Chapter 8- Strategy Formulation and Execution

Which of the following pertains to the organization as a whole?

Corporate-level strategy

Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry

Differentiation

Which of these is true about the dog division?

It has a small share of a slow growth market.

When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line

synergy

Which of the following is Not one of Porter's competitive forces? Bargaining powers of supplies (b) Bargaining powers of customers (c) Bargaining power of stockholders (d) Potential new entrants (e) rivalry among competitors

Bargaining power of stockholders. Which of the following is Not one of Porter's competitive forces? Bargaining powers of supplies (b) Bargaining powers of customers (c) Bargaining power of stockholders (d) Potential new entrants (e) rivalry among competitors

The BCG matrix organizes along which of the following dimensions?

Business growth rate and market share

When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued?

Business-level strategy. When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued? Business-level strategy

According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share?

Cash cow. According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share? Cash Cow

Which of the following is a business activity that an organization does especially well relative to its competition? a. Strategy b. Cash cow c. Synergy d. Core competence e. Multidomestic

Core Competence

Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry?

Differentiation

Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry? . Focus b. Cost leadership c. Internal growth-wrong d. Differentiation e. Liquidation

Differentiation

Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?

Differentiation. Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices? Differentiation

Which of the following lists the strategic management process in proper order?

Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy.

Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low? a. Globalization b. Transnational c. Export d. Multidomestic e. Import

Export

Which of these is true about the cash cow? a. It has a large market share in a slow growth industry. b. It is generally a dead business that should be divested. c. It generates tremendous profits in a rapidly growing industry. d. It has a small market share in a rapidly growing industry. e. It has a small market share in a slow growth industry.

It has a large market share in a slow growth industry. Which of these is true about the cash cow?

Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to implement strategy?

Leadership

Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices? a. Liquidation b. Focus c. Differentiation d. Globalization e. Overall cost leadership

Liquidation

_____ refers to the modification of product design and advertising strategies to suit the specific needs of individual countries.

Multidomestic strategy

Gillette operates numerous strategic business units. Most of its units in the personal care division have low market share but high business growth. These units are classified as _____.

Question mark exists in a new, rapidly growing industry, but only has a small market share.

Semway, a regional bank, recently announced that it would soon begin offering financial planning services. This is an example of which of these?

Related diversification

According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share? a. Asterisk b. Dog c. Cash cow d. Star e. Question mark-wrong

Star

What type of organizational unit has a unique business mission, product line, competitors, and markets relative to other units in the same corporation?

Strategic business unit

Which of the following refers to the planning and decision making that lead to the establishment of the organization's goals and of a specific strategic plan?

Strategy formulation

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?

Synergy

Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low?

Transnational

When an organization expands into a totally new line of business, it is implementing a strategy of:

Unrelated diversification. When an organization expands into a totally new line of business, it is implementing a strategy of: unrelated diversification

Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with?

What business are we in?

Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified a

a star

Ford's decision to completely redesign its Ford Taurus can be classified as a:

business level strategy.

Decisions regarding the proper amount of advertising for a particular good or service are related to:

business-level strategies.

When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a _____.

business-level strategy

When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a ____

corporate-level strategy

The _____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors.

cost leadership. The cost leadership strategy involves seek efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors.

To remain competitive, companies should develop strategies that focus on core competencies, providing synergy, and creating value for

customers

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n) _____.

strategy

The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as:

synergy

Decisions regarding the proper amount of advertising for a particular good or service are related to: a. retrenchment strategies. b. tactical-level strategies.- wrong c. corporate-level strategies. d. functional-level strategies. e. business-level strategies.

business level strategies

When AT&T decided to buy Media One, a cable company, it was pursuing a(n) _____ strategy a. multi-domestic b. internal growth c. functional-level d. corporate-level e. business-level- wrong

corporate-level

Sears' decision to sell off much of its financial services division is an example of

corporate-level strategy

All of the following are Porter's competitive forces except: a. differentiation. b. potential new entrants. c. bargaining power of suppliers. d. bargaining power of buyers. e. threat of substitute products.

differentiation.

All of the following are Porter's competitive forces except: a. bargaining power of suppliers. b. differentiation. c. potential new entrants. d. bargaining power of buyers. e. threat of substitute produc

differentiation.

The purpose of _____ is to expand the firm's business operations to produce new kinds of valuable products and services?

diversification

Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) _____. a. internal strength b. external opportunity-wrong c. external weakness d. congressional chaos e. external threat

external threat

Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) _____.

external threat.Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) external threat

The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.

human resource

The star has a

large market share in a rapidly growing industry.

How business units and product lines fit together in a logical way is the essence of:

portfolio strategy.How business units and product lines fit together in a logical way is the essence of: portfolia

Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will:

search for the strengths, weaknesses, opportunities, and threats that impact his firm.

The question mark has a:

small market share in a rapidly growing industry.

The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as:

strategic management. The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational is strategic management