Exam 9: Managing Strategically

At which step of the strategic management process do managers try to find out what the competition is doing and what pending legislation might affect the organization?

Appliance maker Maytag states that its products are so reliable that its customers may never need a service call. For nearly 40 years, it has promoted this claim in advertisements featuring the legendary "Lonely Maytag Repairman." Which of the following is the primary source of Maytag's competitive advantage?

Which of the following is most likely to use Internet-based knowledge systems to provide rapid online responses to service requests from customers in a broad market?

The cost leadership strategy requires a firm to __________.

Organizations grow by using strategies of ________.

Refer to the scenario below to answer the following questions. Competitive Strategies (Scenario) Carly's general manager has just given her a big assignment: develop three different potential strategies the business could use to maintain its competitive advantage. Its computer business was slowly losing market share to competitors, and everyone realized that something needed to be done. Carly glanced through the article by Michael Porter that her manager had provided. According to Porter, there were three different types of strategies to choose from. Carly began wondering if there was a way they could make their computers cheaper so they could be sold at a lower price. If they could reduce the price by $100 per machine, they would become the industry price leader. Carly wondered if they could find any lower-priced suppliers for the more expensive computer components. She knew that their computers were particularly appealing to small business owners due, in part, to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines; but they did contain all the basic word processing, database, and spreadsheet applications required by the typical small business owner. This combination of program capabilities, lack of product frills, and good reputation for quality had worked successfully for them in the past. Now Carly wondered if they would be better off looking at a smaller segment of the market, such as small businesses with accounts receivable billings that could fully utilize the database capabilities. She knew this strategy would cut their market potential by 50 percent, but maybe targeting a smaller market niche would lead to better results in the long-term. Carly began compiling her report for Friday's meeting. -If Carly's company could find a way to both reduce the price by $100 and specifically target the small businesses that need large databases, it could pursue the competitive strategy known as __________.

Canadian retailer Future Shop sells merchandise through both its website and its physical store locations. They are using an e-business strategy called _________.

When an organization grows by combining operations with competitors, the strategy is known as a __________ strategy.

Strategic leadership refers to the executives' ability to apply the strategic planning process.

YUM! Brands is the world's largest restaurant company, with more than 33,000 restaurants in over 100 countries. Their restaurant brands include KFC, Pizza Hut, and Taco Bell. They recently acquired two other fast-food restaurant chains: A&W Hamburgers and Long John Silver's Seafood. YUM! has pursued which type of corporate strategy?

A company that competes by offering unique products that are widely valued by customers is following a differentiation strategy.

A cost leader might use e-business techniques to __________.

Refer to the scenario below to answer the following questions. SWOT Analysis (Scenario) Terri has been asked to review her company's strategy in the cosmetics industry. Top management wants to ensure that they are aware of emerging trends and changes. Terri began reviewing a list of factors in her mind. Recently, there has been some negative publicity about cosmetics testing on animals; an industry practice that has become very controversial and increasingly unacceptable to consumers. The laboratory animals at Terri's company are well treated, but they are still used to test new products. On a positive note, industry-wide sales are up 10 percent. Women are buying more cosmetics in general, which is good news for the company. Another positive factor is their personnel. They have many good people working in the company, particularly in research and development where the expertise is exceptional. The only other negative factor noted by Terri was that last year's advertising campaign had not achieved the desired results. Something needed to be done in that department. Terri began to compile her report. -The quality of the company's personnel would be considered a(n) __________.

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. -The rapid industry growth rate and increasing growth of other existing businesses relate to which one of Michael Porter's five forces?

The major value-creating capabilities and skills of the organization are known as its primary resources.

Refer to the scenario below to answer the following questions Personal SWOT Analysis (Scenario) University students in their last year are focused on getting information about the situation in the job market on graduation. As a process of self-examination during her senior year of college, Casey decides to develop a SWOT analysis of her prospects relative to getting a job. -Casey realizes that she has a personal characteristic that suggests she is not comfortable interacting with strangers. She interprets this as a(n) ________ if she is to get a job as a salesperson.

The BCG matrix evaluates businesses to identify which ones offer high potential and which ones drain organizational resources.

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 learns that the combined internal and external analyses are called __________.

Understanding the organization's culture is a crucial part of external analysis.

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? -It is now 10 years later, and as the original owner of Clubhouse Gourmet, you have seen your business holdings grow substantially. The number of stores you own and franchise has grown by 200 percent, and you own a number of companies in both related and unrelated industries. You now need to develop strategies to manage your portfolio of businesses, so you turn to the BCG matrix for help.Since most of the businesses in your portfolio operate independently under their own strategies, they are considered _______.