Deck 10: Managing Strategically

Question 1

In response to the global recession,companies that focused on flexible strategies were better able to cope with the environmental uncertainty.

Answer 1

True

Question 2

Managers use the strategic management process in order to ________.

A)better cope with uncertain environments
B)ensure they stay ahead of the competition
C)provide products and services the marketplace demands
D)be profitable

Answer 2

A

Question 3

At which step of the strategic management process do managers identify opportunities and threats?

A)internal objectives
B)formulate strategies
C)external analysis
D)evaluate results

Answer 3

C

Question 4

Strategic management consists of the decisions and actions that determine the long-run performance of the organization.

Question 5

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

Question 6

The purpose of Cathy's Clowns is "to provide healthy entertainment that makes young children laugh." This statement describes Cathy's ________.

A)strategic goal
B)strategic purpose
C)business model
D)mission statement

Question 7

Concern for survival,growth,and profitability are all expressed in the organization's ________.

A)strategic plan
B)mission statement
C)business model
D)SWOT analysis

Question 8

A ________ is a strategic design for how a company intends to profit from its strategies,work processes,and work activities.

A)mission statement
B)master plan
C)business model
D)functional strategic plan

Question 9

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

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

Question 10

The mission statement of Cirque du Soleil states,"We are united by one overriding goal: to entertain,uplift,and enlighten audiences the world over." This statement relates most closely to which component of a mission statement?

A)markets
B)customers
C)concern for public image
D)philosophy

Question 11

Mission statement should contain an expression about ________.

A)profitability
B)strengths and opportunities
C)concern for public image
D)e-business strategy

Question 12

"At IBM,we recognize individual differences and appreciate how these differences provide a powerful competitive advantage and a source of great pride and opportunity in the workplace and marketplace." This statement relates most closely to which component of a mission statement?

A)products or services
B)concern for public image
C)concern for survival
D)concern for employees

Question 13

Computer peripherals provider Ascent plans to enter a new market in another country.Which of the following represents a threat for Ascent?

A)Ascent lacks the resources to enter the market on its own and has to find a partner in the new market.
B)Ascent will have to plan its entry carefully as the laws in the country do not favour foreign businesses.
C)Ascent needs to improve its service capabilities in the new country as this is an important source of revenue.
D)Ascent has to find internal resources to provide most of the financing for the new venture.

Question 14

A business model comprises of ________ and whether the company can make money doing that.

A)what managers do to develop the organization's strategies
B)focus on the short-run performance of an organization
C)providing products/services that customers will value
D)beating the competition

Question 15

The ________ answers the question "What is our reason for being in business?"

A)strategic plan
B)strategic purpose
C)operational goal
D)mission statement

Question 16

The most fundamental questions about strategy address why firms,facing the same environmental conditions,have varying levels of performance.

Question 17

At which step of the strategic management process do managers try to find out what the competition is doing and what pending legislation might affect the organization?

A)identify current mission,objectives,and strategies
B)formulate strategies
C)conduct market analysis
D)conduct external analysis

Question 18

Generally,strategic plans do not work well for small,entrepreneurial companies.

Question 19

"At HBC,we have a tremendous sense of responsibility,not only to the continued growth and success of our company,but also to the nation that we have been instrumental in building.Our culture is grounded in a commitment to take into account the social needs and issues impacting the communities where we do business." This statement relates most closely to which component of a mission statement?

A)products or services
B)customers
C)concern for public image
D)philosophy

Question 20

________ are positive trends in external environmental factors,while ________ are negative trends.

A)Strengths; weaknesses
B)Opportunities; weaknesses
C)Opportunities; threats
D)Opportunities; risks

Question 21

At which step of the strategic management process do managers assess their financial capital,technical expertise,employee skills,and marketing capabilities?

A)identify current mission,objectives,and strategies
B)formulate strategies
C)internal analysis
D)external analysis

Question 22

The exceptional expertise in research and development would be considered a(n)________.

A)core competency
B)differential benefit
C)environmental advantage
D)opportunity

Question 23

Once managers have completed their analysis of the strengths,weaknesses,opportunities,and threats facing the organization,they can proceed to the next step of the strategic management process,which is to ________.

A)identify competitors
B)identify the organization's current mission,goals,and strategy
C)formulate strategies
D)identify environmental trends

Question 24

The fact that industry-wide sales are up by 10 percent because women are buying more cosmetics would be considered a(n)________.

A)core competency
B)strength
C)weakness
D)opportunity

Question 25

The failure of the advertising campaign would be classified as a(n)________.

A)question mark
B)weakness
C)opportunity
D)threat

Question 26

Casey has been taking courses in the Asian languages department for the last three years and consequently speaks reasonably coherent Chinese.Spending a summer in Shanghai on an intensive language course further improved her language skills.Few students are interested in learning Chinese these days so this is a(n)________ Casey possesses over other job applicants.

