Ch 3

Product differentiation, low costs, and the development of new products or services are key to a company's success at which stage of the product life cycle?

d.Decline

How can managers use information provided by the GE Business Screen to manage their various business opportunities more effectively?

a.To determine asset allocation

Using simple product design coupled with efficient high-volume manufacturing capacity may help a company achieve what?

b.Overall cost leadership

In the introduction stage of the product life cycle, what do managers typically need to focus on?

b.Supply

What is the method by which processes are operationalized or executed within the organization?

d.Strategy implementation

In the context of SWOT analysis, which of the following would be considered as an organization's strength?

a.Unique reputation

_____ goals are set by and for lower-level managers.

b.Operational

When devising a new strategy, it is best to start with what?

c.A SWOT analysis

Jones International is a large organization with holdings in the United States, Europe, and Southeast Asia. The corporation's mix of strategic business units (SBUs) allows the company to exploit its strengths and capabilities in more than one line of business and to exploit synergies across business lines. One of the disadvantages of Jones International's strategy is that it _____.

d.increases management complexity

Curl Up and Dye is a local hair salon that has a steady clientele from the surrounding community. However, a new salon has just opened in the area, and some clients have mentioned that the new salon offers similar services at lower prices. Curl Up and Dye now needs to pursue a strategy that will _____.

d.neutralize the impending threat

In the growth stage of the product life cycle, the _____.

d.sales of the product increase

The market for memory chips for electronic devices is growing at an incredible rate, and GloTech has the largest share of that market. According to the BCG matrix, GloTech is a _____.

d.star

What is the one of the reasons why an organization would have organizational goals?

b.To set a unified direction for employees

Gnomatics sells just one type of product in the local marketplace. The staff works hard to ensure their product is successful, even though there really are no other companies that compete with them. Which type of strategy does Gnomatics use?

a.Single-product

What is the process of creating or determining the organization's strategies?

a.Strategy formulation

In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. Inspired by his entrepreneurial son, JJ has decided to open a detailing shop on an adjoining property. Which type of strategy targets the market of local automobile owners for the purpose of increasing revenues?

d.Business-level

In a SWOT analysis, how will the identification of strengths help to accomplish an organization's mission?

d.By allowing the exploitation of skills and capabilities

According to the BCG matrix, which type of organization is not expected to grow substantially, even though it currently has a large share of the market?

d.Cash cows

What does an organization use to manage its operations across several industries and several markets simultaneously?

a.Corporate-level strategy

Why is it important to identify weaknesses in a SWOT analysis?

b.To correct them

Sabine is focusing on the processes to use to achieve her strategies and goals for the year. What is Sabine working on?

d.Strategy implementation

Tariq knows the production levels he wants to achieve this week and for the next three months. What does Tariq need to use when he determines the schedules of his employees?

b.Operational plan

What is a strategy?

a.A comprehensive plan for accomplishing an organization's goals

Which of the following is an organizational strength possessed by only a small number of competing firms?

a.A distinctive competence

What does the GE Business Screen use to determine the attractiveness of an organization?

a.Competitive position

Most grocery stores carry a wide variety of national brands in addition to their own private label brands. The private label brands are often made by the same national brands they are competing with. Which type of strategy is a firm using when it creates a lower-priced private label brand in addition to its other, higher-priced brands?

a.Cost leadership

Firms that successfully implement what type of strategy are generally able to charge more than competitors because customers are willing to pay more to obtain the extra value they perceive?

a.Differentiation

Mikel is a middle-level manager who is in the process of determining goals and objectives for his managers. He has set goals he feels are necessary to achieve the strategic goals given to him. Which of the following will these goals focus on?

b.How to operationalize actions

Eli makes custom-made leather handbags and wallets in a small shop. He is known for his fine leather products and hand stitching, as well as the lifetime warranty he offers on his products. His items are expensive, and he has no desire to increase the size of his shop. What has Eli developed within his shop?

a.Distinctive competence

As the plant manager, Eli is concerned with having enough employees to meet production needs and managing cash flow for a specific product. Which stage of the product life cycle is Eli likely managing?

a.Introduction

What is true of a tactical plan?

a.It is developed to implement specific parts of a strategic plan.

Lighthouse Cinema has enjoyed a successful history in the town of Battle Ridge, VA. The movie theater has remained a popular entertainment option for the surrounding area, but sales have been stagnant over the past few years. Which stage of the product life cycle is the theater in?

a.Maturity

Overall demand growth for a product begins to slow down during which stage of the product life cycle?

a.Maturity

Which of the following is an advantage of unrelated diversification?

a.Organizations can allocate capital to maximize corporate performance.

