Exam 7: Strategy and Strategic Management

Any competitive advantage that is gained in the today in our intensely competitive global economy should be considered to be temporary and is likely to change in the future.

Related diversification involves growth by acquiring new businesses or entering business areas that are related to what the organization already does.

Organizational culture refers to the predominant value system for an organization as a whole.

__________ addresses the question: "How are we going to compete for customers within this industry and market?"

B2C strategies involve the use of ______________ and ________________ to link organizations vertically with members of their supply chains.

The tendency to get so bogged down in details that the planning process becomes an end in itself instead of a means to an end is known as __________.

_________ strategy is used when an organization seeks to maintain current operations without substantial changes.

Businesses pursuing a __________ seek a competitive advantage by concentrating on one special market segment and trying to be the lowest cost provider in that segment.

__________ directs the organization as a whole toward sustainable competitive advantage.

From the perspective of Porter's five forces model,an attractive industry is one in which intense rivalry already exists among competitors,there are substantial threats in terms of new competitors and substitute products,and suppliers and buyers are very powerful in bargaining over prices and quality.

The essence of strategic management is looking ahead,understanding the environment and the organization,effectively positioning the organization for competitive advantage in changing times,and then achieving it.

A __________ strategy involves growth through expansion within the same business area.

__________ involve the use of information technology and Web portals to vertically link organizations with members of their supply chains.

Briefly describe the two key factors that Michael Porter uses as the basis for formulating strategy.Explain how these factors combine to create different competitive strategies.

__________ are individuals and groups who are directly affected by the organization and its strategic accomplishments.

Businesses pursuing a __________ seek a competitive advantage by concentrating on one special market segment and trying to offer customers in that segment a unique product.

A multi-domestic strategy tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions.

Business strategy describes the strategy for a single business unit or product line.

The lack of participation error is the failure to include key persons in the strategic planning effort.

A strategic alliance that involves the development of preferred supplier relationships to guarantee a smooth and timely flow of quality materials among partners is known as an outsourcing alliance.