Strategic Management Exam 1

Within which of the groups would we most likely find a high-end restaurant specializing in high quality steaks?

Group A

According to the Strategic Group Map, which of the following strategic groups controls the largest portion of the sales volume in the industry?

Group D

T or F: A firm's intangible resources refer to its capacity to deploy tangible resources over time and leverage those resources effectively.

False

T or F: Developing social capital is risky for an organization due to the fact that social capital is specific to individuals and remains with the employee if he or she leaves the organization.

False

T or F: Competition tends to be more intense among firms within a strategic group than between strategic groups.

True

A company's strategic vision concerns

a company's directional path and future product-customer-market-technology focus.

Key functional strategies of a company include all of the following except

alliance and partnerships as well as merger and acquisition growth strategies.

A company's competitive strategy should

be well matched to its internal situation and predicated on leveraging its collection of competitively valuable resources and competencies.

In evaluating how well a company's strategy is working, the best place to start is with a

clear view of what the strategy entails.

Strategy, at its essence, is about

developing lasting success that can support growth and secure the company's future over the long term.

Well-concerned visions are _____ and _____ to a particular organization and they avoid generic, feel-good statements that could apply to hundreds of organizations

distinctive; specific

In contrast to an organization's vision, its mission should

encompass both the purpose of the company as well as the basis of competition.

Characteristics of an effectively worded strategic vision statement are most likely to include

graphic, directional, and focused.

The purposes of a defensive strategy do not include

increasing the risk of having to defend an attack

A blue-ocean strategy

involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.

A company's strategic plan

outlines the competitive moves and approaches to be used in achieving the desired business results.

A company's strategy is NOT concerned with management's choices about how to

stake out the same market position as successful rival companies.