Deck 5: Developing Mission, Vision, and Values

Question 1

Strategy is about making choices that provide an organization with some measure of ____________ that allows them to outperform competitors.

Answer 1

uniqueness

Question 2

Strategy formulation answers the question:

A) How do we execute a chosen strategy?
B) What should be our strategy?
C) Where does strategy fit in?
D) How is strategy applied to me?

Answer 2

B

Question 3

A firm's strategy includes which of the following:

A) Captures how vision and mission will be achieved
B) Communicates to stakeholders the hierarchical corporate structure.
C) Sets specific operating procedures to be followed by front line managers.
D) Establishes systems and processes used to implement the goals and objectives

Answer 3

A

Question 4

______________ is essentially about understanding choices organizations make in order to achieve specific goals and objectives to fulfill a firm's mission and vision.

Question 5

Goals and objectives are the indicators of how well the ______________ is succeeding.

Question 6

Not all organizations need strategies to survive and thrive.

Question 7

_______________ tells managers how they should go about putting the desired strategy into action.

Question 8

An assessment of strengths and weaknesses occurs as a part of organizational analysis.

Question 9

Which of the following forms of diversification occurs when a firm operates multiple businesses within the same industry?

A) Related diversification
B) Hierarchical diversification
C) Conglomerate diversification
D) Horizontal diversification

Question 10

Examples of business strategy include all the following EXCEPT:

A) Help keep existing customers
B) Grow its business by moving into new markets and taking customers from competitors
C) Determine how to keep profit level demanded by the stock market
D) Looking at the organization as a portfolio

Question 11

_____________________ answers strategy questions related to "what business or businesses should we be in?"

Question 12

Strategy is a pattern of resource allocation choices and organizational arrangements that result from managerial decision making.

Question 13

It is important to note that the concept of strategy is relevant to only large, public companies like GE.

Question 14

_________________ reflects what a firm is doing to achieve its mission and vision, as seen by its achievement of specific goals and objectives.

Question 15

________________ is sometimes called business planning or strategic planning.

Question 16

The best strategies, corporate and business, are based on a thorough SWOT analysis.

Question 17

Where does strategy formulation fit within the POLC framework?

A) Planning
B) Organizing
C) Leading
D) Controlling

Question 18

The purpose of diversification is:

A) To capture more consumers
B) To satisfy the mission and vision
C) To build a portfolio of businesses much like a portfolio of stock
D) To spread out risk and opportunities over a larger set of businesses

Question 19

Planning starts with vision and mission, and concludes with strategizing.

Question 20

Strategic management process is the coordinated means by which an organization chooses its mission and vision.

Question 21

The hardest thing for an organization to do is to develop its competitive advantage into ______________ competitive advantage, where the organization's strengths cannot be easily duplicated or imitated by other firms, nor made redundant or less valuable by changes in the external environment.

Question 22

What questions do corporate and business strategies answer?

Question 23

_____________ include factors beyond the control of a firm that could place the strategy at risk.

Question 24

What are the two primary external analysis tools discussed in the text ion 2

Question 25

The primary determinant of realized strategy is what Mintzberg terms emergent strategy.

Question 26

________________ stands for strengths, weaknesses, opportunities, and threats.

Question 27

______________ assess factors external to the business that could enable a business to exist and/or prosper.

Question 28

____________ exists when the interaction of two or more active activities, such as those in a business, create a combined effect greater than the sum of their individual effects.

Question 29

_____________ exists when an organization participates in multiple businesses that are in some way distinct from each other, as Taco Bell is from Pizza Hut.

Question 30

____________________focuses on how a given business needs to compete in order to be effective.

Question 31

Why did McDonald's sell Chipotle?

Question 32

Where the value chain might suggest internal areas of strength, __________ helps predict whether those strengths will give it a competitive advantage.
Short

Question 33

What are the two internal analysis tools discussed in the text?

Question 34

When you can identify certain strengths that set an organization well apart from actual and potential competitors, that strength is considered a source of ______________ advantage.

Question 35

What is the strategic management process?

Question 36

Within the strategic plans that are decided, divisional and business unit managers do not have considerable freedom to adjust, adapt, and experiment.

Question 37

The different aspects of strategy as distinguished by Mintzberg include which of the following?

A) Consequential
B) Differentiate
C) Realized
D) Permanent

Question 38

Examining opportunities and threats is part of _____________ analysis.

Question 39

What questions about a company and its environment did the original conception of the strategy model answer?

