Deck 7: Managing Strategy and Strategic Planning

Question 1

In general,a well-conceived strategy addresses three areas: distinctive competence,scope,and resource deployment.

Answer 1

True

Question 2

Chanel,Monte Blanc,and Allen Edmonds pursue an overall cost leadership strategy.

Answer 2

False

Question 3

Most organizations have a difficult time focusing on weaknesses.

Answer 3

True

Question 4

During the maturity stage of the product life cycle,sales volume for a product typically reaches its peak.

Question 5

Strategic formulation is the set of processes involved in executing strategic plans.

Question 6

Business-level strategy is the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets.

Question 7

The function of accounting and finance in a business that is implementing a differentiation strategy is to control the flow of funds without discouraging the creativity needed to constantly develop new products and services to meet customer needs.

Question 8

The key to implementing business strategies is integrating different functions.

Question 9

Devising successful strategies is a simple task.

Question 10

SWOT analysis determines the primary strategy,wages,operations,and tactics in an organization.

Question 11

The concept of product life cycle can be used to choose which strategy is appropriate for a given product at a particular point in time.

Question 12

An impulsive CEO can turn a deliberate strategy into an emergent strategy.

Question 13

Ralston-Purina's products include a number of old standbys,but a large percentage of its revenues comes from products that did not exist five years ago.Ralston-Purina's approach represents a prospector strategy.

Question 14

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

Question 15

Manufacturing creates the organization's products or services.

Question 16

In general,when the level of competitive rivalry,the power of suppliers and buyers,and the possibility of substitutes and new entrants are all low,an industry has relatively few opportunities and numerous threats.

Question 17

The filter specifies the range of markets in which an organization will compete.

Question 18

Emergent strategies are ineffective and should be avoided.

Question 19

The implementation stage focuses on what the strategy is.

Question 20

Each business or set of businesses within an organization is frequently referred to as a star business unrelated,or SBU.

Question 21

St.Luke's Hospital started offering deeply discounted computerized tomography (CT)scans for smokers worried about lung cancer.St.Luke's willingness to change the price is an example of change in

A) alignment.
B) synergy.
C) scope.
D) resource deployment.
E) entropy.

Question 22

Abercrombie & Fitch uses its ability to manage its supply chain more effectively than most of its competitors to create

A) scope.
B) resource deployment.
C) a distinctive competence.
D) synergy.
E) alignment.

Question 23

Stars,question marks,and dogs could all be net cash users.

Question 24

Hewlett Packard made PCs.Projected industry sales of smartphones were expected to be almost double expected sales of PCs.HP went through the strategy change process looking first at the content of its strategy.That was

A) strategic marketing.
B) tactical implementation.
C) strategic formulation.
D) corporate strategy.
E) strategy implementation.

Question 25

There are three types of diversification strategies: single-product strategy,related diversification,and unrelated diversification.

Question 26

Which of the following areas does a well-conceived strategy address?

A) The organizational chart
B) Scope
C) Suppliers and distributors
D) Pricing strategy
E) Tactical goals

Question 27

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 weakness
B) strategic limitation
C) entropy
D) distinctive competence
E) organizational opportunity

Question 28

Effective strategies

A) develop long-range plans for resource allocation.
B) provide an in-depth analysis of the organization's internal strengths and weaknesses.
C) provide managers with a list of environmental contingency factors.
D) align the organization and environment to achieve goals.
E) focus on the competition.

Question 29

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

A) corporate-level
B) long-term
C) business-level
D) functional
E) short-term

Question 30

The primary concern of strategy implementation is

A) the content of the strategy.
B) how the strategy is operationalized and executed.
C) goal development.
D) corporate-level strategy.
E) functional strategy.

Question 31

Most organizations start out diversified.

Question 32

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

A) industry niche.
B) synergy.
C) scope.
D) resource deployment.
E) entropy.

Question 33

Coca-Cola sells soft drinks,bottled water,and sports drinks.This is an example of

A) alignment.
B) synergy.
C) scope.
D) resource deployment.
E) entropy.

Question 34

An international strategy in which the company attempts to combine the benefits of global scale efficiencies with the benefits and advantages of local responsiveness is called global strategy.

Question 35

Strategy formulation is

A) a set of processes involving the organization's strategies.
B) the method by which strategies are operationalized.
C) the same as goal development.
D) also called corporate-level strategy.
E) a form of functional strategy.

Question 36

When an airline uses profits from one region to lower prices in another region it is using

A) alignment.
B) synergy.
C) scope.
D) resource deployment.
E) entropy.

Question 37

An international strategy in which the company manages itself as a collection of domestic markets is called a home replication strategy.

Question 38

____ is the component of strategy that indicates what the organization does exceptionally well.

A) Resource deployment
B) Synergy
C) Scope
D) Distinctive competence
E) None of these choices

Question 39

Hewlett Packard contemplated selling its PC division.This is an example of change in ____.

