Chapter 1-6 Strategic Management

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Which of the following statements is​ TRUE?

If a firm possesses many​ highly-weighted strengths, this is likely the result of effective​ strategies, so higher ratings in general are warranted for strengths.

The bargaining power of consumers can be the most important force affecting competitive advantage. Consumers gain increasing bargaining power under the following​ circumstance:

If consumers are particularly important to the seller

Under which condition can consumers gain increasing bargaining​ power?

If they can inexpensively switch to a substitute

Which statement below is​ FALSE?

In a​ QSPM, the range for Total Attractiveness Scores is 1​not attractive, 2somewhat ​attractive, 3reasonably ​attractive, and 4highly attractive.

The chapter lists six reasons why many mergers and acquisitions​ fail, including which of the​ following?

Inability to achieve synergy

In developing an IFE​ Matrix, what is an important​ guideline?

Include factors that are​ actionable, quantitative,​ comparative, and divisional​ (AQCD) to the extent possible.

What ties all business functions together and provides the basis for all managerial​ decisions?

Information

In conducting a marketing​ audit, which of the following would NOT be a question to​ ask?

Is the​ organization's structure​ appropriate?

The Industrial Organization view of strategic planning advocates that external​ (industry) factors are more important than internal ones for gaining and sustaining competitive advantage. Do the authors​ agree?

No. Matching key external opportunities and threats with key internal strengths and weaknesses provides the basis for successful strategy formulation.

Nonprofit organizations are basically just like​ for-profit companies except for two major differences. What is one of the​ differences?

Nonprofits do not pay taxes or have shareholders.

Which of the following is an example of an appropriately stated alternative strategy in a​ QSPM?

Open 250 new stores in China.

If included in a mission​ statement, the​ phrase, "We follow the golden rule in all that we​ do" would satisfy what​ component?

Philosophy

​______ is the process by which a person determines whether to attempt a​ task, works out the most effective way of reaching desired​ objectives, and prepares to overcome unexpected difficulties with adequate resources.

Planning

According to Michael​ Porter, the nature of competitiveness in a given industry includes what​ force?

Potential development of substitute products and bargaining power of consumers

Four companies​A, ​B, C, and Dhave revenues of​ 1, 2,​ 3, and​ 4, respectively. Company C develops a BCG Matrix. What would the RMSP be for company C if all four firms have the same net​ income?

0.75

According to Michael​ Porter, strategies allow organizations to gain competitive advantage from two different bases. What are the​ bases?

Cost leadership and differentiation

According to​ Porter, strategies allow organizations to gain competitive advantage from two different bases. What are the​ bases?

Cost leadership and differentiation

​______ is the unique way an organization does business. It is the human dimension that creates solidarity and​ meaning, and it inspires commitment and productivity in an organization when strategy changes are made.

Culture

Which of the following is considered an unpublished source for external​ information?

Customer surveys

Which of the following is considered a published source for external​ information?

Directories

When a core competence evolves into a major competitive​ advantage, what is it​ called?

Distinctive competence

When comparing mission statements of rival​ firms, perhaps the most important component to examine is​ what?

Distinctive competence

The largest​ consumer-products company in the​ world, Procter​ & Gamble​ (P&G), is in the process of selling more than half of its brands​ (nearly 100) in order to focus on its core brands​ (about 80). What is this strategy​ called?

Divestiture

When a firm sells a division of the​ organization, it is utilizing which​ strategy?

Divestiture

The input stage of the​ strategy-formulation analytical framework includes the​ ______Matrix.

EFE

what analysis is included in the excel student template that aims to assist students in determining the extent that debt versus equity should be used to finance a set of recommendations?

EPS-EBIT analysis

What is the most widely used method for determining an​ organization's strengths and weaknesses in the​ investment, financing, and dividend​ areas?

Financial ratio analysis

Limitations of financial ratio analysis include all but which one of the following​ statements?

Financial ratios are estimates of financial condition.

The Global Capsule in Chapter 5 says perhaps the best variable to monitor and to use to decide where to begin doing business is what​ factor?

