Deck 9: Strategic Management

Question 1

__________ is the process of allocating resources and putting strategies into action.

A) Mission implementation
B) Leadership actualising
C) Goal activation
D) Action operationalising
E) Strategy implementation

Answer 1

E

Question 2

The __________ is an environment that contains a few players who do not directly compete against one another.

A) monopoly environment
B) oligopoly environment
C) hypercompetition environment
D) anti-competitive environment
E) dysfunctional environment

Answer 2

B

Question 3

Strategy provides the plan to allocate and organise resources with strategic __________ to focus an organisation's activities toward a unified and compelling goal.

A) plans
B) activities
C) thinking
D) intent
E) functions

Answer 3

D

Question 4

The essence of __________ is looking ahead, understanding the environment and the organisation, and effectively positioning the organisation for competitive advantage.

A) environmental scanning
B) portfolio planning
C) strategic management
D) strategic analysis
E) market analysis

Question 5

The environment in which there are at many organisations who compete directly with each other is known as a(n):

A) monopoly environment.
B) perfect competition environment.
C) pure competitor environment.
D) hypercompetition environment.
E) oligopoly environment.

Question 6

From the perspective of Porter's five forces model, a(n) __________ is one in which intense rivalry already exists among competitors, there are substantial threats in terms of new competitors and substitute products, and suppliers and buyers are very powerful in bargaining over prices and quality.

A) unattractive industry
B) competitive industry
C) attractive industry
D) normal industry
E) noncompetitive industry

Question 7

Which of the following statements about the competitive nature of organisational environments is CORRECT?

A) The hypercompetition environment has at least several key players who compete directly with each other.
B) The oligopoly environment has only one player and no competition.
C) The monopoly environment contains a few players who do not compete directly against one another.
D) None of the options listed
E) All of the options listed

Question 8

A __________ is a plan for using resources consistent with __________.

A) vision; strategic organising
B) strategy; transformational leadership
C) budget; leadership behaviour
D) strategy; strategic intent
E) strategy; legitimate leadership

Question 9

Aircraft manufacturers such as Airbus and Boeing can be considered to operate in a(n) ____________.

A) national environment
B) oligopoly environment
C) protected monopoly environment
D) hyper competitive environment
E) anti-competitive environment

Question 10

Which one of the following statements provides an accurate description of the monopoly environment?

A) It is an environment that delivers sustainable and most likely excessive business profit.
B) It is an environment in which there is only one player and no competition.
C) It is an environment that creates absolute competitive advantage.
D) None of the options listed
E) All of the options listed

Question 11

According to Harvard scholar Michael Porter, the ultimate goal for any business should be ________.

A) maximum wealth creation
B) total customer satisfaction
C) industry domination
D) maximum market share
E) superior profitability

Question 12

Evolving customer demands and conditions in the general operating environment increasingly drive __________ in contemporary organisations.

A) strategy
B) communications
C) problem solving
D) objective setting
E) decision making

Question 13

_________ are those returns that exceed what an investor could earn by investing in alternative opportunities of equivalent risk.

A) Excessive profits
B) Contribution opportunities
C) Investor profit returns
D) Above-average returns
E) Equivalent risk payoffs

Question 14

Which of the following statements does NOT characterise the environment of hypercompetition?

A) Profits can be attractive but intermittent.
B) Any competitive advantage that is realised in hypercompetition is relatively permanent.
C) Hypercompetition is direct and intense.
D) There are always winners and losers in hypercompetition.
E) Hypercompetition is fostered by information technology and globalisation.

Question 15

Successful strategic management occurs when organisations formulate and implement strategies that _______.

A) achieve long-term, sustainable competitive advantage
B) fulfil the organisation's social responsibility objectives
C) enable employees to be well paid
D) fit with the organisation's stakeholders and mission
E) enable the organisation to make an annual profit

Question 16

__________ refers to an organisation acquiring or developing an attribute or combination of attributes that allows it to outperform its rivals.

A) Competitive effectiveness
B) Rival behaviour
C) Competitive advantage
D) Competitive success
E) Dominating competition

Question 17

Which of the following statements is FALSE?

