Question 1

According to Porter, threat of new entrants refers to ________.

Accepted Answer

A)  the power that customers have over the firms 
B)  the power that suppliers have over the firms 
C)  the extent to which customers may use services from another industry instead of the focal industry 
D)  the ability of new firms to enter an industry 
E)  the intensity of competition among the organizations 
A)  the power that customers have over the firms 
B)  the power that suppliers have over the firms 
C)  the extent to which customers may use services from another industry instead of the focal industry 
D)  the ability of new firms to enter an industry 
E)  the intensity of competition among the organizations D

Question 2

Which of the following components includes new approaches to producing goods and services?

Accepted Answer

A)  the technology component 
B)  the political component 
C)  the labor component 
D)  the legal component 
E)  the productive component 
A)  the technology component 
B)  the political component 
C)  the labor component 
D)  the legal component 
E)  the productive component A

Question 3

Understanding the forces that determine competitiveness within an industry should help managers develop strategies to make their companies more competitive within the industry. Explain the three generic strategies developed by Porter to illustrate the kind of strategies managers might develop to make their organizations more competitive.

Accepted Answer

The three generic strategies Porter developed to illustrate the kind of strategies managers might develop to make their organizations more competitive include: differentiation, cost leadership, and focus.
1. Differentiation is a strategy that focuses on making an organization more competitive by developing a product or products that customers perceive as being different from those offered by competitors. Differentiation includes uniqueness in such areas as product quality, design, and level of after-sales service. Examples of products that customers commonly purchase because they perceive them as being different are Nike's Air Jordan shoes (because of their high-technology "air" construction) and Honda automobiles (because of their high reliability).
2. Cost leadership is a strategy that focuses on making an organization more competitive by producing products more cheaply than competitors can. According to the logic behind this strategy, by producing products more cheaply than its competitors, an organization will be able to offer products to customers at lower prices than competitors can, and thereby increase its market share. Examples of tactics managers might use to gain cost leadership are obtaining lower prices for product parts purchased from suppliers and using technology such as robots to increase organizational productivity.
3. Focus is a strategy that emphasizes making an organization more competitive by targeting a particular customer. Magazine publishers commonly use a focus strategy in offering their products to specific customers. Working Woman and Ebony are examples of magazines that are aimed, respectively, at the target markets of employed women and African Americans.

Question 4

Lobbying efforts by interest groups and progress on the passage of laws are examples of the ________ component of the general environment.

Accepted Answer

A)  social 
B)  political 
C)  legal 
D)  technological 
E)  international 
A)  social 
B)  political 
C)  legal 
D)  technological 
E)  international

Question 5

An SBU of FlexiTech Inc., manufactures CD drives. Although it has a large share in the market and the product makes significant profits for the company, market growth potential is limited. Under which quadrant of the BCG Growth-Share Matrix does the CD manufacturing unit fall?

Accepted Answer

A)  dog 
B)  question-mark 
C)  star 
D)  cash cow 
E)  low-cost leader 
A)  dog 
B)  question-mark 
C)  star 
D)  cash cow 
E)  low-cost leader

Question 6

Managers only perform environmental analysis to help them understand what is happening outside their organization.

Accepted Answer

A) True 
 B)False

Question 7

According to Porter, ________ refers to the power that customers have over the firms operating in an industry.

Accepted Answer

A)  the threat of new entrants 
B)  buyer power 
C)  supplier power 
D)  the threat of substitute products 
E)  intensity of rivalry 
A)  the threat of new entrants 
B)  buyer power 
C)  supplier power 
D)  the threat of substitute products 
E)  intensity of rivalry

Question 8

Motivations, status symbols, and attitudes of the other country are all important aspects of the international component of the organization's operating environment.

Accepted Answer

A) True 
 B)False

Question 9

In an attempt to offer better deals to customers and thereby increase its market share, Dun's Burgers integrates backward to buy out its main supplier of beef. Dun's Burgers is using which of the following strategies to attract customers?

Accepted Answer

A)  focus 
B)  technology enhancement 
C)  differentiation 
D)  cost leadership 
E)  focused differentiation 
A)  focus 
B)  technology enhancement 
C)  differentiation 
D)  cost leadership 
E)  focused differentiation

Question 10

What is strategic control?

Accepted Answer

Strategic control is the last step of th

Question 11

Which of the following is true about tactical planning?