Gross Domestic Product

one benefit of strategic planning is that it allows a firm to be ______ in shaping its own future

proactive

to survive and prosper, a business must gain and sustain ____ major competitive advantages over rival firms

at least several

the CEO of LinkedIn is Jeff Weiner, a highly respected corporate leader. what does Weiner say is the most important philosophy of a great leader?

be clear about the organization's vision

which of the following is a pitfall of strategic planning?

being so formal in planning that flexibility and creativity are stifled

To examine the value chain activities across an industry to determine​ "best practices" among competing​ firms, an organization would use an analytic tool known as​ ______.

benchmarking

the Excel strategic planning template includes all the following analyses EXCEPT

benchmarking

Strategists use​ ______ to provide a firm with proprietary business intelligence.

business analytics

all elements of the strategic planning process can change over time except one element that almost never changes. what is that element?

core value statement

to create an excellent vision and mission, a firm needs core values. these core values ______ for the vision or mission.

create an ethical foundation

Why are both profit and vision needed to motivate a workforce​ effectively?

Profit is viewed negatively by some stakeholders of a firm.

Which statement below is​ FALSE?

Successful strategists are commonly difficult to get along with in social settings.

Which statement below is​ FALSE?

Successful strategists are generally iridescent.

As common positions in firms​ today, chief information officers​ (CIOs) reflect the growing importance of the impact of which external​ force?

Technological

What is a major limitation of the BCG​ Matrix?

The BCG Matrix does not reflect whether various divisions or their industries are growing over time.

Hobby Lobby CEO David Green​ says, "The secret to being a great manager is to manage by the​ book." To what book is he​ referring?

The Bible

Which matrix is based on the two evaluative dimensions of competitive position and market​ (industry) growth?

The Grand Strategy Matrix

Which statement below is​ FALSE?

The average IFE Matrix score is 2.0.

Which of the following is NOT true of the SPACE​ Matrix?

The axes represent four internal dimensions.

Which of the following is a condition that leads firms to​ "borrow" capabilities through joint ventures or strategic​ alliances?

The costs and risks of merging are too high.

An example of an economic variable is​ "value of the ​dollar" which is currently high compared with the​ Yen, Euro, and the Australian dollar. The high dollar results in what economic​ factor(s)?

The high dollar makes U.S. goods more expensive in overseas markets.

According to James Van​ Horne, the basic activities of​ finance/accounting consist of three decisions. What are the​ three?

The investment​ decision, the financing​ decision, and the dividend decision

Historically, where did strategic planning originate?

The military

Backward integration can be an especially effective strategy under which of the following​ conditions?

The number of suppliers is small and the number of competitors is large.

Retrenchment may be an especially effective strategy to pursue under which of the following​ conditions?

The organization is being pressured by stockholders to improve performance.

There are four important differences between the BCG Matrix and the IE Matrix. Which statement below is NOT a difference between the two​ matrices?

The sizes of the circles and pie slices can vary.

Which of the following is NOT a risk of pursuing a cost leadership​ strategy?

The unique product may not be valued highly enough by customers to justify the higher price.

A​ meta-analysis of 20 years of empirical research on mission statements came to what​ conclusion?

There is a positive relationship between mission statements and measures of financial organizational performance.

Which of the following statements is​ TRUE?

There is no one best mission statement for a particular organization.

Which of the following statements is​ FALSE?

The​ resource-based view​ (RBV) approach to competitive advantage contends that internal resources are equally important for a firm as external factors in achieving and sustaining competitive advantage.

The dollar amounts of alternative strategies should all be added to reveal a total amount of new capital needed over what time​ period?

Three years

Which of the following is a reason for a firm to initiate a leveraged buyout​ (LBO)?

To avoid a hostile takeover

What is the most important part of an external​ audit?

To develop a finite list of opportunities that could benefit a firm as well as threats that should be avoided or mitigated

King and Cleland recommend that organizations carefully develop a written mission statement in order to reap which​ benefit?

To provide a basis for the allocation of resources

What is the difference between the Type 3 and Type 4 levels of a differentiation​ strategy?

