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a broad guideline for making decisions that links the formulation of strategy with its
implementation
The term used to describe new products, services, methods, and organizational approaches that allow
ousinesses to achieve extraordinary returns is
innovation
The monitoring, evaluating, and disseminating of information from the external and internal
environments to key people within the corporation is referred to as
environmental scanning
When an organization is evaluating its strategic position, which is not one of the strategic questions that
an organization generally may ask itself?
Globalization
Research suggests that strategic management evolves through four sequential phases in corporations.
The first phase is
Decisions and actions that determi the long-run performance of a corporation. Which one of the follow
is not one of the basic elements of strategic management process?
The type of strategy, which describes a company's overall direction in terms of its general attitude
toward growth and the management of its various businesses is
corporate
Strategic management is that set of managerial decisions and actions that determine the long-run
performance of a corporation. Which one of the following is not one of the basic elements of the
strategic management process?
The type of strategy, which emphasizes the improvement of the competitive position of a corporation's
products or services in a particular industry or market segment served by a business unit is
business
The type of strategy, which achieves corporate and business unit objectives and strategies by
maximizing resource productivity is
business
internal environment
threats
The Strategic Management Model presents the following process for strategy formulation:
The currency used to integrate the monetary systems of the European Union (EU) is called the
Euro
Governments
The process by which strategies and policies are put into action through the
long-term performance
In a survey of 50 corporations, which of the following was rated as one of the three top benefits of
strategic management?
The ability of a corporation to shift from one dominant strategy to another is called
strategic flexibility.
Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues
to lower management levels is known as
forecast-based planning
Those critical strengths and weaknesses that are likely to determine if a firm will be able to take
advantage of opportunities while avoiding threats are called
SWOT
The rate at which others can duplicate a firm's underlying resources, capabilities, or core competencies
is called
Imitability
Organization
The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success
is called
Replicability
This is appropriate for a large corporation with many product lines in several unrelated
industries
A winemaker in California finds it difficult to duplicate a French winery's key resources of land and
climate. This is an example of
Replicability
This is most appropriate for small, entrepreneur-dominated companies with one or two
product lines that operate in a small niche market, with employees acting as jack-of-all trades.
Suggests that unit production costs decline by some fixed percent each time the total accumulated
volume of production in units doubles
The experience curve
When examining the corporate value chain of a particular product or service, which one of the following
is not one of the primary activities that usually occur?
marketing mix
The breadth of an organization's culture or the extent to which units throughout an organization share a
common culture is also known as
cultural integration
taking the design and operationalizing the plan into mass production
A graph showing time plotted against the dollar sales of a product as it moves from introduction through
growth and maturity to decline is called the
advertising
core competencies
A linked set of value-creating activities beginning with basic materials provided by suppliers and ending
with distributors getting the final product into the hands of the ultimate consumer is called a
value chain
The displacement of one technology by another, as shown by two S-shaped curves on a graph, is
referred to as
technological discontinuity
Is more valuable because it can provide companies with a sustainable competitive advantage that is
harder for competitors to imitate.
Tacit knowledge
develop and operate a system that will produce the required number of products or services
with a certain quality, at a given cost, within an allotted time
When a company takes apart a competitor's product in order to find out how it works, this process is
known as
reverse engineering
design and manage the flow of information in a corporation to improve productivity and
decision- making.
When a company determines that a competency provides a competitive advantage, Barney refers to this
issue as
rarenesS
the best strategies are meaningless if employees do not have the skills to carry them out or if
jobs cannot be designed to accommodate the available workers
Work is divided into subunits on the basis of such functions as manufacturing, marketing,
finance, and human resources.
When scientists concentrate on quality control and the development of design specifications and
improved production equipment, it is referred to as
engineering R&D
Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a
corporation's culture is called
tacit knowledge
The mix in the workplace of people from different races, cultures, and backgrounds is referred to as
diversity.
When a company's core competencies are superior to those of competitors, these are known as
core competencies
Which of the following is not one of the four question areas Barney proposes in his VRIO framework
used to evaluate a firm's key resources?
Durability
In order to move more quickly through a product's development stage and have people from each
discipline get involved in projects early on, companies are using
explicit knowledge
core competencies
Through market research, corporations are able to practice with various products or services so that
managers can discover what niches to seek, which new types of products to develop, and how to ensure
that a company's many products do not directly compete with one another
market segmentation.