A) alignment
B) synergy
C) distinctive competence
D) resource deployment
E) scope

Question 40

Business-level strategy focuses primarily on

A) which markets to enter and how to use the firm's money,people,and physical facilities.
B) which markets to enter and in what areas the firm may have a competitive edge.
C) which markets to enter and how the parts of the organization enhance the entry.
D) the areas in which the firm may have an advantage and how much various organizational parts enhance each other.
E) the firm's competitive advantage(s).

Question 41

In their book In Search of Excellence,Peters and Waterman found that successful companies "stuck to their knitting." In other words,they concentrated on those things that they do well.To which component of organizational strategy does this idea most directly relate?

A) Organizational opportunity
B) Common strength
C) Distinctive competence
D) Resource deployment
E) Scope

Question 42

The Windows operating system is used in 90% of the world's PCs.Microsoft has an international

A) strength
B) weakness
C) opportunity
D) threat
E) competitive disadvantage

Question 43

Starstruck Eateries has been very successful over the years by monitoring what successful restaurants in other cities are doing and copying them.This is known as

A) competitive parity.
B) competitive advantage.
C) distinctive competence.
D) strategic imitation.
E) tactical differentiation.

Question 44

In a small community in Michigan,there are two funeral homes.One of them clips all pictures from the local paper,laminates them,and mails them to the person photographed with a brief note.This is an attempt to build positive relations with potential customers during happy times.If the other funeral home chose to make similar customer contact,the competitors would have

A) differential advantage.
B) strategic imitation.
C) emergent strategy.
D) distinctive competence.
E) competitive advantage.

Question 45

AirTran Airlines (formerly ValuJet)has an airplane fleet that is older than those owned by other airlines.This is a potential ____ because it can give the company an image of poor quality or unsafe planes.

A) organizational weakness
B) strategic limitation
C) entropy
D) organizational threat
E) organizational opportunity

Question 46

Fort Howard Paper Company has a cost-saving manufacturing process that its competitors cannot imitate.Fort Howard Paper enjoys

A) an organizational opportunity.
B) an organizational threat.
C) product integration.
D) a sustained competitive advantage.
E) product emulation.

Question 47

MySpace was the first big social network,but headlines about predator dangers created an opportunity for Facebook to arrive as the "safer" place to network.The safe perception of Facebook is a(n)

A) organizational strength.
B) competitive disadvantage.
C) organizational opportunity.
D) scope.
E) SBUs.

Question 48

A(n)____ strategy is a pattern of action that develops over time in an organization in the absence of missions and goals,or despite missions and goals.

A) valid
B) deliberate
C) reliable
D) emergent
E) synergistic

Question 49

Datril was introduced into the pain-reliever market as a product just like Tylenol.The makers of Datril used ____ to copy Tylenol's distinctive competence.

A) product aping
B) tactical imitation
C) product emulation
D) product integration
E) strategic imitation

Question 50

A(n)____ strategy is a plan chosen and implemented to support specific goals,such as an increase of market share by 5 percent.

A) valid
B) deliberate
C) reliable
D) emergent
E) synergistic

Question 51

Smart cars are the only cars that can park perpendicular to the curb,which is especially beneficial in cities.This is an example of

A) scope.
B) synergy.
C) distinctive competence.
D) competitive response.
E) resource deployment.

Question 52

Chaparral Steel is so efficient in its steel production and casting processes that it is the only U.S.steel producer that regularly exports its products to Japan.This is an example of Chaparral Steel's

A) organizational opportunity.
B) common strength.
C) distinctive competence.
D) resource deployment.
E) scope.

Question 53

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) strength
B) weakness
C) opportunity
D) threat
E) competitive disadvantage

Question 54

When one disposable shaver maker introduced a three-blade shaver,the other introduced three blades within months.They repeated the process with four blades.This is an example of

A) product aping.
B) tactical imitation.
C) product emulation.
D) product integration.
E) strategic imitation.

Question 55

Google bought YouTube even though it operated at a loss.The business strategy for YouTube is ____.

A) valid
B) deliberate
C) reliable
D) emergent
E) synergistic

Question 56

Trollbeads was the original maker of bead bracelets where beads are like individual charms and can be changed by the wearer.Trollbeads success let Pandora,Chamilia,and a slew of jewelry designers start making bead charms.Pandora used

A) product aping.
B) tactical imitation.
C) product emulation.
D) product integration.
E) strategic imitation.

Question 57

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 58

Yahoo! has a business strategy that creates revenue by selling ads.Yahoo! uses a(n)____ strategy.

A) valid
B) deliberate
C) reliable
D) emergent
E) synergistic

Question 59

Siemens corporate research earns on average 20 patents a day.The patents give Siemens ____.

