Deck 8: Strategic Management

Question 1

A retrenchment strategy is a shortrun renewal strategy designed to address organizational weaknesses that are leading to performance declines.

Answer 1

True

Question 2

SWOT analysis includes an analysis of an organization's environmental opportunities and threats.

Answer 2

True

Question 3

If Burger King were to buy out other burger restaurants, Burger King would be growing by vertical consolidation.

Answer 3

False

Question 4

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

Question 5

"Strategic model" is a term that is often used in conjunction with strategic management and strategies.

Question 6

Turnaround is one type of renewal strategy.

Question 7

Activities that an organization does well or resources that it has available are called capabilities.

Question 8

The final step in the strategic management process is implementing the objectives.

Question 9

A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.

Question 10

Formal strategic planning is implemented in most Arab organizations.

Question 11

A stability strategy is developed when management decides it will remain profitable by maintaining the status quo in a rapidly changing external environment.

Question 12

Strategic management is the set of managerial decisions and actions that determines the short- term performance of an organization.

Question 13

Corporate- level strategies are developed for organizations that run more than one type of business.

Question 14

Stars, one of the four business groups in the corporate portfolio matrix, are characterized by low growth and low market share.

Question 15

Exceptional or unique organizational resources are known as core capabilities.

Question 16

Diversification is an example of a corporate retrenchment strategy.

Question 17

The trend for formal strategic planning in the Arab world is increasing.

Question 18

The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which drain organizational resources.

Question 19

Within an industry, an environment can present opportunities to one organization and pose threats to another.

Question 20

The first step in the strategic management process is analyzing the external environment.

Question 21

Which of the following statements about strategic planning in Arab organizations is not true?

A) There is lack of confidence in the impact of formal strategic planning.
B) The trend for formal strategic planning is on the rise.
C) Informal strategic planning exists in most small and medium- sized organizations.
D) Formal strategic planning exists but is rather limited.

Question 22

When an organization is analyzing its labor supply, it is studying its _.

A) organizational structure
B) organizational culture
C) internal environment
D) external environment

Question 23

What is a strategic design for how a company intends to profit from its strategies, work processes, and work activities?

A) A strategic model.
B) A competitive model.
C) A business model.
D) A strategic management model.

Question 24

What are an organization's financial, physical, human, and intangible assets that are used to develop, manufacture, and deliver products or services to its customers?

A) its opportunities
B) its core competencies
C) its capabilities
D) its resources

Question 25

and are outcomes from a study of the external environment.

A) Threats; weaknesses
B) Strengths; weaknesses
C) Opportunities; threats
D) Weights; measures

Question 26

The merging of the analyses of internal and external factors influencing an organization's strategy is known as .

A) definitional analysis
B) SWOT analysis
C) complete studies
D) organizational behavior and theory

Question 27

An example of a core competency of a firm is .

A) developing least- squared exemptions within its accounting system
B) communicating with customers in their own languages worldwide
C) evaluating tangible and intangible assets
D) the corporate reputation

Question 28

The final step in strategic planning answers the question,

A) "what business have we been in?"
B) "how much money have we lost?"
C) "what business should we have we been in?"
D) "how effective have our strategies been?"

Question 29

In the first step of strategic management, identifying the current strategies and goals provides .

A) an understanding of what the competition is doing
B) a basis to determine if the goals need to be changed
C) important information about an organization's specific resources and capabilities
D) an idea of what trends and changes are occurring

Question 30

When managers "manage strategically" by following the strategic management process, the chosen strategies will always lead to positive outcomes.

Question 31

Why is strategic management important?

A) Organizations are composed of similar divisions and functions.
B) It is involved in many of the decisions that managers make.
C) It has little impact on organizational performance.
D) Most organizations do not change.

Question 32

Studies of the factors that contribute to organizational performance have shown relationship between strategic planning and performance.

A) a negative
B) no
C) a mixed
D) a positive

Question 33

If a bank estimates 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) Carrying out an external analysis.
B) Identifying the organization's current mission, goals, and strategies.
C) Formulating strategies.
D) Carrying out an internal analysis.

Question 34

are the organization's major value- creating skills, capabilities, and resources that determine the organization's competitive weapons.

