Exam 6: Strategic Management: How Exceptional Managers Realize a Grand Design

To provide direction and momentum,encourage new ideas,and develop a sustainable competitive advantage are reasons why an organization should adopt strategic management and strategic planning.

Mountain Rescue Incorporated sells emergency safety and rescue products to ski patrols and rescue workers at prices that are below those of its competitors,who offer a larger line of products and focus on broader markets.Mountain Rescue Incorporated is pursuing a ____ strategy.

Rashid,the CEO of Top Productions,was telling his new vice president of accounting that "In the past I had resistance to new ideas by people who felt that one of our plans threatens their influence or jobs.So when you tell your collections department that we just hired a collection agency to handle bad debt,you may have to sell your collections manager and his supervisors on using the agency and that nobody is going to be laid off." Selling middle and supervisory managers on changes to overcome their resistance is often a necessary part of _____.

Doug is the CEO of Johnson Motors,a business consisting of Chevrolet,Buick,Cadillac,and Mercedes-Benz dealerships.He also sells Fleetwood and American Coach RVs.Doug mentioned to his sales manager that "there is economic value in having many related businesses managed by one ownership group.They are worth more than if they are separate companies." This is an example of ____.

Nick,the R&D department manager of Precise,a manufacturer of high-quality watches for over 125 years,was told in a management meeting that the company's biggest competitor,Accurate Watches,is introducing a low-cost,yet attractive line of watches that will be sold in Walmart stores.As a result,the top management of Precise is pressuring Nick to lower the production costs on existing products and also to develop a line of watches that can be manufactured inexpensively to be marketed to a wider variety of customers at a much lower price.This is an example of a quality-leadership strategy.

Competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.

Many customers shop at Organic Foods because of the employees' extensive product knowledge.This is an example of the company's _____.

Because all work ultimately entails some human interaction,effort,or involvement,Bossidy and Charan stated that focusing on organization synergy is the most important process in strategy execution.

George,a chef and owner of a popular restaurant,is always visiting his competition to observe how they are doing things in their restaurants.He told one of his managers that "I do this because I want to know what is going on.I am always concerned that one of our competitors will surprise us with a new service or menu item like us,but better." George is utilizing ___.

One report reads that big companies,such as Amazon,Google,or Apple,"are no longer content simply to enhance part of your life.The new strategy is to build a device,sell it to consumers,and then ____."

The second step in the strategic-management process is to look at where the organization stands and see what is working and what could be different to maximize efficiency and effectiveness in achieving the organization's mission.This step is the process of completing a(n)_____.

When Pablo and his partner wrote the mission for their fitness center,like any good mission statement it did not include descriptions of their customers or the products and services they offer.

According to Harvard Business School professor Michael Porter,strategic positioning means _____ to achieve sustainable competitive advantage.

ABC Office Supply in Dayton sells high-quality,unique pens that are a real value to executives in the area.No other company in its area markets pens of such quality and value.By offering this type of product,ABC Office Supply is an example of a company utilizing a _____ strategy.

Organic Foods International has decided to increase its market share by hiring a marketing rep to visit businesses in the area and invite their employees to shop at Organic Foods and for monthly health events.The store also hired two new employees to handle the anticipated increase in customer traffic.Organic Foods is utilizing a _____.

Developing a comprehensive program for long-term success is the focus of ____.

Organic Market sells high-quality products and grocery items that are unique to their area;in addition it offers delivery for customers who are unable to leave their home and a number of regular workshops regarding eating healthy.By offering these types of products and services,Organic Market is pursuing a _____ strategy.

Sustainable competitive advantage occurs when an organization is able to get and stay ahead in being responsive to customers,in innovating,in quality,and in effectiveness.

Lily,the CEO of Beautiful Flowers,is interested in using strategic management in her florist shops nationwide.When she attended the workshop on strategic management,the speaker suggested to first establish the mission and the vision,second to assess the current reality,and third to formulate the grand strategy as the first three steps in the strategic-management process.

The basic assumption that the picture of the present can be projected into the future is the basis of a _____.