Question 1

In general, the strategic management process is generally thought to consist of sequential and continuing steps.

Accepted Answer

A) True 
 B)False

Question 2

An SBU with a relatively small market share of a low-growth market is a ________.

Accepted Answer

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

Question 3

The last step of the strategic management process, consisting of monitoring and evaluating the strategic management process as a whole, is ________.

Accepted Answer

A)  strategy implementation 
B)  strategy formulation 
C)  strategic control 
D)  environmental analysis 
E)  strategic action 
A)  strategy implementation 
B)  strategy formulation 
C)  strategic control 
D)  environmental analysis 
E)  strategic action

Question 4

The level of an organization's external environment that contains components having broad long-term implications for managing the organization is the ________.

Accepted Answer

A)  general environment 
B)  financial environment 
C)  demographic environment 
D)  internal environment 
E)  operating environment 
A)  general environment 
B)  financial environment 
C)  demographic environment 
D)  internal environment 
E)  operating environment

Question 5

BestWash, a laundry chain, has realized that if it wants to beat its leading competitor and improve market share, it must improve its productivity. Which of the following strategies is most likely to help BestWash to achieve this objective?

Accepted Answer

A)  reassess their market 
B)  downsize 
C)  decrease machine efficiency 
D)  develop valuable real estate holdings 
E)  increase people efficiency 
A)  reassess their market 
B)  downsize 
C)  decrease machine efficiency 
D)  develop valuable real estate holdings 
E)  increase people efficiency

Question 6

________, the fourth step of the strategic management process, is putting formulated strategies into action.

Accepted Answer

A)  Strategy implementation 
B)  Environmental analysis 
C)  Strategic control 
D)  Strategy formulation 
E)  Strategic feedback 
A)  Strategy implementation 
B)  Environmental analysis 
C)  Strategic control 
D)  Strategy formulation 
E)  Strategic feedback

Question 7

________ is a strategy adopted by management to increase the amount of business that an SBU is currently generating.

Accepted Answer

A)  Differentiation 
B)  Divestiture 
C)  Retrenchment 
D)  Growth 
E)  Focus 
A)  Differentiation 
B)  Divestiture 
C)  Retrenchment 
D)  Growth 
E)  Focus

Question 8

Which of the following is the ability to manage people during implementation?

Accepted Answer

A)  allocating skill 
B)  interacting skill 
C)  monitoring skill 
D)  organizing skill 
E)  tactical skill 
A)  allocating skill 
B)  interacting skill 
C)  monitoring skill 
D)  organizing skill 
E)  tactical skill

Question 9

Because tactical plans are based primarily on a prediction of the future, and strategic plans are based on known circumstances that exist within the organization, tactical plans are generally less detailed than strategic plans.

Accepted Answer

A) True 
 B)False

Question 10

Demographics are the statistical characteristics of a population.

Accepted Answer

A) True 
 B)False

Question 11

This strategy of ________ is generally applied to cash cows or stars that are beginning to lose market share.

Accepted Answer

A)  focus 
B)  retrenchment 
C)  stability 
D)  divestiture 
E)  growth 
A)  focus 
B)  retrenchment 
C)  stability 
D)  divestiture 
E)  growth

Question 12

Strategy is the end result of strategic planning.

Accepted Answer

A) True 
 B)False

Question 13

An organization is following a ________ strategy when it focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors.

Accepted Answer

A)  cost leadership 
B)  differentiation 
C)  focus 
D)  stability 
E)  divestiture 
A)  cost leadership 
B)  differentiation 
C)  focus 
D)  stability 
E)  divestiture

Question 14

ProBot Software recently launched DX 11-a computer operating system that offers superior features compared to all the other competing products available in the market. Though ProBot operates in a high growth market, DX 11 failed to make any significant profits. Which of the following would best explain this disconnect?

