Deck 9: Strategic Management

Question 1

In the strategic management process, Snowy Hydro statement that it intends: 'To deliver superior financial returns by being the preferred flexible supplier of energy and related products' is an example of what aspect?

A)statement of objectives
B)mission
C)fundamental objective
D)goals
E)strategy

Answer 1

B

Question 2

Strategies include plans for how the organisation will attract and satisfy customers in order to achieve goals.

Answer 2

True

Question 3

Activities that an organisation does well or resources that it has available are called 'assets'.

Answer 3

False

Question 4

SWOT analysis is an analysis of an organisation's environmental opportunities and threats.

Question 5

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

Question 6

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

Question 7

The ________ is a six-step process that encompasses strategic planning, implementation and evaluation.

A)business strategy continuum
B)SBU analysis
C)strategic management process
D)competitive strategies framework
E)total quality management process

Question 8

A successful strategy will be one that tells managers how to succeed in spite of an organisation's environment.

Question 9

Evaluating employee skill level at each position is part of analysing the organisation's resources in the strategic management process.

Question 10

Strategic management is important because it helps coordinate the activities in complex organisations.

Question 11

Which of the following is a reason that strategic management is important?

A)Stockholders demand long-term planning of profits from a stable economic market.
B)Management realised the only way to beat competitors in a static environment is to develop long-term planning.
C)The 1950s and 1960s left a powerful economic machine that needed strategic control.
D)Organisations that use strategic management do have higher levels of performance.
E)The liberal political policies of the early 1970s forced companies to incur tax increases.

Question 12

The strategic management process is divided into which of the following sections?

A)planning, implementation and evaluation
B)problem identification, planning and implementation
C)implementation, evaluation and restructuring
D)mission statement, environmental evaluation and specific goals
E)mission statement, environmental scoping and evaluation

Question 13

In the strategic management process, the ________ defines the organisational purpose and answers the question: 'What is our reason for being in business?'

A)objective
B)evaluation
C)strategy
D)mission
E)values statement

Question 14

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

Question 15

Strategic management does not occur in the public sector due to its dependence on tax dollars.

Question 16

Which of the following is NOT an example of an organisation's mission?

A)We believe our first responsibility is to doctors, nurses and patients, to mothers, and all others who use our products and services (Johnson & Johnson).
B)AMAX's principal products are molybdenum, coal, iron ore, copper, lead, zinc, petroleum and natural gas, potash, phosphates, nickel, tungsten, silver, gold and magnesium.
C)We at Xeren want to increase market share by 10 per cent during the next fiscal year.
D)We are dedicated to the total success of Corning Glass Works as a worldwide competitor.
E)Hoover Universal is a diversified, multi-industry corporation with strong manufacturing capabilities, entrepreneurial policies and individual business unit autonomy.

Question 17

Which of the following is an accurate statement concerning 'strategic management'?

A)It is effective in both the private and not-for-profit organisations.
B)It does not lead to better organisational performance.
C)It has been around for more than 40 years.
D)It grew out of the Western Electric studies.
E)It was first developed by Peter Drucker.

Question 18

Strategic management uses the management function(s)________.

A)planning and leading
B)organising
C)controlling
D)both A and B
E)all of the above

Question 19

A strong culture is easier to change than a weak culture.

Question 20

In a short essay, describe the three reasons for the importance of strategic management.

Question 21

Relative to an organisation's culture, managers must be aware that ________.

A)strong and weak cultures have different effects on the strategy
B)the content of a culture has a major effect on the strategies that can be pursued
C)the content of a culture has a minor effect on the strategies that can be pursued
D)unimportant factors can support escalation of commitment to strategies
E)both A and B

Question 22

Scenario-based questions: The Strategic Management Process
You finally made it.You were recently promoted to Executive Vice President in the corporate division.On the first day in your new position, the Chairperson said she was pleased at your new promotion and looked forward to hearing your presentation at next week's meeting concerning the new strategic management process you will be handling.You smiled, even though your stomach was churning.Unfortunately, this was the first you had heard about this meeting, and other than doing your small part in past planning efforts, you have little idea about how to design a strategic management process.You quickly grab your daughter's management textbook and read up on the topic.
Refer to The Strategic Management Process (Scenario).You learn that a critical part of the second step in the process, the one that needs completing directly before analysing the organisation's resources, is ________.

A)identifying opportunities and threats
B)identifying strengths and weaknesses
C)formulating strategies
D)implementing strategies
E)evaluating results

Question 23

What step in the strategic management process follows analysing the external environment?

