Chapter 6. Strategic Management

A values statement should include which of the following?

An organization's core priorities What the organization stands for The values employees embody

Porter's competitive strategies include which of the following?

Cost-leadership Cost-focus Differentiation Focused-differentiation

Which of the following would be included in the contingency planning process?

Different economic pictures Different budgets Different strategies by competitors

According to Bryan Barry, there are four things a manager can do to keep a strategic plan on track. Select all that apply.

Engage people Keep moving Stay focused Keep it simple

Which of these businesses is using a single-product strategy?

Fiona's Floral Shop sells only fresh cut flowers

A(n) __________________ analysis is a search for the strengths, weaknesses, opportunities, and threats affecting the organization.

SWOT

Match the BCG matrix strategy category (on the left) with its description (on the right) Stars - Slow growth but high market share Question Marks - Low growth and low market share Cash Cows - Risky new ventures Dogs - High growth and high market share

Stars - High growth and high market share Question Marks - Risky new ventures Cash Cows - Slow growth but high market share Dogs - Low growth and low market share

Companies pursing a cost-leadership strategy keep costs/prices _____________ those of competitors and target a ___________ market.

below; wide

Anita felt that it was important for her taxi company to continually measure itself against its best competition. She kept track of the number of rides per hour and turnaround times for all her drivers and compared it to that of the high-performing taxi group in the next town. Anita is using the process of ______________ to compare her company with another.

benchmarking

The purpose of ____________________ is to gain information about the activities of other companies in order to anticipate their moves and react accordingly.

competitive intelligence

In terms of a SWOT analysis, organizational _________________ are environmental factors that hinder an organization's achieving a competitive advantage.

threats

Ash has been asked to write a statement to describe what the organization stands for, or its ______________.

values

Within a SWOT analysis, the letter "W" represents a company's ______________.

weaknesses

Which of the following statements about execution are true?

- Execution can serve to align people with goals. - Execution means achieving promised results. - Execution consists in part of questioning and analysis.

Which of the following questions should be answered "yes" by a company's vision statement? - Is it formative? - Is it inspiring? - Is it positive? - Is it traditional?

- Is it inspiring? - Is it positive?

Identify the three key principles that underlie strategic positioning.

- Strategy requires trade-offs in competing. - Strategy involves creating a "fit" among all activities in the organization. - Strategy is the creation of a unique and valuable position in the market.

Which of the following are part of Porter's Five Competitive Forces?

- Threat of substitute products or services - Rivalry among competitors - Bargaining power of buyers - Bargaining power of suppliers (look at page 185)

Place the steps in the strategic-management process in the correct order, with the first step listed at the top.

1. Establish the mission and vision 2. Asses the current reality 3. Formulate the grand strategy 4. Implement the strategy 5. Maintain strategic control

Kevin realized that while it was likely that the cost of importing fabric from India would remain about the same, it was also likely that it could increase by at least 5% because of recent government tax regulations. For this reason, he decided to stock up on certain fabrics in case prices increased. This creation of an alternative scenario is an example of __________________.

contingency planning

Porter's competitive strategy that seeks to offer products or services that are of a unique and superior value to those of competitors and that target a wide market is referred to as _________________.

differentiation

Operating several businesses in order to spread the risk is the goal of a _______________ strategy. (type only one word in the blank)

diversification

Business growth rate, as used in the BCG matrix, is concerned with how fast the _______ is (are) growing.

entire industry

Specialty stores with high-end products such as Cartier jewelry offer products that are of unique and superior value compared to those of competitors. This is an example of the ______________-differentiation strategy.

focused

A ____________ is a vision or projection of the future that is made following a SWOT analysis.

forecast

Jamie's soda manufacturing company performed a recent SWOT analysis and forecasted that at least 40% of the population would consume more soda over the next two years. This vision of what could happen is known as a __________________.

forecast

A _______________ strategy involves expansion in some aspect of the business, such as sales revenue, market share, and number of employees, or number of customers or clients served.

growth

The organization's ____________________ statement expresses the organization's purpose or reason for being.

mission

When pursuing a cost-focus study strategy, a company would target a _________________ (wide or narrow?) market.

narrow

An organization that attempts to achieve sustainable competitive advantage by preserving what is distinct about it may perform activities different from those of its rivals or may perform similar activities but in different ways. This is known as strategic _____________.

positioning

Environmental _______________ is the careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plan.

scanning

In a __________________ strategy, a company makes and sells only one product within its market.

single-product