Deck 8: Strategy Formulation and Implementation

Question 1

The stage of strategic management that involves the planning and decision making which then lead to the establishment of organisational goals is known as strategy implementation.

Answer 1

False

Question 2

The combination of benefits received and costs paid by the customer is referred to as value.

Answer 2

True

Question 3

An organisation's core competency is something the organisation does equally,if not better,than its competitors.

Answer 3

False

Question 4

The SWOT analysis framework assesses the strengths,weaknesses,opportunities and threats that affect organisational performance.

Question 5

Coles Supermarkets and Target are divisions of Coles Ltd.It is correct to state that Coles Ltd managers would formulate the company's corporate-level strategies,while the manager of Coles Supermarkets and Target would be responsible for business-level strategies.

Question 6

When an organisation has resources and capabilities that provide it with a distinctive edge for meeting customer or client needs in the marketplace,they are said to have a competitive advantage.

Question 7

The three levels of strategy are business,corporate and global.

Question 8

The set of decisions and actions used to formulate and implement goals that will provide competitively superior fit between the organisation and its environment is known as strategic management.

Question 9

The stage of strategic management that involves the use of managerial and organisational tools to direct resources towards achieving strategic outcomes is known as strategy formulation.

Question 10

A transnational strategy seeks to achieve both global integration and national responsiveness.

Question 11

The question 'How do we compete?' concerns corporate-level strategy.

Question 12

Globalisation refers to the worldwide standardisation of product design and advertising.

Question 13

An organisation's opportunities and threats typically emanate from the internal environment.

Question 14

Synergy is a condition that exists when organisation's parts interact to produce a joint effect that is greater than the sum of the parts acting alone.

Question 15

The question,'How do we compete?' concerns functional-level strategy.

Question 16

Situation analysis typically includes a search for SWOT (situations without threats).

Question 17

The question 'What business are we in?' concerns corporate-level strategy.

Question 18

Target customers have a defined set of needs and wants that the company has a strategy to serve more effectively than as competition.

Question 19

Strategic decisions at the business level concern the amount of advertising,direction and extent of R & D,product changes,new product development,equipment and facilities,and expansion or contraction of product lines.

Question 20

A plan of action that describes resource allocation and activities for dealing with the environment,achieving a competitive advantage,and attaining goals is known as a strategy.

Question 21

According to Porter's 'five forces',comments by a potential competitor that they will 'introduce their products at reduced prices so that other organisations will go out of business' is an example of a 'threat of new entrants'.

Question 22

Portfolio management refers to the manner in which an individual organises and presents their past achievements.

Question 23

In the BCG Matrix,a new business venture,or a brand new product line would represent a Star for the organisation.

Question 24

The strengths and weaknesses of an organisation usually emanate from its internal environment,while opportunities and threats usually emanate from its external environment.

Question 25

Strategy implementation is the administration and execution of the strategic plan.

Question 26

Porter's three generic strategies include cost-leadership,differentiation and focus.

Question 27

According to recent research by McKinsey,questions that should be asked during the strategy formulation process include: 'Does it tap into our competitive advantage?','Is the strategy the cutting edge of new trends?' and 'Is it biased,rational and logical?'

Question 28

The differentiation strategy involves an attempt to distinguish the organisation's products or services from others in the industry at the lowest possible cost.

Question 29

A strategy that combines a global coordination to attain efficiency with good flexibility to meet specific needs in various countries is known as a multi-domestic strategy.

Question 30

According to the BCG Matrix,a business unit that experiences low market share and low market growth is known as the question mark.

Question 31

A portfolio strategy is used to formulate business-level strategy,and relates to the mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage for the organisation.

Question 32

The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organisation and its environment so as to achieve organisational goals is known as:

A) strategy formulation
B) strategic planning
C) strategic management
D) strategy implementation
E) strategy evaluation.

Question 33

Cadbury PLC is the brand leader in the block chocolate market,yet has relatively low levels of growth in sales year-on-year.This product belongs in the stars category of the BCG Matrix.

Question 34

Differentiation,cost leadership and focus are three of Porter's competitive strategies.

Question 35

Leveraging in developing more from the organisation's existing assets,capabilities and core competencies in a way that will provide sustained competitive advantage is known as a dynamic capability.

Question 36

Porter's 'five forces' model includes: potential of new entrants,bargaining power of suppliers and buyers,substitute products,and government.

