Question 1

A renewal strategy is a corporate strategy designed to address organizational weaknesses that are leading to performance decline.

Accepted Answer

A) True 
 B)False

Question 2

Activities that an organization does well or any unique resources that it has are called opportunities.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is one of the drawbacks to strong organizational cultures that a manager should consider when completing the strategic management process?

Accepted Answer

A) They always hinder the organization's strategic actions. 
B) Employees will have less understanding of the planning process. 
C) Employee attitudes tend to be strong,but their organizational values are weak. 
D) They are difficult to change.

Question 4

One of the components of the mission statement should be the organization's competitive advantage.

Accepted Answer

A) True 
 B)False

Question 5

Once managers have completed their analysis of the strengths,weaknesses,opportunities,and threats facing the organization,they can proceed to the next step of the strategic management process,which is to ________.

Accepted Answer

A) identify competitors 
B) identify the organization's current mission,goals,and strategy 
C) formulate strategies 
D) identify environmental trends

Question 6

An organization that is unable to develop a competitive advantage based on one of Michael Porter's competitive strategies is termed ________.

Accepted Answer

A) a dog 
B) new entrant 
C) stuck in the middle 
D) diversified

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.
-Casey has been taking courses in the Asian languages department for the last three years and consequently speaks reasonably coherent Chinese.Spending a summer in Shanghai on an intensive language course further improved her language skills.Few students are interested in learning Chinese these days so this is a(n)________ Casey possesses over other job applicants.

Accepted Answer

A) opportunity 
B) strength 
C) differentiation 
D) core competency

Question 8

Organizations grow by using ________ strategies.

Accepted Answer

A) concentration,integration,or diversification 
B) concentration,integration,or innovation 
C) integration,diversification,or differentiation 
D) differentiation,integration,or innovation

Question 9

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.
-The rapid industry growth rate and increasing growth of other existing businesses relate to which one of Michael Porter's five forces?

Accepted Answer

A) threat of substitutes 
B) threat of new entrants 
C) bargaining power of buyers 
D) intensity of current rivalry

Question 10

Since Internet technology is now so universally accessible,it can no longer contribute to the development of a sustainable competitive advantage for any particular organization.

Accepted Answer

A) True 
 B)False

Question 11

The mission statement of Cirque du Soleil states,"We are united by one overriding goal: to entertain,uplift,and enlighten audiences the world over." This statement relates most closely to which component of a mission statement?

Accepted Answer

A) markets 
B) customers 
C) concern for public image 
D) philosophy

Question 12

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?
-Perhaps the most successful business in your portfolio is a company called Home Alone that produces a line of wireless security products for do-it-yourself homeowners.The anticipated growth rate is spectacular,and the product line is so popular that it dominates the market in Canada.According to the BCG matrix,Home Alone would probably be a ________.

Accepted Answer

A) rocket 
B) cash cow 
C) high flyer 
D) star

Question 13

Helen,the owner of Crazy Cupcakes,is conducting a SWOT analysis of her company to find out where she can improve her business and to identify possibilities for expansion.Which of the following represents an opportunity for expansion?

Accepted Answer

A) There has been a trend toward personalized cupcakes for a variety of occasions. 
B) The production process was found to be highly efficient,and wastage was kept to a minimum. 
C) In a taste test,Crazy Cupcakes products ranked higher than competitors in the taste and texture segments. 
D) The prices of flour and sugar have gone down in the last six months.

Question 14

Electronics retailer Best Buy sells merchandise through both its website and its physical store locations.They are using an e-business strategy called ________.

Accepted Answer

A) bricks-and-mortar 
B) first mover 
C) click-and-save 
D) clicks-and-bricks

Question 15

Pat's Pets has developed a reputation as the industry leader in quality pet care.It has exceptionally skilled employees who are known for their humane and loving treatment of animals.For Pat's,these resources would be considered ________.

Accepted Answer

A) opportunities 
B) competitive assets 
C) primary resources 
D) core competencies

Question 16

According to Michael Porter's competitive strategies framework,the cost leadership strategy results in exceptionally high-quality products at the lowest cost in the industry.

Accepted Answer

A) True 
 B)False

Question 17

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?
-Another purchase you made was to acquire a small chain of coffee shops called Time-out Café.You don't anticipate much growth,and it will never achieve the scale of market leaders such as Starbucks,Tim Hortons,and Second Cup.According to the BCG matrix,Time-out Café would probably be a ________.

Accepted Answer

A) cash cow 
B) liability 
C) dog 
D) question mark

Question 18

Successful ________ should reduce costs or increase revenue possibilities,or both.

Accepted Answer

A) diversification strategies 
B) competitive advantage 
C) social media strategies 
D) design thinking

Question 19

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?
-It is now 10 years later,and as the original owner of Clubhouse Gourmet,you have seen your business holdings grow substantially.The number of stores you own and franchise has grown by 200 percent,and you own a number of companies in both related and unrelated industries.You now need to develop strategies to manage your portfolio of businesses,so you turn to the BCG matrix for help.Since most of the businesses in your portfolio operate independently under their own strategies,they are considered ________.

Accepted Answer

A) subsidiary operating divisions 
B) strategic profit centres 
C) diversified business enterprises 
D) strategic business units

Question 20

In a short essay,list and discuss the three competitive strategies,according to Michael Porter.Include specific examples of companies that pursue each of the three competitive strategies.

Accepted Answer

The answer of In a short essay,list and discuss the...

Exam 10: Managing Strategically

A renewal strategy is a corporate strategy designed to address organizational weaknesses that are leading to performance decline.

Activities that an organization does well or any unique resources that it has are called opportunities.

Which of the following is one of the drawbacks to strong organizational cultures that a manager should consider when completing the strategic management process?

One of the components of the mission statement should be the organization's competitive advantage.

Once managers have completed their analysis of the strengths,weaknesses,opportunities,and threats facing the organization,they can proceed to the next step of the strategic management process,which is to ________.

An organization that is unable to develop a competitive advantage based on one of Michael Porter's competitive strategies is termed ________.

Organizations grow by using ________ strategies.

Since Internet technology is now so universally accessible,it can no longer contribute to the development of a sustainable competitive advantage for any particular organization.

The mission statement of Cirque du Soleil states,"We are united by one overriding goal: to entertain,uplift,and enlighten audiences the world over." This statement relates most closely to which component of a mission statement?

Helen,the owner of Crazy Cupcakes,is conducting a SWOT analysis of her company to find out where she can improve her business and to identify possibilities for expansion.Which of the following represents an opportunity for expansion?

Electronics retailer Best Buy sells merchandise through both its website and its physical store locations.They are using an e-business strategy called ________.

Pat's Pets has developed a reputation as the industry leader in quality pet care.It has exceptionally skilled employees who are known for their humane and loving treatment of animals.For Pat's,these resources would be considered ________.

According to Michael Porter's competitive strategies framework,the cost leadership strategy results in exceptionally high-quality products at the lowest cost in the industry.

Successful ________ should reduce costs or increase revenue possibilities,or both.

In a short essay,list and discuss the three competitive strategies,according to Michael Porter.Include specific examples of companies that pursue each of the three competitive strategies.