Deck 2: Strategy

Question 1

Key activities for firms that compete on the basis of cost would include

A) supplier relationships and logistics
B) marketing and after-sales service
C) research and development and contract manufacturing
D) component supply arrangements and assembly

Answer 1

A

Question 2

A growth strategy is one that implies the priorities are

A) market share, return on investment, and shareholder satisfaction
B) increased sales, lower costs, and higher profits
C) market, plant, and personnel investments
D) revenue, cost containment, and higher earnings per share

Answer 2

C

Question 3

The four components of the strategy model are

A) goals, products, markets, and activities
B) financial resources, goals, markets, and products
C) focus, goals, activities, and financial resources
D) value, goals, focus, and activities

Answer 3

D

Question 4

Three key functions for a vertically integrated firm are

A) supply management, production, and sales
B) resource agreements, manufacturing, and marketing
C) capital acquisition, equipment, and plant operations
D) raw material supply, manufacturing, and distribution

Question 5

With a harvest strategy, you would expect the level of investment in plant and equipment to be

A) lower than for a growth strategy
B) the same as that for a growth strategy
C) higher than for a growth strategy
D) unrelated to the strategy

Question 6

The soft goals of an organization are targets for the

A) financial performance of the business
B) social conduct of the business
C) operation of the corporate office
D) organization's contributions to the community

Question 7

What type of strategy presents new products to existing markets?

A) market penetration
B) harvest
C) diversification
D) product development

Question 8

In the hands of the general manager, strategy is a tool for

A) establishing, directing, and controlling the operation of an organization
B) creating, sustaining, and monitoring the direction of an organization
C) establishing, implementing, and monitoring the performance of an organization
D) creating, sustaining, and assessing the operation of an organization

Question 9

An organization that provides products at a lower price than its competitors is competing on the basis of

A) brand recognition
B) cost
C) differentiation
D) competitive parity

Question 10

An organization that provides exclusive products is competing on the basis of

A) differentiation
B) cost
C) goodwill
D) competitive difference

Question 11

Key activities for a firm that competes on the basis of differentiation are

A) design, sourcing, and marketing
B) contract manufacturing, distribution, and after-sales service
C) financing, operations, and distribution
D) raw material supply, assembly, and marketing

Question 12

A firm that discounts and offers rebates is pursing a value proposition based on

A) features
B) execution
C) price
D) reliability

Question 13

Core activities are considered

A) standard for all businesses within an industry
B) critical to the operation of the business
C) essential functions for the market leader
D) outsourced activities

Question 14

The product market component of strategy refers to

A) price and market position
B) size of the target product market
C) product and market choice
D) the consumer needs of the target product market

Question 15

A firm that focuses on image and design is competing on the basis of

A) function
B) fashion
C) reliability
D) features

Question 16

A 15% return on investment and a reduction in re-infection rates are examples of

A) shareholder priorities
B) soft goals
C) hard goals
D) corporate values

Question 17

Three key functions for a firm that competes on the basis of its technology are

A) supply agreements, employee recruitment, and contracted services
B) research and development, joint ventures, and assembly
C) patents, technical publications, and employee recruitment
D) research and development, component supply, and service

Question 18

An organization's value proposition answers the question

A) Which markets should the business enter?
B) How does the business intend to attract customers?
C) Which products should the business offer?
D) How should the products of the business be priced?

Question 19

A firm that provides convenience and friendly service is pursuing a value proposition based on

A) service
B) execution
C) price
D) features

Question 20

Strategy is commonly considered to be a

A) product and market position
B) set of goals and tactics
C) blueprint for the operations
D) business plan and a marketplace position

Question 21

Business strategy focuses on how an organization will create value for a portfolio of business lines.

Question 22

A sound competitive strategy rests on

A) operational excellence
B) financial stability
C) unique capabilities
D) benchmarking

Question 23

The key components of a business strategy are goals, product, market, and financing.

Question 24

The central challenge for corporate general management is in

A) negotiating corporate supply agreements
B) managing diverse operations from a central location
C) adding value to the individual business units
D) hedging exchange rate risks

Question 25

Operations that are common to all businesses are known as 'core activities'.

Question 26

A corporate strategy of better than 70% of revenues from a single business unit is

A) consolidation
B) constrained business
C) harvest
D) dominant business unit

Question 27

A penetration strategy suggests there is continuing growth in current markets.

Question 28

Operational effectiveness can generate sustained profitability for an organization.

Question 29

Convenience is an example of a value proposition.

Question 30

The 'base case' strategy is the current strategy adjusted for inflation.

Question 31

A growth strategy implies a focus on investment without sacrificing current profitability.

Question 32

Returns to the shareholder are an example of a 'hard' business goal.

Question 33

An organization's value proposition reflects the benefits it has chosen to offer in the marketplace.

Question 34

Every organization has an implied strategy.

Question 35

The ultimate test of the utility of corporate strategy is in the

A) optimism of shareholders
B) endorsement of the Board of Directors
C) commitment of the employees
D) performance of the corporation

Question 36

Strategy can be used to set direction for the organization.

Question 37

10% annual growth is an example of an organizational goal.

Question 38

For a healthcare organization, patient satisfaction is an example of a 'soft' business goal.

Question 39

Corporate strategy can be recognized by the organization's

A) head office location and corporate management processes
B) financial performance and number of shareholders
C) product market focus and mission statement
D) business portfolio and corporate resources

Question 40

Organizational strategy is about winning in the marketplace.

Question 41

The corporate management typically determines the industries in which the organization will compete.

Question 42

Functional strategy focuses on executing the business strategy.

Question 43

Business strategy focuses on creating a competitive advantage within an industry.

Question 44

The corporate office typically sets strategic guidelines for the business units.

Question 45

Sharing corporate resources is an example of corporate cost synergy.

Question 46

Corporate strategy focuses on creating a competitive advantage across industries.

Question 47

A conglomerate is an organization where the business units are highly integrated.

Question 48

In a highly diversified organization, there are numerous opportunities for the corporate office to add value.

Question 49

The more unrelated the business units, the greater the role for the corporate office.

Question 50

The contribution of the corporate office to the success of the business units is expected to exceed the cost of the office.