Type 3 has a broad target market and Type 4 has a narrow target market.

Amazon.com is planning to enter the​ $412 billion pharmacy business. Which type of diversification does this​ represent?

Unrelated diversification

What strategy may be best under the following​ conditions? The organization competes in a highly competitive or a​ no-growth industry, as indicated by low industry profit margins and returns. The​ organization's present channels of distribution can be used to market new products to current customers. New products have countercyclical sales patterns compared with an​ organization's present products. The​ organization's basic industry is experiencing declining annual sales and profits.

Unrelated diversification

which of the following activities is included in strategy implementation?

develop a strategy-supportive culture and create an effective organizational structure

what is often considered the first step in strategic planning?

developing a vision statement

In generating the list of critical success factors in a​ CPM, a firm should strive to include factors that​ ______.

differentiate firms within the industry

For nonprofit and governmental​ organizations, strategic management is an important means to develop and justify requests for needed​ ______.

financial support

one specific skill students can gain from this course is ______

formulating strategies using a SWOT analysis

Gaining ownership or increased control over distributors or retailers is called​ _____.

forward integration

An effective means of implementing forward integration is​ ______.

franchising

a mission statement should be written

from a customer perspective

The​ resource-based view emphasizes the importance of​ ______.

internal resources

the strategic-management process can be described as an objective, logical, systematic approach for making major decisions in an organization. however, it is generally recognized that _____ is essential to making good strategic decisions

intuition

The decision stage of the​ strategy-formulation analytical framework​ ______.

involves a single​ technique, the QSPM

Which of the following is NOT a pitfall of strategic planning?

involving key employees in all phases of planning

warby parker's vision to, "Give access to the 1 billion people on Earth without access to glasses" is particularly effective because

it is written from the customer perspective

what is the primary benefit for professors when students use the Excel student template?

it makes interacting with students easier

which of the following is a characteristic of a good mission statement?

it reveals that the firm is socially responsible

what is the primary benefit for students of using the Excel student template?

it take the mechanics, such as drawing circles and multiplying weights by ratings, out of the project

A classic study of strategic management found that successful strategists​ ______.

kept a low political profile on unacceptable proposals

which of the following is listed in the chapter as a reason often given for poor or no strategic planning in a firm?

laziness

Research indicates that strategic management in small firms is most likely​ ______.

less formal than in large firms.

official business failure calculations include

liquidations and court mandated receiverships

External forces can be divided into five broad categories and ten subareas EXCEPT in which of the​ following?

marketing

a meta-analysis of 20 years of empirical research on mission statements concluded there is a positive relationship between mission statements and

measures of financial performance

Does including the word​ "customer" in a mission statement ensure the statement includes the customer​ component?

no

some firms view planning as a waste of time because ____

no product or service is produced

Empirical​ indicators, or characteristics of resources that enable a firm to implement​ strategies, include​ ______.

not easily substitutable

The IFE Matrix is an evaluation of the effectiveness of a​ firm's current​ strategies, but it does not take into account​ ______.

opportunities and threats

Which two management functions are most important at the​ strategic-management process stage of strategy​ implementation?

organizing and motivating

guidelines, rules, and procedures established to support implementation efforts are called

policies

For industries and firms that depend heavily on government contracts or​ subsidies, which forecasts can be the most important part of an external​ audit?

political

according to the chapter, the worst thing strategists can do is to develop strategic plans and then

present the plans to operating managers to execute

a fundamental strategy evaluation activity includes

reviewing external and internal factors that are the bases for current strategies, measuring performance, and taking corrective actions

Target recently joined Best Buy in offering to match online prices of rival retailers. Both companies are seeking to combat​ ______ by shoppers who check out products in their stores but buy them on​ rival's websites.

showrooming

It is important that both the internal and external factors and the​ SO, ST,​ WO, and WT strategies are stated in​ ______ terms.

specific

According to the BCG​ Matrix, forward,​ backward, and horizontal​ integration; market​ penetration; market​ development; and product development are appropriate strategies to consider for ​______.

