Exam 8: Strategy Formulation and Execution

Where does the information about opportunities and threats comes from?

Research has shown that strategic thinking and planning positively affect a firm's performance and financial success.

Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction.

Sears' decision to sell off much of its financial services division is an example of a:

Which of the following pertains to the organization as a whole?

The question mark has a:

The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry.

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?

Which of the following is NOT one of the tools used for putting strategy into action?

Strategy formulation begins with understanding the issues that require managers to assess those factors that influence the company's ability to compete. Choose one of the following types of organizations: a fast-food chain, a clothing manufacturer, a communications device manufacturer or service provider, or an automobile manufacturer. Perform a SWOT analysis on the company of your choice, using what you know about the company to list at least three strengths, three weaknesses, three opportunities, and three threats.

A transnational strategy combines degrees of both global standardization and national responsiveness.

Winning strategies need to be executed. Once a strategy is understood and accepted in the organization (embedded), managers can use some primary tools to ensure that the strategy is implemented effectively. In a short essay, explain: visible leadership, clear roles and accountability, candid communication, and appropriate HR practices. Develop a persuasive argument for or against the importance of soliciting employee cooperation in order for an organizational strategy to be successfully executed.

Which of the following strategies refers to moving into a new business that is related to the company's existing business activities?

When an organization expands into a totally new line of business, it is implementing a strategy of:

An SBU stands for Star Business Unit.

According to the BCG Matrix, the cash cow has a large market share in a rapidly growing industry.

Briefly describe the tools for putting strategy into action.

If ABC International has standardized its product line throughout the world it is pursuing a:

The mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage for the corporation pertains to portfolio strategy.

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n) _____.