneer Pharma Inc. and GH Medicines are two competing firms in the pharmaceutical industry. While Pioneer Pharma Inc. visions is "to be a preeminent drug manufacturer in the industry". GH Medicines Corps vision is "to make good health a reality for everyone around the world". Which of the following is an implication of these different visions?
scenario planning
Red Couture Inc. are developing strategic plans and prices of cotton rises 20% Red couture is employing ________ as the approach to the development of strategy
business
T&R Autos Inc. is in 12 different countries. the headquarters decided for the next 2 years will be to increase its customer equity. the decision made by the product leader best illustrates a ________ strategy
planned emergence approach
Teddiez Inc. manufactures and sells stuffed toys. when her manager learned about this, he presented the prospect an got it approved form the top management team. This is an example of
upper-echelons theory
The CEO of Juliet Computers was the child of a parents who had difficulty making enough money to support their family. the CEO therefore emphasized making affordable computer that could be bought by low-income households. Which of the following does this example demonstrate?
strategic business unit
The CEO of Sams Club, Rosalind Brewer, reports to Walmarts CEO Douglas Mcmillan, who as corporate executive oversees Walmarts entire operations. Sams Club therefore is a _________ of Walmart
corporate strategy
The CEO of True West Products Inc. is a company that sells a wide range of products. which of the following strategies does this scenario best illustrate?
upper echelons theory
The ____ is a conceptual framework that views organizational outcomes, strategic choices and performance levels. Who interpret situations through the lens of their unique perspectives
core values
The pharmaceutical company Merck's new drug Vioxx was a blockbuster, generating revenues of $2.5 billion year by 2002. Merck provides an example of what can happen if a company deviates from its
functional strategy
The production department at Coral Cements that is a subsidiary of the large conglomerate Five East Corp. has decided to adopt the FIFO method of inventory to dispatch its cement bags. Which of the following strategies does this scenario best illustrate?
environmental does not change much
Top down strategic planning works best when the
emergent strategy
True Candy Inc. would frequently stay back after office hours and experiment with new organic hard candy flavors. which of the following strategies does this scenario best illustrate
we help the homeless gain and sustain financial independence by providing employment opportunities
True Help is a nonprofit organization that works toward rehabilitating the homeless. the credo of the organization is "help us help you". for an organization like true help, which of the following statements would make an appropriate mission?
level 4
Trunk has been an employee with PureEnergy Inc. for 15 years and today manager. also doing the right things in the company with communicating and motivating his subordinates to work toward the companys vision and mission. according to the level 5 leadership pyramid, which is the highest level of leadership Trung has reached so far?
scenario planning
Which of the following is a top down approach to the development of strategy that involves asking "what if" questions to anticipate plausible futures?
a corporate strategy must ve able to create synergies across business units that are quite different
Which of the following statements is true of corporate strategy?
customer oriented vision statements are not the same as listening to your customer
Which of the following statements is true of customer-oriented visions?