Olesia is managing the diversification of divisions for her organization. She wants to monitor how to engage and manage subsidiaries to maximize corporate performance. What should Olesia use to track this information?

a.Portfolio management techniques

Which of the following is used to show how sales volume of a product can change over time?

a.Product life cycle

Which is the most common type of diversification strategy for larger businesses in the United States?

a.Related

What is one of the main purposes of a SWOT analysis?

a.To identify distinctive competencies

Organizational opportunities are:

a.areas in the environment that may generate higher performance.

The market for mountain bikes, while large, is not expected to grow much more. Ruff'n'Tuff Bikes has a major share of that market. According to the BCG matrix, Ruff'n'Tuff Bikes is a _____.

a.cash cow

According to the BCG matrix, businesses that have a large share of a market that is not expected to grow substantially are considered _____.

a.cash cows

An organization that competes in dozens or even hundreds of markets is called a(n) _____.

a.conglomerate

Eastside Community Center (ECC) operates to "foster inclusiveness and empower teens" in the underprivileged neighborhoods of East Dalton, MN. This statement of purpose, defined by the ECC's founding board of directors, is known as the organization's _____.

a.mission

Lighthouse Cinema has enjoyed a successful history in the town of Battle Ridge, VA. Despite the growth of multiplex theaters in most population centers, Lighthouse Cinema has remained a popular entertainment option for the surrounding area, based on its small size and location. This movie theater's popularity and attractiveness as a destination are a(n) _____.

a.strength

The area that increases the difficulty of an organization performing at a high level is a _____.

a.threat

What is the advantage of setting business-level strategies?

b.Ability to focus efforts in a targeted manner

In which way do organizations determine alternatives for working in a particular industry or market?

b.By setting business-level strategies

The local dollar store sells a variety of products, all at $1 each. These items are no different than the products of other retail chains, but sizes are slightly smaller. In addition, the store is a little out of the way for most shoppers, but shoppers find the value worth the trip. In which way does the local dollar store compete with nearby retailers?

b.Cost leadership

Which strategy would Pepsi use to promote its Aquafina brand on the basis of its purity?

b.Differentiation

Which of the following is used to provide a source of motivation for an organization's employees?

b.Goals

Ozlem has just finished reviewing the new mission for his organization. What will this mission help to determine?

b.Goals and plans

ZeroBreeze Inc. is an outerwear manufacturer that caters to a large customer base. In addition to the high volume of coats and jackets that it manufactures, the company sells light jackets for low prices. Many customers buy ZeroBreeze jackets because they are durable and inexpensive. Which of the following strategies is illustrated in the scenario?

b.Overall cost leadership

Scott works for a firm that specializes in oil and gas products. During the last recession, one of the business units lost considerable income, but other parts of the business were healthy enough to offset that loss. Which type of corporate strategy was Scott's company using?

b.Related diversification

The best strategies do all of the following EXCEPT what?

b.Require resource deployment

Raj has empowered his senior managers and asked them to increase profitability by 20 percent over the next five years. What has Raj set for his senior managers?

b.Strategic goal

Marah has been tasked with the job of outlining decisions about resource allocation, priorities, and action steps that are necessary to reach one of his company's strategic goals. What is Marah developing?

b.Strategic plans

Polani's company is a leader in the creation of mobile phone cases, and it recently has expanded to make cases for tablets and laptops. Polani's company is using related diversification. What is an advantage of this strategy for the firm?

b.Synergy

In which way can managers use information from the product life cycle?

b.To determine which strategies for products need to evolve

Which of the following is considered to be the first step in the planning process?

b.Understanding the environment

If your prices are higher than your competitor's prices, what does your company have?"

b.Weakness

In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. JJ employs six knowledgeable mechanics and provides these car experts with ongoing training to continually expand their knowledge and skill sets. By maintaining exceptional capabilities at his shop, JJ is solidifying his _____.

b.distinctive competence

The number of different businesses that an organization runs, and the extent to which these businesses relate to one another, is represented by _____.

b.diversification

Camille's Coffee Shop has a very small share of the market and has no plans for growth. According to the BCG matrix, this business is a _____.

b.dog

The planning process takes place within a(n) _____ context.

b.environmental

Pallavi knows that if she is able to achieve the goals set by her manager, she is likely to receive a bonus. In this case, what does the setting of goals serve as for Pallavi?

c.A source of motivation

A small retail shop in the local community offers a wide variety of women's clothing at low prices. In order to be competitive with larger chains found at the mall, the store owner frequently works alone, and she has adjusted store hours to capitalize on busy days. What should this retail shop owner be pursuing as part of her general business-level strategy?

c.Concentrating on reducing operating costs

What is the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets?

c.Corporate-level strategy

When a new line of organic salad dressing was launched, it was very successful. Competitors soon began to produce a similar product. What should the organization do to keep its competitive advantage?

