Exam 7: Strategic Management: Planning for Long-Term Success

You are a management consultant, and a soft drink company executive has asked which of Porter's generic competitive strategies would be appropriate for establishing a new colorless cola drink nationwide. Which strategy would you recommend? Why?

When a company follows Porter's cost focus strategy, it competes worldwide on the basis of low costs and low prices.

The term business ecosystems refers to the concept that the whole is greater than the sum of its parts.

To protect their own self-interests, middle managers often resist or derail strategies.

An example of a cost synergy is a corporate recycling program.

The best tool for Trend Analysis is Google.

What does the new strategic emphasis on speed involve?

Home Designs, Inc. Home Designs, Inc. leveraged its brand name recently by adding windows and roof-related work and installation. On the same acreage where Home Designs has a door manufacturing facility, the company built another production facility for making windows. Sherice, the owner, is considering the strategic management approach necessary to determine how to take advantage of the company's strengths and exploit its opportunities. -Refer to Home Designs, Inc. When Home Designs adds windows and roof-related work and installation to the door business, it can best be described as which type of synergy?

Formulation of a grand strategy, formulation of strategic plans, implementation of strategic plans, and strategic control are the four major steps in the strategic management process.

According to Porter , which of these is the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sales service?

Which strategy-making mode encourages employees to be entrepreneurial?

New strategies should only be communicated to top and middle managers since they are responsible for implementing them.

There is a trend away from the generative mode of strategy making.

Research on Porter's model indicates a positive relationship between long-term earnings growth and a good strategy/environment fit.

Kevin, a web developer, tends to emphasize short-term profits. Which strategy does he use?

A commission-based Internet business model adds value through selection, distribution efficiencies, and by leveraging brand image and reputation.

Web sites need to satisfy all of these criteria except ____ when doing business at Internet speed.

The three types of forecasts include event outcome forecasts, time series forecasts, and

Which of the following most accurately represents scenario analysis?

Both an organization's weaknesses and strengths are examined in a situational analysis.