A)opportunity
B)strength
C)differentiation
D)core competency

Question 27

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?

A)identify current mission,objectives,and strategies
B)internal analysis
C)external analysis
D)formulate strategies

Question 28

Bella Vista Clothing targets teenaged girls with a range of affordable ready-to-wear clothing.The company is opening two new outlets,as sales have been excellent.Which of the following represents a strength for the company?

A)The company's in-house designers have a knack for identifying and popularizing fashion trends.
B)Overseas customers have shown an interest in buying Bella Vista clothes through the company's online store.
C)A long-time competitor recently went out of business,so Bella Vista can cut down on its advertising budget.
D)Teenage girls are increasingly taking part-time jobs so they can afford to buy more clothes.

Question 29

The quality of the company's personnel would be considered a(n)________.

A)differential benefit
B)strength
C)core competency
D)opportunity

Question 30

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

A)They always hinder the organization's strategic actions.
B)Employees will have less understanding of the planning process.
C)Employee attitudes tend to be strong,but their organizational values are weak.
D)They are difficult to change.

Question 31

If a bank evaluates 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)identify the organization's current mission,goals,and strategies
B)internal analysis
C)formulate strategies
D)implement strategies

Question 32

In looking at her graduating class,Casey notices that there are large numbers of students graduating with the same major as she is.This situation can be a(n)________ in her job hunt.

A)opportunity
B)weakness
C)strength
D)threat

Question 33

Casey realizes that she has a personal characteristic that suggests she is not comfortable interacting with strangers.She interprets this as a(n)________ if she is to get a job as a salesperson.

A)threat
B)weakness
C)opportunity
D)differentiation

Question 34

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?

A)opportunity
B)weakness
C)threat
D)risk

Question 35

An organization that has been able to excel in product research and design,manufacturing,marketing,and managing its human resources to reach a leadership position in the marketplace is taking advantages of its ________.

A)competitive advantage
B)leadership expertise
C)creativity and innovation
D)core competencies

Question 36

The major value-creating capabilities and skills of the organization are knows as ________.

A)core competencies
B)human resources
C)financial resources
D)leadership expertise

Question 37

The controversy and negative publicity associated with cosmetics testing on animals would be classified as a(n)________.

A)strength
B)weakness
C)threat
D)opportunity

Question 38

Helen,the owner of Crazy Cupcakes,is conducting a SWOT analysis of her company to find out where she can improve her business and to identify possibilities for expansion.Which of the following represents an opportunity for expansion?

A)There has been a trend toward personalized cupcakes for a variety of occasions.
B)The production process was found to be highly efficient,and wastage was kept to a minimum.
C)In a taste test,Crazy Cupcakes products ranked higher than competitors in the taste and texture segments.
D)The prices of flour and sugar have gone down in the last six months.

Question 39

Casey majored in marketing and really enjoyed studying market research as a subject.Through research on the Internet and in the university library,she discovers that this industry appears to have significant positive external trends.She interprets this as a(n)________.

A)weakness
B)threat
C)strength
D)opportunity

Question 40

Pat's Pets has developed a reputation as the industry leader in quality pet care.It has exceptionally skilled employees who are known for their humane and loving treatment of animals.For Pat's,these resources would be considered ________.

A)opportunities
B)competitive assets
C)primary resources
D)core competencies

Question 41

Activities that an organization does well or any unique resources that it has are called opportunities.

Question 42

Kerry will also need to assess industry trends,level of competition,labour supply,and pending legislation that might have an impact on Delta's operations.This occurs at which step of the strategic management process?

A)conduct internal analysis
B)conduct external analysis
C)write a business plan
D)identify the organization's current mission,objectives,and strategies

Question 43

SWOT analysis includes an analysis of an organization's internal and external environments.

Question 44

When conducting a SWOT analysis,threats are activities the organization doesn't do well or resources it needs but doesn't possess.

Question 45

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

A)diversification; integration
B)integration; retrenchment
C)retrenchment; turnaround
D)stability; retrenchment

Question 46

When Kerry reaches the end of the strategic management process,he will be at which step?

A)formulate strategies
B)conduct external analysis
C)evaluate results
D)implement strategies

Question 47

When an organization grows by combining operations with competitors,the strategy is known as a ________ strategy.

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

Question 48

Organizations grow by using ________ strategies.

A)concentration,integration,or diversification
B)concentration,integration,or innovation
C)integration,diversification,or differentiation
D)differentiation,integration,or innovation

Question 49

One of the components of the mission statement should be the organization's competitive advantage.

Question 50

Kerry learns that the combination of internal and external analyses is called ________.

A)a business model
B)SWOT analysis
C)core competencies
D)BCG matrix

Question 51

Kerry learns that the first step in the strategic management process is to ________.

A)formulate strategies
B)conduct internal analysis
C)conduct external analysis
D)identify the organization's current mission,objectives,and strategies

Question 52

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

Question 53

Managers using the strategic management process always achieve positive outcomes.

