Deck 3: Planning and Strategic Management

Question 1

Coca-Cola uses the same recipe for coke around the world,but it changes the packaging and marketing.Coca-Cola uses a single-product strategy.

Answer 1

False

Question 2

Operational goals are set with and for middle managers.

Answer 2

False

Question 3

Spirit Airlines was the first to start charging passengers extra for services that used to be included in the ticket.Other airlines quickly followed.Spirit Airlines has a distinctive competence in pricing.

Answer 3

False

Question 4

The first step in planning is to write the operational goals.

Question 5

Qualcomm has a patent-licensing agreement with Texas Instruments allowing both manufacturers to share patents in cell phone production.This is an example of tactical planning.

Question 6

The statement that identifies the scope of a company's operations in terms of products and markets is the tactical plan.

Question 7

"Stars" in the BCG matrix are products that control a small share of a growing market.

Question 8

Porter's generic strategies of overall cost leadership,differentiation,and focus all concentrate on reducing the firm's expenses to minimal levels.

Question 9

Most organizations have a difficult time focusing on weaknesses.

Question 10

Operational plans have a longer-term focus than either strategic or tactical plans.

Question 11

An effective strategy is one in which an organization is properly aligned with its environment and therefore is likely to achieve its strategic goals.

Question 12

Ugg makes footwear and accessories for men,women,and children.That is the company's resource deployment.

Question 13

Effective strategies address distinctive competence,scope,and resource deployment.

Question 14

A SWOT analysis evaluates the organization's strengths and weaknesses against the environment's operations and tactics.

Question 15

Strategic planning is more closely associated with top management than with middle management.

Question 16

Most products sold in the United States are currently in the introduction stage of the product life cycle.

Question 17

An SBU is a distinct business or related set of businesses contained within a corporation's structure.

Question 18

When a firm develops a set of strategic alternatives for all the various businesses in which it competes,it has developed a business-level strategy.

Question 19

The resource deployment dimension of a strategy defines the markets in which the organization intends to compete.

Question 20

Understanding the product life cycle is important to managers because strategies need to evolve over time to keep pace with changes the product experiences over its life cycle.

Question 21

In what practical order should an organization develop its goals?

A)Mission,operational,strategic,and tactical
B)Strategic,tactical,mission,and operational
C)Mission,tactical,strategic,and operational
D)Tactical,strategic,mission,and operational
E)Mission,strategic,tactical,and operational

Question 22

The steps to be followed in case of a fire are posted on the back of every hotel door.These instructions are an example of a standard operating procedure.

Question 23

Tactics focus primarily on resources and the environment,whereas strategies focus primarily on people and actions.

Question 24

Ritz-Carlton opened a hotel outside Tucson.It could use the same program to open a hotel at another location.

Question 25

The Transport Workers Union decided to strike against American Airlines.This was part of a(n)____ plan.

A)strategic
B)tactical
C)operational
D)contingency
E)business-level

Question 26

Which of the following outlines the organization's purpose,assumptions,values,and direction?

A)Mission
B)Purpose
C)Strategic plan
D)Strategic goal
E)Tactical goal

Question 27

The human resource administrator was following a policy when he offered a candidate a job and started the salary negotiation process.

Question 28

The ____ of the National Park Service is "To promote are regulate the use of the national parks which purpose is to conserve the scenery and the national and historic objects and the wildlife therein and to provide for the enjoyment of the same in such a manner and by such means as will leave them unimpaired for the enjoyment of future generations."

A)strategic goal.
B)distinctive competence.
C)mission statement.
D)operational goal.
E)tactical goal.

Question 29

Goals set with and by line-managers are called

A)strategic.
B)tactical.
C)developmental.
D)imposed.
E)operational.

Question 30

Strategic goals are set by

A)first-line managers.
B)middle managers.
C)top managers.
D)stockholders.
E)All of these.

