Test 1 MGT
A coffee chain was losing its customers to its competitors, and wanted to increase its sales. Therefore it started offering complimentary pastries with every cup of coffee, to outwit its competitors. Soon, the company registered an increase in its sales. This is an example of a strategic:
Ploy
A strategic _____ is a specific move designed to outwit or trick competitors.
Ploy
Performance _____ refers to a metric such as profits, stock price, and sales along which organizations can be gauged.
measure
An organization's _____ describes the reasons for an organization's existence.
mission
Pizzas at Home, a pizza shop, plans to deliver pizzas to households. Deliveries would be made without any extra charge. It put this plan in place. Soon, Pizzas at Home realizes it must start charging a nominal fee for delivery. Many other pizzerias start following the same strategy. Pizzas at Home then starts offering free pizzas if they are not delivered within 30 minutes of the order placement. The strategy followed by Pizzas at Home is an example of a(n) _____ strategy.
realized
Economies of _____ refer to a cost advantage that is created when a firm can produce a good or service at a lower per unit price due to producing the good or service in large quantities.
scale
Which of the following statements describes the term "competitive aggressiveness" as a dimension of entrepreneurial orientation?
It refers to the tendency to intensely and directly challenge competitors.
Which of the following statements describes the term "innovativeness" as a dimension of entrepreneurial orientation?
It refers to the tendency to pursue creativity and experimentation.
Which of the following statements describes the term "autonomy" as a dimension of entrepreneurial orientation?
It tells whether an individual or team of individuals within an organization has the freedom to develop an entrepreneurial idea and then see it through to completion.
The management of a football club regularly encourages and funds its coaches and trainers to take courses on sports' science. They believes that the application of scientific principles and techniques helps its players to improve their performance on the field. This is an example of a(n) _____ measure used to assess organizational performance.
Learning and growth
Piracy of intellectual property poses a threat to businesses that create such properties in order to profit from them. This example represents the _____ segment of PESTEL analysis.
Legal
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The progress of the project can be easily calculated and assessed. The fact that this project can be easily assessed reflects the _____ dimension of a goal.
Measurable
A bakery generally makes a sale of $4,000 every month. But during Christmas time it made a sale of $6,000. That is, it registered an increase in its sales. The sales factor is a performance _____ to judge organizational performance.
Measure
Porter's Five Forces
New Entrants, Suppliers, Buyers, Substitutes, Rivalry
The likelihood of new entrants joining an industry is low if capital requirements to enter the industry are high because:
New entrants struggle to gather enough cash to get started.
The likelihood of new entrants joining an industry is low if access to distribution channels is limited because:
New entrants struggle to get their offerings to customers.
The likelihood of new entrants joining an industry is low if existing competitors enjoy economies of scale because:
New entrants struggle to match incumbents' prices.
A _____ strategy refers to the parts of the intended strategy that are abandoned.
Non-realized
PESTEL analysis differs from the five forces analysis in that PESTEL analysis is used for:
Organizing factors within the general environment and identifying how these factors influence industries and the firms within them.
Which of the following is an example of a copyright?
Original artistic creations, like books
Strategy as _____ focuses on the extent to which a firm's actions over time are consistent.
Pattern
Dormer is the only fine dining restaurant in a small town. The opening of a new restaurant is viewed as a threat by some of the employees at Dormer. Others see it as an opportunity for Dormer to strengthen itself by looking out for its weaknesses and ironing them out. This is an example of strategy as:
Perspective
A supermarket purchases its vegetables from local farmers. It also ensures that it purchases the vegetables from farmers located closest to the supermarket so that the distance covered in transport is minimal. This reduces pollution. The supermarket also earns good profits. The fact that the supermarket tries to make a reasonable contribution to lessening pollution reflects the _____ aspect of the triple bottom line framework.
Planet
The _____ aspect of a performance measuring framework makes sure that organizations act in a way that promotes environmental sustainability.
Planet
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The task presents a challenge to the engineering skills of the organization. The fact that the task presents a challenge to the organization reflects the _____ dimension of a goal.
Aggressive
Concentrated industries differ from fragmented industries in that in concentrated industries:
Businesses tend to keep their competition rather polite.
New entrants are more likely to join an industry if:
Existing competitors lack economies of scale.
A value chain differs from a supply chain in that a value chain:
Charts the path by which products and services are created and eventually sold to customers.
Which of the following is an example of a trade secret?
Coca-Cola formula
Rivalry between competitors of an industry tends to be fierce when:
Competitors are not differentiated from each other.
Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:
Correct the industry's goods or services are standardized or undifferentiated.
A law firm wants to increase its client strength. Therefore it has promised to offer free service to senior citizens. This has helped the organization gain new clients, as friends and relatives of the senior citizens having started using this law firm's services. Good legal counseling has helped it to retain its clients. This is an example of _____ measures used to assess organizational performance.
Customer
A _____ strategy is the parts of the intended strategy that an organization continues to pursue over time.
Deliberate
When unemployment rises, discretionary income plummets. That hurts businesses selling costly but non-essential goods. This example represents the _____ segment of PESTEL analysis.