Installation
Employees tend to be specialists in the business functions important to that industry such as
manufacturing, marketing, finance, and human resources
The process of taking a new technology from the laboratory to the marketplace is called
technology transfer
Procurement
All is correct
The speed with which other firms can understand the relationship of resources and capabilities
supporting a successful firm's strategy is called
Imitability
What is the attribute of corporate culture that is the degree to which members of a unit accept the
norms, values, or other culture content associated with the unit?
Integration
Which of the following is not one of the major outsourcing errors that should be avoided?
sole sourcing
The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the
backup suppliers for each other's parts is
parallel sourcing
The key to outsourcing is to purchase from the outside only those activities that
According to a recent survey by Deloitte Consulting, the most popular outsourced activity was
finance
When Colgate-Palmolive and Unilever take a successful product that they marketed in one part of the
world and market it elsewhere, they are following a market development strategy.
TRUE
The key to outsourcing is to purchase from the outside only those activities
The orientation of the functional strategy is dictated by its parent business unit's strategy
TRUE
The use of the Internet to market goods directly to the customer allows a company to use dynamic
pricing
TRUE
The evaluation of alternative strategies and selection of the best alternative is referred to as
strategic choice.
A large software manufacturer attempts to lock in customers by making it difficult for them to substitute
their software with one from another company. The strategy used by the company is referred to as
Institute a new product development plan to generate profit gain market share.
Japan
The type of strategy used to influence a corporation's key stakeholders in order to increase their support
of corporate activities is
political strategy
Once the best strategic alternative is selected, the broad guidelines for its implementation are then
defined by
policies
Managers who own a significant amount of stock in their firms are less likely to engage in risk-
taking actions.
When a company determines how and where a product or service is to be manufactured, the level of
vertical integration in the production process, the deployment of physical resources, and relationships
with suppliers, the company is developing its strategy.
Operations
increased profitability
Purchasing a product or service from an outside contractor that had been previously provided internally
is called
outsourcing
When Intel opened four small-scale research facilities adjacent to universities to promote the cross-
pollination of ideas, they were using which approach to R&D?
open innovation
technological leader.
If a company wishes to be a technological follower and also pursue a differentiation strategy, the
appropriate R&D strategy would be to
adapt the product or delivery system more closely to buyer needs by learning from the
leader's experience
When Dell Computer's customers use the Internet to design their own computers, this demonstrates
which manufacturing strategy?
mass customization
Which one of the following is not one of the questions that management should raise in their attempt to
assess the importance to the corporation of stakeholders' concerns?
What are the stakeholders likely to if they don't get what they want?
The automobile (car) industry is currently experimenting with the strategy of mass customization in
which pre-assembled sub- assemblies are delivered as they are needed to a company's assembly line
workers
TRUE
An important consideration in the selection of a strategy is the ability of each alternative to satisfy
agreed-upon objectives with the least resources and the fewest negatives. The competitive advantages
developed earlier using is an excellent place to start.
The type of marketing strategy in which a company captures a larger share of an existing market for
current products through market saturation or market penetration or develops new markets for current
products is called
market development
According to the text, which of the following is not one of the reasons why innovations seem to occur
more often in small firms rather than in large, established corporations?
The technique used to help strategic managers choose among alternative choices by defining the task
environment, developing a set of various forecasts, and using pro forma financial statements is called
industry scenarios.
When a company spends a large amount of money on trade promotion in order to gain or hold shelf
space in retail outlets, a company is using a strategy.
Push
The pricing, advertising, branding, selling, and distributing of a product is referred to as a(n) strategy
Marketing
Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to
use the experience curve to gain market share with a low price and dominate the industry
TRUE
When the Kellogg Company changed to a push strategy, they spent more money on consumer
advertising designed to build brand awareness so that shoppers will ask for the products
TRUE
If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate
R&D strategy would be to
A financial strategy examines the financial implications of corporate and business-level strategic options
and identifies the best financial course of action
TRUE
A product development strategy deals with pricing, selling, and distributing a product
TRUE
Three trends are evident in logistics: outsourcing, the use of the Internet, and
logistical partnerships
Locking in customers by making it difficult or expensive for customers to move to another product is
called establishing high
switching costs
When a company deals with obtaining raw materials, parts, and supplies needed to perform the
operations function, the company is developing its strategy.
Purchasing
The reconfiguring of people, processes, units, and technology to give customers exactly what they want
and when they want it is known as
mass customization.
