Deck 5: Strategizing

Question 1

A firm's strategy includes which of the following:

A)Captures how vision and mission will be achieved
B)Communicates to stakeholders the hierarchical corporate structure.
C)Sets specific operating procedures to be followed by front line managers.
D)Establoshes systems and processes used to implement the goals and objectives

Answer 1

A

Question 2

The best strategies,corporate and business,are based on a thorough SWOT analysis.

Answer 2

True

Question 3

_____________________ answers strategy questions related to "what business or businesses should we be in?"

Answer 3

Corporate strategy

Question 4

The purpose of diversification is:

A)To capture more consumers
B)To satisfy the mission and vision
C)To build a portfolio of businesses much like a portfolio of stock
D)To spread out risk and opportunities over a larger set of businesses

Question 5

The major diversification strategy through which products are produced that are technically similar to the company's current products but appeal to a new consumer group is:

A)Concentric diversification
B)Hierarchical diversification
C)Conglomerate diversification
D)Horizontal diversification

Question 6

_______________ tells managers how they should go about putting the desired strategy into action.

Question 7

Examples of business strategy include all the following EXCEPT:

A)Help keep existing customers
B)Grow its business by moving into new markets and taking customers from competitors
C)Determine how to keep profit level demanded by the stock market
D)Know the business needs to compete in order to be effective

Question 8

Planning starts with vision and mission,and concludes with strategizing.

Question 9

_________________ reflects what a firm is doing to achieve its mission and vision,as seen by its achievement of specific goals and objectives.

Question 10

Strategy formulation is essentially the aim of the organizing,leading,and controlling components of the POLC framework.

Question 11

Not all organizations need strategies to survive and thrive.False: All organizations need strategies to survive and thrive.Easy;Comprehension

Question 12

Strategy is about making choices that provide an organization with some measure of ____________ advantage.

Question 13

It is important to note that the concept of strategy is relevant to only large,public companies like GE.

Question 14

______________ is essentially about choice in terms of what the organization will do and won't do to achieve specific goals and objectives.

Question 15

Strategic management process is the coordinated means by which an organization chooses its mission and vision.

Question 16

____________ exists when the interaction of two or more active activities such as those in a business create a combined effect greater than the sum of their individual effects.

Question 17

________________ is sometimes called business planning or strategic planning.

Question 18

Strategy is a pattern of resource allocation choices and organizational arrangements that result from managerial decision making.

Question 19

Strategy formulation answers the question:

A)How do we execute a chosen strategy?
B)What should our strategy be?
C)Where does strategy fit in?
D)How is strategy applied to me?

Question 20

Strategy formulation is an essential component of the POLC framework:

A)Planning
B)Organizing
C)Leading
D)Controlling

Question 21

______________ assess the external attractive factors that represent the reason for a business to exist and prosper.

Question 22

Where the value chain might suggest internal areas of strength,__________ helps you understand whether or not those strengths will give it a competitive advantage.

Question 23

What is the strategic management process?

Question 24

The primary determinant of realized strategy is what Mintzberg terms emergent strategy.

Question 25

Why did McDonald's sell Chipotle?

Question 26

_____________ include factors beyond your control that could place the strategy at risk.

Question 27

Design and emergence strategies involve specific levels of the organization.

Question 28

_____________ is where an organization participates in multiple businesses that are in some way distinct from each other,as Taco Bell is from Pizza Hut.

Question 29

What questions about a company and its environment did the original conception of the strategy model answer?

Question 30

What are the two internal analysis tools discussed in the text?

Question 31

What questions do corporate and business strategies answer?

Question 32

Within the strategic plans that are decided,divisional and business unit managers do not have considerable freedom to adjust,adapt,and experiment.

Question 33

____________________focuses on how a given business needs to compete in order to be effective.

Question 34

________________ stands for strengths,weaknesses,opportunities,and threats.

Question 35

What are the two primary external analysis tools discussed in your text?

Question 36

The hardest thing for an organization to do is to develop its competitive advantage into ______________ competitive advantage,where the organization's strengths cannot be easily duplicated or imitated by other firms,nor made redundant or less valuable by changes in the external environment.

Question 37

An assessment of strengths and weaknesses occurs as a part of organizational analysis.

Question 38

When you can identify certain strengths that set an organization well apart from actual and potential competitors,that strength is considered a source of ______________ advantage.

Question 39

Examining opportunities and threats is part of _____________ analysis.

Question 40

What are the inputs into strategizing?

Question 41

A cost-focus strategy is a low-cost,narrowly focused market strategy.
7.

Question 42

The deliberate design of strategy,through formal processes such as board meetings and strategic planning has been characterized as a ____________ process.

Question 43

The strategic planning systems of most companies involve a combination of design and _____________.

Question 44

Several studies have shown that a differentiation strategy is more likely to generate higher profits than a cost-leadership strategy.

Question 45

The primary determinant of realized strategy is what Mintzberg terms _________________.