stars

which of the following is NOT identified as a component of mission statements?

stock price

the term strategic planning is used synonymously in this text with what other term?

strategic management

when warby parker's founders formulated, implemented, and evaluated cross-functional decisions that enabled them to meet their organizational objectives of providing less expensive eyeglasses, they engaged in

strategic management

____ is the science of planning and directing large scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy

strategy

building four new manufacturing plants in Europe is an example of a(n)

strategy

at first, warby parker sold eyeglasses online; then it sold eyeglasses with a "virtual try-on" option. Finally, it offered a "try on at home" approach. Each of these changes were precipitated by the founders engaging in which of the following?

strategy evaluation

in which stage of the strategic management process is an organization likely to develop a mission statement?

strategy formulation

the strategic management process begins with

strategy formulation

warby parker established a vision and mission that included selling at lower price points than other sources and helping those who could not afford lower price points. this process was part of the company's exercise in

strategy formulation

Warby parker underwent as it devised policies, motivated employees, and allocated resources so that formulated strategies could be executed efficiently

strategy implementation

perhaps the best way to develop a skill for writing and evaluating mission statements is to _____

study actual company missions

VCA is the process whereby a firm determines the value​ (price minus​ cost) of each and all activities​ ______.

that went into producing and marketing a product

What does the​ y-axis of the IE matrix​ represent?

the EFE total weighted scores

The​ strategy-formulation tool that summarizes and evaluates the major strengths and weaknesses in the functional areas of a business is​ ______.

the Internal Factor Evaluation Matrix

recent research by rose and cray examined the strategic management process and concluded that perhaps the most important "activity" is what?

the feedback loop

the focus of strategic management is

the integration of all the functional areas of the business to achieve its organizational success

quality mission statements identify the ____ of a firm's products to its customers

utility

in a business, which of the following should be established first?

vision statement

a mission statement reveals _____

what an organization wants to be and whom it wants to serve

the vision statement answers which of the following questions?

what do we want to become?

warby parker's mission statement, "to be a force for good world" answers which of the following pivotal questions that is essential for objectives and formulating strategies effectively?

what is our business?

According to​ Drucker, the most important time to ask​ seriously, "What do we want to​ become?" and​ "What is our​ business?" is​ ______.

when a company has been successful

according to the model used in this text, what should be answered when developing a strategic plan?

where are we now, where do we want to go, and how are we going to get there?

In multidivisional​ organizations, should divisional units perform​ strategic-management tasks, including the development of their own statement of vision and​ mission?

yes

Is the following statement​ TRUE? A benefit of developing a comprehensive mission statement is that divergent views among managers can be revealed and resolved through the process.

yes

In​ 2018, global data analytics software is expected to reach​ ______ billion, a​ ______ percent increase from 2012.

​$21.7; 64

If a company has high customer loyalty​ (like Harley-Davidson​ does), what rating would be appropriate for that factor in a SPACE​ Matrix?

​-1 on CP axis

An industry can be stable or unstable on​ SP, yet high or low on IP. The smartphone​ industry, for​ instance, would be unstable​ (_____) on SP yet​ high-growth on​ IP, whereas the canned food industry would be stable​ (_____) on SP yet​ low-growth on IP.

​-6; -2

In an EFE​ Matrix, how much more important is a rating of 4 than a rating of​ 3?

​33%

In an EFE​ Matrix, how much more important is a weight of 0.20 than a weight of​ 0.15?

​33%

Human resource​ (HR) management includes activities such​ as:

​Disciplining, promoting,​ transferring, and demoting

Going clockwise beginning with the top​ axis, what are the four axes of a SPACE​ Matrix?

​FP, IP,​ SP, and CP

Objectives should include which of the following​ characteristics?

​Measurable, challenging, and hierarchical

What are the four basic activities that comprise​ management?

​Planning, organizing,​ motivating, and controlling

What are the four types of strategies generated by a SWOT​ analysis?

​SO, WO,​ ST, and WT

Which of the following is NOT true concerning​ forecasts?