Accepted Answer

A)  Tactical planning is long-range planning that emphasizes the current operations of various parts of the organization. 
B)  In doing tactical planning, managers consider the organization as a total unit and ask themselves what must be done in the long term to attain organizational goals. 
C)  The most successful managers tend to be those who take a comprehensive approach to strategic planning and are careful not to cut corners during the process. 
D)  Tactical plans are usually developed in the areas of production, marketing, personnel, finance, and plant facilities. 
E)  Tactical plans are usually developed by upper-level management. 
A)  Tactical planning is long-range planning that emphasizes the current operations of various parts of the organization. 
B)  In doing tactical planning, managers consider the organization as a total unit and ask themselves what must be done in the long term to attain organizational goals. 
C)  The most successful managers tend to be those who take a comprehensive approach to strategic planning and are careful not to cut corners during the process. 
D)  Tactical plans are usually developed in the areas of production, marketing, personnel, finance, and plant facilities. 
E)  Tactical plans are usually developed by upper-level management.

Question 12

________ is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose.

Accepted Answer

A)  Establishment of organizational direction 
B)  Strategy implementation 
C)  Strategy control 
D)  Strategy formulation 
E)  Environmental analysis 
A)  Establishment of organizational direction 
B)  Strategy implementation 
C)  Strategy control 
D)  Strategy formulation 
E)  Environmental analysis

Question 13

According to the GE Multifactor Portfolio Matrix, businesses falling in cells that form a diagonal from lower left to upper right are the strongest and the ones the company should invest in and help to grow.

Accepted Answer

A) True 
 B)False

Question 14

Chelsea Inc., is a sportswear company that is planning to introduce a line of jerseys. The company has been the top-selling company in Europe for a decade and has a large market base in the US. With this new line of jerseys, the company hopes to expand its sales in Asia where it already has a base.
-Which of the following statements supports the assumption that the company is following a differentiation strategy?

Accepted Answer

A)  The company moves its base to another country where it has a stronger hold over the market. 
B)  The company encourages standardization of products to focus on economies of scale. 
C)  The company invests a huge amount for the research and development of the product. 
D)  The company switches to intermediaries that supply raw materials at competitive prices. 
E)  The company opens subsidiaries in developing countries to take advantage of low-cost, skilled labor. 
A)  The company moves its base to another country where it has a stronger hold over the market. 
B)  The company encourages standardization of products to focus on economies of scale. 
C)  The company invests a huge amount for the research and development of the product. 
D)  The company switches to intermediaries that supply raw materials at competitive prices. 
E)  The company opens subsidiaries in developing countries to take advantage of low-cost, skilled labor.

Question 15

________ is a strategy that emphasizes making an organization more competitive by targeting a particular customer.

Accepted Answer

A)  Differentiation 
B)  Cost leadership 
C)  Stability 
D)  Focus 
E)  Divestiture 
A)  Differentiation 
B)  Cost leadership 
C)  Stability 
D)  Focus 
E)  Divestiture

Question 16

Which of the following is true about strategy?

Accepted Answer

A)  Strategy is a general plan developed to reach short-term goals. 
B)  Organizational strategy focuses on the marketing and financial aspects of a business. 
C)  Smaller organizations are more precise than large organizations in developing organizational strategy in order to meet their goals sooner. 
D)  Strategy is actually the end result of strategic planning. 
E)  Research and development are not a part of an organization's strategy. 
A)  Strategy is a general plan developed to reach short-term goals. 
B)  Organizational strategy focuses on the marketing and financial aspects of a business. 
C)  Smaller organizations are more precise than large organizations in developing organizational strategy in order to meet their goals sooner. 
D)  Strategy is actually the end result of strategic planning. 
E)  Research and development are not a part of an organization's strategy.

Question 17

The general environment of an organization's external environment contains international, labor, customer, competitor, and supplier components.

Accepted Answer

A) True 
 B)False

Question 18

Because strategic planning focuses on the long term and tactical planning on the short term, strategic plans cover a relatively long period of time whereas tactical plans cover a relatively short period of time.

Accepted Answer

A) True 
 B)False

Question 19

The legal component of the general environment is related to government affairs.

Accepted Answer

A) True 
 B)False

Question 20

What is tactical planning?

Accepted Answer

Tactical planning is short-range plannin

According to Porter, threat of new entrants refers to ________.