Question 46

According to Mintzberg,the percent of intended strategy realized is:

A)Less than 10
B)10-30
C)30-50
D)more than 50

Question 47

What are the two schools of thought regarding strategy? The design school views strategy making as primarily a rational,analytical process of deliberate planning.Those that envisage strategy as emerging from a complex process of organizational decision making is the emergence or learning school.Medium;Comprehension

Question 48

What is the single most important reason realized strategies deviate from intended strategies?

Question 49

Firms utilizing a competitive scope strategy can tailor advertising and promotional efforts to a particular market niche.False: Firms utilizing a narrow focus strategy can also tailor advertising and promotional efforts to a particular market niche.Easy;Comprehension

Question 50

What is the best way to make strategy? The critical issues are first determining the balance of design and emergence and second how to guide the process of emergence.The strategic planning systems of most companies involve a combination of design and emergence.

Question 51

One approach to focusing is to service either industrial buyers or consumers,but not both.

Question 52

_________________ is strategy as conceived of by the top management team and is the result of a process of negotiation,bargaining,and compromise.

Question 53

The different aspects of strategy as distinguished by Mintzberg include which of the following?:

A)Consequential
B)Differentiate
C)Realized
D)Permanent

Question 54

How is strategy made? Strategy making is a combination of design and emergence.In practice,both design and emergence occur at all levels of the organization.The strategic planning systems of large companies involve top management passing directives and guidelines down the organization and the businesses passing their draft plans up to corporate.Easy;Comprehension

Question 55

Cost leaders must maintain their marketing or face the possible entry of more cost-effective competitors.

Question 56

Emergence has been viewed as the result of multiple decisions at many levels,particularly within middle management,and has been viewed as a _____________ process.

Question 57

Two or more firms competing for differentiation may engage in price wars that drive profits to very low levels.

Question 58

At Intel the key historic decision to abandon memory chips and concentrate upon microprocessors was the result of which of the following?:

A)Centralized decisions
B)Acknowledged by top management
C)Extensive market research
D)Top-down process

Question 59

The actual strategy that is implemented in a firm is called ________________.

Question 60

Cost leadership is a low-cost,broad-based market strategy.

Question 61

Why do firms pursing a differentiation strategy become vulnerable to different competitive threats more than firms pursing a cost leader strategy? Customers may sacrifice features,service,or image for cost savings.Customers who are price sensitive may be willing to forgo desirable features in favor of a less costly alternative.Medium;Comprehension

Question 62

Why does a differentiation strategy require a firm to give attention to costs?

Question 63

Superiority in competitive advantage refers to all of the following factors EXCEPT:

A)Low cost
B)Customer service
C)Product quality
D)Unique style

Question 64

_______________ refers to the strategy where a firm's competitive advantage is based on the bet that it can develop,manufacture,and distribute products more efficiently than competitors.

Question 65

________________ is seen when an organization is very clear about its mission and vision,and has a coherent,well-articulated strategy for achieving those.

Question 66

How has Southwest Airlines combined cost-cutting measures with differentiation? The company has been able to reduce costs by not assigning seating and by eliminating meals on its planes.It has also been able to promote in its advertising that its fares are so low that checked bags fly free,in contrast to the fees that competitors such as American and United charge for checked luggage.Medium;Comprehension

Question 67

While there are different schools of thought about how strategy comes about,researchers generally agree the common characteristic across successful organizations is:

A)Strategy trade-off
B)Strategic focus
C)Strategic process
D)Strategy discipline

Question 68

_______________ refers to the strategy where competitive advantage is based on superior products or service.

Question 69

A ______________ strategy involves marketing a unique product to a broad-based market.

Question 70

A cost-leadership strategy is more likely to generate an _____________ in market share.

Question 71

Explain Martin-Bower's focus strategy as the third-largest food distributor in the United States.

Question 72

_______________ defines the breadth of a company's target market.

Question 73

Treacy and Wiersema maintain that because of the focus of management time and resources that are required,a firm can realistically choose _____ of the three value disciplines in which to specialize.

Question 74

Can forms of competitive advantage be combined?

Question 75

A ________________ strategy is the marketing of a differentiated product to a narrow market,often involving a unique product and a unique market.

Question 76

Straddling strategies as an approach to strategic management is not recommended for which of the following reason:

A)It is an attempt to gain competitive advantage based on over-all low-cost provider of a product or service
B)Research shows that stradeling strategies leads to confusion among managers about the direction of the company.
C)It is an indication that the firm's managers have not made necessary choices about the business and its strategy
D)According to Porter straddling strategies is recommended for narrow scope firms that have been successful in the past.

Question 77

An organization pursuing a strategy as discipline seeks competitive advantage by offering products or services that are unique from those offered by rivals.

Question 78

Firms that do the product leadership strategy well include which of the following factors:

A)Do not focus on innovation
B)Have superb operations and execution
C)Are in stagnant markets
D)Focus on development,innovation,design,and time to market

Question 79

For a differentiation strategy to be ffective,the product difference should NOT be based on:

A)Product design
B)Method of distribution
C)Price
D)Broad market group of consumers

Question 80

Firms pursuing a differentiation strategy are vulnerable to different competitive threats than firms pursing a cost leader strategy.