Deck 9: Managing Strategically

Question 1

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

Answer 1

False

Question 2

Strategic management consists of the decisions and actions that determine the long-run performance of the organization.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

Evaluating an organization's intangible assets is part of conducting an internal analysis in the strategic management process.

Question 5

Organizational strategy is based on the mission and goals of the organization and the roles that each business unit in the organization will play.

Question 6

The strategic design for how a company intends to profit from its strategies, processes and activities is often called a strategic deployment plan.

Question 7

A strong organizational culture may act as a significant barrier to accepting any changes in the organization's strategies.

Question 8

SWOT analysis includes an analysis of an organization's internal and external environments.

Question 9

Understanding the organization's culture is a crucial part of external analysis.

Question 10

Activities that an organization does well or any unique resources that it has are called opportunities.

Question 11

One of the components of the mission statement should be the organization's competitive advantage.

Question 12

The most fundamental questions about strategy address why firms, facing the same environmental conditions, have varying levels of performance.

Question 13

Managers using the strategic management process always achieve positive outcomes.

Question 14

The same environment can present opportunities to one organization and pose threats to another.

Question 15

The major value-creating capabilities and skills of the organization are known as its primary resources.

Question 16

In horizontal integration, the organization attempts to gain control of its inputs by becoming its own supplier.

Question 17

The final step in the strategic management process is to implement the strategies.

Question 18

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

Question 19

The first step in the strategic management process is analyzing the external environment.

Question 20

Studies indicate that organizations that use strategic management have higher levels of performance.

Question 21

Creating and sustaining a strong organizational culture is one of the dimensions of strategic leadership.

Question 22

Strategic leadership refers to the executives' ability to apply the strategic planning process.

Question 23

Based on the BCG matrix, dogs are characterized by low growth and low market share.

Question 24

Concentration and diversification are two types of renewal strategies.

Question 25

In design thinking, managers apply the strategic management process to all problems.

Question 26

According to Michael Porter's competitive strategies framework, a company using a focus strategy seeks to offer a unique product to a broad target market by focusing on a specific product attribute such as exceptionally high quality or extraordinary service.

Question 27

Design thinking means thinking outside existing alternatives and creating new alternatives.

Question 28

A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

Question 29

According to Michael Porter's competitive strategies framework, the cost leadership strategy results in exceptionally high-quality products at the lowest cost in the industry.

Question 30

When Air Canada acquired Canadian Airlines International, it was pursuing a strategy of growth by vertical integration.

Question 31

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

Question 32

The BCG matrix evaluates businesses to identify which ones offer high potential and which ones drain organizational resources.

Question 33

A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.

Question 34

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.

Question 35

Since Internet technology is now so universally accessible, it can no longer contribute to the development of a sustainable competitive advantage for any particular organization.

Question 36

WestJet Airlines is an example of a company that has used the low-cost leader strategy to compete in the Canadian airline industry.

Question 37

A renewal strategy is a corporate strategy designed to address organizational weaknesses that are leading to performance declines.

Question 38

An automobile manufacturer that decides to purchase a truck manufacturer and a recreational vehicles manufacturer is engaging in horizontal integration.

Question 39

A company that competes by offering unique products that are widely valued by customers is following a differentiation strategy.

Question 40

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

Question 41

At which step of the strategic management process do managers identify opportunities and threats?

A) internal analysis
B) formulate strategies
C) external analysis
D) identify current mission, objectives, and strategies
E) evaluate results

Question 42

The purpose of Cathy's Clowns is "to provide healthy entertainment that makes young children laugh." This statement describes Cathy's __________ .

A) strategic plan
B) tactical objective
C) strategic purpose
D) business model
E) mission statement

Question 43

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

A) strategic plan
B) mission statement
C) business model
D) competitive strategy
E) SWOT analysis

Question 44

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

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

Question 45

At which step of the strategic management process do managers assess their financial capital, technical expertise, employee skills, and marketing capabilities?