​Sometimes, wild guesses are acceptable as forecasts.

A mission statement should include the following​ components:

​Survival/growth/profitability, philosophy,​ self-concept, and public image

When identifying and prioritizing key external factors in strategic​ planning, four criteria should be met to the extent possible. What are these four​ criteria?

​actionable, quantitative,​ comparative, and divisional

Which of the following are the 5 characteristics of​ objectives?

​quantitative, understandable,​ challenging, compatible, obtainable

In both the BCG and IE​ Matrices, the size of each circle represents the percentage of​ _______ contribution of each​ division, and pie slices reveal the percentage of​ _____ contributed of each division to the company.

​revenues; operating profits

What​ characteristic(s) are included among the 5 out of 5 test for vision statements to be​ exemplary?

Clear and unique

Which of the following is NOT a benefit of establishing clear​ objectives?

Clear objectives provide the basis for creativity.

Which SPACE Matrix quadrant implies staying close to the​ firm's basic competencies and not taking excessive​ risks?

Conservative

strategic management is based on the idea that organizations should monitor internal and external trends

continually

The management function of​ _______ is particularly important for strategy evaluation.

controlling

Firms should use Value Chain Analysis​ (VCA) to develop and nurture a​ ______ competence and convert that into a distinctive competence.

core

An advantage of a strong dollar includes which of the following​ item(s)?

Companies importing goods have greater buying power because their dollars now go further overseas.

Which statement below is​ FALSE?

Companies should pay dividends regardless of changes in their revenue.

What would be an appropriate SP axis number for Apple​ Inc.?

-6

In an IFE​ Matrix, the weights of all factors included must add up to​ ______.

1.0

The weight column in an EFE Matrix must add up to what​ number?

1.0

The range of total weighted scores in a CPM Matrix is​ ______.

1.0 to 4.0

Which of the following EFE scores indicates that a firm is weak at responding to external​ factors?

1.2

The recommended length of a mission statement is fewer than​ _____ words.

100

In Step 1 of developing an EFE​ Matrix, how many opportunities and threats should be included in the full and narrow​ lists, respectively?

100, 20

In an IFE​ Matrix, how much more important is a weight of 0.16 than a weight of​ 0.07?

129 percent

In an EFE​ Matrix, the average total weighted score​ is:

2.5

How many key external factors should be included in an EFE​ Matrix?

20

Spending on digital advertising recently surpassed television advertising and is expected to reach nearly​ ______ billion dollars in 2020.

280

The time frame for​ long-term objectives and strategies should be​ consistent, usually from​ ______ to​ ______ years.

2; 5

The​ strategy-formulation analytical framework consists of how many stages and how many​ matrices?

3 and 9

Regarding the AQCD​ criteria, strive to include all high quality factors in an external assessment for a firm. A high quality factor will meet​ ______ of the AQCD​ criteria; a low quality factor will meet​ ______ of the AQCD criteria.

3 or​ 4; 2 or fewer

If a​ corporation's profits are​ $120, and its three divisions have​ $30, $80, and​ $10 of profits​ respectively, and equal​ revenues, what percent is the pie slice in Division​ 3?

33.3

Any industry whose annual growth in sales exceeds​ ______ percent could be considered to have rapid growth.

5

Most practitioners and academicians of strategic management feel that an effective statement should include​ ______ mission statement components.

9

Divestiture could be an effective strategy under which of the following​ conditions?

A division is responsible for an​ organization's overall poor performance.

The process of generating and selecting strategies should include which of the​ following?

A manageable set of the most attractive strategies

Secondary buyouts occur when what​ happens?

A private equity firm buys a firm from another private equity firm

What are two major types of​ bankruptcy?

Chapters 7 and 11

What do strategy analysis and choice seek to​ determine?

Alternative courses of action

When should a vision statement reveal the type of business in which the firm​ engages?

Always

Which of the following is a guideline for indicating that product development may be an effective​ strategy?

An organization competes in a​ high-growth industry.

Which statement​ FALSE?

An outside person with expertise in developing vision and mission statements who has unbiased views should always manage the​ statement-development process.