Companies such as Georgia-Pacific, Marriott, and Union Carbide view the as an important way to
differentiate themselves from the competition, to add value, and to reduce costs
logistics function
If there is little fit between a strategic alternative under consideration and the corporate culture, which
of the following is one of management's options to consider?
The flow of products into and out of the manufacturing process is a factor when developing a(n) strategy
Logistics
The strategy that deals with product research, process innovation and improvement is known as a(n)
strategy.
R&D (research & development)
The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car
model from several vendors is
multiple sourcing
When Smith & Wesson puts its name on others' products, like men's cologne, it is using which marketing
strategy?
brand extension
The key to outsourcing is to purchase from outside only those activities that are not key to the
company's distinctive competencies
TRUE
The top factors in a successful seemed to be a spirit of partnership, a well-designed agreement, joint
governance, and consistent communication
outsourcing relationship
mass customization
Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to
utilize the experience curve to gain market share with a low price and dominate the industry?
penetration pricing
Which strategy is developed to pull together the various activities and competencies of each
department so that corporate and business unit performance improves and resource productivity is
maximized?
functional strategy
Multi-national corporations use sophisticated intranets to allow employees to practice follow-the- sun
management, in which project team members living in one country can pass their work to team
members in another country in which the workday is just beginning
TRUE
Launch Cars, a car manufacturing company, has patented its breakthrough technology that reduces
pollutant emissions by half. The company is now an active supporter of anti-pollution laws that are likely
to diminish the profitability of many other auto makers. Launch Cars is attempting to
Which of the following is an example of an industry in which companies manufacture and sell the same
products, with only minor adjustments made for individual countries around the world?
tires
A table which summarizes the key success factors within a particular industry is called a(n)
SFAS Table
According to Porter's model, a low force can enable the company to earn greater profits and can be
regarded as a(n)
advantage.
The five forces that affect the level of competition in an industry are:
the threat of entry; the power of buyers; the power of suppliers; the threat of substitutes; and
competitive rivalry
The action of developing new products before competitors do at improving product quality or at
improving manufacturing processes to reduce costs.
task environment.
economic environment
sociocultural forces
Intel was able to gain a significant cost advantage over its competitors in the production and sale of
microprocessors because of
economies of scale.
According to Porter's model, a strong or high force is likely to reduce profits and can be regarded as a(n)
threat
When strategic managers have a willingness to reject unfamiliar as well as negative information it is
referred to as
strategic myopia.
Which is the largest age group of the current generations in all developed countries?
Baby Boomers
Which of the following is not descriptive of a high level of bargaining power of suppliers?
.......identifies a firm's major competitors and their particular strengths and weaknesses in relation to a
sample firm's strategic position.
technological developments
Porter describes the threat of new entrants. Which of the following is not descriptive of the "threat of
new entrants"?
"Identifying and evaluating key social, political, economic, technological and competitive trends and
events". Which of the followings best describes this statement?
The combination of the degree of complexity and the degree of change existing in an organization's
external environment is/ are called
environmental uncertainty.
competitive intelligence.
..... is/are the source of a firm's......, which is/are the source of the firm's......
Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to
overcome existing customer loyalty?
product differentiation
In the EFAS Table, the indicator of how well a particular company is responding to current and expected
factors in its external environment is characterized by the
Strategy evaluation
What is a set of business units or firms that 'pursue similar strategies with similar resources’?
strategic group
Which barrier to entry was demonstrated by Microsoft's development of the first widely adopted
operating system (MS-DOS) for the IBM-type personal computer that gave it a significant competitive
advantage over potential competitors?
A company with significant assets and activities in multiple countries is known as a(n)
multi-national corporation.
A declining market share, poor prod quality and few sales in the market
Lower revenues and profit margin a narrow product line than the market leader
A sugar company that is worried that consumers may buy artificial sweetener instead of sugar is
concerned about the
The technique recommended by the text to organize an analysis of external strategic factors is called
SFAS
the business environment and the strategic capability of an organization relative to its
competitors.
external and internal environments
All of the following are technological breakthroughs already having a significant impact on many
industries ЕХСЕРТ
When General Motors considers making its own automotive parts, Delphi Automotive Supply Company
would be concerned with the
Which type of international industry manufactures and sells the same products with only minor
adjustments made for individual countries around the world?
multi-domestic industry
Which barrier to entry uses cost advantages associated with large size?
economies of scale
labor forces
Which environment was generally perceived by business people to be something to exploit, not
conserve, until the twentieth century?