Question 31

When the public relations department develops press releases,to deal with the media exploring accusations of gross employee misconduct,it is developing a reaction plan.

Question 32

Samantha is responsible for building the day-to-day work schedule for each month and assigning her five subordinates to specific tasks,based on plans that she receives from her superiors.Samantha is making which type of plans?

A)Operational
B)Financial
C)Marketing
D)Strategic
E)Tactical

Question 33

Policies are the most specific types of standing plans.

Question 34

The Siemens Foundation conducts Siemens' Science Day in schools across the country reaching thousands of children.Teachers choose the activities that complement their curriculum.Siemens employees lead the activities from pre-made kits.The employees follow a standing plan.

Question 35

A(n)____ for Choice Waste Management could be to put a flyer in with bills that explains the Dos and Don'ts of Recycling and to put the information on the web page where customers pay online.It would develop naturally out of a tactical goal "to develop a recycling campaign for rural communities of less than 1000 customers."

A)strategic plan
B)operational plan
C)contingency plan
D)tactical plan
E)None of these.

Question 36

A(n)____ goal for Choice Waste Management could be "to develop a recycling campaign for rural communities of less than 1000 customers." It would develop naturally out of a strategic goal "to increase recycling by 10% everywhere."

A)strategic
B)departmental
C)functional
D)operational
E)tactical

Question 37

The two major types of operational plans are single-use plans and standing plans.

Question 38

The product life cycle and BCG matrix combine to show that products progress from dogs,to question marks,to cash cows,to stars.

Question 39

Rules,regulations,and SOPs are similar in that they are substitutes for decision making.

Question 40

The ____ of Choice Waste Management Ltd.is "To be the best international integrated leading waste management company-working in the best competitive environment to deliver the best value and sustainable waste solutions to meet the world's needs."

A)strategic goal.
B)tactical goal.
C)operational goal.
D)mission statement.
E)impossible dream.

Question 41

When United Technologies uses its profits from U.S.operations to develop new business opportunities in Europe,it is using

A)resource deployment.
B)a narrower scope of activities.
C)an organizational threat.
D)a SWOT analysis.
E)a single-product strategy.

Question 42

The starting point in formulating strategies is usually

A)a SWOT analysis.
B)goal implementation.
C)operational plans.
D)a mission statement.
E)a control function.

Question 43

Abercrombie sells clothing for "tween" girls who are no longer little girls,but not quite teens either.Abercrombie and Fitch is the clothing line for older people.Abercrombie uses a(n)____ strategy.

A)focus
B)diversification
C)unrelated diversification
D)differentiation
E)BCG

Question 44

When Steve Jobs was CEO of Apple his charisma,marketing skills,and technical vision helped create a(n)____ at apple that made it the leader in mobile devices.

A)organizational opportunity
B)broad scope of activities
C)strategic limitation
D)broad,strategic plan
E)distinctive competency

Question 45

The set of processes for determining the strategies that will be used by an organization are known as

A)strategy implementation.
B)a SWOT analysis.
C)strategy formulation.
D)GE Grid analysis.
E)contingency planning.

Question 46

The product life cycle

A)shows how sales volume changes over time for products.
B)can help managers recognize that strategies need to evolve over time.
C)begins when a new product or technology is first introduced.
D)generally consists of four stages.
E)All of these.

Question 47

There are a lot of companies that make decorative items for the home.Franklin Mint makes decorative gift items that it sells as collectibles.For instance,each decorator plate that is markets is given a number,and only a finite quantity of each plate is manufactured.By use of a(n)____ strategy,Franklin Mint distinguishes itself from other companies that make decorative items for the home.

A)related diversification
B)focus
C)BCG
D)diversification
E)overall cost leadership

Question 48

Iphone 3,4,4S,and 5 are all available for purchase.The iphone 3 is at which stage of the product life cycle?

A)Maturity
B)Introduction
C)Decline
D)Maturity
E)Growth

Question 49

Which of the following is a true statement?

