Deck 4: Strategic Management and Planning in a Global Environment

Question 1

Strategic planning is the process by which an organization makes decisions and takes actions that affect its long-run performance.

Answer 1

True

Question 2

Strategic Management refers to overall, long-run management, including planning, organizing, leading, and controlling effectively and efficiently over the long-run.

Answer 2

True

Question 3

Strategic planning is a part of strategic management.

Answer 3

True

Question 4

The four stage process of strategic planning includes strategic analysis, strategy formulation, strategy implementation, and strategic evaluation and control.

Question 5

The strategy formulation phase of the strategic planning process addresses the question, "What is the current position of the organization?"

Question 6

While the level of sophistication and formality of the strategic planning process will differ among organizations, the process itself should be similar across all organizations.

Question 7

Information gathered during the strategic analysis stage serves as a foundation for the implementation stage.

Question 8

The strategic implementation phase involves doing the things necessary to ensure that the strategy of the organization is achieved effectively and efficiently.

Question 9

The information gathered during strategy implementation serves as a foundation for the formulation of the organization's strategic plan.

Question 10

A comprehensive plan that provides overall direction for the organization is known as a strategic plan.

Question 11

"What is the current position of the organization?" is asked during the strategic analysis phase of strategic planning.

Question 12

Strategic control mechanisms identify deviations between actual and planned results so that managers can make the adjustments necessary to ensure that organizational goals can be achieved in the long term.

Question 13

An organization monitors its progress toward its strategic goals during the strategic implementation phase.

Question 14

Strategic analysis requires two primary activities: internal analysis and financial analysis.

Question 15

The purpose of an external environmental analysis is to identify the assets, resources, skills, and processes that represent either strengths or weaknesses for the organization.

Question 16

The three primary activities of strategic analysis are: 1) assessing the mission of the organization; 2) conducting an external environmental analysis; and, 3) conducting an internal environmental analysis.

Question 17

Opportunities are internal aspects of the organization's operations that represent potential competitive advantages or distinctive competencies, while threats are those internal areas that need improvement.

Question 18

A mission statement describes three primary aspects of an organization: 1) its target markets; 2) its primary products and services; and, 3) an outline of the overall strategy for delivering these products and services to satisfy customers in its target market.

Question 19

The purpose of an external analysis is to identify those aspects of the environment that represent either a strength or a weakness of the organization.

Question 20

Strengths are those environmental trends that an organization can capitalize on and to improve its competitive position.

Question 21

External threats are conditions that jeopardize the organization's ability to prosper in the long term.

Question 22

The general environment includes environmental forces that are within the organization's operating environment and may be influenced to some degree.

Question 23

Economic forces are an important part of a firm's task environment.

Question 24

Baby boomers are a demographic to be monitored in the socio-cultural environment.

Question 25

Issues such as tax policy, embargoes, and minimum-wage legislation are all issues concerned with the political-legal environment.

Question 26

The general component of an organization's external environment includes economic, socio-cultural, technological, and political-legal factors.

Question 27

The political-legal environment includes the regulatory parameters within which an organization must operate.

Question 28

Resource availability is a component of an organization's task environment.

Question 29

An organizational mission statement reflects the fundamental reasons for which the organization exists; provides strategic direction for the members of the organization; and keeps them focused on common goals.

Question 30

Experts think that it is doubtful that mission statements are important to most organizations.

Question 31

Missions statement are difficult to construct.

Question 32

Vision can mean a guide to the future; or, a manager's ability to predict problems and opportunities which an organization may face.

Question 33

The firm's task or operating environment include forces such as competition, creditors, and customers.

Question 34

Michael Porter's Five Forces Model includes rivalry among competitors, the bargaining power of suppliers, the threat of new entrants to the industry, and the threat from substitute products or services.

Question 35

Advances in technology, such as the ability to research products or services on the Internet, have helped the consumer have bargaining power.

Question 36

Suppliers to Wal-mart have lots of bargaining power.

Question 37

Threats include any area of the organization that needs improvement.

Question 38

Strategy formulation addresses the question, "Where does the organization want to be?"

