CH. 9 MAN
A strategic business unit (SBU) of a major corporation has high market share in its industry, but the growth rate of the industry is expected to be stagnant over the long run. According to the BCG matrix, how would this SBU be categorized?
Cash cow
Because of its sheer size and the volume of products it purchases from its vendors, Walmart can dictate the prices it will pay. Which of Porter's five competitive forces does this represent?
Bargaining power of buyers
Which of the following is the second step of the strategic management process?
Doing an external analysis
Jake is in the process of developing a strategic plan for his organization. He has just completed an analysis of the firm's resources and capabilities and has identified its strengths and weaknesses. According to the six-step strategic managementprocess, which step has Jake performed?
Doing an internal analysis
Which of the following corporate strategies would be used by an organization to address declining performance?
Renewal strategy
Which of the following is NOT one of the five competitive forces identified by Michael Porter?
Anticipated legislation
An electronics firm develops a control for an appliance manufacturer, and its contract states that, if the appliance manufacturer terminates the contract early, it must reimburse the electronics firm for $2 million in development costs. Which ofPorter's five competitive forces does this represent?
Bargaining power of suppliers
Pasta Pronto is planning to grow by adding a location and increasing its delivery radius. What type of strategy is Pasta Pronto using?
Concentration
In terms of the BCG (Boston Consulting Group) matrix, which of the following best describes cash cows?
High market share/low anticipated growth rate
Which of the following corporate strategies would be described as a status quo strategy?
Stability strategy
Which of the following is NOT true of strategic management?
The economic viability of the organization's business model is seldom a factor in the strategic management process.
A major appliance manufacturer that has been purchasing electronic controls from a supplier makes the decision to design and develop the controls in-house. From the supplier's perspective, which of Porter's five competitive forces does thisrepresent?
Threat of new entrants
A major appliance manufacturer that has been purchasing electronic controls from a supplier makes the decision to design and develop the controls in-house. What type of corporate strategy does this represent?
Vertical integration
Zappos provides customers with a personal shopping assistant who helps customers track down shoes or clothing online, even if Zappos doesn't sell it. Based on this information, Zappos is most likely pursuing a(n) ________ strategy.
customer service
An organization's skills and abilities in doing the work activities needed in its business are referred to as its ________.
capabilities
A company's distinctive edge is referred to as its ________.
competitive advantage
What sets an organization apart from its competitors is known as its ________.
competitive advantage
An organization that grows using ________ expands by focusing on its primary line of business and increasing the number of products offered or markets served in its primary business.
concentration
RGH Enterprises is able to produce a wide line of garden tools and sells a high volume, and thus can capitalize on economies of scale and charge lower prices than its competitors. RGH Enterprises is using the ________ strategy.
cost leadership
All of the following are reasons why strategic management is important EXCEPT ________.
organizational conflict
Barbara's Bridals does not want to be "all things to all people." The company serves a niche market of plus-sized brides who want to purchase high-end, designer wedding gowns. Barbara's Bridals is pursuing a ________ strategy.
focus
A ________ strategy involves expansion of one or more aspects of a business.
growth
Some firms use social media as a way to gain competitive advantage. For a social media strategy to be effective, it must ________.
help people connect and reduce costs and/or increase revenues
One example of using ________ as a competitive advantage occurred when Procter & Gamble added a tartar-fighting ingredient from toothpaste to its dry adult pet foods.
innovation
The ABC company is focused on advancements in existing technology or services. Therefore, it is investing additional funding in research and development activities. ABC is likely pursuing a(n) ________ strategy.
innovation
JMY Technologies has experienced declining performance for the past six months. Top-level managers have determined that the problems are minor in nature and that a short-run renewal strategy is most appropriate. In order to stabilizeoperations, JMY will most likely implement a ________ strategy.
retrenchment
A strategic business unit (SBU) of a major corporation has entered a new, high volume industry and has quickly captured a significant share of the market. According to the BCG (Boston Consulting Group) matrix, how would this SBU becategorized?
star
When managers develop the strategies for the organization for how it will compete successfully, they are engaged in ________.
strategic management
A company's ________ spell(s) out how the organization will do what it does, how it will compete successfully, and how it will attract and satisfy customers in order to achieve its goals.
strategies
A company's brand recognition is strong. In terms of an internal/external analysis, this would be classified as a(n) ________.
strength
In terms of an internal/external analysis, loyal employees, low turnover, and a well-trained workforce would be examples of a ________.
strength
A retail competitor is building a new facility within a few blocks of your store. In terms of an internal/external analysis, this would be classified as a(n) ________.
threat
One of GTO Industries' key suppliers is in the midst of a labor dispute and workers have gone on strike. In terms of an internal/external analysis, this would be an example of a(n) ________.
threat
In terms of an internal/external analysis, the use of obsolete technology in an outdated facility would be considered a(n) ________.
weakness
According to the Boston Consulting Group (BCG) matrix, a question mark has ________ market share and ________ anticipated growth rate.
low; high
