Deck 9: Managing Strategy

Question 1

Managers perform an external analysis so that they know about ________.

A)the firm's basic beliefs and ethical priorities
B)what the competition is doing
C)what customers want
D)their organization's core competencies

Answer 1

B

Question 2

If a bank estimates the capabilities of its employees who provide customer service prior to implementing a new training program designed to change their method of providing customer service,it is ________.

A)conducting an external analysis
B)formulating its competitive strategies
C)performing an internal analysis
D)performing an employee audit

Answer 2

C

Question 3

When an organization is analyzing its labor supply,it is studying its ________.

A)regulatory environment
B)internal environment
C)external environment
D)economic environment

Answer 3

C

Question 4

Helen,the owner of Crazy Cupcakes,is conducting a SWOT analysis of her company.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)One of Crazy Cupcakes competitors has added cookies to its product line.

Question 5

A ________ describes the rationale of how a company is going to make money.

A)functional strategy
B)business model
C)SWOT analysis
D)core competency

Question 6

The top managers of the corporation are meeting to discuss how they will compete in their chosen markets and how they will attract and satisfy customers.These managers are discussing ________.

A)the business model
B)strategy
C)their competitive advantage
D)core competencies

Question 7

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 8

Patrick expects that each person he hires for his online business to be involved in studying trends involving new technology,competitors,and customers.These employees are involved in ________.

A)external analysis
B)internal analysis
C)customer analysis
D)industry analysis

Question 9

Every fast food hamburger restaurant chain wants you to believe their product is the best because it is stored or prepared uniquely.Each of these is pursuing a ________.

A)low cost leadership strategy
B)differentiation strategy
C)focus strategy
D)quality strategy

Question 10

A business model describes how a company is going to make money and what it is going to do with it.

Question 11

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)strength
C)weakness
D)opportunity

Question 12

A study of the external environment allows a manager to understand the ________ and ________ for the organization.

A)threats; weaknesses
B)strengths; weaknesses
C)strengths; opportunities
D)opportunities; threats

Question 13

Defining the organizational mission forces managers to identify ________.

A)what the labor supply is like in the locations where the organization operates
B)what the organization is in business to do
C)what the competitor is doing
D)what pending legislation will affect the organization

Question 14

Bella Vista Clothing targets teenage 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)Disposable income is rising and consumers will have more money to spend on clothes.
C)Bella Vista has excess production capacity.
D)A long-time competitor recently went out of business and Bella Vista can cut down on its advertising budget.

Question 15

AI Rubber is one of four suppliers of molded rubber products and has a 45% market share.The market for its products is shrinking.AI Rubber is part of a larger corporation that includes a total of seven different companies.In the BCG matrix,AI Rubber would be considered ________.

A)a star
B)a cash cow
C)a question mark
D)a dog

Question 16

In a short essay,explain strategic management and why it is important.

Question 17

Newmark RV is performing an internal analysis.Which of the following would be considered a resource?

A)a patent for a special design feature
B)a method of production not used by competitors
C)strongly positive reviews from existing customers
D)membership in RVIA,the industry association

Question 18

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

A)Ascent's profit margin in the previous year was its lowest on record and it will require long-term planning to improve margins.
B)Ascent lacks the resources to enter the market on its own and has to find a partner in the new market.
C)Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses.
D)Ascent needs to improve its service capabilities in the new country as this is an important source of revenue.

Question 19

________ are positive trends in the external environment.

A)Strengths
B)Threats
C)Weaknesses
D)Opportunities

Question 20

An organization's financial,physical,human,and intangible assets are known as its ________.

A)resources
B)capabilities
C)opportunities
D)core competencies

Question 21

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

Question 22

A ________ strategy is when an organization expands the number of markets served or the products offered.

A)growth
B)renewal
C)stability
D)retrenchment

Question 23

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

Question 24

An organization that grows using ________ focuses on its primary line of business and increases the number of products offered or markets served in this primary business.

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

Question 25

Hendricks Ceramics sells items it buys from ceramic factories.If it were to purchase one of these factories,it would be engaging in ________.