A) The task of achieving a sustainable competitive advantage can be challenging in any setting.
B) To gain sustainable competitive advantage, an organisation must consistently deal with market and environmental forces better than its competitors.
C) The ultimate goal of any organisation is to achieve sustainable competitive advantage.
D) A sustainable competitive advantage is one that is difficult for competitors to imitate.
E) The ultimate goal of any organisation is to achieve competitive advantage.

Question 18

__________ is a pattern in a stream of decisions an organisation takes.

A) Strategy
B) Ecological management
C) Problem solving
D) Objective setting
E) Decision making

Question 19

In doing a SWOT analysis, the examination of threats within the industry and macroenvironments should address all of the following elements EXCEPT:

A) substitute products.
B) new regulations.
C) abundance of resources.
D) changing market tastes.
E) new competitors.

Question 20

An oligopoly environment can be described an environment:

A) that can reap excessive business profits in the absence of competition within defined market segments.
B) with few players who are more influenced by the actions of their rivals than those of their customers.
C) that can sustain long-term competitive advantages within defined market segments.
D) None of the options listed
E) All of the options listed

Question 21

Strategy implementation includes _________________.

A) mobilising resources
B) utilising management systems and practices
C) evaluating results and renewing the strategic management process
D) None of the options listed
E) All of the options listed

Question 22

Which of the following is NOT one of the five strategic forces that should be considered in conducting an industry analysis?

A) Threats of new competitors entering the market
B) Threats of substitute products or services
C) Bargaining power of buyers
D) Impact of developments in information technology
E) Intensity of rivalry among firms in the industry

Question 23

A good mission statement should incorporate all of the following elements EXCEPT:

A) the firm's competition in the local environment.
B) the location in which the firm intends to operate.
C) the underlying corporate philosophy.
D) the products/services the firm intends to provide.
E) the customers the firm will serve.

Question 24

Organisational culture accomplishes all of the following EXCEPT:

A) it shapes the values of managers and other organisation members.
B) it helps build institutional identity.
C) it points people in common directions.
D) it determines the strategy to be pursued.
E) it backs up the mission statement.

Question 25

In evaluating the organisational resources and capabilities, a major goal is to identify:

A) operating objectives.
B) potential barriers.
C) important external stakeholders.
D) core objectives.
E) core competencies.

Question 26

In conducting a SWOT analysis, a company's __________ should be assessed in terms of new competitors, possible resource shortages, changing market tastes, substitute products and new regulations.

A) threats
B) strengths
C) weaknesses
D) strategies
E) opportunities

Question 27

The common operating objectives for organisations might include all of the following EXCEPT:

A) producing high-quality goods or services.
B) designing an adaptive organisation.
C) using resources well to operate at low cost.
D) making a positive contribution to society.
E) developing new products and/or processes.

Question 28

The major responsibilities of the strategic management process are ___________.

A) strategy implementation.
B) strategic thinking.
C) strategy formulation.
D) strategy implementation and strategic thinking.
E) None of the options listed

Question 29

The __________ responsibility of strategic management requires decisions, imposes risks, demands allocation of resources and requires work.

A) core values assessment
B) strategy implementation
C) leadership determination
D) environmental scanning
E) management formulation

Question 30

Widgets-R-Us manufactures a range of industrial fittings. Operating objectives for the company might include all of the following EXCEPT:

A) producing high-quality goods.
B) using resources well to operate at low cost.
C) designing an adaptive organisation.
D) making a positive contribution to society.
E) developing new products and/or processes.

Question 31

Michael Hammer recommends that an organisation's mission statement should address certain questions, including which of the following?

A) What are we moving to?
B) What kind of difference do we want to make in the world?
C) What is our dream?
D) All of the options listed
E) None of the listed

Question 32

The mission of an organisation describes its __________.

A) cultural edge
B) reason for existence
C) social advantage
D) environmental goals
E) competitive advantage

Question 33

Which of the following statements accurately describes the benefits associated with strong core values?