A)Corporate-level strategy is about managing several businesses simultaneously.
B)Business-level strategy is made by managers at a lower level of the organization hierarchy than is corporate-level strategy.
C)Business-level strategy focuses on selling a particular set of products in a particular market.
D)All of these.
E)None of these.

Question 50

When Chelsea Milling Company produces Jiffy Mixes and sells them inexpensively without spending one cent on advertising,it is pursuing a(n)____ strategy.

A)BCG
B)diversification
C)overall cost leadership
D)related diversification
E)differentiation

Question 51

Goals can

A)provide guidance and direction.
B)improve planning.
C)motivate employees.
D)provide measure and control.
E)All of these.

Question 52

Many companies make bead jewelry,but Chamilia is the only one with a licensing agreement with Disney to make beads of Disney characters.The agreement is a(n)____ for Chamilia.

A)organizational opportunity
B)environmental strength
C)organizational weakness
D)organizational strength
E)environmental opportunity

Question 53

Southwest Airlines does not charge to check up to two bags,which is different than most airlines in the US.Southwest is attempting to retain loyalty among the specific group of customers.This is part of a(n)____ strategy.

A)differentiation
B)BCG
C)diversification
D)focus
E)overall cost leadership

Question 54

The component of strategy that indicates how the organization intends to allocate resources is

A)resource deployment.
B)scope.
C)competitive advantage.
D)synergy.
E)None of these.

Question 55

GE competes in industries ranging from medical devices,to financial services,to turbine engines.GE's mixed strategy is an example of

A)corporate-level strategy.
B)business-level strategy.
C)operational-level strategy.
D)SWOT analysis.
E)organizational opportunity.

Question 56

Mercedes-Benz sells high quality automobiles at high prices.It uses a(n)

A)differentiation strategy.
B)low-cost strategy.
C)diversification strategy.
D)related diversification strategy.
E)BCG strategy.

Question 57

____ is a useful framework for managers to use as they plot business strategy over time.

A)Portfolio approach
B)Product life cycle
C)Environmental SWOT analysis
D)Porter model
E)None of these.

Question 58

MSNBC covers stories from a left of center political point of view.This appeals to viewers who want this point of view confirmed instead of informed.MSNBC use a(n)____ strategy.

A)differentiation
B)overall cost leadership
C)focus
D)corporate-level
E)product life cycle

Question 59

In the 1980s if you mentioned Harley-Davidson motorcycles to the average consumer,he or she immediately thought of motorcycle gangs¾more specifically,Hell's Angels.Now the price of a Harley can top $20,000 and there are riding clubs like Rubs (Rich urban riders)that include executives,attorneys,and doctors.The clubs are attracted to Harleys for the wild and free image.Harley Davidson's image is a(n)____ not easily imitated by competitors.

A)distinctive competence
B)broad scope
C)organizational opportunity
D)competitive disadvantage
E)related diversification

Question 60

Southwest Airlines gained access to the Atlanta market when it purchased Air Tran.This is an example of a change in Southwest's

A)resource deployment.
B)strategic goal.
C)scope.
D)mission statement.
E)distinctive competencies.

Question 61

The initial public offering for Facebook did not go well.Facebook,Morgan Stanley,and Nasdaq all face litigation.The IPO was a _____ that no one else wants to follow.

A)a project.
B)a standard operating procedure.
C)a policy.
D)a program.
E)rules and regulations.

Question 62

In the GE Business Screen matrix,businesses that have good competitive position in an attractive industry are known as

A)losers.
B)winners.
C)profit producers.
D)question marks.
E)cash cows.

Question 63

Investors went crazy for the IPO of Tesla,an electric car maker.Tesla has a tiny share of the car market,but investors hope the electric car market has big growth potential.According to the BCG matrix,investors must see Tesla as a

A)star.
B)cash cow.
C)problem child.
D)question mark.
E)dog.