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

Question 26

A ________ strategy determines what businesses a company is in or wants to be in,and what it wants to do with those businesses.

A)competitive
B)functional
C)focus
D)corporate

Question 27

Lower-level managers are responsible for ________ strategies.

A)functional
B)stability
C)corporate
D)operating

Question 28

The combined external and internal analyses are called ________.

A)competitor analysis
B)industry analysis
C)market analysis
D)SWOT analysis

Question 29

The final step in the strategic management process allows an organization to understand the ________.

A)effectiveness of the strategies used
B)implementation of the strategies
C)formulation of the strategies
D)resources and capabilities it possesses

Question 30

What are the three main types of corporate strategies?

A)stability,focus,and turnaround
B)growth,stability,and renewal
C)growth,cost leadership,and differentiation
D)stability,differentiation,and focus

Question 31

The major value-creating capabilities of the organization are known as its ________.

A)strengths
B)competitive advantages
C)core competencies
D)resources

Question 32

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

Question 33

Identify the six steps in the strategic management process and briefly explain what happens in each step.

Question 34

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

Question 35

Activities that an organization does well or resources that it has available are called capabilities.

Question 36

Exceptional or unique organizational resources are known as core capabilities.

Question 37

Organizations grow by using strategies of ________.

A)concentration,integration,or diversification
B)concentration,integration,or stabilization
C)integration,diversification,or differentiation
D)integration,diversification,or functionalization

Question 38

In ________,the organization becomes its own supplier so it can control its inputs.

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

Question 39

Top-level managers are responsible for ________ strategies.

A)differentiation
B)corporate
C)competitive
D)functional

Question 40

A SWOT analysis includes an analysis of an organization's environmental opportunities and threats.

Question 41

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

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

Question 42

In the BCG matrix,a ________ enjoys a high anticipated growth rate and a high market share.

A)question mark
B)star
C)cash cow
D)dog

Question 43

Joe's Hardware bought Moe's hardware on the other side of town.This is an example of ________.

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

Question 44

When a totally new product,such as laser discs years ago,is introduced,it would be considered a ________ according to the BCG matrix.

A)star
B)cash cow
C)question mark
D)dog

Question 45

________ strategies address declining performance through retrenchment and turnaround strategies.

A)Renewal
B)Stability
C)Growth
D)Functional

Question 46

In the BCG matrix,a business unit that has a high anticipated growth rate but a low market share is known as a ________.

A)star
B)dog
C)cash cow
D)question mark

Question 47

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

A)A construction firm acquired a textile manufacturer as it seemed like a good investment.
B)Faced with mounting raw material costs,a consumer goods producer took over its supplier.
C)One shoe store chain buys out another shoe store chain and expands its distribution channels through the acquired chain's outlets.
D)A toy retailer acquired a children's book store chain and now retails both toys and books from co-branded outlets.

Question 48

In the Boston Consulting Group (BCG)matrix,a business unit that has a low anticipated growth rate but a high market share is known as a ________.

A)cash cow
B)star
C)dog
D)question mark

Question 49

________ takes place when a company combines with other companies in different,but associated,industries.

A)Stabilized diversification
B)Horizontal integration
C)Vertical integration
D)Related diversification

Question 50

An organization that is diversifying its product line is exhibiting what type of corporate strategy?

A)turnaround strategy
B)retrenchment strategy
C)growth strategy
D)diversification strategy

Question 51

When a company combines with firms in different and dissimilar industries,it indulges in ________.

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

Question 52

________ should be sold off or liquidated as they have low market share and low growth potential.

A)Cash cows
B)Stars
C)Question marks
D)Dogs

Question 53

At Ronald's fast food business for five years the French fries are its most popular product. During the past year,its profits have suffered because the farm that supplies it with potatoes has increased its prices drastically.What should Ronald's do to control its production costs?

