Exam 9: Managing Strategically

Refer to the scenario below to answer the following questions. Megabyte Centre (Scenario) Your old friend Ariel Eskenazi is the owner and general manager of Megabyte Centre, a computer reseller and systems integrator located in Panama City, Panama. Since leaving IBM Canada to start a business in his home country, Ariel has watched his company grow steadily, due in large part to the business partnerships he's established over the years with large foreign computer and software firms, such as Goldstar and Microsoft. These relationships have helped his company win considerable market share in Panama, as well as in other parts of Latin America. However, in recent years, there has been a huge influx of foreign capital into Panama. For example, several large Asian firms have established subsidiaries in Panama to launch their North American operations. Tourism is also on the rise, and dozens of new hotels have been built in the metropolitan area over the past three years. As a result, demand for Megabyte's products and services has increased dramatically, but so has the level and diversity of its competition. While Megabyte's customer base has remained fairly loyal, many longtime customers are beginning to demand price concessions and enhanced service levels in return for their continued business. Ariel has recently learned that several of his former suppliers and business partners are considering establishing their own local sales offices in Panama City to sell direct to market rather than distributing through Megabyte. Ariel knows you are very knowledgeable about competitive strategy and asks for your advice. You begin by telling him a little about Michael Porter's competitive strategies framework. -Ariel is thinking about closing down the retail side of his business and concentrating his resources on reselling hardware, software, and systems integration services to Latin American governments and public sector agencies. This is an example of which of Michael Porter's competitive strategies?

BIC is the world's largest producer of ballpoint pens. The market for ballpoint pens remains steady, but prospects for future growth are limited as new innovations in writing technology are expected to emerge. According to the BCG matrix, ballpoint pens are a __________ for BIC.

A focuser might use e-business techniques to __________.

Refer to the scenario below to answer the following questions. Clubhouse Gourmet -A- (Scenario) Imagine that you are the president of Clubhouse Gourmet, a successful chain of fast-food restaurants with 60 locations across Canada. The success you have experienced in the last five years has you considering various options about what to do next with the business. Should you continue to expand the business at the current rate? Or perhaps open new and different restaurants? What should you do? -You have decided to purchase a competing chain of fast-food restaurants called Sandwich King. Once the acquisition is completed, you plan to combine their operations with those of Clubhouse Gourmet. This is an example of which growth strategy?

When Air Canada acquired Canadian Airlines International, it was pursuing a strategy of growth by vertical integration.

A competitive tool that can be applied to any organizational work problem by thinking outside existing alternatives and creating new alternatives is called _________.

The final step in the strategic management process is to implement the strategies.

When L'Oreal acquired The Body Shop, it carried out ________.

When an organization attempts to grow by merging with or acquiring firms in different but associated industries, the strategy is known as a __________ strategy.

Functional strategy directly supports the __________ strategy.

An organization that has been able to excel in product research and design, manufacturing, marketing and managing its human resources to reach a leadership position in the marketplace is taking advantages of its _________.

Claire's Fashions markets an inexpensive line of fashion jewellery that targets "tween" girls, aged 8 to 12. Claire's is using which of the following competitive strategies?

An organization that is unable to develop a competitive advantage based on one of Michael Porter's competitive strategies is termed __________.

Mission statement should contain an expression for _____________.

When aluminum manufacturer Alcan purchased a mining company that mines bauxite, a key input in aluminum production, it was pursuing which corporate strategy?

Refer to the scenario below to answer the following questions. The Strategic Management Process (Scenario) Kerry is vice-president of operations at Delta Corp. The company president has asked Kerry to lead the strategic management process that will help guide Delta through the next five to ten years. At next week's management meeting, Kerry must give a presentation that explains the process. In preparation, Kerry begins by reviewing the steps in the strategic management process from his university textbook. -At some point, Kerry will need to assess Delta's financial resources, technical expertise, employee skills, and marketing capabilities. This occurs at which step of the strategic management process?

If a bank evaluates the capabilities of its training and development department employees prior to implementing a new training program designed to change their method of providing customer service, it is completing what step in the strategic management process?

A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

Refer to the scenario below to answer the following questions. Megabyte Centre (Scenario) Your old friend Ariel Eskenazi is the owner and general manager of Megabyte Centre, a computer reseller and systems integrator located in Panama City, Panama. Since leaving IBM Canada to start a business in his home country, Ariel has watched his company grow steadily, due in large part to the business partnerships he's established over the years with large foreign computer and software firms, such as Goldstar and Microsoft. These relationships have helped his company win considerable market share in Panama, as well as in other parts of Latin America. However, in recent years, there has been a huge influx of foreign capital into Panama. For example, several large Asian firms have established subsidiaries in Panama to launch their North American operations. Tourism is also on the rise, and dozens of new hotels have been built in the metropolitan area over the past three years. As a result, demand for Megabyte's products and services has increased dramatically, but so has the level and diversity of its competition. While Megabyte's customer base has remained fairly loyal, many longtime customers are beginning to demand price concessions and enhanced service levels in return for their continued business. Ariel has recently learned that several of his former suppliers and business partners are considering establishing their own local sales offices in Panama City to sell direct to market rather than distributing through Megabyte. Ariel knows you are very knowledgeable about competitive strategy and asks for your advice. You begin by telling him a little about Michael Porter's competitive strategies framework. -According to Porter, the possibility of Ariel's former suppliers entering the local market as direct competitors would be considered which of the five forces?

Refer to the scenario below to answer the following questions. The Strategic Management Process (Scenario) Kerry is vice-president of operations at Delta Corp. The company president has asked Kerry to lead the strategic management process that will help guide Delta through the next five to ten years. At next week's management meeting, Kerry must give a presentation that explains the process. In preparation, Kerry begins by reviewing the steps in the strategic management process from his university textbook. -Kerry will also need to assess industry trends, level of competition, labour supply, and pending legislation that might have an impact on Delta's operations. This occurs at which step of the strategic management process?