business
While Leo Autos manufactures and markets four different cars. they adopted the differentiation strategy to attract the niche market the product leader follows cost leadership strategy to suit the mass market. this decision of the product leader of Leo Ease can be ideally categorized as a _______ strategy
top down strategic planning
______ is best described as a rational process in which executives at a companys headquarters take primary responsibility to program future success of the company they lead
organizational values
_________ are but described as the ethical standards and norms that govern the behavior of individuals within a firm
functional managers
__________ are primarily responsible for decisions and actions within their respective departments like finance, HR, marketing, and production in a strategic business unit
planned emergence
_______________ is best described as a strategy process in which organizational structure and systems allow bottom up strategic initiatives to emerge and be evaluated and coordinated by top management
is responsible for its own profit and loss
a companys strategic business unit
organizational structures are aligned with the firms vision statement
a positive relationship between vision statements and firm performance is more like to exist when
strategic leaders adjusting a company vision and mission based on environmental analysis
a traditional top strategic planning process typically begins with
dominant strategic plan
a(n) _____________ is best described as the strategic option that top managers decide most closely matches the current reality and which is then executed
strategic business unit
a(n) is best described as a stand alone division of a larger conglomerate, with its own profit and loss responsibility
organize resources effectively to accomplish predetermined goals
according to the level 5 leadership pyramid, a manager at level 3 has acquired the ability to
level 5
according to the level 5 leadership pyramid, a manager turns into an executive who is capable of building lasting greatness into the organization through a combination of willpower and humility when he or she reaches
CEO of the Company
according to the upper echelons theory, the organizational outcomes of a company primarily reflect the values of the
the outcome of a rational and structured, top down strategic plan
an intended strategy is best described as
emergent strategy
any unplanned strategic initiative undertaken by mid level employees of their own volition is a(n)
business strategy
corporate executives at LikeReal Inc. decide to compete in the remote model airplane industry by making the largest model planes available. By doing this, they completed part of their
define how a customer need will be met
customer-oriented visions do not
corporate strategy
due to political instability in the country of United Mapa, the strategic leaders at the headquarters of FT Supplies Inc. have decided to divest the comp nays business from the foreign market in United Mapa. This decision would be applicable to all the business units of FT Supplies Inc. operating in United Mapa. This is a
Ethan is a top management executive in the company
during an assessment of employees and leaders in a company. Ethan Browne was categorized as a level 5 manager in the level 5 leadership pyramid. which of the following can be inferred form this information?
strategic leadership
executives whose vision and actions enable their organizations to achieve competitive advantage demonstrate
they serve as the guardrails put in place to keep the company on track when pursuing its mission
how do strong ethical values benefit a firm?
chief executive officer
in the top down strategic planning approach , all strategic intelligence and decision making responsibilities rest primarily on the
both ethical and effect in advancing a company goals
organization values help individuals make choices that are
ethical standards and norms
organizational values are the ______ that govern the behavior of individuals within a firm or organization
brainstorming to identify multiple plausible futures
scenario planning typically begins with managers
long term oriented
strategic commitments are action that are
costly, long term oriented, and easy to reverse
strategic commitments are actions that are
respond to reality changes by activating alternate dominant plans or modifying the old plan
strategic flexibility is achieved when managers
corporate executives
strategic leadership pertains to the use of power and influence by _______ to direct the activities of others when pursing an organizations goals
strategic thinking clouds all types of information sources while strategic planning does not
strategic thinking is different from strategic planning in that
functional
strategies developed at the departmental level, such as the accounting, HR, production, and marketing departments, within a strategic business unit are referred to as ______ strategies
by making the user experience of the mobile internet easy and fun
the chief executive officer (CEO) of yahoo established a mission by building on her vision. considering this how did she implement the mission of yahoo?
To make the worlds daily habits more inspiring and entertaining
the chief executive officer (CEO) of yahoo maintains that if a company builds the best product possible, profits will come. identify the phrase that represents the new vision she developed
these approaches do not allow for the necessary strategic thinking
the critics of top-down strategic planning and scenario planning argue that
define a firms vision, mission, and values
the first step in the strategic management process is to
organizational values
the management of Wong Industries showed a commitment to _________ by increasing the salary of many female employees to meet its goal of having equal pay for women and men who perform comparable work
strategy formulation
the management team at Clear Solutions Inc. decided to build a brand office in Memphis Tennessee. Which of the following terms correctly describes this action?
business
the regional head for Creative Design Inc. sells products directly through company owned stores because the distribution system in the market in primitive. this decision made by the regional head will be considered as a ____________ strategy
back up their visions with strategic commitments that are costly and difficult to reverse
to be effective, firms need to
functional managers
to implement specific business starts, general managers of strategic business units rely on
empower lower level employees to take up autonomous actions
to support the rise of emergent strategies an organization should
size of the firm is large
top down strategic planning as an approach to the strategic management process will be most effective when the
Intels rule to "maximize margin per wafer start"
understanding the Resource Allocation Process (RAP) will have large effects on shaping a firms realized strategy. Which of the following is an example of such an allocation of resources?