Question 39

Competitive advantage refers to the breadth of the market targeted by the organization.

Question 40

Accomplishing something better than its competitors gives an organization a competitive advantage.

Question 41

The culture at Southwest Airlines is part of its competitive advantage.

Question 42

Grand strategies, which can be applied at both the corporate and business levels, fall into three broad categories: stability, growth, and cost leadership.

Question 43

Strategic goals define the overall purpose of an organization and describe the attributes that distinguish one organization from another.

Question 44

Strategic goals are very narrow statements of the results that an organization wishes to achieve in the long run.

Question 45

It is important that strategic goals be specific, measurable, time linked, realistic but challenging, and focused on the outcome.

Question 46

A grand strategy is a comprehensive, general approach for achieving the strategic goals of an organization.

Question 47

Stability strategies are intended to ensure continuity in the operations and performance of an organization.

Question 48

Stability strategies focus on streamlining the operations of an organization by reducing costs and assets.

Question 49

The purpose of retrenchment strategies are to reverse negative sales and profitability trends through expansion and diversification.

Question 50

Stability strategies are designed to increase the sales and profits of the organization through diversification of the product line.

Question 51

Generic strategies reflect the primary ways in which an organization competes in its markets. They are commonly referred to as cost leadership, differentiation, and focus.

Question 52

A focus strategy occurs when an organization targets a specific, narrow segment of the market and directly engages the industry leader and others in that market.

Question 53

The distinctive characteristics of an organization that pursues a cost leadership strategy may include exceptional customer service, quality, dependability, availability, innovation, or image.

Question 54

Organizations that pursue a differentiation strategy compete by offering products or services that are differentiated from those of their competitors in some way.

Question 55

A focus strategy occurs when an organization targets a specific, narrow segment of the market and thereby avoids competing with those organizations that target a broader segment of the market.

Question 56

Competitive scope refers to offering customers superior value either through a lower price or superior service.

Question 57

Feedforward controls compare the actual performance of the organization to its planned performance.

Question 58

Feedback controls are designed to identify changes in the external environment or the internal operations of the organization that may affect its ability to fulfill its mission and meet its strategic goals.

Question 59

The process by which an organization makes plans and decisions which are focused on its long-run performance is referred to as

A) operational planning.
B) tactical planning.
C) strategic planning.
D) functional planning.
E) contingency planning.

Question 60

The CEO of Southwest Airlines, engages in a process that helps him take actions that affects the long-term performance of his company. This process is referred to as

A) operational planning.
B) tactical planning.
C) contingency planning.
D) functional planning.
E) strategic planning.

Question 61

Recently, Litton Industries was evaluated by a Boston consulting firm, and the firm found that Litton does not have a process in place to make plans and decisions to ensure its long-run performance. As a result of this finding, the consulting firm recommended to Litton that it develop a

A) functional plan.
B) strategic plan.
C) contingency plan.
D) tactical plan.
E) operational plan.

Question 62

The four stages of the strategic planning process are

A) strategic analysis, strategic sorting, strategy implementation, and strategic reassessment.
B) strategic analysis, strategy formulation, strategic motivating, and strategic reassessment.
C) strategy formulation, strategy implementation, strategic evaluation and control, and strategic feedback.
D) strategic analysis, strategy formulation, strategy implementation, and strategic evaluation and control.
E) strategic assessment, strategy formulation, strategic motivating, and strategic feedback.

Question 63

A comprehensive plan that provides overall direction for the organization is known as a

A) statement of strategic intent.
B) mission statement.
C) strategic plan.
D) vision statement.
E) strategic formulation.

Question 64

The stage of the strategic planning process that asks the question, "What is the current position of our organization? is referred to as

A) strategic implementation.
B) strategic analysis.
C) strategic control.
D) strategic measurement.
E) strategic formulation.

Question 65

Each year, John Dowdy, CEO of MyCompany, Inc. leads a strategic planning retreat of the company executives. Mr. Dowdy always starts the retreat by asking his executives, "What is the current position of our organization? This question is asked in the __________ stage of the strategic planning process.