Aspects of organizational culture listed in Table​ 4-4 include all but which of the​ following?

Analyze interest rate trends

Which of the following statements is​ FALSE?

Apple​ Computer's mission statement should open the possibility for diversification by Apple into pesticides.

If an​ organization's present suppliers are especially​ expensive, unreliable, or incapable of meeting the​ firm's needs for​ parts, components,​ assemblies, or raw​ materials, what strategy is​ best?

Backward integration

​Boeing's decision to build​ 80% of its wing flap motors​ in-house is an example of which​ strategy?

Backward integration

Which of the following is NOT one of​ Porter's five​ forces?

Barriers to entry

According to Vern​ McGinnis, a mission statement should do​ what?

Be limited enough to exclude some ventures and broad enough to allow for creative growth

Why is it important to consider a​ firm's culture in strategy and choice​ analysis?

Because success can rest on the degree of support received from the​ firm's culture.

The text states that perhaps the most important page in a​ student's strategic planning case project is​ his/her Recommendations Page. Why is​ this?

Because the recommendations page will include the estimated dollar amount of the costs​ (or savings) of each alternative

What type of strategy aims to target a new market where competition is not yet present instead of going where many firms are already competing on price and the gains of one firm are often at the expense of​ another?

Blue ocean

​______ is a popular strategy that occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity.

Joint venture

Which of the following statements is​ TRUE?

Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a​ CPM, it does not necessarily follow that the first firm is precisely​ 14.3% better than the​ second, but it does suggest that the first firm is better in some areas.

When an organization has pursued both a retrenchment strategy and a divestiture strategy and neither has been​ successful, then perhaps the best strategy is​ ______.

Liquidation

Lorsch found that executives in successful companies are emotionally committed to the​ firm's culture, but he concluded that culture can inhibit strategic management in the following​ way:

Managers frequently miss the significance of changing external conditions because they are blinded by strongly held beliefs.

The old​ adage, "If it​ ain't broke,​ don't fix​ it" pertains to which of the​ following?

Managing by extrapolation

What are the two dimensions used by the Grand Strategy​ Matrix?

Market growth and competitive position

What strategy seeks to increase market share for present products or services in present markets through greater marketing​ efforts?

Market penetration

The basic activities that comprise marketing include the​ following:

Marketing research and target market analysis

Which of the following best describes the​ vision, "To become the best retailing firm in the​ USA"?

Much too broad

In terms of growing globally by adding new​ customers, what company does the global Capsule 3 suggest may be the fastest growing​ company?

Netflix

In developing an IFE​ Matrix, when can both internal and external factors be​ included?

Never

Which of the following is a good guideline for indicating when market development may be an especially effective​ strategy?

New channels of distribution are available that are​ reliable, inexpensive, and of good quality.

The​ ______ Matrix determines the relative attractiveness of various strategies based on the extent that key external and internal factors are capitalized on or improved.

QSPM

Which matrix determines the relative attractiveness of feasible alternative​ strategies?

QSPM

Which statement below is​ FALSE?

QSPM analysis should be performed after​ EPS/EBIT analysis.

The AQCD test refers to the need for key external factors to exhibit what​ attributes?

Quantitative and divisional

Which of the following statements is​ FALSE?

Regarding weights in a CPM or EFE​ Matrix, be mindful that 0.08 is mathematically 25 percent higher than​ 0.06, so even small differences can reveal important perceptions regarding the relative importance of various factors.

Which of the following statements is​ TRUE?

Regardless of the number of key opportunities and threats included in an EFE​ Matrix, the highest possible total weighted score for an organization is 4.0 and the lowest possible total weighted score is 1.0.

Which region of the IE matrix would prescribe a hold and maintain​ strategy?

Region 2

What are the two dimensions represented on the BCG matrix​ axes?

Relative market share and industry growth rate

What is the name of the strategy that involves selling off land and buildings to raise needed​ cash, pruning product​ lines, closing marginal​ businesses, closing obsolete​ factories, automating​ processes, reducing the number of​ employees, and instituting expense control​ systems?

