MGMT CH. 6

Unrelated Diversification

According to Larry Marder, the president of the McFarlane Companies, the company has changed and morphed and grown over the years from a company that simply produced comic books to a company that is also involved in sports figures, music videos, and major motion pictures. This movement from comics to a variety of activities is best described as

Strength

Al Simmons, the curator and Larry Marder, the President of the McFarlane Companies, describe Todd McFarlane as being both artistic and business minded. In fact, Marder even compared McFarlane to Walt Disney—the "greatest pitch man" ever! A SWOT analysis would then identify McFarlane as a(n)

Focused-Differentiation

A resort company caters to couples without children. Vacationers are guaranteed that they will not be annoyed by loud and disruptive children. This company is using which of the following strategies?

Star

A(n) ________ is the most desired position within the BCG matrix.

False

Apple, a company with a strong product line, probably has strong bargaining power of suppliers.

Star

Based on the BCG matrix (Figure 6.3), IKEA would most likely be labeled a

Broad Needs, Many Customers

IKEA is strategically positioning itself based on which of the following customer needs?

Cost-Focus

Redbox is an example of a company with a __________ strategy.

Dog

The least desired spot in the BCG matrix is that of a

Broad Needs, Many Customers

What strategic position does JCPenney employ?

Threats of Substitution

For domestic or regional airlines or routes, there is always the option of taking a car, bus or train. This describes which of Porter's Five Competing Forces?

Strength

From a financial management standpoint, Todd McFarlane is a relatively debt-averse and conservative manager, which has kept the company profitable over the years. When completing a SWOT analysis, you should categorize his financial management style as a(n)

Assess the Current Reality

IKEA's product development process is based on extensive market research. Which step of the strategic-management process is most closely related to this development process?

Maintaining Strategic Control

Larry Marder explains that the company may change what its focus is from year to year. For example, he mentions that if Todd McFarlane wants them to invest heavily in R&D in a particular year, that is what they do or if he wants them to make more money in a given year, then that is what they do. Which step of the strategic management process is this describing?

Question Marks

Startups in the Internet industry are often considered to be

Sustainable Competitive Advantage

Steve Peterson, the CFO of the McFarlane Companies, talks about how Todd McFarlane's purchase of several record-making baseballs allowed the company to be more effective in the sporting figure market. The investment (of multiple millions of dollars!) could be said to have provided the McFarlane Companies a(n)

Competitive Advantage

Todd McFarlane describes why retailers should carry his collectible items over and above his competitors' products. From a strategy viewpoint, what McFarlane is describing here is his company's

Vision

Todd McFarlane's reluctance to allow outside investors to have control over projects is most likely related to concerns that they might not share the company's

Differentiation

Which strategy requires a high level of understanding of what consumers value?

Wal-Mart

__________ is the best example of a company with a Cost-Leadership strategy.

New Entrants

Companies in industries where there is little cost, including time or money, necessary to enter the marketplace are most vulnerable to the threat of

Dog;Star

Currently, the companies Kodak and Google are examples of _____ and _____ positions, respectively.

Growth

From what has been presented in the video, it would appear that the grand strategy being implemented by the McFarlane Companies is a ______________ strategy.

Environmental Scanning

Todd McFarlane speaks about the future and mentioned that if he had to sell off his sculptures and other art-related products and open a large special-effects house and that made more sense at that time, he would do it. He would come about that decision through

Bargaining Power of Buyers

Which competitive force listed in Porter's Five Forces most likely had the biggest influence on JCPenney's Board of Director's decision to let Ron Johnson go from the company?

Cost-Leadership

Which of Porter's Four Competitive Strategies is IKEA primarily embracing?

Rivalry Among Competitors

Which of Porter's forces is influenced by the other four?

Differentiation

Which of Porter's four competitive strategies was Ron Johnson attempting to implement during his time at JCPenney?

Who the Company's Customers are

Which part of JCPenney's mission statement does Ron Johnson's new pricing strategy most likely conflict with?

Focused Differentiation

You see in this segment that according to Larry Marder, the sports figures produced by the McFarlane Companies are so lifelike that you can tell who the player is. Based on all you have heard about the McFarlane Companies and what they do, the way Marder describes this product seems to indicate that the McFarlane Companies are using Porter's competitive strategy known as