Accepted Answer

A)  ProBot's competitors recently reduced their advertising budgets. 
B)  DX 11 is in the growth stage of the product life cycle. 
C)  ProBot has adopted a low cost strategy and has economies of scale. 
D)  The operating system offered by ProBot's main competitor is the industry standard. 
E)  The revenue generated by ProBot is used to finance the operations of one of its subsidiaries. 
A)  ProBot's competitors recently reduced their advertising budgets. 
B)  DX 11 is in the growth stage of the product life cycle. 
C)  ProBot has adopted a low cost strategy and has economies of scale. 
D)  The operating system offered by ProBot's main competitor is the industry standard. 
E)  The revenue generated by ProBot is used to finance the operations of one of its subsidiaries.

Question 15

Define strategic planning. Explain the commitment principle in strategic planning.

Accepted Answer

If managers are to be successful strateg

Question 16

________ is the strategy through which management attempts to strengthen or protect the amount of business an SBU is generating.

Accepted Answer

A)  Differentiation 
B)  Divestiture 
C)  Retrenchment 
D)  Growth 
E)  Focus 
A)  Differentiation 
B)  Divestiture 
C)  Retrenchment 
D)  Growth 
E)  Focus

Question 17

Competitor capability refers to a firm's ability to undertake an action.

Accepted Answer

A) True 
 B)False

Question 18

________ refers to the process by which firms undertake strategic and tactical actions and how competitors respond to these actions.

Accepted Answer

A)  Strategic control 
B)  Environmental analysis 
C)  Competitive dynamics 
D)  Strategy implementation 
E)  SWOT analysis 
A)  Strategic control 
B)  Environmental analysis 
C)  Competitive dynamics 
D)  Strategy implementation 
E)  SWOT analysis

Question 19

Strategic management is the process of ensuring an organization possesses and benefits from the use of an appropriate organizational strategy.

Accepted Answer

A) True 
 B)False

Question 20

With the GE Multifactor Portfolio Matrix, the businesses falling in the cells that form a diagonal from lower left to upper right are ________.

Accepted Answer

A)  the strongest and the ones the company should invest in and help grow 
B)  the strongest and the ones the company should sell 
C)  medium-strength and should be invested in only selectively 
D)  the lowest in strength and serious candidates for divestiture 
E)  the lowest in strength and serious candidates for retrenchment 
A)  the strongest and the ones the company should invest in and help grow 
B)  the strongest and the ones the company should sell 
C)  medium-strength and should be invested in only selectively 
D)  the lowest in strength and serious candidates for divestiture 
E)  the lowest in strength and serious candidates for retrenchment

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

In general, the strategic management process is generally thought to consist of sequential and continuing steps.

An SBU with a relatively small market share of a low-growth market is a ________.

The last step of the strategic management process, consisting of monitoring and evaluating the strategic management process as a whole, is ________.

The level of an organization's external environment that contains components having broad long-term implications for managing the organization is the ________.

BestWash, a laundry chain, has realized that if it wants to beat its leading competitor and improve market share, it must improve its productivity. Which of the following strategies is most likely to help BestWash to achieve this objective?

________, the fourth step of the strategic management process, is putting formulated strategies into action.

________ is a strategy adopted by management to increase the amount of business that an SBU is currently generating.

Which of the following is the ability to manage people during implementation?

Because tactical plans are based primarily on a prediction of the future, and strategic plans are based on known circumstances that exist within the organization, tactical plans are generally less detailed than strategic plans.

Demographics are the statistical characteristics of a population.

This strategy of ________ is generally applied to cash cows or stars that are beginning to lose market share.

Strategy is the end result of strategic planning.

An organization is following a ________ strategy when it focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors.

Define strategic planning. Explain the commitment principle in strategic planning.

________ is the strategy through which management attempts to strengthen or protect the amount of business an SBU is generating.

Competitor capability refers to a firm's ability to undertake an action.

________ refers to the process by which firms undertake strategic and tactical actions and how competitors respond to these actions.

Strategic management is the process of ensuring an organization possesses and benefits from the use of an appropriate organizational strategy.

With the GE Multifactor Portfolio Matrix, the businesses falling in the cells that form a diagonal from lower left to upper right are ________.

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