Question 40

According to Mintzberg, the percent of intended strategy that becomes a reality is:

A) Less than 10
B) 10-30
C) 30-50
D) more than 50

Question 41

Two or more firms competing for differentiation may engage in price wars that drive profits to very low levels.

Question 42

For a differentiation strategy to be effective, the product difference should NOT be based on:

A) Product design
B) Method of distribution
C) Price
D) Broad market group of consumers

Question 43

While there are different schools of thought about how strategy comes about, researchers generally agree the common characteristic across successful organizations is:

A) Strategy trade-off
B) Strategic focus
C) Strategic process
D) Strategy discipline

Question 44

The primary determinant of realized strategy is what Mintzberg terms _________________.

Question 45

A cost-focus strategy is a low-cost, narrowly focused market strategy.

Question 46

The strategic planning systems of most companies involve a combination of design and _____________.
Short

Question 47

An organization pursuing a strategy as discipline seeks competitive advantage by offering products or services that are unique from those offered by rivals.

Question 48

_______________ refers to the strategy where a firm's competitive advantage is based on the bet that it can develop, manufacture, and distribute products more efficiently than competitors.

Question 49

One approach to focusing is to service either industrial buyers or consumers, but not both.

Question 50

_________________ is strategy as conceived of by the top management team and is the result of a process of negotiation, bargaining, and compromise.

Question 51

________________ is seen when an organization is very clear about its mission and vision, and has a coherent, well-articulated strategy for achieving those.

Question 52

Straddling strategies as an approach to strategic management is not recommended for which reason:

A) It is an attempt to gain competitive advantage based on over-all low-cost provider of a product or service
B) Research shows that straddling strategies leads to confusion among managers about the direction of the company.
C) It is an indication that the firm's managers have not made necessary choices about the business and its strategy
D) According to Porter straddling strategies is recommended for narrow scope firms that have been successful in the past.

Question 53

Cost leaders must maintain their marketing or face the possible entry of more cost-effective competitors.

Question 54

Cost leadership is a low-cost, broad-based market strategy.

Question 55

Firms utilizing a competitive scope strategy can tailor advertising and promotional efforts to a particular market niche.

Question 56

The actual strategy that is implemented in a firm is called ________________.

Question 57

Superiority in competitive advantage refers to all of the following factors EXCEPT:

A) Low cost
B) Customer service
C) Product quality
D) Unique style

Question 58

Firms pursuing a differentiation strategy are vulnerable to different competitive threats than firms pursing a cost leader strategy.

Question 59

What are the two schools of thought regarding strategy?

Question 60

What is the best way to develop a strategy ion 3

Question 61

A ______________ strategy refers to the strategy where competitive advantage is based on superior products or service.

Question 62

Many firms have valuable and rare resources that they fail to exploit.

Question 63

Explain Martin-Brower's focus strategy as the third-largest food distributor in the United States.

Question 64

Why do firms pursing a differentiation strategy become vulnerable to different competitive threats more than firms pursing a cost leader strategy?

Question 65

Almost anything a firm possesses can be considered a core competency.

Question 66

_______________ defines the breadth of a company's target market.

Question 67

A ________________ strategy is the marketing of a differentiated product to a narrow market, often involving a unique product and a unique market.
Short

Question 68

By exploiting internal resources and capabilities and meeting the demanding standards of global competition, firms create value for customers.

Question 69

Which of the following is considered an intangible resource?

A) Scientific capabilities
B) Production equipment
C) Manufacturing plants
D) Formal reporting structures

Question 70

What industry environments may call for combination strategies ion 4

Question 71

Can forms of competitive advantage be combined?

Question 72

A cost-leadership strategy is more likely to generate a(n) _____________ in market share.

Question 73

How has Southwest Airlines combined cost-cutting measures with differentiation?

Question 74

Why does a differentiation strategy require a firm to give attention to costs?

Question 75

_______________ refers to the strategy where competitive advantage is based on superior products or service.

Question 76

A firm's performance relative to industry peers is likely to vary according to the level to which resources, capabilities, and ultimately core competences satisfy VRIO criteria.

Question 77

Owning resources which do not meet the VRIO test of value puts the firm at a competitive advantage.

Question 78

A firm that possesses a valuable and rare resource will not gain a competitive advantage unless it can actually put that resource to effective use.

Question 79

Knowledge possessed by human capital is among the most significant of an organization's capabilities.

Question 80

By drawing on external analysis and emphasizing core competencies when formulating strategies, companies learn to compete primarily on the basis of firm-specific differences.