A) strategic measurement
B) strategic analysis
C) strategy implementation
D) strategic control
E) strategy formulation

Question 66

As academic vice-president of her university, Dr. Lynn Stallworth develops strategies with the intention of bridging the gap between the current and desired positions of the university. In which stage of the strategic planning process is Lynn Stallworth?

A) strategy implementation
B) strategic analysis
C) strategic control
D) strategic measurement
E) strategy formulation

Question 67

Information gathered during __________ serves as a foundation for the formulation of the organization's strategic plan.

A) strategic analysis
B) strategic implementation
C) strategic formulation
D) strategic evaluation
E) strategic control

Question 68

When an organization does what's necessary to ensure its long term strategic plans are achieved effectively and efficiently, it is in the __________ phase.

A) strategic formulation
B) strategic analysis
C) strategic implementation
D) strategic control
E) strategic operations

Question 69

Monitoring the progress of the firm to ensure that it is correctly implementing its strategic plans, and making any adjustments necessary to that implementation, is referred to as

A) strategic analysis.
B) strategic operations.
C) strategic evaluation and control.
D) strategic formulation.
E) strategic deviation.

Question 70

The CEO of Kimberly-Clark, strongly believes in the importance of establishing strict criteria to help his company monitor its progress toward implementing its plans and achieving its goals. These types of criteria are established during the __________ stage of the strategic planning process.

A) strategy formulation
B) strategic evaluation and control
C) strategic analysis
D) strategic feedback
E) strategy implementation

Question 71

Strategic analysis requires three primary activities:

A) industry analysis, environmental analysis, and mission assessment.
B) mission assessment, internal analysis, and environmental analysis.
C) inward-out analysis, external analysis, and formulation.
D) future assessment, internal analysis, and external analysis.
E) operational analysis, mission assessment, and tactical analysis.

Question 72

In conducting a formal strategic analysis of his family's retail appliance business, Jack engaged in three primary activities; an external environmental analysis and a/an __________ environmental analysis, and a mission assessment.

A) operational
B) industry
C) internal
D) functional
E) global

Question 73

When Kimberly identifies the assets, resources, skills, and processes that represent either strengths or weaknesses of her company she is performing

A) an external analysis.
B) a functional analysis.
C) an equilibrium analysis.
D) an internal analysis.
E) an operational analysis.

Question 74

The purpose of a/an __________ analysis is to identify assets, resources, skills, and processes that represent either strengths or weaknesses of an organization.

A) internal analysis
B) functional analysis
C) tactical analysis
D) external analysis
E) operational analysis

Question 75

If IBM decides to conduct a thorough examination of its __________ environment, it would address such areas as marketing, financial, information technology, research and development, production operations, and general management capabilities of the organization.

A) internal
B) general
C) task
D) industry
E) external

Question 76

The purpose of a/an __________ is to identify those aspects of the environment that represent either an opportunity or a threat for the organization.

A) internal analysis
B) functional analysis
C) tactical analysis
D) operational analysis
E) external analysis

Question 77

The purpose of an external analysis is to identify those aspects of the environment that represent either a/an __________ or a __________ for the organization.

A) strength, weakness
B) distraction, chance
C) danger, pitfall
D) opportunity, threat
E) strength, threat

Question 78

The chairperson of the board of a paper mill was interested in increasing the productivity of the plant. She felt that this was attainable if the firm began offering incentives to the workers and retooled some of the major pieces of machinery. The chairperson of the paper mill in this example is concerned with the forces in the __________ environment.

A) specific
B) task
C) functional
D) general
E) macro

Question 79

Orange county's annual fair was poorly attended last year due to inclement weather. The weather and its impact on the festival represents the __________ environment.

A) task
B) operational
C) general
D) specific
E) internal

Question 80

Top managers, using their conceptual skills, spend a considerable amount of their time monitoring changes in the economic, technological, socio-cultural, and political-legal factors in their environment. These factors are a part of the __________ environment.

A) task
B) internal
C) specific
D) indigenous
E) general