Question 1

At which step of the strategic management process do managers assess their financial capital,technical expertise,employee skills,and marketing capabilities?

Accepted Answer

A) identify current mission,objectives,and strategies 
B) formulate strategies 
C) internal analysis 
D) external analysis

Question 2

The most fundamental questions about strategy address why firms,facing the same environmental conditions,have varying levels of performance.

Accepted Answer

A) True 
 B)False

Question 3

"At IBM,we recognize individual differences and appreciate how these differences provide a powerful competitive advantage and a source of great pride and opportunity in the workplace and marketplace." This statement relates most closely to which component of a mission statement?

Accepted Answer

A) products or services 
B) concern for public image 
C) concern for survival 
D) concern for employees

Question 4

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.
-The competitive strategy of reducing the price by $100 to become the industry price leader is called ________.

Accepted Answer

A) retrenchment 
B) focus 
C) differentiation 
D) cost leadership

Question 5

In design thinking,managers apply the strategic management process to all problems.

Accepted Answer

A) True 
 B)False

Question 6

At which step of the strategic management process do managers identify opportunities and threats?

Accepted Answer

A) internal objectives 
B) formulate strategies 
C) external analysis 
D) evaluate results

Question 7

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.
-In looking at her graduating class,Casey notices that there are large numbers of students graduating with the same major as she is.This situation can be a(n)________ in her job hunt.

Accepted Answer

A) opportunity 
B) weakness 
C) strength 
D) threat

Question 8

In a short essay,discuss the concept of competitive advantage.Include discussion on quality,social media,and design thinking and their roles in sustaining competitive advantage.Give specific examples of companies and their respective competitive advantages to support your answer.

Accepted Answer

The answer of In a short essay,discuss the concept of...

Question 9

The Duracell division of Gillette is the dominant producer of alkaline batteries worldwide.Demand for alkaline batteries continues to thrive as consumers embrace a growing number of portable digital electronic products.According to the BCG matrix,Duracell is a ________.

Accepted Answer

A) question mark 
B) falling star 
C) cash cow 
D) star

Question 10

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?
-If you decided to expand Clubhouse Gourmet by increasing its menu items and opening more restaurants across the country,you would be pursuing which type of growth strategy?

Accepted Answer

A) vertical integration 
B) horizontal integration 
C) concentration 
D) related diversification

Question 11

When conducting a SWOT analysis,threats are activities the organization doesn't do well or resources it needs but doesn't possess.

Accepted Answer

A) True 
 B)False

Question 12

A ________ strategy addresses organizational weaknesses,helps stabilize operations,and revitalizes organizational resources and capabilities.

Accepted Answer

A) diversification 
B) concentration 
C) retrenchment 
D) stability

Question 13

According to our textbook,effective customer service strategies involve giving the customer what they want,effective communication,and ________.

Accepted Answer

A) providing employees with incentives and bonuses for good service 
B) providing employees with customer service training 
C) having detailed policies and procedures in place 
D) promoting an entrepreneurial culture

Question 14

Innovation strategies focus exclusively on radical,breakthrough products as the key source of sustainable competitive advantage.

Accepted Answer

A) True 
 B)False

Question 15

When athletic sportswear manufacturer Nike decided to open its own chain of retail stores,it was pursuing which corporate strategy?

Accepted Answer

A) backward vertical integration 
B) forward vertical integration 
C) related diversification 
D) horizontal integration

Question 16

The distinct edge that sets an organization apart from its competitors is called a ________.

Accepted Answer

A) core competency 
B) market capability 
C) proprietary advantage 
D) competitive advantage

Question 17

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 exceptional expertise in research and development would be considered a(n)________.

Accepted Answer

A) core competency 
B) differential benefit 
C) environmental advantage 
D) opportunity

Question 18

Concern for survival,growth,and profitability are all expressed in the organization's ________.

Accepted Answer

A) strategic plan 
B) mission statement 
C) business model 
D) SWOT analysis

Question 19

Kiva Systems,manufacturer of robots used in flexible automation systems,demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.

Accepted Answer

A) design thinking 
B) competitive advantage 
C) strategic flexibility 
D) first-mover strategy

Question 20

The Jim Pattison Group has grown by acquiring firms in diverse industries.Today,Jim Pattison owns food retail chains,car dealerships,radio stations,a fishing company,a sign company,a packaging company,and several museum-themed tourist attractions.Jim Pattison has pursued a strategy of ________.

Accepted Answer

A) horizontal integration 
B) related differentiation 
C) unrelated differentiation 
D) unrelated diversification

Exam 10: Managing Strategically

At which step of the strategic management process do managers assess their financial capital,technical expertise,employee skills,and marketing capabilities?

The most fundamental questions about strategy address why firms,facing the same environmental conditions,have varying levels of performance.

"At IBM,we recognize individual differences and appreciate how these differences provide a powerful competitive advantage and a source of great pride and opportunity in the workplace and marketplace." This statement relates most closely to which component of a mission statement?

In design thinking,managers apply the strategic management process to all problems.

At which step of the strategic management process do managers identify opportunities and threats?

In a short essay,discuss the concept of competitive advantage.Include discussion on quality,social media,and design thinking and their roles in sustaining competitive advantage.Give specific examples of companies and their respective competitive advantages to support your answer.

The Duracell division of Gillette is the dominant producer of alkaline batteries worldwide.Demand for alkaline batteries continues to thrive as consumers embrace a growing number of portable digital electronic products.According to the BCG matrix,Duracell is a ________.

When conducting a SWOT analysis,threats are activities the organization doesn't do well or resources it needs but doesn't possess.

A ________ strategy addresses organizational weaknesses,helps stabilize operations,and revitalizes organizational resources and capabilities.

According to our textbook,effective customer service strategies involve giving the customer what they want,effective communication,and ________.

Innovation strategies focus exclusively on radical,breakthrough products as the key source of sustainable competitive advantage.

When athletic sportswear manufacturer Nike decided to open its own chain of retail stores,it was pursuing which corporate strategy?

The distinct edge that sets an organization apart from its competitors is called a ________.

Concern for survival,growth,and profitability are all expressed in the organization's ________.

Kiva Systems,manufacturer of robots used in flexible automation systems,demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.

The Jim Pattison Group has grown by acquiring firms in diverse industries.Today,Jim Pattison owns food retail chains,car dealerships,radio stations,a fishing company,a sign company,a packaging company,and several museum-themed tourist attractions.Jim Pattison has pursued a strategy of ________.