Strategic Management Exam 1

The purpose of a defensive strategy do not include a. Increasing the risk of having to defend an attack b. Weakening the impact of any attack that occurs c. Pressuring challengers to aim their efforts at other rivals d. Helping protect a competitive advantage e. Decreasing the risk of being attacked

A

A company's competitive strategy should a. Ensure it is designed to concentrate on a small range of product so it can react quickly to competitive moves b. Be well matched to its internal situation and predicted on leveraging its collection of competitively valuable resources and competencies. c. Be well matched to its resources and capabilities in order to incorporate standard attributes into its product offering d. Be supportive with its objective to become at least an average performer within its industry e. Be bell attuned to doing an outstanding job of satisfying the needs and expectations of niche buyers

B

A company's strategy is NOT concerned with management's choices about how to a. Attract and please customers b. Stake out the same market position as successful rival companies c. Grow the business d. Compete successfully e. Conduct operations and improve the company's financial and market performance

B

In evaluating how well a company's strategy is working, the best place to start is with a: a. SWOT analysis b. Clear view of what that strategy entails c. Value chain analysis d. Competitive strength analysis e. Financial ratio analysis

B

A company's strategic plan a. Maps out the company's history b. Links the company's financial targets to control mechanisms c. Outlines the competitive moves and approaches to be used in achieving the desired business results d. Focuses on offering a more appealing product than rivals e. Lists methods of making money in it chosen business

C

Characteristics of an effectively worded strategic vision statement are most likely to include a. Balanced, responsible, and rational b. Challenging, competitive, and "set in concrete." c. Graphic, directional, and focused d. Realistic, customer-focused, and market-driven e. Achievable, profitable, and ethical

C

In contrast to an organization's vison, its mission should a. Be shorter in length b. Encompass all the major rules and regulations of the corporate work force c. Encompass both the purpose of the company as well as the basis of competition d. Be less detailed e. Both A&D

C

Well-conceived visions are ________ and _________ to a particular organization and they avoid generic feel-good statements that could apply to hundreds of organizations. Correct answer c a. Widespread; unique b. Recurring; customary c. Distinctive; specific d. Customary; familiar e. Universal; established

C

A company's strategic vision concerns a. A management's storyline of how it intends to make a profit with the chosen strategy "who we are and what we do b. What future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage c. "who are we and what we do" d. A company's directional path and future product-customer-market-technology focus e. Why the company does certain things in trying to please its customers

D

Strategy, at its essence, is about a. Matching rival businesses' products and quality dimensions in the marketplace b. Building profits for short-term success c. Realigning the market to provoke change in rival companies d. Developing lasting success that can support growth and secure the company's future over the long term e. Re-creating a business model with regularity

D

The blue-ocean strategy a. Is an offensive strike employed by a market leader that is directed at pilfering customers away from unsuspecting rivals to boost profitability? b. Involves an unexpected (out-of-the-blue) preemptive strike to secure an advantageous position in a fast-growing market segment c. Works best when a company is the industry's low-cost lender d. Involves abandoning effort 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

D

Key functional strategies of a company include all of the following except a. R&D, technology, and product design strategies b. Production and information technology and supply chain management strategies c. Human resource and finance strategies d. Sales, marketing, and distribution strategies e. Alliance and partnership as well as merger and acquisition growth strategies

E

A firm's intangible resources refer to its capability to deploy tangible resources over time and leverage the resources effectively

False

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

Competition tend to be more intense among firms within a strategic group than between strategic groups

True