team leads of project teams in the organization
unplanned strategic initiatives taken by the ______ within an organization will be referred to as an emergent strategy
nonfunctional due to unexpected events
unrealized strategy is when parts of a firms intended strategy is
they provide more aspirational visions
visionary companies are able to outperform their competitors because
the executives use of power and influence to direct the activities of others when pursing an organizations goals
what is strategic leadership?
strategic leaders design a method to formulate and implement strategy
what is the strategic management process?
when the top managers in the firm are merely paying lip service to the firms stated values
when do employees fail to adopt the organizational values of a firm?
unrealized
when parts of a firms intended strategy fail by the wayside due to unpredictable events, it turns into a(n) _______________ strategy
the production manager at the apparel division of Wilder Style Co. has decided that the department will hire contract workers for three months to meet the temporary demand
which is the following strategies best illustrates a functional strategy?
Asoka is the CEO of Green Machines Inc. he has helped his company in gaining and sustain a competitive advantage through ethical decision making
which of the following best describes a level 5 manager in the level 5 leadership pyramid?
the consumer electronics division of a large company that also manufactures automobiles, apparel, and processed food
which of the following best illustrates a strategic business unit (SBU)?
at Fuentes Electronic, all employees are motivated to make the best microwave ovens on the market
which of the following examples reflects the strongest vision?
design generic business strategies based on guidelines received from corporate headquarters
which of the following functions do the general managers in strategic business units primarily perform?
identification of possible future scenarios
which of the following happens during the analysis stage of scenario planning?
to enable people throughout the globe to identify their capabilities
which of the following is a customer-oriented vision?
a highly capable individual who makes productive contributions through motivation, talent, knowledge, and skills
which of the following is an accurate description of a level 1 manager?
we can predict the future from the past
which of the following is an assumption that top down strategic planning rests on?
Andrea, LTD wants to be the best manufacturer of picture frames in the industry
which of the following is an example of a product-oriented vision statement?
Burrell Oil Inc. increases the inspection of pipelines above the legal requirement to prevent oil spills
which of the following is an example of an organizational value?
level 5
which of the following managers in the level 5 leadership pyramid are most capable of leading their organizations into great success by guiding the organizations toward building a sustainable competitive advantage?
the managers at Lyon Clothing Inc. formulated a strategy to tackle any increase in the prices of cotton in the future
which of the following methods of developing a strategy best illustrates scenario planning?
functional managers are much closer to the final products, services, and customers than corporate or business level managers
which of the following reason justifies the view that functional managers should be allowed to imitate strategic initiatives based on autonomous actions?
they tend to force managers to take a myopic view of the landscape
which of the following statements about product-oriented visions is true?
scenario planning helps create strategic plans that are more flexible, and thus more effective, than those created through the more static strategic planning approach
which of the following statements accurately brings out the difference between top down strategic planning and scenario planning?
strategic initiatives can be the result of a response to external trends or come from internal sources
which of the following statements is true of strategic initiatives?
in this process, the formulation of strategy is separate form implementation
which of the following statements is true of top down strategic planning?
a decision to niche market the jewelry sold by a company while the apparel division under the same company sells its products through mass marketing
which of the following strategies best illustrates a generic business strategy?
a vision states what a firm wants to accomplish, a mission states how a firm plans to accomplish this vision
which of the following summarizes the difference between a firms vision and mission?
corporate strategy deals with where to compete, business strategy deals with how to compete
which of the following summarizes the differences between corporate strategy and business strategy?
the general managers of individual business units
who among the following is responsible for making business strategies in a large conglomerate?
customer oriented visions tend to be more flexible when adapting to changing environments
why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?