Which of the following components includes new approaches to producing goods and services?

Lobbying efforts by interest groups and progress on the passage of laws are examples of the ________ component of the general environment.

An SBU of FlexiTech Inc., manufactures CD drives. Although it has a large share in the market and the product makes significant profits for the company, market growth potential is limited. Under which quadrant of the BCG Growth-Share Matrix does the CD manufacturing unit fall?

Managers only perform environmental analysis to help them understand what is happening outside their organization.

According to Porter, ________ refers to the power that customers have over the firms operating in an industry.

Motivations, status symbols, and attitudes of the other country are all important aspects of the international component of the organization's operating environment.

In an attempt to offer better deals to customers and thereby increase its market share, Dun's Burgers integrates backward to buy out its main supplier of beef. Dun's Burgers is using which of the following strategies to attract customers?

What is strategic control?

Which of the following is true about tactical planning?

________ is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose.

According to the GE Multifactor Portfolio Matrix, businesses falling in cells that form a diagonal from lower left to upper right are the strongest and the ones the company should invest in and help to grow.

________ is a strategy that emphasizes making an organization more competitive by targeting a particular customer.

Which of the following is true about strategy?

The general environment of an organization's external environment contains international, labor, customer, competitor, and supplier components.

Because strategic planning focuses on the long term and tactical planning on the short term, strategic plans cover a relatively long period of time whereas tactical plans cover a relatively short period of time.

The legal component of the general environment is related to government affairs.

What is tactical planning?

Introducing Modern Management: Concepts and Skills

Managing: History and Current Thinking

Corporate Social Responsibility, Ethics, and Sustainability

Management and Diversity

Managing in the Global Arena

Management and Entrepreneurship

Principles of Planning

Making Decisions

Plans and Planning Tools

Fundamentals of Organizing

Responsibility, Authority, and Delegation

Human Resource Management

Organizational Change: Stress, Conflict, and Virtuality

Influencing and Communication

Leadership

Motivation

Groups and Teams

Managing Organization Culture

Encouraging Creativity and Innovation

Controlling, Information, and Technology

Production and Control

Filters

Exam 9: Strategic Planning: Strategies, Tactics, and Competitive Dynamics

According to Porter, threat of new entrants refers to ________.

Which of the following components includes new approaches to producing goods and services?

Lobbying efforts by interest groups and progress on the passage of laws are examples of the ________ component of the general environment.

An SBU of FlexiTech Inc., manufactures CD drives. Although it has a large share in the market and the product makes significant profits for the company, market growth potential is limited. Under which quadrant of the BCG Growth-Share Matrix does the CD manufacturing unit fall?

Managers only perform environmental analysis to help them understand what is happening outside their organization.

According to Porter, ________ refers to the power that customers have over the firms operating in an industry.

Motivations, status symbols, and attitudes of the other country are all important aspects of the international component of the organization's operating environment.

In an attempt to offer better deals to customers and thereby increase its market share, Dun's Burgers integrates backward to buy out its main supplier of beef. Dun's Burgers is using which of the following strategies to attract customers?

What is strategic control?

Which of the following is true about tactical planning?

________ is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose.

According to the GE Multifactor Portfolio Matrix, businesses falling in cells that form a diagonal from lower left to upper right are the strongest and the ones the company should invest in and help to grow.

________ is a strategy that emphasizes making an organization more competitive by targeting a particular customer.

Which of the following is true about strategy?

The general environment of an organization's external environment contains international, labor, customer, competitor, and supplier components.

Because strategic planning focuses on the long term and tactical planning on the short term, strategic plans cover a relatively long period of time whereas tactical plans cover a relatively short period of time.

The legal component of the general environment is related to government affairs.

What is tactical planning?

Introducing Modern Management: Concepts and Skills

Managing: History and Current Thinking

Corporate Social Responsibility, Ethics, and Sustainability

Management and Diversity

Managing in the Global Arena

Management and Entrepreneurship

Principles of Planning

Making Decisions

Plans and Planning Tools

Fundamentals of Organizing

Responsibility, Authority, and Delegation

Human Resource Management

Organizational Change: Stress, Conflict, and Virtuality

Influencing and Communication

Leadership

Motivation

Groups and Teams

Managing Organization Culture

Encouraging Creativity and Innovation

Controlling, Information, and Technology

Production and Control

Filters