Question 37

According to Porter,Porche's production of high-performance sports cars represents an example of a focus strategy.

Question 38

It is impossible for an organisation to convert its weaknesses into strengths.

Question 39

In terms of the assumptions of the BCG matrix,the question mark refers to questionable strategies that require immediate divestment.

Question 40

With a focus strategy,the organisation concentrates on a specific regional market or buyer group.

Question 41

Decisions regarding the appropriate amount of advertising for a particular good or service are related to:

A) corporate-level strategies
B) functional-level strategies
C) tactical-level strategies
D) business-level strategies.

Question 42

Which of these relates to the entire organisation?

A) Business-level strategy
B) Functional-level strategy
C) Corporate-level strategy
D) Operational-level strategy
E) Competitive-level strategy

Question 43

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organisation attain its goals is known as a:

A) goal
B) objective
C) mission
D) strategy
E) vision.

Question 44

The modification of product design and advertising strategies to suit the specific needs of individual countries is referred to as a:

A) domestic strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) market design strategy.

Question 45

A business activity that an organisation performs better than all of its competitors in a given market is known as a(n)_____________________.

A) threat
B) opportunity
C) relative strength
D) core competency
E) None of these choices.

Question 46

A functional-level strategy is mostly concerned with which question?

A) What business are we in?
B) How do we compete?
C) How do we support our chosen strategy?
D) What business do we buy?
E) Where to market our products?

Question 47

The condition that exists in an organisation where its parts interact to produce an effect that is greater than the sum of the parts acting alone is known as:

A) resource stability
B) synergy
C) internal growth
D) internal strengths
E) None of these choices.

Question 48

The overall plan of action for the organisation is known as:

A) the mission statement
B) the grand strategy
C) a strategic plan
D) the organisational vision
E) a competitive plan.

Question 49

The planning and decision making that lead to the establishment of the organisation's goals and of a specific strategic plan is known as:

A) strategy formulation
B) strategy implementation
C) strategy coordination
D) strategy control
E) SWOT.

Question 50

The marketing people at Bazza's Beer found that tastes of beer consumers in Thailand differed from those in Australia,causing the company to slightly modify its product exported to that company.Bazza's Beer is pursuing a(n)__________ strategy.

A) globalisation
B) internal-growth
C) functional-level
D) multidomestic
E) domestic

Question 51

The millions of dollars spent by Coles supermarkets on upgrading and modernising its stores is an example of _______________ strategy.

A) business-level
B) corporate-level
C) SWOT
D) functional-level
E) cost-benefit

Question 52

In 1999,the National Australia Bank chose to spend a good deal of financial capital and effort to move to global standards in its financial service products.This is an example of the implementation of a(n)__________ strategy.

A) multidomestic
B) internal
C) external
D) globalisation

Question 53

An organisation that has standardised its product line throughout the world would be pursuing a:

A) multidomestic strategy
B) transnational strategy
C) export strategy
D) globalisation strategy.

Question 54

_____________________ are segments of the mass-market that a company seeks to serve more effectively than its competitors.

A) Industries
B) Niche markets
C) Target customers
D) Customer groups
E) None of these choices.

Question 55

Which of these typically includes a search for SWOT that affect organisational performance?

A) Strengths and weaknesses
B) Opportunities and threats
C) Situational analysis
D) External environment analysis
E) Cultural analysis

Question 56

Rupert Murdoch's News Corporation,founded in Australia and now a global communications and media company,is attempting to develop __________ between publishing and the movie business.

A) objectivity
B) competition
C) synergy
D) vision
E) strategy

Question 57

A corporate-level strategy is concerned with which question?

A) What business are we in?
B) How do we compete?
C) How do we support our chosen strategy?
D) Where do we market our products?
E) Should we promote from within?

Question 58

If an organisation possesses unique resources and capabilities that enable it to positively differentiate itself from its competitors in a given marketplace,it is said to possess:

A) a sound strategy
B) a competitive advantage
C) a viable strategic plan
D) an effective senior management team
E) a competitive plan.

Question 59

The assumption that a single global market exists would lead to a:

A) globalisation strategy
B) multidomestic strategy
C) export strategy
D) transnational strategy.

Question 60

The stage of strategic management that involves the use of managerial and organisational tools to direct resources towards achieving strategic outcomes is known as:

A) strategy formulation
B) strategy implementation
C) strategy coordination
D) strategy control
E) SWOT.

