Question 1

The BCG matrix is a means of evaluating strategic business units on the basis of their

Accepted Answer

A) business costs and share of the market. 
B) differentiation and profitability. 
C) business growth rates and share of the market. 
D) BCG ratio. 
E) product quality and profitability.

Question 2

Susana keeps a close eye on her company's internal and external environment to discover possible opportunities for new products and to discern possible threats from the competition.In which activity is Susana engaged?

Accepted Answer

A) the synergistic approach 
B) environmental scanning 
C) corporate spying 
D) management by observation 
E) competitive intelligence

Question 3

To understand your own values,you should

Accepted Answer

A) understand how ethics differs from legal requirements. 
B) take a course on value creation and definition. 
C) articulate them in writing and test them through daily decision making. 
D) focus on cutting costs while improving quality. 
E) write a strong marketing plan that will help you achieve your desired profit level.

Question 4

In the BCG matrix,_____ are companies that have high growth and high market share,and are definite keepers.

Accepted Answer

A) sleeping giants 
B) stars 
C) cash cows 
D) turtles 
E) sleepers

Question 5

Rashid,the CEO of Top Productions,said to his new vice president of accounting,"In the past I had resistance to new ideas by employees who felt that our plans threatened their influence or their 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.You also have to emphasize the fact 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

Accepted Answer

A) reality assessment. 
B) strategy formulation. 
C) strategic control. 
D) operational control. 
E) strategy implementation.

Question 6

Contingency planning is also known as

Accepted Answer

A) organizational opportunities. 
B) scenario goal-setting and plans. 
C) a trend analysis. 
D) scenario planning and scenario analysis. 
E) strategic planning.

Question 7

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

Accepted Answer

A) cost-focus 
B) cost-leadership 
C) differentiation 
D) narrow 
E) focused-differentiation

Question 8

An organization's vision statement needs to describe

Accepted Answer

A) the organization's purpose or reason for being. 
B) what the company will market and its business plan. 
C) the organization's purpose or reason for being and its strategic intent. 
D) the organization's ethical and diversity standards. 
E) what the company wants to become and its long-term direction and strategic intent.

Question 9

A company's overall ability to execute is a function of effectively executing according to three processes,but Bossidy and Charan believe that the _____ process is the most important.

Accepted Answer

A) operations 
B) leading 
C) people 
D) planning 
E) strategy

Question 10

What are the three sources of a unique and valuable strategic position?

Accepted Answer

A) few needs,many customers;broad needs,few customers;broad needs,many customers 
B) low-cost products;huge market needs;unique products 
C) many needs,few customers;little need,many customers;narrow needs,few customers 
D) poor products available;few products available;no products available 
E) bad economy;strong economy;stable economy

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Motherboard Technology makes and sells only one product,a high-quality processor for mainframe computers,within its market-Silicon Valley,California.Which strategy is Motherboard Technology using?

Accepted Answer

A) cost-focus 
B) focused-differentiation 
C) diversification 
D) single-product 
E) differentiation

Question 13

Define and describe a trend analysis.Give an example of the ways in which a department store like Macy's or Dillard's might use a trend analysis.

Accepted Answer

The answer of Define and describe a trend analysis.Give an...

Question 14

This question contains several parts;be sure to answer each.Describe the characteristics of a good vision statement,and list at least three of the questions that a good vision statement will ask.Finally,evaluate how well IKEA's vision statement matches each question.

Accepted Answer

The answer of This question contains several parts;be sure to...

Question 15

A local karate studio offers many services: karate lessons to young children (under age 10),judo lessons to preteens,kickboxing courses for teenagers and adults,and self-defense courses for older people.We can say that the studio has achieved _____ because the studio's activities interact and reinforce one another.

Accepted Answer

A) an effective defensive strategy 
B) a blue ocean strategy 
C) diversification 
D) contingency 
E) fit

Question 16

Porter's competitive strategies of cost-leadership and differentiation focus on ____ markets,while the cost-focus and focused-differentiation strategies focus on ____ markets.

Accepted Answer

A) narrow;wide 
B) specific;broad 
C) growth;specific 
D) diverse;narrow 
E) wide;narrow

Question 17

This question contains two parts;be sure to answer each.First,summarize Porter's four competitive strategies,giving examples of companies that use each of the strategies.Next,suppose you are CEO of PaperWhite,a company that produces reams of copy paper.Which strategy would you use,and why?

Accepted Answer

The answer of This question contains two parts;be sure to...

Question 18

Christopher's Restaurant and Catering serves delicious vegetarian and vegan dishes.So when the local community became interested in eating a healthier diet,Christopher's benefited.In a SWOT analysis,the changing community attitudes are an example of a(n)_____ for Christopher's Restaurant.

Accepted Answer

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

Question 19

A forecast is a(n)

Accepted Answer

A) glimpse of what just happened. 
B) execution of strategy and adjustments. 
C) projection for the future. 
D) analysis of the past. 
E) plan for implementing strategic plans.

Question 20

Global CEOs desire ___________ even more than profit growth,stimulating innovation,customer loyalty,and finding qualified employees.

Accepted Answer

A) an ethical workplace 
B) organization diversity 
C) an increased usage of MBO 
D) happy employees 
E) excellence in execution

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