Question 1

Distinguish between a market development and a product development strategy.

Accepted Answer

Using a market development strategy, a c

Question 2

Avon is an example of a company that demonstrated having a diverse workforce

Accepted Answer

A)  can be a competitive advantage. 
B)  can lower productivity. 
C)  can be an effective IT strategy. 
D)  can hinder quality. 
E)  hinders growth. 
A)  can be a competitive advantage. 
B)  can lower productivity. 
C)  can be an effective IT strategy. 
D)  can hinder quality. 
E)  hinders growth.

Question 3

"The customer is always right" is an example of a policy in Nordstrom's.

Accepted Answer

A) True 
 B)False

Question 4

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

Accepted Answer

A) True 
 B)False

Question 5

In a dynamic environment, using consensus to arrive at a strategic decision is not recommended.Why? What two techniques can strategic managers use to avoid the consensus trap?

Accepted Answer

The best decisions actually involve a ce

Question 6

The attractiveness of a strategic alternative is affected by its perceived compatibility with the key stakeholders in a corporation's task environment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT a goal of financial strategies?

Accepted Answer

A)  Examine the financial implication of corporate and business level strategic options and identify the best financial course of action. 
B)  Provide the corporation with the appropriate financial structure and funds to achieve its overall objectives. 
C)  Institute a new product development plan to generate profit gain market share. 
D)  Provide competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. 
E)  Attempt to maximize the financial value of the firm. 
A)  Examine the financial implication of corporate and business level strategic options and identify the best financial course of action. 
B)  Provide the corporation with the appropriate financial structure and funds to achieve its overall objectives. 
C)  Institute a new product development plan to generate profit gain market share. 
D)  Provide competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. 
E)  Attempt to maximize the financial value of the firm.

Question 8

Which one of the following is NOT true of risk?

Accepted Answer

A)  It includes the length of time the asset will be unavailable for other uses. 
B)  It includes the probability that the strategy will be effective. 
C)  Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions. 
D)  It includes the amount of assets the corporation must allocate to that strategy. 
E)  The greater the assets involved, the more likely top management is to demand a high probability of success. 
A)  It includes the length of time the asset will be unavailable for other uses. 
B)  It includes the probability that the strategy will be effective. 
C)  Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions. 
D)  It includes the amount of assets the corporation must allocate to that strategy. 
E)  The greater the assets involved, the more likely top management is to demand a high probability of success.

Question 9

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions, but to environmental events out of their control such as government policies or a poor economic climate.

Accepted Answer

A) True 
 B)False

Question 10

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

Accepted Answer

A) True 
 B)False

Question 11

Since the deregulation of the airline industry, major airlines have entered into a spirited battle for market share by cutting prices and offering special deals.This is an example of which strategy to avoid?

Accepted Answer

A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand 
A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand

Question 12

An example of the use of the leader R&D functional strategy to achieve a differentiation competitive advantage is Nike Inc.

Accepted Answer

A) True 
 B)False

Question 13

A financial strategy examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action.

Accepted Answer

A) True 
 B)False

Question 14

An operations strategy determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers.

Accepted Answer

A) True 
 B)False

Question 15

Each business unit has its own set of departments, each with its own functional strategy.

Accepted Answer

A) True 
 B)False

Question 16

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

Accepted Answer

A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing. 
A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing.

Question 17

According to Porter, to achieve a differentiation competitive strategy by following the functional strategy of technological leadership, a business unit should

Accepted Answer

A)  pioneer the lowest-cost product design. 
B)  innovate in other activities to increase buyer value. 
C)  avoid R&D costs through imitation. 
D)  create low-cost ways of performing value activities. 
E)  be the first firm down the learning curve. 
A)  pioneer the lowest-cost product design. 
B)  innovate in other activities to increase buyer value. 
C)  avoid R&D costs through imitation. 
D)  create low-cost ways of performing value activities. 
E)  be the first firm down the learning curve.

Question 18

What are the strategies to avoid proposed by the authors?

Accepted Answer

The strategies to avoid are as follows:

Question 19

The key to outsourcing is to purchase from the outside only those activities that

Accepted Answer

A)  are not key to the company's distinctive competence. 
B)  are very expensive. 
C)  provide the company competitive advantage. 
D)  are provided by an important supplier. 
E)  are not very expensive. 
A)  are not key to the company's distinctive competence. 
B)  are very expensive. 
C)  provide the company competitive advantage. 
D)  are provided by an important supplier. 
E)  are not very expensive.

Question 20

The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called

Accepted Answer

A)  decision trees. 
B)  SWOT analysis. 
C)  industry scenarios. 
D)  corporate scenarios. 
E)  Capital Asset Pricing Model. 
A)  decision trees. 
B)  SWOT analysis. 
C)  industry scenarios. 
D)  corporate scenarios. 
E)  Capital Asset Pricing Model.

Distinguish between a market development and a product development strategy.

Avon is an example of a company that demonstrated having a diverse workforce

"The customer is always right" is an example of a policy in Nordstrom's.

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

In a dynamic environment, using consensus to arrive at a strategic decision is not recommended.Why? What two techniques can strategic managers use to avoid the consensus trap?

The attractiveness of a strategic alternative is affected by its perceived compatibility with the key stakeholders in a corporation's task environment.

Which of the following is NOT a goal of financial strategies?

Which one of the following is NOT true of risk?

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions, but to environmental events out of their control such as government policies or a poor economic climate.

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

Since the deregulation of the airline industry, major airlines have entered into a spirited battle for market share by cutting prices and offering special deals.This is an example of which strategy to avoid?

An example of the use of the leader R&D functional strategy to achieve a differentiation competitive advantage is Nike Inc.

A financial strategy examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action.

An operations strategy determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers.

Each business unit has its own set of departments, each with its own functional strategy.

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

According to Porter, to achieve a differentiation competitive strategy by following the functional strategy of technological leadership, a business unit should

What are the strategies to avoid proposed by the authors?

The key to outsourcing is to purchase from the outside only those activities that

The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 8: Strategy Formulation: Functional Strategy and Strategic Choice

Distinguish between a market development and a product development strategy.

Avon is an example of a company that demonstrated having a diverse workforce

"The customer is always right" is an example of a policy in Nordstrom's.

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

In a dynamic environment, using consensus to arrive at a strategic decision is not recommended.Why? What two techniques can strategic managers use to avoid the consensus trap?

The attractiveness of a strategic alternative is affected by its perceived compatibility with the key stakeholders in a corporation's task environment.

Which of the following is NOT a goal of financial strategies?

Which one of the following is NOT true of risk?

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions, but to environmental events out of their control such as government policies or a poor economic climate.

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

Since the deregulation of the airline industry, major airlines have entered into a spirited battle for market share by cutting prices and offering special deals.This is an example of which strategy to avoid?

An example of the use of the leader R&D functional strategy to achieve a differentiation competitive advantage is Nike Inc.

A financial strategy examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action.

An operations strategy determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers.

Each business unit has its own set of departments, each with its own functional strategy.

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

According to Porter, to achieve a differentiation competitive strategy by following the functional strategy of technological leadership, a business unit should

What are the strategies to avoid proposed by the authors?

The key to outsourcing is to purchase from the outside only those activities that

The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters