Question 1

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

Accepted Answer

A)  mission statement 
B)  master plan 
C)  business model 
D)  strategic deployment plan 
E)  functional strategic plan

Question 2

The __________ answers the question "What is our reason for being in business?"

Accepted Answer

A)  strategic plan 
B)  tactical objective 
C)  strategic purpose 
D)  operational imperative 
E)  mission

Question 3

When Air Canada acquired its largest domestic competitor, Canadian Airlines International, it was pursuing a strategy of __________.

Accepted Answer

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

Question 4

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)  competitive strategy 
E)  SWOT analysis

Question 5

Mission statement should have a comment on the organization's technology status.

Accepted Answer

A) True 
 B)False

Question 6

In Michael Porter's five forces model of industry attractiveness, __________ is determined by barriers to entry such as economies of scale and brand loyalty.

Accepted Answer

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

Question 7

A stability strategy may be appropriate in industries where there is rapid and dramatic change, as well as industries facing slow- or no-growth opportunities.

Accepted Answer

A) True 
 B)False

Question 8

Generally, strategic plans do not work well for small, entrepreneurial companies.

Accepted Answer

A) True 
 B)False

Question 9

Refer to the scenario below to answer the following questions.
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)  diversification 
C)  focus 
D)  differentiation 
E)  cost leadership

Question 10

Refer to the scenario below to answer the following questions
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 is a large number 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)  focus 
E)  threat

Question 11

One method of implementing a growth strategy is by increasing production capacity.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

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 14

When consumer electronics manufacturer Sony Corporation 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)  unrelated diversification 
E)  horizontal integration

Question 15

For many years, Canadian retailer Zellers used the slogan "Where the lowest price is the law." Which one of Michael Porter's competitive strategies was Zellers using?

Accepted Answer

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

Question 16

A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.

Accepted Answer

A) True 
 B)False

Question 17

Refer to the scenario below to answer the following questions.
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 failure of the advertising campaign would be classified as a(n) ________.

Accepted Answer

A)  core competency 
B)  strength 
C)  weakness 
D)  opportunity 
E)  threat

Question 18

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 
E)  concern for employees

Question 19

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

Accepted Answer

A)  cash cow 
B)  high flyer 
C)  dog 
D)  question mark 
E)  rising star

Question 20

Refer to the scenario below to answer the following questions.
The Strategic Management Process (Scenario)
Kerry is vice-president of operations at Delta Corp. The company president has asked Kerry to lead the strategic management process that will help guide Delta through the next five to ten years. At next week's management meeting, Kerry must give a presentation that explains the process. In preparation, Kerry begins by reviewing the steps in the strategic management process from his university textbook.
-Kerry learns that the first step in the strategic management process is to _____.

Accepted Answer

A)  formulate strategies 
B)  conduct internal analysis 
C)  conduct external analysis 
D)  analyze current competition 
E)  identify the organization's current mission, objectives, and strategies

Exam 9: Managing Strategically

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

The __________ answers the question "What is our reason for being in business?"

When Air Canada acquired its largest domestic competitor, Canadian Airlines International, it was pursuing a strategy of __________.

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

Mission statement should have a comment on the organization's technology status.

In Michael Porter's five forces model of industry attractiveness, __________ is determined by barriers to entry such as economies of scale and brand loyalty.

A stability strategy may be appropriate in industries where there is rapid and dramatic change, as well as industries facing slow- or no-growth opportunities.

Generally, strategic plans do not work well for small, entrepreneurial companies.

One method of implementing a growth strategy is by increasing production capacity.

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

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

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

For many years, Canadian retailer Zellers used the slogan "Where the lowest price is the law." Which one of Michael Porter's competitive strategies was Zellers using?

A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.

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?

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