A)identifying opportunities and threats
B)mission statement
C)evaluation
D)identifying internal strengths and weaknesses
E)formulating strategies

Question 24

Which of the following is one of the drawbacks to a strong organisational culture that a manager should consider when completing the strategic management process?

A)It can be more difficult to change.
B)Employees have less understanding of the planning process.
C)Employee attitudes tend to be strong but their organisational values are weak.
D)It cancels out any organisational distinctive competence.
E)It makes new strategies too easy and simplistic.

Question 25

What is the step in the strategic management process that follows analysing the organisation's resources?

A)mission statement
B)implementing strategies
C)identifying opportunities and threats
D)analysing the external environment
E)formulating strategies

Question 26

In a short essay, list and discuss the six steps in the 'strategic management process'.

Question 27

Scenario-based questions: The Strategic Management Process
You finally made it.You were recently promoted to Executive Vice President in the corporate division.On the first day in your new position, the Chairperson said she was pleased at your new promotion and looked forward to hearing your presentation at next week's meeting concerning the new strategic management process you will be handling.You smiled, even though your stomach was churning.Unfortunately, this was the first you had heard about this meeting, and other than doing your small part in past planning efforts, you have little idea about how to design a strategic management process.You quickly grab your daughter's management textbook and read up on the topic.
Refer to The Strategic Management Process (Scenario).At this point, you are not even sure what a 'mission' is, but you quickly learn that it outlines ________.

A)the goals of an organisation
B)the purpose of an organisation
C)the values of an organisation
D)the objectives of an organisation
E)the overall plan of an organisation

Question 28

Which of the following is NOT part of the organisation's external environment?

A)what the competition is doing
B)pending legislation that might affect the organisation
C)consumer trends
D)employees' education level
E)labour supply

Question 29

Scenario-based questions: The Strategic Management Process
You finally made it.You were recently promoted to Executive Vice President in the corporate division.On the first day in your new position, the Chairperson said she was pleased at your new promotion and looked forward to hearing your presentation at next week's meeting concerning the new strategic management process you will be handling.You smiled, even though your stomach was churning.Unfortunately, this was the first you had heard about this meeting, and other than doing your small part in past planning efforts, you have little idea about how to design a strategic management process.You quickly grab your daughter's management textbook and read up on the topic.
Refer to The Strategic Management Process (Scenario).You learn that ________ is an important step in the strategic planning process and has to do with issues such as what pending legislation may impact your company and what the competition is doing.

A)implementing strategies
B)formulating strategies
C)identifying strengths and weaknesses
D)identifying opportunities and threats
E)analysing the external environment

Question 30

Which of the following in the strategic management process is part of the step 'analysing the organisation's resources'?

A)identifying opportunities and threats
B)formulating strategy
C)mission statement
D)implementing strategy
E)identifying strengths and weaknesses

Question 31

What step in the strategic management process follows the mission statement?

A)identifying opportunities and threats
B)analysing the internal environment
C)analysing the external environment
D)identifying strengths and weaknesses
E)evaluating the process

Question 32

The ________ is an important constraint on a manager's actions.

A)internal environment
B)organisation's industry
C)manager's entrepreneurial talent
D)organisation's history
E)external environment

Question 33

Scenario-based questions: The Strategic Management Process
You finally made it.You were recently promoted to Executive Vice President in the corporate division.On the first day in your new position, the Chairperson said she was pleased at your new promotion and looked forward to hearing your presentation at next week's meeting concerning the new strategic management process you will be handling.You smiled, even though your stomach was churning.Unfortunately, this was the first you had heard about this meeting, and other than doing your small part in past planning efforts, you have little idea about how to design a strategic management process.You quickly grab your daughter's management textbook and read up on the topic.
Refer to The Strategic Management Process (Scenario).You learn that the very first thing you should do in the strategic management process is ________.

A)analyse the environment
B)identify organisational strengths and weaknesses
C)analyse the organisation's resources
D)formulate strategies
E)identify the organisation's current mission, objectives and strategies

Question 34

________ are the organisation's major value-creating skills, capabilities and resources that determine the organisation's competitive advantage.

A)Core competencies
B)Opportunities
C)Cash cows
D)Stars
E)Strengths

Question 35

________ are positive external factors; ________ are negative.

A)Strengths; weaknesses
B)Opportunities; threats
C)Competencies; competitors
D)Strategies; objectives
E)SWOTs; SBUs

Question 36

What is the final step in the strategic management process?

A)mission statement
B)identifying opportunities and threats
C)implementing strategies
D)analysing the organisation's resources
E)evaluating results

Question 37

In the strategic management process, what step comes prior to evaluating results?