A) Strong core values back up the mission statement.
B) Strong core values give character to an organisation.
C) Strong core values help guide members' behaviour in meaningful and consistent ways.
D) All of the options listed
E) None of the options listed

Question 34

According to Peter Drucker, the common operating objectives for organisations may include the following EXCEPT:

A) developing a strong culture to effectively mould employees' behaviour.
B) acquiring financial capital and earning positive returns.
C) gaining and holding a specific share of a product market.
D) recruiting and maintaining a high-quality workforce.
E) producing at a net profit in business.

Question 35

Core competencies can be found in an organisation's special strengths. Which of the following would NOT be one of these special organisational strengths?

A) Unique product distribution systems
B) Efficient manufacturing technologies
C) Exclusive access to key resources
D) Favourable governmental regulations
E) Special knowledge or expertise

Question 36

A(n) ____________ involves an assessment of organisational strengths and weaknesses as well as environmental opportunities and threats.

A) organisational objectives analysis
B) capacity analysis
C) efficiency analysis
D) SWOT analysis
E) structural analysis

Question 37

__________ direct activities towards key and specific performance results.

A) Marketing objectives
B) Operating objectives
C) Strategic objectives
D) Accounting objectives
E) Resource objectives

Question 38

__________ are shorter term targets against which actual performance results can be measured.

A) Production objectives
B) Operating objectives
C) Quality objectives
D) Financial objectives
E) Strategic objectives

Question 39

In conducting a SWOT analysis, the examination of organisational strengths should consider all of the following factors EXCEPT:

A) a skilled workforce.
B) a superior reputation.
C) a good market share.
D) manufacturing bottlenecks.
E) strong financing.

Question 40

As part of the strategic planning process, a __________ is concerned with assessing the interests of each group of stakeholders as well as the organisation's response to them.

A) business portfolio planning analysis
B) strategic constituencies analysis
C) corporate culture analysis
D) competitor analysis
E) mission and domain analysis

Question 41

The __________ begins with a careful assessment and clarification of organisational mission, values and objectives.

A) organisational planning process
B) culture formation process
C) strategic management process
D) strategic evaluation process
E) leadership process

Question 42

Diversification through __________ occurs when a business seeks added value creation by acquiring suppliers or distributors.

A) concentration
B) vertical integration
C) related diversification
D) cash cows
E) divestiture

Question 43

As part of the strategic management process, strategy formulation involves:

A) revising the mission and objectives and selecting new strategies.
B) identifying the existing mission, objectives and strategies.
C) analysing the industry and external environment as well as organisational resources and capabilities.
D) All of the options listed
E) None of the options listed

Question 44

__________ involve the use of information technology and the Internet to link organisations vertically with members of their supply chains.

A) B2C strategies
B) B2B strategies
C) O2O strategies
D) S2B strategies
E) C2B strategies

Question 45

__________ involves growth by acquiring new businesses or entering business areas that are related to what the organisation already does.

A) Concentration
B) Vertical integration
C) Forward integration
D) Related diversification
E) Unrelated diversification

Question 46

__________ refer to special strengths that the organisation has or things the organisation does well in comparison with competitors.

A) Special characteristics
B) Special capabilities
C) Core competencies
D) Unique capability strengths
E) Organisational strength factors

Question 47

In conducting a SWOT analysis, issues regarding out-dated facilities, inadequate research and development, obsolete technologies, weak management and past planning failures would be addressed in analysing the company's _______

A) weaknesses.
B) strategies.
C) strengths.
D) threats.
E) opportunities.

Question 48

In conducting a SWOT analysis, a company's __________ can be examined by asking questions about possible new markets, the growth of existing markets, the emergence of new technologies and the weaknesses of market rivals.

A) environment
B) weaknesses
C) strategies
D) opportunities
E) threats

Question 49

A(n) __________ is the strategic use of the Internet to gain competitive advantage.

A) focused differentiation strategy
B) contemporary strategy
C) supply chain strategy
D) e-business strategy
E) growth strategy

Question 50

From the perspective of Porter's five forces model, a(n) __________ is one with less intense competition, few threats from new entrants or substitutes and low bargaining power among suppliers and buyers.