Retrenchment

According to Michael​ Porter, the nature of competitiveness in a given industry can be viewed as a composite of the forces. Which force is usually the most​ powerful?

Rivalry among competing firms

which of the following four types of strategies are developed in a SWOT analysis?

SO, WO, ST, WT

In developing a SPACE​ Matrix, what term​ (axis) refers to the volatility of profits and revenues for firms in a given​ industry?

SP

Which statement is a limitation of the​ SWOT?

SWOT does not show how to achieve a competitive​ advantage, so it must not be an end in itself.

Which of the following is NOT a benefit of being a first​ mover?

Secure access to widely available resources

In developing an IFE​ Matrix, do not allow more than 30 percent of the key factors to be financial ratios.​ Why?

Since financial ratios are generally the result of many​ factors, knowing what particular strategies should be considered based on financial ratios is difficult.

What source provides excellent online information and advice on approximately​ 1,700 stocks, more than 90​ industries, the stock​ market, and the​ economy, including company income statements and balance​ sheets?

Value Line Investment Survey

Which of the following statements is​ FALSE?

Value chain analysis and benchmarking are opposite ways to address the management of resources.

who said, "perfection is not attainable. but if we chase perfection, we can catch excellence"?

Vince Lombardi, head coach green bay packers (1959-67)

Which statement is​ FALSE?

Vision statements are more important than mission statements.

Regarding vision​ statements, which statement below is​ FALSE?

Vision statements should answer the question​ "What is our​ mission?"

A defensive strategy of the SWOT Matrix directed at reducing internal weaknesses and avoiding external threats is ​______.

WT

what question does a mission statement answer?

What is our business or reason for being?

Asking the​ question, ______ is synonymous with​ asking, "What is our​ mission?"

What is our​ business?

What is​ Rudin's Law?

When a crisis forces choosing among​ alternatives, most people choose the worst​ possible one.

Which of the following statements is​ TRUE?

When assigning weights and ratings in developing an IFE​ Matrix, focus on a narrow industry perspective.

The two general types of diversification strategies are related diversification and unrelated diversification. When are businesses said to be​ related?

When their value chains possess competitively valuable​ cross-business strategic fits

When is it especially important to evaluate and consider​ culture-strategy linkages?

When two firms merge

Which of the following statements is​ TRUE?

Wild guesses should never be made in formulating​ strategies, but reasonable assumptions based on available information must always be made.

Are the interpretations of the weights in a CPM and EFE Matrix the​ same?

Yes

In a QSPM​ analysis, would it ever be appropriate or useful for a company not to include a weight column at​ all, but rather total the AS columns to determine the relative attractiveness of six​ strategies?

Yes

Which of the following statements is​ FALSE?

You may assign the same rating to firms included in a CPM analysis if the firms are similar on the respective factor.

Marketers can best use their strategic toolbox to ensure that their​ firm's offering delivers value to target customers when there is​ ______.

a clearly defined target market

strengths and weaknesses can be determined by elements of being rather than performance. For example,

a strength may involve ownership of natural resources

What element of strategic management answers the question "What do we want to become?"

a vision statement

To the extent​ possible, internal​ strength/weakness factors should meet the four AQCD criteria. Two of these criteria are​ _____.

actionable and comparative

Internal politics​ ______.

affect the choice of strategies in all organizations

chapter 11 bankruptcy

allows organizations to retrench, reorganize, and come back after filing a petition for protection

in great companies, core values

almost never change

Related diversification may be an effective strategy when​ ______.

an organization competes in a​ no-growth or​ slow-growth industry

The extent to which a manufacturing​ plant's output reaches its potential output is called​ ______, a key strategic variable.

capacity utilization

First mover advantages refers to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms. An advantage of being a first mover is​ ______.

carving out market share and a position that is easy to defend and costly for rival firms to overtake

In a BCG​ Matrix, divisions in Quadrant III​ (lower left) have a high relative market share position but compete in a​ low-growth industry. They are called​ ______.

