Exam 10: Managing Strategically

Social media is too unpredictable and has no place in successful organizational strategy formulation.

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. -Positioning the company's products based on their reputation for quality with few frills but good programming capabilities involves the competitive strategy of ________.

Strategic leadership refers to the executives' ability to apply the strategic planning process.

The major value-creating capabilities and skills of the organization are known as its primary resources.

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

When Air Canada went into bankruptcy protection to restructure its organization and reduce its operating costs,it was pursuing which of the following strategies?

In a short essay,describe and discuss the five competitive forces,according to Michael Porter,that determine industry attractiveness and profitability.In discussing these forces,be sure to identify specific factors that determine the strength of each force.

When consumer electronics manufacturer Sony Corporation decided to open its own chain of retail stores,it was pursuing which corporate strategy?

A ________ is a strategic design for how a company intends to profit from its strategies,work processes,and work activities.

Which of the following describes a company growing by combining with other organizations in the same industry?

Clubhouse Gourmet -A- (Scenario) Imagine that you are the president of Clubhouse Gourmet, a successful chain of fast-food restaurants with 60 locations across Canada. The success you have experienced in the last five years has you considering various options about what to do next with the business. Should you continue to expand the business at the current rate? Or perhaps open new and different restaurants? What should you do? -You have decided to purchase a competing chain of fast-food restaurants called Sandwich King.Once the acquisition is completed,you plan to combine their operations with those of Clubhouse Gourmet.This is an example of which growth strategy?

The renewal strategy of ________ is used to correct less serious performance setbacks,while a(n)________ strategy is used for more critical performance problems.

If a bank evaluates the capabilities of its training and development department employees prior to implementing a new training program designed to change their method of providing customer service,it is completing what step in the strategic management process?

Understanding the organization's culture is a crucial part of external analysis.

According to the BCG matrix,a business unit that has low market share in a rapidly growing market is known as a ________.

Megabyte Centre (Scenario) Your old friend Ariel Eskenazi is the owner and general manager of Megabyte Centre, a computer reseller and systems integrator located in Panama City, Panama. Since leaving IBM Canada to start a business in his home country, Ariel has watched his company grow steadily, due in large part to the business partnerships he's established over the years with large foreign computer and software firms, such as Goldstar and Microsoft. These relationships have helped his company win considerable market share in Panama, as well as in other parts of Latin America. However, in recent years, there has been a huge influx of foreign capital into Panama. For example, several large Asian firms have established subsidiaries in Panama to launch their North American operations. Tourism is also on the rise, and dozens of new hotels have been built in the metropolitan area over the past three years. As a result, demand for Megabyte's products and services has increased dramatically, but so has the level and diversity of its competition. While Megabyte's customer base has remained fairly loyal, many longtime customers are beginning to demand price concessions and enhanced service levels in return for their continued business. Ariel has recently learned that several of his former suppliers and business partners are considering establishing their own local sales offices in Panama City to sell direct to market rather than distributing through Megabyte. Ariel knows you are very knowledgeable about competitive strategy and asks for your advice. You begin by telling him a little about Michael Porter's competitive strategies framework. -According to Porter,the possibility of Ariel's former suppliers entering the local market as direct competitors would be considered which of the five forces?

The same environment can present opportunities to one organization and pose threats to another.

Which of the following is a first-mover advantage?

Personal SWOT Analysis (Scenario) University students in their last year are focused on getting information about the situation in the job market on graduation. As a process of self-examination during her senior year of college, Casey decides to develop a SWOT analysis of her prospects relative to getting a job. -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)________.

The global leader in the cigarette lighter business is French company BIC,but the market is expected to decline in coming years as fewer people take up smoking.Realizing these factors,Gillette decided to sell its Cricket lighter division to Swedish Match.According to the BCG matrix,Gillette viewed Cricket as a ________.