c.Develop strategies to slow the entry of competitors

In which type of strategy does an organization concentrate on a specific regional market, product line, or group of buyers?

c.Focus

What does the BCG matrix use to evaluate an organization's set of businesses?

c.Growth rate and market share

In which stage of the product life cycle should an organization begin to search for new products or services as part of their strategy?

c.Maturity

Neal is the head of the marketing department in his organization. Under his guidance, marketing supervisors have developed an operational plan to support the organization's goals. Stage 1 is a three-month national media blast to pump information into the market for the purpose of increasing brand awareness. This media blast has a narrow focus and involves only a few key activities, and it will not be repeated. Which type of single-use plan is the marketing department using at this stage?

c.Project

Jones International uses a mix of strategic business units (SBUs) allows the company to exploit its strengths and capabilities in more than one line of business and to exploit synergies across business lines. Jones International employs which type of corporate-level strategy?

c.Related diversification

Jolanta is determining how to distribute various resources in order to improve her organization's ability to compete in the market. What is Jolanta determining?

c.Resource deployment

Which of the following specifies the range of markets in which an organization will compete?

c.Scope

When we refer to strengths in a SWOT analysis, what is being referred to?

c.Skills and capabilities that help an organization implement its strategies

What is the advantage to those organizations who use unrelated diversification?

c.Stable performance over time

Rebeya is setting goals with the executive team of her organization. These goals include financial and productivity goals, as well as environmental and sustainability goals. Which type of goals is Rebeya establishing?

c.Strategic

What is used to outline the organization's purpose, premises, values, and directions?

c.The mission

Why do organizations have a difficult time focusing on weaknesses?

c.They might indicate poor managerial skills.

How is an organizational threat different from an organizational weakness?

c.Threats are uncovered by analyzing the organization's environment, while weaknesses are internal to the organization.

The market for memory chips for electronic devices is growing at an incredible rate, and Whizz Industries has a small share of that market. According to the BCG matrix, Whizz Industries is a _____.

c.question mark

In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. JJ wants to use his profits to expand the business. He is not sure whether to open a detailing shop on an adjoining property or to open an auto repair shop in the neighboring county. This choice of how to invest in his business would be a decision about _____.

c.resource deployment

Due to an explosion at a supplier's plant, L'Meese will no longer be able to achieve goals set by her division manager. What should L'Meese remember about goals?

d.Goals are targets, not absolute objectives.

When a firm identifies a weakness within its organization, what can it do to address that weakness?

d.It can modify its mission.

In the context of SWOT analysis, which of the following would be considered as an organization's weakness?

d.Low cash reserves

A cell phone company manager has a goal of boosting the profitability of her store in the next year. Which type of goal has the manager set?

d.Operational

Based on differentiation strategy, why are customers willing to pay more for one product over a similar product?

d.Perceived extra value

In which type of strategy does an organization operate in several businesses that are somehow linked with one another?

d.Related diversification

Petra is uncertain where to begin in formulating strategy for her division. What is a good place for her to start?

d.SWOT analysis

Neal is the head of the marketing department. Under his guidance, marketing supervisors have developed a three-stage operating plan to support the organization's goals. They are launching an online ordering system for retail and restaurant accounts. The new system simplifies and clearly outlines the steps to be followed from sales inquiry to final order payment. Which type of standing plan will be used to enhance the ongoing efficiency of the order management process?

d.Standard operating procedure

_____ plans are set by the board of directors and top management.

d.Strategic

Amina is working on developing and implementing ideas in order to take advantage of business opportunities and challenges in the market. Which skills will Amina need to use to approach those challenges and opportunities?

d.Strategic management

How does strategy formulation relate to strategy implementation?

d.Strategy formulation is the set of processes involved in creating an organization's strategies, whereas strategy implementation is the methods by which those strategies are operationalized.

Rumi has found that selling gluten-free products at her bakery has been an effective strategy and has allowed her to achieve some of her strategic goals for sales. Which of the following makes this an effective strategy for Rumi?

d.Superior alignment with her environment

As a middle manager, Luis sets goals for his staff. Which type of goals would Luis be expected to set?

d.Tactical

As part of Sushil's performance review, she was given a list of goals and objectives. How will her work on these goals affect her in the future?

d.They will serve as a mechanism for performance evaluation.

Why is it critical for an organization to understand that eventually a product will go into the decline stage?

d.To stay in business

What are the skills and capabilities that do not enable an organization to choose and implement strategies that support its mission?

d.Weaknesses

In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. Inspired by his entrepreneurial son, JJ has decided to open a detailing shop on an adjoining property. If JJ elected to open an auto repair shop in the neighboring county, he would be expanding his _____.

d.business scope