A) Opportunities
B) Weaknesses
C) Strengths
D) Core competencies

Question 35

In analyzing the environment, managers should know _.

A) about pending legislation that might affect the organization
B) the organization's purpose
C) the goals currently in place and the strategies currently being used
D) the competition's stock price

Question 36

In the first step of strategic management, the mission of the firm answers the question,

A) "what is our reason for being in business?"
B) "who are our creditors?"
C) "who are our customers?"
D) "what business should we be in?"

Question 37

The first _ _ steps of the strategic management process describe the planning that must take place.

A) four
B) three
C) two
D) five

Question 38

The third step in strategic management is related to analysis of .

A) time pressures involved in serving the customer
B) the alternatives the firm faces
C) the external environment
D) the internal environment

Question 39

What provides clues as to what an organization sees as its purpose?

A) The organization's business model.
B) The organization's strategies.
C) The organization's mission.
D) The organization's goals.

Question 40

Corporate reputation is an organization's resource.

A) intangible
B) physical
C) human
D) financial

Question 41

What type of strategy is a renewal strategy for times when the organization's performance problems are more critical?

A) Focus
B) Retrenchment
C) Differentiation
D) Turnaround

Question 42

When Lebanese BLOM Bank aims to maintain a leading domestic position, and strengthen its presence overseas to achieve a balanced earnings breakdown between Lebanon and affiliates abroad, it is developing what level of business strategy?

A) Corporate
B) System
C) Functional
D) Management

Question 43

An organization that is diversifying its product line is exhibiting what type of growth strategy?

A) Growth
B) Maintenance
C) Retrenchment
D) Stability

Question 44

Middle- level managers are typically responsible for strategies.

A) competitive
B) corporate
C) organizational
D) operational

Question 45

A(n) strategy addresses organizational weaknesses, helps stabilize operations, and revitalizes organizational resources and capabilities.

A) retrenchment
B) horizontal integration
C) vertical integration
D) unrelated diversification

Question 46

Managers should "milk" cash cows for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in __ and .

A) question marks; dogs
B) stars; dogs
C) stars; question marks
D) more cash cows; question marks

Question 47

When an organization attempts to combine with other organizations in different and disassociated industries, the strategy is known as a(n) strategy.

A) unrelated diversification
B) vertical integration
C) horizontal integration
D) stability

Question 48

In the BCG matrix, a does not consume or produce much cash and holds little or no improved performance.

A) star
B) question mark
C) dog
D) cash cow

Question 49

The should be sold off or liquidated as they have low market share in markets with low growth potential.

A) question marks
B) stars
C) cash cows
D) dogs

Question 50

strategy determines what businesses an organization should be in.

A) Corporate
B) Operational
C) Organizational
D) Business

Question 51

In the BCG matrix, a business unit that exists in a high anticipated growth rate and a low market share is known as a .

A) question mark
B) dog
C) star
D) cash cow

Question 52

In the Boston Consulting Group (BCG) matrix, a business unit that exists in a low anticipated growth rate and a high market share is known as a .

A) dog
B) question mark
C) cash cow
D) star

Question 53

When an organization attempts to combine with other organizations in different, but associated industries, the strategy is known as a strategy.

A) vertical integration
B) related diversification
C) growth
D) horizontal integration

Question 54

When an organization attempts to combine with other organizations in the same industry, the strategy is known as .

A) a stability strategy
B) horizontal integration
C) vertical integration
D) concentration

Question 55

In , the organization gains control of its outputs by becoming its own distributor.

A) backward horizontal integration
B) backward vertical integration
C) forward vertical integration
D) forward horizontal integration

Question 56

What are the three main types of corporate strategy?

A) Growth, stability, and renewal.
B) Cost leadership, differentiation, and focus.
C) Retrenchment, turnaround, and clicks- and- bricks.
D) Concentration, integration, and diversification.

Question 57

There are three main types of growth strategies: .

A) integration, diversification, and infiltration
B) concentration, integration, and exfoliation
C) concentration, integration, and focus
D) concentration, integration, and diversification

Question 58

Heavy investment in will help take advantage of the market's growth and help maintain high market share.

A) cash cows
B) dogs
C) question marks
D) stars

Question 59

Growth through _ is achieved when an organization chooses to grow by increasing its own business operations.