A) unattractive industry
B) competitive industry
C) unsustainable industry
D) noncompetitive industry
E) attractive industry

Question 51

Important strategic management tasks include all of the following EXCEPT ___________

A) assessing current performance in relation to mission and objectives.
B) providing visionary and inspirational leadership.
C) creating strategic plans to accomplish mission and objectives, and implementing those plans.
D) identifying organisational mission and objectives.
E) evaluating the results, and changing strategic plans or implementation processes as necessary.

Question 52

In doing a SWOT analysis, the examination of organisational weaknesses should consider all of the following factors EXCEPT:

A) weak management.
B) inadequate research and development.
C) obsolete technologies.
D) out-dated facilities.
E) experienced and competent management.

Question 53

Strategic alliances include which of the following possibilities?

A) The development of preferred supplier relationships guarantee a smooth and timely flow of quality materials among alliance partners.
B) Firms joining together for sales and distribution of products or services
C) A firm contracting to purchase important services from another organisation
D) All of the options listed
E) None of the options listed

Question 54

__________ refers to a leader's capability to enthuse people to successfully engage in a process of continuous change, refinement and implementation of organisational strategies.

A) Transformational leadership
B) Transactional leadership
C) Strategic leadership
D) Visionary leadership
E) Change leadership

Question 55

Peter Drucker indicates that managers should ask five questions in the process of formulating an organisation's strategy. Which of the following is NOT one of these questions?

A) Who are our competitors?
B) Who are our customers?
C) What do our customers consider value?
D) What is our business mission?
E) What have been our results?

Question 56

Potential opportunities and threats can be in identified in __________ and __________.

A) the organisation's mission; culture
B) the organisation's strengths; weaknesses
C) the internal SWOT analysis; the external SWOT analysis
D) the macroenvironment; the industry environment
E) the external organisational environment; the internal organisational environment

Question 57

A(n) __________ strategy involves growth through expansion within the same business area.

A) diversification
B) concentration
C) vertical integration
D) unrelated diversification
E) horizontal diversification

Question 58

In a SWOT analysis, industry environmental factors include the organisation's:

A) competitors.
B) customers.
C) resource suppliers.
D) All of the options listed
E) None of the options listed

Question 59

In enabling the success of strategic management, certain crucial questions need to be asked and answered. Which of the following is NOT one of these crucial questions?

A) Where do we want to be in the future?
B) Are things working out as planned?
C) How can we get where we really want to be?
D) How well are we currently doing?
E) What business are our competitors in?

Question 60

A(n) __________ strategy involves growth through the acquisition of, or investment in, new and sometimes different business areas.

A) concentration
B) vertical integration
C) unrelated diversification
D) diversification
E) related diversification

Question 61

__________ occur(s) when two or more organisations join together in partnership to pursue an area of mutual interest.

A) Horizontal integration
B) Vertical integration
C) Organisational collusion
D) Strategic contracts
E) Strategic alliances

Question 62

In the Miles and Snow adaptive framework, an organisation is following a(n) __________ strategy when it pursues innovation and new opportunities in the face of risk and with prospects for growth.

A) analyser
B) turnaround
C) defender
D) reactor
E) prospector

Question 63

Which description of retrenchment is INCORRECT?

A) Restructuring is a less extreme form of retrenchment.
B) Restructuring by divestiture involves selling off parts of the organisation to refocus on core competencies, cut costs and improve operating efficiency.
C) Restructuring is sometimes accomplished through downsizing.
D) Supply chain integration involves implementing changes in the scale and/or mix of operations in order to gain efficiency and improve performance.
E) Liquidation is the most extreme form of retrenchment.

Question 64

Which of the following lists correctly identifies the different levels of strategy that can exist in a business?

A) Corporate strategy, business strategy and functional strategy
B) Top-level strategy, middle-level strategy and lower level strategy
C) Corporate strategy, divisional strategy and work group strategy
D) National strategy, regional strategy and local strategy
E) Growth strategy, retrenchment strategy and stability strategy

Question 65

__________ develop(s) progressively over time as managers make 'streams' of decisions while they learn from and respond to work situations.