Question 61

According to the BCG matrix ,a cash cow:

A) generates tremendous profits in a rapidly growing industry
B) has a small market share in a rapidly growing industry
C) has a small market share in a slow growth industry
D) has a large market share in a slow growth industry
E) is generally a dead business that should be divested.

Question 62

How business units and product lines fit together in a logical way is the essence of:

A) business-level strategy
B) portfolio strategy
C) competitive strategy
D) financial strategy
E) functional strategy.

Question 63

The _______ ______________ strategy involves seeking efficient facilities,cutting costs and using tight cost controls to be more efficient than competitors.

A) cost leadership
B) differentiation
C) focus
D) internal growth
E) liquidation

Question 64

Any external characteristic of an organisation that inhibits restricts its performance is categorised as a(n):

A) strength
B) weakness
C) opportunity
D) threat
E) None of these choices.

Question 65

According to the text,some people argue that _____________ is the most difficult and most important part of strategic management.

A) SWOT analysis
B) strategic formation
C) strategic implementation
D) strategic analysis
E) strategy evaluation

Question 66

Which of the following is not one of Porter's competitive forces?

A) Differentiation
B) Bargaining power of buyers
C) Bargaining power of suppliers
D) Threat of substitute products
E) Potential new entrants

Question 67

Tassie Terminal Technology has a number of strategic business units.Their hand-held computer unit has a large market share in this rapidly growing industry.According to the BCG matrix,the hand-held computer business would be classified as:

A) a dog
B) a star
C) a question mark
D) a cash cow
E) Not enough information to decide.

Question 68

Under the assumptions of the BCG Matrix,a 'star' has a:

A) large market share in a rapidly growing industry
B) large market share in a slow growth industry
C) small market share in a rapidly growing industry
D) small share of a slow growth market
E) moderate market share in a slow growth industry.

Question 69

With a(n)__________ strategy,the organisation concentrates on a specific regional market or buyer group.

A) cost leadership
B) differentiation
C) focus
D) internal growth
E) liquidation

Question 70

Under the assumptions of the BCG Matrix,a 'dog' has a:

A) large market share in a rapidly growing industry
B) large market share in a slow growth industry
C) small market share in a rapidly growing industry
D) small share of a slow growth market
E) moderate market share in a rapidly growing industry.

Question 71

Information about opportunities and threats comes from:

A) an analysis of the organisation's internal environment
B) a department-by-department study of the organisation
C) scanning the external environments
D) employee grievances
E) financial ratios of the organisation.

Question 72

Under the assumptions of the BCG Matrix,a 'question mark' has a:

A) large market share in a rapidly growing industry
B) large market share in a slow growth industry
C) small market share in a rapidly growing industry
D) small share of a slow growth market
E) moderate market share in a slow growth industry,

Question 73

A division of an organisation that has a separate business mission,as well as unique product lines and competitors,is known as a:

A) strategic business unit
B) portfolio member
C) domestic organisation
D) functional strategy
E) organisation.

Question 74

John's car-tyre business has recently taken measures to offer its customers additional services such as the fitting of spoilers and car radios.This change would represent which of the following types of strategy?

A) focus
B) cost leadership
C) diversification
D) generating a cash cow
E) synergy.

Question 75

Techniques used to monitor external environments include:

A) hiring research organisations
B) hiring the competition's employees
C) government reports
D) buying competitors' garbage
E) All of these choices.

Question 76

Wiley Woodchips Pty Ltd is particularly concerned about pending legislation tabled in State Parliament that would further regulate their organisation.This legislation would be classified as a(n):

A) external opportunity
B) internal strength
C) external threat
D) external weakness
E) parliamentary chaos.

Question 77

Barriers to entry are related to which competitive force?

A) Rivalry among competitors
B) Potential new entrants
C) Threat of substitute products
D) Bargaining power of buyers
E) Bargaining power of suppliers

Question 78

The BCG matrix organises along which of the following dimensions?

A) Market share and profit
B) Sales and market share
C) Business growth rate and market share
D) Business growth rate and profit
E) Sales and profits

Question 79

Any internal characteristic of an organisation that inhibits restricts its performance is categorised as a(n):

A) strength
B) weakness
C) opportunity
D) threat
E) None of these choices.

Question 80

The ______________ strategy can be profitable for an organisation because customers are loyal and willing to pay high prices.

A) focus
B) globalisation
C) overall cost leadership
D) differentiation
E) liquidation