A)identifying strengths and weaknesses
B)formulating strategies
C)identifying opportunities and threats
D)implementing strategies
E)analysing the organisation's resources

Question 38

In the strategic management process, step 4 (formulating strategies)requires that strategies be established for the ________.

A)corporate level
B)business level
C)functional level
D)corporate and business levels
E)corporate, business and functional levels

Question 39

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)identifying opportunities and threats
B)identifying strengths and weaknesses
C)analysing the organisation's resources
D)threat analysis
E)formulating strategy

Question 40

An example of a core competence of a firm is ________.

A)an ability to serve the needs of a particular target market on a large scale
B)communicating with customers in their own languages worldwide
C)developing break-even point analysis in reviewing product contribution
D)both A and B
E)A, B and C

Question 41

Which of the following are the two approaches that help answer the corporate-level question, 'What business(es)do we want to be in?'

A)general and specific strategies
B)systems strategies and general inquiry
C)corporate portfolio matrix and corporate-level strategies
D)general strategies and corporate portfolio matrix
E)corporate-level strategies and general strategies

Question 42

Examples of a corporate-level stability strategy include all of the following EXCEPT ________.

A)continuing to serve the same clients by offering the same product or service
B)maintaining market share
C)sustaining the organisation's return-on-investment results
D)implementing vertical or horizontal integration
E)avoiding changes in focus of products and services

Question 43

________ strategy is a corporate-level strategy that seeks to increase the level of the organisation's operations.

A)Retrenchment
B)Stability
C)Production
D)Growth
E)Unrelated diversification

Question 44

One method of implementing a growth strategy is by increasing production capacity.

Question 45

Which of the following is one level of strategic planning in large companies?

A)management level
B)financial level
C)staff level
D)corporate level
E)systems level

Question 46

Which of the following is associated with corporate-level strategies?

A)They are needed if your organisation is in more than one type of business.
B)They answer, 'How should our business compete?'
C)They represent a single business.
D)They are a method of support for the business-level strategies.
E)They determine the operations of a single business unit.

Question 47

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

Question 48

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

Question 49

Direct expansion and diversification are examples of a corporate retrenchment strategy.

Question 50

According to the textbook, which of the following managers typically are responsible for the competitive strategies?

A)supervisors
B)lower-level managers
C)middle-level managers
D)top-level managers
E)outside consultants

Question 51

When Wesfarmers seeks to integrate the strategies of Bunnings stores, supermarkets and various insurance businesses, it is developing what level of business strategy?

A)functional
B)system
C)management
D)business
E)corporate

Question 52

Lower-level managers in an organisation are typically responsible for which of the following types of strategies?

A)functional-level strategies
B)business-level strategies
C)corporate-level strategies
D)mergers and acquisitions
E)unique competitive advantage

Question 53

The corporate-level strategy termed a 'stability strategy' is characterised by a(n)________ of significant change.

A)slight increase
B)moderate increase
C)absence
D)slight decrease
E)moderate decrease

Question 54

If McDonald's was to buy out KFC, McDonald's would be growing by vertical consolidation.

Question 55

When should management pursue a stability strategy?

A)organisational performance is slipping
B)the environment is changing
C)the organisation's performance is satisfactory and the environment is stable
D)the firm has valuable strengths
E)there are abundant environmental opportunities

Question 56

As mentioned in the textbook, the Bakers Delight bread and pastry shops engages in what type of growth strategy?

A)merger
B)acquisition
C)vertical integration
D)horizontal integration
E)concentration

Question 57

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

Question 58

An organisation that is diversifying its product line is exhibiting what type of grand strategy?

A)stability
B)retrenchment
C)growth
D)maintenance
E)division

Question 59

According to the textbook, ________ determines the direction that the organisation is going and the roles that each business unit in the organisation will play in pursuing that direction.

A)functional-level strategy
B)business-level strategy
C)corporate-level strategy
D)management by objectives
E)the BCG matrix

Question 60

A trucking company that grows by purchasing a chain of service stations is engaged in what type of growth?

A)merger
B)acquisition
C)vertical integration
D)horizontal integration
E)concentration

Question 61

According to the textbook, ________ is when a company grows by merging with or acquiring firms in different, but related, industries.

A)forward vertical integration
B)backward vertical integration
C)horizontal integration
D)related diversification
E)unrelated diversification

Question 62

Scenario-based questions: Strategic Planning
Imagine that you are the CEO of Woolworths and you are having your annual meetings to make strategic decisions and formulate plans for the future.You need to consider several new potential business purchases and decide on how to best support the many diverse companies within the corporate family.
Refer to Strategic Planning (Scenario).If Woolworths decided to sell their financial service companies, this is known as developing ________ strategy.