Question 54

Understanding the organization's culture is a crucial part of external analysis.

Question 55

A ________ strategy addresses organizational weaknesses,helps stabilize operations,and revitalizes organizational resources and capabilities.

A)diversification
B)concentration
C)retrenchment
D)stability

Question 56

The major value-creating capabilities and skills of the organization are known as its primary resources.

Question 57

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

Question 58

At some point,Kerry will need to assess Delta's financial resources,technical expertise,employee skills,and marketing capabilities.This occurs at which step of the strategic management process?

A)formulate strategies
B)conduct internal analysis
C)write a business plan
D)identify the organization's current mission,objectives,and strategies

Question 59

A strong organizational culture may act as a significant barrier to accepting any changes in the organization's strategies.

Question 60

The final step in the strategic management process is to implement the strategies.

Question 61

When L'Oréal acquired The Body Shop,it carried out ________.

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

Question 62

Cindy's Cosmetics continues to offer the same high quality beauty products that it has for the last 10 years.The company is successful in its market segment and has no plans for change in the near future.The company is pursuing which type of strategy?

A)integration
B)stability
C)retrenchment
D)concentration

Question 63

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

A)integration
B)stability
C)turnaround
D)concentration

Question 64

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?

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

Question 65

When consumer electronics manufacturer Sony Corporation decided to open its own chain of retail stores,it was pursuing which corporate strategy?

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

Question 66

Pepsico is divided into several product divisions,including Pepsi,Frito-Lay,Tropicana,Quaker,and Gatorade.Each division has its own strategy that defines the products it wants to offer and the customers it wants to target.The divisions are called ________.

A)subsidiary operating divisions
B)strategic operating centres
C)strategic business units
D)diversified business enterprises

Question 67

When a university reduces its course offerings in a semester due to low student enrolment,it is pursuing a strategy of ________.

A)integration
B)retrenchment
C)stability
D)concentration

Question 68

When an organization attempts to grow by merging with or acquiring firms in different and dissimilar industries,the strategy is known as a(n)________ strategy.

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

Question 69

Which of the following provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources?

A)differentiation strategy
B)vertical integration
C)corporate portfolio matrix
D)strategic business unit

Question 70

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

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

Question 71

Ronald's has been in the fast-food business for five years.After struggling for two years,it finally broke even,and the french fries it offers are its most popular product.However,during the past year,its business has suffered because the farm that used to supply it with potatoes has increased its prices drastically.What should Ronald's do to control production costs?

A)Buy out the farm and become its own supplier.
B)Open more distribution outlets.
C)Broaden the product range by introducing potato nuggets on its menu.
D)Hire more efficient outlet managers.

Question 72

When an organization attempts to grow by merging with or acquiring firms in different but associated industries,the strategy is known as a ________ strategy.

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

Question 73

When aluminum manufacturer Alcan purchased a mining company that mines bauxite,a key input in aluminum production,it was pursuing which corporate strategy?

A)concentration
B)forward vertical integration
C)related diversification
D)backward vertical integration

Question 74

Over the last century,the Campbell Soup Company has expanded by acquiring other packaged consumer food companies such as Pace,V8,Pepperidge Farms,Swanson,and Godiva Chocolatiers.Campbell was pursuing which corporate strategy?

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

Question 75

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 ________.

A)horizontal integration
B)related differentiation
C)unrelated differentiation
D)unrelated diversification

Question 76

Florance is a chain of flower shops in the Toronto area.The company recently acquired Knick-knacks,which owns three gift shops.Which of the following is most similar to this acquisition?

A)Construction firm Donaldson acquired Fabrica Textiles as it seemed like a good investment.
B)Dallas Shoes buys out RunTime Shoes and expands its distribution channels through RunTime outlets.
C)Toy World acquired Unicorn Children's Books and now retails both toys and books from co-branded outlets.
D)Loblaw's acquired Shopper's Drug Mart as the latter was showing huge profits.

Question 77

When Kimberly-Clark Corporation merged with Scott Paper Company to form the world's largest producer of tissue paper,they were pursuing which growth strategy?

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

Question 78

YUM! Brands is the world's largest restaurant company,with more than 33,000 restaurants in over 100 countries.Their restaurant brands include KFC,Pizza Hut,and Taco Bell.They recently acquired two other fast-food restaurant chains: A&W and Long John Silver's Seafood.YUM! has pursued which type of corporate strategy?

A)related differentiation
B)forward vertical integration
C)related diversification
D)horizontal integration

Question 79

When Air Canada acquired its largest domestic competitor,Canadian Airlines International,it was pursuing a strategy of ________.

A)forward vertical integration
B)horizontal integration
C)related diversification
D)related differentiation

Question 80

When athletic sportswear manufacturer Nike decided to open its own chain of retail stores,it was pursuing which corporate strategy?

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