Economic
Roomz, a mid-range hotel, used to provide only food and accommodation facilities. It soon realized that most of its customers are foreign tourists who constantly ask for directions and advice on places to visit. The hotel then decided to start a travel desk which would help tourists select and visit places of historical and cultural significance. This is an example of a(n) _____ strategy.
Emergent
The stock price of an oil and natural gas exploration concern is $100 per share. The value of the share is increasing by the day. This is an example of a(n) _____ measure used to assess organizational performance.
Financial
Michael Porter's five forces analysis is an important tool:
For analyzing how much profit potential exists in an industry
A farmer realizes that he is not getting fair price from the agents who buy produce from him and sell it to the markets. As such, he decides to sell produce directly to the local market. This is an example of:
Forward vertical integration
Breadmakers, Inc. produces and supplies fresh sandwich breads to various sandwich businesses. Breadmakers has recently decided to open its own stores for selling sandwiches to consumers. This is an example of:
Forward vertical integration
Marty's, a clothing company, has a number of outlets that are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to Marty's. The upfront payment these outlets make to Marty's for using the Marty's brand name is referred to as a(n):
Franchise fee
_____ involves an organization granting the right to use its brand name, products, and processes to other organizations in exchange for an upfront payment and a percentage of revenues generated by the other organizations.
Franchising
A _____ is an organization which grants the right to use its brand name, products, and processes to other organizations.
Franchisor
An organization's _____ describes the narrower aims that organizations pursue in an effort to serve their visions and missions.
Goal
A pizza shop plans to deliver pizzas to households. The delivery would be made without any extra charge. It hopes to execute this strategy in the suburbs. This is an example of a(n) _____ strategy.
Intended
Which of the following statements describes the term "proactiveness" as a dimension of entrepreneurial orientation?
It refers to the tendency to anticipate and act on future needs.
Which of the following statements describes the term "risk-taking" as a dimension of entrepreneurial orientation?
It refers to the tendency to engage in bold rather than cautious actions.
Farmers rely heavily on cheap labor provided by illegal immigrants. A tightening of the immigration policy would reduce their profit margins and potentially increase the prices of agricultural products. For these farmers, this aspect of illegal immigration represents the _____ segment of PESTEL analysis.
Political
A company that manufactures cars aims to sell them to customers in the premium market segment. This is an example of strategy as:
Position
Strategy as _____ refers to a firm's place in the industry relative to its competitors.
Position
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The company has the required technology and the required finances to come up with such a car. Therefore the plan seems to be feasible. The fact that the plan is viable and practicable reflects the _____ dimension of a goal.
Realistic
A bakery generally makes a sale of $4,000 every month. But during Christmas time it made a sale of $6,000. That is, it registered a 50% increase in its sales during Christmas. During the same time other bakeries registered sales in excess of $10,000. The fact that other bakeries registered sales in excess of $10,000 can be used a yardstick to measure the performance of this particular bakery. This is referred to as the performance _____.
Referent
A performance _____ is a benchmark used to make sense of an organization's standing along a performance measure.
Referent
Which of the following is an example of a patent?
Richard James's Slinky
A company manufacturing hockey sticks makes an annual assessment of its resources in terms of raw materials, technical expertise, and technological knowhow. It assesses the type of competition that it faces in the sports goods market and also looks out for opportunities that would allow it to expand its business. This is an example of a(n):
SWOT Analysis
_____ is a classic management tool that incorporates the idea of scanning elements such as strengths, weaknesses, opportunities, and threats which are both external and internal to the firm.
SWOT Analysis
Which of the following statements about the SWOT analysis is accurate?
SWOT analysis is a brainstorming technique for generating creative ideas.
A viable business model requires that a firm:
Sell goods or services for more than it costs the firm to create and distribute those goods.
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. The fact that the company has an explicit goal reflects the _____ dimension of a goal.
Specific
_____ examines how actions and events involving top executives, firms, and industries influence a firm's success or failure.
Strategic management
Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:
Suppliers' goods or services cannot be substituted effectively.
Which of the following segments of PESTEL analysis is the "Moore's Law" associated with?
Technological
Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:
The good or service is of limited importance to the quality or price of the buyer's offerings.
Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:
The good or service purchased by the buyers represents a high percentage of the buyer's costs.
Which of the following conditions is most likely to cause fierce rivalry between competitors of an industry?
The growth rate of demand for the industry's offerings is low
Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:
The suppliers' industry is dominated by a few companies.
Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:
The suppliers' industry is highly concentrated.
The likelihood of new entrants joining an industry is low if switching costs are high because:
This discourages customers from buying a new entrant's offerings.
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The fact that the company has a set target date to complete the task reflects the _____ dimension of a goal.
Time-bound
A steel manufacturing company wants to be among the fortune 500 companies in the next one year. This is an example of the _____ of the company.
Vision
An organization's _____ describes what the organization hopes to become in the future.
Vision
Skyway manufactures fighter jets. It aims to be the top aircraft manufacturing company in the world. This is an example of the _____ of the company.
Vision