MGMT 405 - SB 8

A fine food chain based in the U.S. reached out to a world-renowned chef and a popular French winery, and suggested that they go into business together in the U.S., France, and Belgium. What kind of agreement was the food chain suggesting?

A joint venture

From a managerial perspective, what is the purpose of formulating a set of corporate strategies?

To help them achieve the corporation's mission

If a brewery decides to expand by buying the farms that produce the ingredients, this is an example of ______ integration.

backward vertical

Expanding a company's operations into an industry that produces inputs for its products is ______ vertical integration.

backward vertical integration

A plan to gain a competitive advantage in a particular market or industry is a ______ strategy.

business-level

The third step in the planning process is ______.

choosing the most effective way to put strategies into action

The downside of using the franchise strategy is that franchisers risk losing ______ over the way the franchisee operates the franchise.

control

Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service is an example of a ______ strategy.

differentiation

Managers use a ______ strategy to distinguish their products from those of their competitors by focusing on characteristics such as design, quality, and after-sale service.

differentiation

To perform the planning task, managers must first ______.

establish where the organization is at the present time

The corporate-level strategy of related diversification means companies enter an industry that creates a competitive advantage for an organization's ______.

existing division or business

With exporting, there are ______ risks involved compared to opening a manufacturing plant abroad.

few

Companies that try to specialize in one segment of the market and undercut the prices of the other sellers in the market are using a ______ strategy.

focused low-cost

Managers pursuing a ______ strategy serve one or a few segments of the overall market and aim to make their organization the lowest-cost company serving that segment.

focused low-cost

Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is called ______.

franchising

When a corporation sells the rights to use its name and expertise to a foreign company in exchange for a lump sum of money, it is called ______

franchising

In large organizations, planning usually takes place at three levels of management. They are _____, ______, and ______. (Choose all appropriate responses.)

functional business corporate

Michael Porter suggests that when managers choose a business-level strategy, their organization should ______ in a particular market.

gain a competitive advantage

A corporate-level strategy is a plan of action that involves choosing in which industries and countries a company should invest its resources to achieve its: (Choose all that apply.)

goals mission

The risks associated with licensing is that the company granting the license: (Choose all that apply.)

has to give access to its technological know-how. risks losing control of its secrets.

The five forces model identifies the factors as major threats because they affect ______.

how much profit competitors within the same industry can expect to earn

A company engaged in ______ sells products at home that are made abroad.

importing

When two or more companies form a strategic alliance to to jointly establish and share the ownership of a new business, it is a(n) ______.

joint venture

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is ______.

licensing

When companies utilize a global strategy for international expansion, they will undertake _______ of their products to suit the specific needs of customers in different countries.

little, if any, customization

When managers make the decision to price their products below that of their competitors, they are using a ______ strategy.

low-cost

A broad declaration of an organization's purpose and the company's products and customers is identified in the company's ______.

mission statement

A strategy that is customized and marketed to accommodate particular national conditions is a ______ strategy

multidomestic

When a company customizes its products and marketing to fit specific national conditions, it is following a ______ strategy.

multidomestic

While defining a business and answering questions about their company's products, managers can identify: (Choose all that apply.)

present customer needs. who their true competitors are. future customer needs.

Jeremy forecasts what might happen if his company were to launch their new product into the market according to different schedules, prices, and features. He's thinking of making decisions to customize based on what he knows of his competitors' schedules and features. Jeremy is engaging in ______ planning.

scenario

The generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions is ______.

scenario planning

A company chooses a global strategy when it wants to sell ______ products while maintaining the same basic marketing approach in all competitive markets.

standardized

When the same situation occurs repeatedly, ______ plans are used.

standing

The CEO and top managers use ______ to communicate to their managers and other employees a compelling vision of what they want the organization to accomplish.

strategic leadership

When the CEO and other top managers communicate their vision for the company to the rest of the managerial staff, this is referred to as ______.

strategic leadership

The advantage to franchising is ______.

that the franchiser does not have to bear the development costs

The advantage of licensing associated with opening up in a foreign country is that ______.

the licenser does not have to bear the development costs

The SWOT analysis components that are used to anticipate potential problems or opportunities for business growth outside an organization are ______, and for internal problems or assets of an organization are ______.

threats and opportunities; weaknesses and strengths

In large organizations, planning usually takes place at ______ level(s) of management.

three

Fayol stated that effective plans should have four essential qualities, including ______.

unity, continuity, accuracy, and flexibility

A manager of a medical durable equipment company decides to establish an operation in a foreign country independent of any local direct involvement. This manager is creating a ______.

wholly owned foreign subsidiary

Production operations established in a foreign country independent of any local direct involvement is a ______.

wholly owned foreign subsidiary

Strengths, weaknesses, opportunities, and threats are components of a ______.

SWOT analysis

The major disadvantage of pursuing a ________ strategy is that by ignoring national differences, managers may leave themselves vulnerable to local competitors that differentiate their products to suit local tastes.

global or international

The advantage of licensing is that the licenser does not have to ______ in a foreign country.

incur any costs associated with the new location

The planning process is designed solely to identify effective strategies.

False

True or false: Managers only need to identify their customers when defining a business.

False

True or false: The low-cost strategy drives down an organization's costs below those of its competitors. This strategy is aimed at serving a broad market.

True

Types of standing plans include: (Choose all that apply.)

policies standard operating procedures (SOPs) rules

________ implementation is a five-step process.

strategy

Which of the following are principal corporate-level strategies? (Check all that apply.)

International expansion Vertical integration Diversification Concentration on a single industry

Focused low-cost strategy Focused differentiation strategy

Serves one or a few market segments and tries to offer the lowest prices serving that reduced segment Serves one or a few market segments and strives to differentiate their organization the most from the other competitors serving that segment

Which is a major advantage of a global strategy?

Significant cost savings associated with not having to customize products and marketing approaches to different national conditions

What should be the first critical component that the manager must define when determining an organization's mission?

business

People would come from all over the greater city lines for Sami's Sushi until the owner of Sami's decided to expand to some of the well-populated suburbs. This decision was a corporate-level strategy referred to as ______.

concentration on a single industry

When a company reinvests its profits to strengthen its competitive position in its current industry, it is utilizing a(n) ______ strategy.

concentration on a single industry

Examples of a single-use plan include: (Choose all that apply.)

programs projects

When a company decides to enter a new industry to gain a competitive advantage within one or more of the company's existing divisions, this is called ______.

related diversification

A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals is a(n) ______.

strategy

The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals is known as ______.

strategy formulation

The model that helps managers focus on the most important competitive forces in the external environment is the ______.

five forces model

If managers decide to pursue a global strategy for selling products in the national market, how does that impact how products are produced and marketed?

Products will be standardized and there will be one basic marketing approach.

Which of the following are functions of successful business-level strategies? (Check all that apply.)

It increases profits. It increases brand loyalty.

How do managers typically distinguish time horizons?

Long-term plans, intermediate-term plans, and short-term plans

Which of the following are steps in the planning process of an organization? (Check all that apply.)

Determining the organization's mission and goals Formulating strategies to achieve the goals Selecting the most effective way to implement organizational strategy

Mission statements accomplish which of the following tasks? (Choose all that apply.)

Differentiate the company from its competitors Identify a company's products and customers State the broad purpose of the organization

Which of the following is not a step in strategy implementation?

Establishing a long-term timeframe for implementation that only includes broad, general goals