Exam 9: Managing Strategically

Carly's Car Care has just found out that a new competitor is opening a few doors down in a prime location. The competitor will feature the very latest in car washing technology at competitive prices. The new competitor represents which of the following for Carly?

The Jim Pattison Group has grown by acquiring firms in diverse industries. Today, Jim Pattison owns food retail chains, car dealerships, radio stations, a fishing company, a sign company, a packaging company, and several museum-themed tourist attractions. Jim Pattison has pursued a strategy of __________.

The strategic design for how a company intends to profit from its strategies, processes and activities is often called a strategic deployment plan.

The renewal strategy of __________ is used to correct less serious performance setbacks, while a __________ strategy is used for more critical performance problems.

In Michael Porter's five forces model of industry attractiveness, __________ is determined by the industry growth rate, increasing or falling demand, and product differences.

When Air Canada went into bankruptcy protection to restructure its organization and reduce its operating costs, it was pursuing which of the following strategies?

When the Campbell Soup Company began to manufacture its own cans to gain more control over a key production input, it was pursuing which corporate strategy?

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 is unable to develop a competitive advantage based on one of Michael Porter's competitive strategies, it would be described as __________.

Evaluating an organization's intangible assets is part of conducting an internal analysis in the strategic management process.

According to Michael Porter's competitive strategies framework, the cost leadership strategy results in exceptionally high-quality products at the lowest cost in the industry.

The global leader in the cigarette lighter business is French company BIC, but the market is expected to decline in coming years as fewer people take up smoking. Realizing these factors, Gillette decided to sell its Cricket lighter division to Swedish Match. According to the BCG matrix, Gillette viewed Cricket as a __________.

Jill is assessing the labour supply in the locations where her company currently operates. She is currently at which stage of the strategic management process?

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. -Once Ariel has assessed the five forces and determined the threats and opportunities that exist in the current environment, he will be ready to select an appropriate competitive strategy. The three competitive strategies proposed by Michael Porter are __________.

The same environment can present opportunities to one organization and pose threats to another.

Which of the following provides a framework for understanding diverse businesses and helps managers establish priorities for allocating 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. -When Kerry reaches the end of the strategic management process, he will be at which step?

The AFV (Alternative Fuel Vehicle) division of General Motors produces gas-electric hybrids and other automobiles that run on ethanol, natural gas, and hydrogen. While current market share is small, GM is anticipating dramatic growth in the next few years as demand for alternative fuel vehicles skyrockets. Using the BCG matrix, GM would classify the AFV division as a __________.

________ is the ability to recognize major eternal environmental changes.

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 are earning good profits but are fearful of growing too fast, so you decide to keep Clubhouse Gourmet in the same business and do not change the menu, hoping to retain the same market share and return-on-investment record. This would be considered a __________ strategy.

Concentration and diversification are two types of renewal strategies.