Question 64

Apple releases a new product each fall as the holiday shopping season kicks off.Apple uses

A)a program.
B)a project.
C)a policy.
D)a standard operating procedure.
E)standing rules.

Question 65

Extra funds should be channeled to the ____,which is a product with a high share of a fast-growing market.

A)star
B)cash cow
C)differentiator
D)profitable product
E)question mark

Question 66

In the GE Business Screen matrix,all of the following are characteristics of the competitive position of the company EXCEPT

A)market share.
B)service network.
C)price competitiveness.
D)technological know-how.
E)market size.

Question 67

Aeropostale sells women's and men's clothing and accessories.This is an example of

A)synergy.
B)related diversification.
C)unrelated diversification.
D)SOP.
E)contingency planning.

Question 68

In the GE Business Screen matrix,all of the following are characteristics of the attractiveness of the industry EXCEPT

A)market growth.
B)market size.
C)product quality.
D)competitive intensity.
E)capital requirements.

Question 69

Most Broadway musicals initially do not advertise because there is a large audience that goes to see shows when they open.Where are they on the product life cycle?

A)Growth
B)Decline
C)Focus
D)Maturity
E)Introduction

Question 70

One of the significant challenges for middle managers in executing tactical plans is

A)the need for lots of communication horizontally,up,and down the organization hierarchy.
B)the need to interact heavily with diverse others.
C)the difficulty in ensuring that all of the tactical plans support the overall strategic plan.
D)the importance of specifying resources and time frames accurately.
E)All of these.

Question 71

Using the BCG matrix,SBUs are classified on the basis of

A)market growth rate and cash generation potential.
B)market share and market growth rate.
C)competitive advantage and financial strength.
D)a strategic business unit and product life cycle.
E)None of these.

Question 72

After Whirlpool decided on a differentiation strategy,middle managers were called upon to find a way for the firm to add value and unique features to its products.The middle managers were developing

A)tactical plans.
B)mission statements.
C)business-level strategy.
D)strategic plans.
E)diversification strategy.

Question 73

When FedEx bought Kinko's,it thought that it could accomplish more combined than it could operating separately.Which advantage of related diversification does this best represent?

A)Reducing business dependence
B)Reducing overhead
C)Distinctive competence
D)Synergy
E)Innovation

Question 74

The GE business screen is an expansion of the ideas from

A)the product life cycle.
B)the industry attractiveness matrix.
C)the generic strategy approach.
D)Porter's competitive strategies.
E)the BCG matrix.

Question 75

McGraw Hill operates in publishing and construction.This is an example of ____ diversification.

A)differentiation
B)unrelated
C)single-product
D)BCG
E)related

Question 76

If an organization invests large amounts of cash in an SBU classified as a question mark and it subsequently becomes the market leader,the SBU will

A)still be a question mark.
B)become a dog.
C)become a cash cow.
D)become a star.
E)None of these.

Question 77

Which of the following is an advantage of unrelated diversification?

A)Stable financial performance over time
B)Reduced overhead costs
C)Specific,detailed knowledge about each individual SBU
D)Synergy
E)All of these.

Question 78

In contrast to strategic plans,tactical plans

A)must specify resources and time frames.
B)must be more long-term.
C)must flow directly from the mission statement.
D)All of these.
E)None of these.

Question 79

Which of the following is characteristic of a business classified as a star by the BCG matrix technique?

A)Has a large share of a low-growth market
B)Requires large amounts of short-run cash support
C)Requires little money for growth and expansion
D)Will probably be divested by the corporation
E)Has the potential to achieve a large market share in the future

Question 80

Investors went crazy for the IPO of Tesla,an electric car maker.Tesla has a competitive position of medium and the industry attractiveness is high.According to GE's Business Screen,Tesla is a(n)

A)average business.
B)question mark.
C)loser.
D)star.
E)winner.