A) Incrementalism
B) The managerial learning curve
C) Incremental strategies
D) Emergent strategies
E) Strategic opportunism

Question 66

__________ involves growth by acquiring new businesses or entering business areas that are different from what the organisation already does.

A) Vertical integration
B) Backward integration
C) Related diversification
D) Unrelated diversification
E) Supply chain management

Question 67

The __________ is an alternative portfolio planning approach that uses the planning dimensions of business strength and industry attractiveness.

A) incrementalism screen
B) Michael Porter Screen
C) BCG Screen
D) Miles and Snow adaptive model
E) GE Business Screen

Question 68

The BCG portfolio planning model uses an analysis of __________ and __________ to identify business opportunities and appropriate business strategies.

A) market growth rate; market share
B) product alternatives; forecasted profitability
C) market growth rate; costs of operation
D) investment alternatives; rates of return
E) market share; customer needs

Question 69

According to the BCG matrix, a 'question mark' refers to an organisation or subunit that has:

A) a low market share in a low-growth market.
B) a low market share in a high-growth market.
C) a low market share in a low-growth market.
D) a high market share in a moderate-growth market.
E) a moderate market share in a high-growth market.

Question 70

Organisations pursuing a(n) __________ seek a competitive advantage by directing the organisation's resources and attention towards minimising costs to operate more efficiently than the competition.

A) differentiation strategy
B) emergent supply cost strategy
C) focused cost leadership strategy
D) cost leadership strategy
E) focused differentiation strategy

Question 71

Which statement accurately describes the goal of portfolio planning?

A) To help managers decide on corporate-level strategy in multi-business or multi-product situations
B) To help managers identify a firm's market share relative to its competitors
C) To help managers maximise stock market awareness of their business
D) To help managers strategically invest scarce organisational resources among competing business opportunities
E) To help managers determine the best way to beat the competition

Question 72

Understanding product life cycles and __________ is an important business skill.

A) minimising their impact
B) managing the growth curve
C) adjusting strategy accordingly
D) All of the options listed
E) None of the options listed

Question 73

Organisations pursuing a(n) __________ seek a competitive advantage by concentrating on one special market segment and trying to offer customers in that segment a unique product.

A) cost leadership strategy
B) emergent strategy
C) focused cost leadership strategy
D) focused differentiation strategy
E) differentiation strategy

Question 74

The major opportunities for developing competitive advantage have traditionally included all of the following EXCEPT:

A) barriers to entry.
B) cost and quality.
C) knowledge and timing.
D) financial resources.
E) social progress.

Question 75

__________ answers the question: How can we best use resources to implement our business strategy?

A) Functional strategy
B) Operating strategy
C) Regional strategy
D) Corporate strategy
E) Business strategy

Question 76

__________ focuses on the strategic question: In what industries and markets should we compete?

A) Competitive strategy
B) Environmental strategy
C) Corporate strategy
D) Capital strategy
E) Business strategy

Question 77

A(n) __________ is used where changes in the scale and/or mix of operations are implemented in order to gain efficiency and improve performance.

A) related diversification strategy
B) restructuring strategy
C) retrenchment
D) integration strategy
E) All of the options listed

Question 78

Organisations pursuing a(n) __________ seek a competitive advantage by directing the organisation's resources and attention towards distinguishing its products from those of the competition.

A) differentiation strategy
B) cost leadership strategy
C) focused differentiation strategy
D) emergent strategy
E) focused cost leadership strategy

Question 79

Michael Porter's generic strategies model identifies four fundamental strategies. Which of the following correctly describes these strategies?

A) Introduction, growth, maturity and decline.
B) Growth, retrenchment, vertical integration and stability.
C) Differentiation, cost leadership, focused differentiation and focused cost leadership.
D) Stars, cash cows, dogs and question marks.
E) Growth, differentiation, incremental and emergent.

Question 80

In the BCG matrix, a 'star' refers to an organisation or subunit that has:

A) a moderate market share in a moderate-growth market.
B) a low market share in a high-growth market.
C) a high market share in a low-growth market.
D) a high market share in a high-growth market.
E) a low market share in a low-growth market.