A) an organizational opportunity
B) an organizational threat
C) product integration
D) a sustained competitive advantage
E) product emulation

Question 60

In environmental SWOT analysis,the external organizational position is analyzed according to its

A) opportunities and threats.
B) opportunities and weaknesses.
C) strengths and threats.
D) strengths and weaknesses.
E) return on investment.

Question 61

Howard Schultz traveled in Italy and liked the coffee.He founded Starbucks with a plan to introduce American coffee drinkers to this Italian-style drink.This is an example of ____.

A) lack of organizational synergy
B) organizational opportunity
C) sustained competitive advantage
D) distinctive competency
E) organizational threat

Question 62

Mont Blanc pens sell for hundreds of dollars.Mont Blanc uses a(n)____ strategy.

A) guerrilla
B) overall cost leadership
C) focus
D) differentiation
E) defender

Question 63

Porter's generic strategies classify firms by which of the following?

A) Stagnant
B) Growth
C) Declining
D) Analyzing
E) Focus

Question 64

Network news programs have been losing viewers for years.Though reporters all say they have no political bias,many believe the networks all cover stories from left of center.Fox News saw ____ and began covering stories from what many believe to be right of center.

A) an organizational weakness
B) a strategic limitation
C) entropy
D) an organizational threat
E) an organizational opportunity

Question 65

Target is a discount retailer with cleaner stores,more customer service,and more current fashions.Target uses a(n)____ strategy.

A) guerrilla
B) overall cost leadership
C) focus
D) emergent
E) defender

Question 66

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

A) prospecting
B) emergent
C) differentiation
D) cost leadership
E) guerrilla

Question 67

Which of the following is NOT one of the strategy types listed in the Miles and Snow typology?

A) Prospector
B) Defender
C) Reactor
D) Rescuer
E) Analyzer

Question 68

Google is a highly successful search engine site.It maintained that expertise and tried to expand into mobile devices.It used a(n)____ strategy.

A) prospector
B) defender
C) reactor
D) rescuer
E) analyzer

Question 69

Bic pens work great and sell for about ten cents a pen.Bic uses a(n)____ strategy.

A) guerrilla
B) overall cost leadership
C) focus
D) differentiation
E) defender

Question 70

Blue Origins is a privately funded company started by Amazon CEO,Jeff Bezos,that plans to offer space tourism.It uses a(n)____ strategy.

A) defender
B) strategic failure
C) prospector
D) analyzer
E) reactor

Question 71

Dell was once a dominant brand in the PC market,commanding high prices.Now Dell is sold in Wal-Mart.This strategy is called

A) prospector.
B) defender.
C) reactor.
D) rescuer.
E) analyzer.

Question 72

According to the Miles and Snow model of business strategy,which of these strategies is the most appropriate for use in an unstable environment?

A) Prospector
B) Defender
C) Reactor
D) Rescuer
E) Analyzer

Question 73

The expiration of a pharmaceutical drug patent allows generic drug makers to introduce the same chemical compound under a different name and at lower prices.This is an example of ____ for the developer of the original drug.

A) organizational weakness
B) strategic limitation
C) entropy
D) organizational threat
E) organizational opportunity

Question 74

If the marketing department adopts a strategy calling for substantial test marketing,aggressive advertising campaigns,and inducing consumer product trials,which of the following is most likely the business strategy being used by the company as a whole?

A) Analyzer
B) defender
C) Prospector
D) Cost leadership
E) Focus

Question 75

3M is a highly innovative firm that is constantly seeking new markets and is oriented toward growth and taking risks.It uses a(n)____ strategy.

A) prospector
B) defender
C) reactor
D) rescuer
E) analyzer

Question 76

Which of the strategy types in the Miles and Snow model avoids long-term commitment to any single technology,is highly decentralized,and has a propensity to take risk?

A) Prospector
B) Defender
C) Reactor
D) Rescuer
E) Analyzer

Question 77

Which of the following is an example of one of the Miles and Snow typology classifications for business strategies?

A) Focuser
B) Rescuer
C) Aggressor
D) Prospector
E) Differentiator

Question 78

Which of the following companies is noted primarily for employing an overall cost leadership strategy?

A) Neiman-Marcus
B) Johnson & Johnson
C) Procter & Gamble
D) Wal-Mart
E) Tiffany's

Question 79

Though all reporters say they have no bias,Fox News covers stories from what many believe to be a right-of-center political point of view.They use a(n)____ strategy.

A) prospecting
B) emergent
C) focus
D) cost leadership
E) guerrilla

Question 80

Toyota is the most successful automaker selling hybrid vehicles.Toyota uses

A) differentiation,focus.
B) overall cost leadership.
C) differentiation.
D) focus.
E) cost leadership,focus.