A)functional
B)strategic business unit
C)competitive-level
D)global
E)corporate-level

Question 63

According to the textbook, senior managers must decide whether or not the emphasis of their innovation efforts is going to be upon ________.

A)basic research
B)product development
C)process development
D)both A and B
E)A, B and C

Question 64

When a university cuts back on the number of courses they offer students, what type of renewal strategy is it employing?

A)retrenchment
B)acquisition
C)turnaround
D)stability
E)either A or C

Question 65

Which of the following describes a company growing by combining with other organisations in the same industry?

A)forward vertical integration
B)backward vertical integration
C)horizontal integration
D)related diversification
E)unrelated diversification

Question 66

In ________, the organisation attempts to gain control of its inputs by becoming its own supplier.

A)forward vertical integration
B)backward vertical integration
C)horizontal integration
D)related diversification
E)unrelated diversification

Question 67

Scenario-based questions: What to Do?
Imagine that you are the CEO of McDonald's Family Restaurants (Australia)with hundreds of franchised fast-food outlets throughout Australia.The success you have experienced in the last five years has you thinking of what to do next with the business.Should you expand the business at the current rate? Open new and different restaurants? What would be your next step?
Refer to What to Do? (Scenario).If you decided to purchase a franchised motel chain because it was a good investment, this would be an example of ________.

A)a lateral growth strategy
B)a combination purchase
C)a vertical growth strategy
D)unrelated diversification
E)related diversification

Question 68

A(n)________ strategy is a short-run corporate-level strategy designed to address minor performance problems.

A)retrenchment
B)acquisition
C)growth
D)stability
E)expansion

Question 69

Scenario-based questions: Strategic Planning
Imagine that you are the CEO of Woolworths and you are having your annual meetings to make strategic decisions and formulate plans for the future.You need to consider several new potential business purchases and decide on how to best support the many diverse companies within the corporate family.
Refer to Strategic Planning (Scenario).When you and the rest of the top-management team are deciding on whether you should purchase a hardware chain, a fast-food group or other food-related businesses (i.e.deciding on which types of businesses you should be in), this would be considered developing a ________ strategy.

A)functional
B)strategic business unit
C)competitive-level
D)global
E)corporate-level

Question 70

The key for managers is responding quickly when it is obvious that the strategy is not working.

Question 71

In a short essay, list and explain three corporate level strategies explaining under what circumstances they might be used.

Question 72

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

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

Question 73

Managers in all kinds of organisations face increasingly intense global competition and high performance expectations by investors and customers.

Question 74

Scenario-based questions: What to Do?
Imagine that you are the CEO of McDonald's Family Restaurants (Australia)with hundreds of franchised fast-food outlets throughout Australia.The success you have experienced in the last five years has you thinking of what to do next with the business.Should you expand the business at the current rate? Open new and different restaurants? What would be your next step?
Refer to What to Do? (Scenario).If, because of the good profits and a fear of growing too fast, you decide to keep McDonald's in the same business and also do not change the menu, hoping to retain the same market share and return-on-investment record, this would be considered a ________ strategy.

A)stability
B)growth
C)combination
D)diversification
E)status quo

Question 75

If the food service company Jollibee Foods Corporation (JFC)acquires the fast-food restaurant QuickSoup, this would be an example of what kind of grand growth strategy?

A)related diversification
B)acquisition
C)expansion
D)vertical integration
E)retrenchment

Question 76

An important part of innovation strategies involves communication.

Question 77

According to the textbook, customer service strategies involve giving the customer what they want, effective communication and ________.

A)providing employees with incentives and bonuses for good service
B)providing employees with customer service training
C)commitment from upper management
D)random checking on the service staff are providing
E)none of the above

Question 78

In a short essay, list and discuss four ways in which company growth can be achieved by using the corporate level growth strategy.Include specific examples of each growth method to support your answer.

Question 79

According to the textbook, the first organisation to bring a product or service to market is often referred to as the ________.

A)prime player
B)market leader
C)first mover
D)trailblazer
E)first player

Question 80

Scenario-based questions: What to Do?
Imagine that you are the CEO of McDonald's Family Restaurants (Australia)with hundreds of franchised fast-food outlets throughout Australia.The success you have experienced in the last five years has you thinking of what to do next with the business.Should you expand the business at the current rate? Open new and different restaurants? What would be your next step?
Refer to What to Do? (Scenario).If you were considering the purchase of another franchise fast-food chain like Red Rooster, this would be an example of ________.

A)a lateral growth strategy
B)related diversification
C)a combination purchase
D)unrelated diversification
E)a vertical growth strategy