A)Ronald's should reorganize its organizational hierarchy to increase efficiency.
B)Ronald's should buy out the farm and become its own supplier.
C)Ronald's should invest in more efficient fryers.
D)Ronald's should broaden its product range by introducing potato nuggets on its menu.

Question 54

During the Great Recession,Malcolm's Racing Bikes lost a considerable amount of its business because customers could no longer afford the expensive models in his shop.He was very near bankruptcy.Malcolm began carrying a line of less expensive bikes to appeal to recreational bicyclists and families and also opened a repair service.Malcolm used a ________ strategy.

A)retrenchment
B)diversification
C)turnaround
D)reorganization

Question 55

In the BCG matrix,a ________ has a low anticipated growth rate and a low market share.

A)question mark
B)cash cow
C)dog
D)star

Question 56

A ________ strategy is used to deal with minor performance problems.It helps an organization stabilize operations,revitalize organizational resources and capabilities,and prepare to compete once again.

A)turnaround
B)stability
C)renewal
D)retrenchment

Question 57

When an organization continues serving the same clients by offering the same product or service,maintaining market share,and sustaining the organization's current business operations,it is following a ________ strategy.

A)renewal
B)stability
C)retrenchment
D)turnaround

Question 58

In ________,a company grows by combining with competitors.

A)concentrated integration
B)horizontal integration
C)vertical integration
D)lateral integration

Question 59

Tom's Welding has been supplying frames to the mobile home industry for many years.His business has remained steady despite the entry of other firms into the industry.Tom's is likely pursuing a ________ strategy.

A)retrenchment
B)renewal
C)stability
D)differentiation

Question 60

In ________,the organization gains control of its outputs by becoming its own distributor.

A)diversified integration
B)concentrated integration
C)backward vertical integration
D)forward vertical integration

Question 61

The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which ones drain organizational resources.

Question 62

Discuss the corporate portfolio matrix and the Boston Consulting Group (BCG)matrix.

Question 63

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

Question 64

In an organization,the single independent businesses which formulate their own competitive strategies are known as ________.

A)strategic growth units
B)strategic business units
C)strategic profit units
D)service units

Question 65

Diversification is an example of a corporate retrenchment strategy.

Question 66

Stars,one of the four business groups in the BCG matrix,are characterized by low growth and high market share.

Question 67

Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share.

A)cash cows
B)stars
C)question marks
D)dogs

Question 68

A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations,revitalize organizational resources and capabilities,and prepare to compete once again.

Question 69

A stability strategy is an organizational strategy in which an organization maintains the status quo.

Question 70

A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.

Question 71

If Burger King were to buy out Mom and Pop's Burgers,Burger King would be growing by vertical integration.

Question 72

Managers should "milk" cash cows for as much as they can,limit any new investment in them,and use the large amounts of cash generated to invest in ________ and ________.

A)dogs; stars
B)cash cows; dogs
C)stars; question marks
D)question marks; dogs

Question 73

List and discuss the three levels of strategy that a large organization must develop.

Question 74

Corporate strategies determine what business a company is in or wants to be in,and what it wants to do with those businesses.

Question 75

When used to connect with customers or to connect employees with co-workers in other locations,social media ________.

A)provide a means for customers to order products online
B)create distractions that can keep employees from being productive
C)provide information for competitors that give them a competitive advantage
D)can create a competitive advantage

Question 76

Kiva Systems,manufacturer of robots used in flexible automation systems,demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.

A)design thinking
B)inventory management
C)strategic flexibility
D)e-business strategies

Question 77

List and discuss the different types of corporate strategies.

Question 78

Which of the following is a competitive force under the five forces model?

A)past rivalry with competitors
B)bargaining power of distributors
C)vertical integration
D)threat of new entrants

Question 79

Bixler Corporation boasts that it has the fewest warranty claims in its industry.We can infer from this that ________.

A)Bixler's quality is a competitive advantage
B)Bixler has an ineffective TQM program
C)Bixler has employed design thinking in the development of its products
D)Bixler is using social media to promote its products

Question 80

Discuss the methods by which an organization grows.Give relevant examples.