Exam 10: Managing Strategically

Which of the following is most likely to use Internet-based knowledge systems to provide rapid online responses to service requests from customers in a broad market?

Managers use the strategic management process in order to ________.

The Strategic Management Process (Scenario) Kerry is vice-president of operations at Delta Corp. The company president has asked Kerry to lead the strategic management process that will help guide Delta through the next five to ten years. At next week's management meeting, Kerry must give a presentation that explains the process. In preparation, Kerry begins by reviewing the steps in the strategic management process from his university textbook. -When Kerry reaches the end of the strategic management process,he will be at which step?

When L'Oréal acquired The Body Shop,it carried out ________.

Competitive Strategies (Scenario) Carly's general manager has just given her a big assignment: develop three different potential strategies the business could use to maintain its competitive advantage. Its computer business was slowly losing market share to competitors, and everyone realized that something needed to be done. Carly glanced through the article by Michael Porter that her manager had provided. According to Porter, there were three different types of strategies to choose from. Carly began wondering if there was a way they could make their computers cheaper so they could be sold at a lower price. If they could reduce the price by $100 per machine, they would become the industry price leader. Carly wondered if they could find any lower-priced suppliers for the more expensive computer components. She knew that their computers were particularly appealing to small business owners due, in part, to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines; but they did contain all the basic word processing, database, and spreadsheet applications required by the typical small business owner. This combination of program capabilities, lack of product frills, and good reputation for quality had worked successfully for them in the past. Now Carly wondered if they would be better off looking at a smaller segment of the market, such as small businesses with accounts receivable billings that could fully utilize the database capabilities. She knew this strategy would cut their market potential by 50 percent, but maybe targeting a smaller market niche would lead to better results in the long-term. Carly began compiling her report for Friday's meeting. -If Carly's company is unable to develop a competitive advantage based on one of Michael Porter's competitive strategies,it would be described as ________.

When an organization attempts to grow by merging with or acquiring firms in different but associated industries,the strategy is known as a ________ strategy.

A stability strategy may be appropriate in industries where there is rapid and dramatic change,as well as industries facing slow- or no-growth opportunities.

Design thinking gives organizations a competitive advantage by ________.

Design thinking means thinking outside existing alternatives and creating new alternatives.

It is important for managers to learn how to use social media tools effectively to ________.

A business model comprises of ________ and whether the company can make money doing that.

SWOT Analysis (Scenario) Terri has been asked to review her company's strategy in the cosmetics industry. Top management wants to ensure that they are aware of emerging trends and changes. Terri began reviewing a list of factors in her mind. Recently, there has been some negative publicity about cosmetics testing on animals; an industry practice that has become very controversial and increasingly unacceptable to consumers. The laboratory animals at Terri's company are well treated, but they are still used to test new products. On a positive note, industry-wide sales are up 10 percent. Women are buying more cosmetics in general, which is good news for the company. Another positive factor is their personnel. They have many good people working in the company, particularly in research and development where the expertise is exceptional. The only other negative factor noted by Terri was that last year's advertising campaign had not achieved the desired results. Something needed to be done in that department. Terri began to compile her report. -The failure of the advertising campaign would be classified as a(n)________.

When a university reduces its course offerings in a semester due to low student enrolment,it is pursuing a strategy of ________.

YUM! Brands is the world's largest restaurant company,with more than 33,000 restaurants in over 100 countries.Their restaurant brands include KFC,Pizza Hut,and Taco Bell.They recently acquired two other fast-food restaurant chains: A&W and Long John Silver's Seafood.YUM! has pursued which type of corporate strategy?

Jill is assessing the labour supply in the locations where her company currently operates.She is currently at which stage of the strategic management process?

Competitive Strategies (Scenario) Carly's general manager has just given her a big assignment: develop three different potential strategies the business could use to maintain its competitive advantage. Its computer business was slowly losing market share to competitors, and everyone realized that something needed to be done. Carly glanced through the article by Michael Porter that her manager had provided. According to Porter, there were three different types of strategies to choose from. Carly began wondering if there was a way they could make their computers cheaper so they could be sold at a lower price. If they could reduce the price by $100 per machine, they would become the industry price leader. Carly wondered if they could find any lower-priced suppliers for the more expensive computer components. She knew that their computers were particularly appealing to small business owners due, in part, to price. They were able to offer the lower price because their computers were not as powerful or fast as some machines; but they did contain all the basic word processing, database, and spreadsheet applications required by the typical small business owner. This combination of program capabilities, lack of product frills, and good reputation for quality had worked successfully for them in the past. Now Carly wondered if they would be better off looking at a smaller segment of the market, such as small businesses with accounts receivable billings that could fully utilize the database capabilities. She knew this strategy would cut their market potential by 50 percent, but maybe targeting a smaller market niche would lead to better results in the long-term. Carly began compiling her report for Friday's meeting. -If Carly's company could find a way to both reduce the price by $100 and specifically target the small businesses that need large databases,it could pursue the competitive strategy known as ________.

In horizontal integration,the organization attempts to gain control of its inputs by becoming its own supplier.

Strategic management consists of the decisions and actions that determine the long-run performance of the organization.

When an organization grows by combining operations with competitors,the strategy is known as a ________ strategy.

An automobile manufacturer that decides to purchase a truck manufacturer and a recreational vehicles manufacturer is engaging in horizontal integration.