A) related diversification
B) concentration
C) vertical integration
D) horizontal integration

Question 60

If Jazeera Airways were to merge with Ettihad Airways, this would be an example of what kind of growth strategy?

A) Expansion.
B) Acquisition.
C) Horizontal integration.
D) Vertical integration.

Question 61

What can provide a framework for understanding diverse businesses and help managers establish priorities for making resource allocation decisions?

A) A competitive advantage.
B) A strategic business unit.
C) A competitive strategy.
D) A corporate portfolio matrix.

Question 62

Differentiation as a strategy requires a firm to .

A) aggressively search out efficiencies to maintain the lowest cost structure
B) aim to be similar to its competition in all operations
C) be unique in its product offering
D) aim at a cost advantage in a niche market

Question 63

is the ability to recognize major external environmental changes, to quickly commit resources, and to recognize when a strategic decision is not working?

A) An opportunity
B) Competitive advantage
C) Strategic flexibility
D) Strategic management

Question 64

An organization is said to have when it has several different businesses that are independent and that formulate their own strategies.

A) operational units
B) competitive advantages
C) legal subunits
D) strategic business units

Question 65

When following the focus strategy, a _ can be based on product variety, type of end buyer, distribution channel, or geographic location of buyers.

A) differentiation advantage
B) segment
C) cost focus
D) unique product

Question 66

Cost leadership as a strategy requires a firm to .

A) aim at a cost advantage in a niche market
B) aggressively search out efficiencies to maintain the lowest cost structure
C) be unique in its product offering
D) aim to be similar to its competition in most operations

Question 67

To a degree, an organization's commitment to quality and continuous improvement can differentiate it from competitors, but constant improvement and reliability of an organization's products and/or services may result in a competitive advantage that is .

A) weighted
B) sustainable
C) uncertain
D) conservative

Question 68

An internet- based knowledge management system that resulted in shorter customer response times would be one e- business technique that contributes to the competitive advantage of a .

A) differentiator
B) focuser
C) cost leader
D) star

Question 69

Functional- level strategy directly supports _ .

A) competitive strategy
B) corporate strategy
C) differentiation strategy
D) focus strategy

Question 70

How can a company create strategic flexibility?

A) Know what has happened with strategies in the past.
B) Encourage employees to be open about disclosing negative information.
C) Get old ideas from senior employees.
D) Never make mistakes.

Question 71

An example of is when an organization possesses a characteristic that sets itself apart from competitors and gives the firm a distinctive edge.

A) legal propriety
B) competitive advantage
C) core competency
D) competitive power

Question 72

What generic competitive strategy involves a cost advantage or a differentiation advantage in a narrow segment or niche?

A) focus
B) differentiation
C) breadth
D) cost leadership

Question 73

A firm that is "stuck in the middle" cannot develop .

A) a cost or differentiation advantage
B) an effective strategy
C) strategic flexibility
D) long- term success

Question 74

Air Arabia's motto "Pay Less, Fly More" is indicative of which type of strategy?

A) Value Cost
B) Best Cost
C) Differentiated Cost
D) Low Cost

Question 75

What can challenge managers' attempts at creating a long- term, sustainable competitive advantage?

A) Competitive strategies.
B) Market instabilities.
C) Old technologies.
D) Predictable changes.

Question 76

For a small organization in only one line of business, the competitive strategy simply describes _ .

A) how the company will compete in its main market
B) its competitive advantage
C) what products or services it will offer
D) the customers it wants to reach

Question 77

How can a cost leader use e- business to reduce costs?

A) By using stand- alone locations only.
B) By adding a sales phone line and a sales force.
C) By using web- based inventory control systems that reduce storage costs.
D) By personally testing and evaluating job applicants.

Question 78

Practically any successful consumer product or service can be identified as an example of the .

A) differentiation strategy
B) breadth strategy
C) focus strategy
D) cost leadership strategy

Question 79

Who targets a narrow market segment with customized products?

A) A clicks- and- bricks firm.
B) A focuser.
C) A first mover.
D) A differentiator.

Question 80

What e- business strategy uses both online and traditional stand- alone locations?

A) Focus
B) Functional
C) Differentiation
D) Clicks- and- bricks