cash cows

Financial ratio analysis should be conducted on three separate​ fronts, which include​ ______.

change over​ time, comparison to industry​ norms, and comparison to key competitors

an effective vision statement should exhibit 5 characteristics. what are they?

clear, futuristic, concise, unique, inspiring

according to chapter 1, _____ may be the most important word in management

communication

Dale McConkey said, "Plans are less important than planning." What does this statement mean?

communication, understanding, and commitment are vitally important in strategic planning

Apple's financially lean position with regard to manufacturing facilities provides the firm with a _____ over Sony, which invests heavily in manufacturing facilities.

competitive advantage

analytical thinking and intuitive thinking

complement each other

Business strategy is based on the assumption of competition. Upon which assumption is military strategy based?

conflict

according to the authors of the text, what is the most important component of a mission statement?

distinctive competence

Strengths that cannot be easily matched or imitated by competitors are called​ _____.

distinctive competencies

Strengths that cannot be easily matched or imitated by competitors are called​ ______.

distinctive competencies

When an organization splits into two or more​ parts, this type of strategy is a​ _____.

divestiture

according to the chapter, a pitfall to watch for and avoid in strategic planning is

doing strategic planning only to satisfy accreditation or regulatory requirements

a firm can achieve sustained competitive advantage by

effectively formulating, implementing, and evaluating strategies that capitalize on changes in trends and internal capabilities

_______ is the act of strengthening employees' sense of effectiveness by encouraging them to participate in decision making and to exercise initiative and imagination, and then rewarding them for doing so

empowerment

three primary intrinsic benefits of strategic planning include

enhanced communication, deeper understanding, and greater commitment

warby parker's founders hated paying $500 or more for eyeglasses and knew the eyeglass market was dominated by a few multinational companies. when they developed their $95 strategy for eyeglasses and accompanying technology solution as well as a strategy for providing eyeglasses for those in need they were

establishing their competitive advantage

The EFE Matrix provides an empirical assessment of how well a firm is handling​ ______.

external factors overall

Being​ a(n) _______ can be an effective strategy in industries where technology is rapidly advancing.

fast follower

An excellent source of industry​ information, including industry profiles and trade statistics for many​ industries, is provided at what​ website?

http://globaledge.msu.edu/industries/

the logical starting point for strategic management is to

identify the existing vision, mission, objectives, and strategies

One difference between a Competitive Profile Matrix and an EFE is that critical success factors​ ______.

in a CPM include both internal and external issues

In​ forecasting, strategists identify future occurrences that could have a major effect on the​ firm, and, based on that make​ __________.

reasonable assumptions

The​ "markets" component of mission statements refers to​ the_____.

regions in which the company operates

In a BCG​ Matrix, ______ is defined as the ratio of a​ division's own market share​ (or revenues) in a particular industry to the market share​ (or revenues) held by the largest rival firm in that industry.

relative market share position

even when students use the excel student template, they still must do the _____ in preparing a strategic plan.

research and thinking

what should a vision statement reveal?

the type of business a firm conducts

the principal benefit of vision and mission statements as tools of strategic management is derived from

their specification of the ultimate aims of a firm

which of the following is a reason some firms do not engage in strategic planning?

they receive no formal training in strategic management

unskilled leaders work out their conflicts in courtrooms and battlefields. brilliant strategists rarely go to battle or to court. How do they usually achieve their objectives?

through tactical positioning well in advance of any confrontation

one broad skill students can gain by taking this course is

to define and solve problems and make decisions about a particular situation

generally, in war, the best policy is to take a state intact rather than to ruin it. likewise, the best objective is to capture the enemy's army, regiment, company, or squad intact rather than destroy them. winning 100 victories in 100 battles is not the epitome of skill. what is the epitome of skill?

to subdue the enemy without fight

according to recent research by Caddy, Fiske, and Glick, what ethics variable(s) is most important in doing business?

trustworthiness

chapter 7 bankruptcy

used only when a corporation sees no hope of being able to operate successfully or to obtain the necessary creditor agreement. all assets are sold in part for their tangible worth


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