A) identify current mission, objectives, and strategies
B) formulate strategies
C) evaluate results
D) internal analysis
E) external analysis

Question 46

Helen, the owner of Crazy Cupcakes, is conducting a SWOT analysis of her company to find out where she can improve her business and to identify possibilities for expansion. Which of the following represents an opportunity for expansion?

A) There has been a trend toward personalized cupcakes for a variety of occasions.
B) The production process was found to be highly efficient, and wastage was kept to a minimum.
C) In a taste test, Crazy Cupcakes products ranked higher than competitors in the taste and texture segments.
D) Crazy Cupcakes decorators are among the best in their field, and design plays a major role in the popularity of the products.
E) The prices of flour and sugar have gone down in the last six months.

Question 47

A business model comprises of __________ and whether the company can make money doing that.

A) what managers do to develop the organization's strategies
B) focus on the short-run performance of an organization
C) a process that is done best if it is done quickly
D) providing products/services that customers will value
E) beating the competition

Question 48

__________ are positive trends in external environmental factors, while __________ are negative trends.

A) Strengths; weaknesses
B) Strengths; threats
C) Opportunities; weaknesses
D) Opportunities; threats
E) Opportunities; risks

Question 49

Computer peripherals provider Ascent plans to enter a new market in another country. Which of the following represents a threat for Ascent?

A) Ascent's profit margin in the previous year was its lowest on record and it will require long-term planning to improve margins.
B) Ascent lacks the resources to enter the market on its own and has to find a partner in the new market.
C) Ascent will have to plan its entry carefully as the laws in the country do not favour foreign businesses.
D) Ascent needs to improve its service capabilities in the new country as this is an important source of revenue.
E) Ascent has to find internal resources to provide most of the financing for the new venture.

Question 50

Carly's Car Care has just found out that a new competitor is opening a few doors down in a prime location. The competitor will feature the very latest in car washing technology at competitive prices. The new competitor represents which of the following for Carly?

A) opportunity
B) weakness
C) threat
D) strength
E) risk

Question 51

One important customer service strategy is to give customers what they want regardless of the cost.

Question 52

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?

A) markets
B) customers
C) concern for public image
D) philosophy
E) concern for employees

Question 53

"At IBM, we recognize individual differences and appreciate how these differences provide a powerful competitive advantage and a source of great pride and opportunity in the workplace and marketplace." This statement relates most closely to which component of a mission statement?

A) products or services
B) technology
C) concern for public image
D) concern for survival
E) concern for employees

Question 54

Innovation strategies focus exclusively on radical, breakthrough products as the key source of sustainable competitive advantage.

Question 55

At which step of the strategic management process do managers try to find out what the competition is doing and what pending legislation might affect the organization?

A) identify current mission, objectives, and strategies
B) formulate strategies
C) evaluate results
D) conduct internal analysis
E) conduct external analysis

Question 56

Studies of the factors that contribute to organizational performance have shown __________ relationship between strategic planning and performance.

A) no
B) a mixed
C) a negative
D) a positive
E) a neutral

Question 57

Jill is assessing the labour supply in the locations where her company currently operates. She is currently at which stage of the strategic management process?

A) identify current mission, objectives, and strategies
B) internal analysis
C) external analysis
D) evaluate results
E) formulate strategies

Question 58

"At HBC, we have a tremendous sense of responsibility, not only to the continued growth and success of our company, but also to the nation that we have been instrumental in building. Our culture is grounded in a commitment to take into account the social needs and issues impacting the communities where we do business." This statement relates most closely to which component of a mission statement?

A) products or services
B) customers
C) concern for public image
D) philosophy
E) concern for employees

Question 59

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

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

Question 60

Mission statement should contain an expression for _____________.

A) profitability
B) strategic management process
C) strengths and opportunities
D) concern for public image
E) e-business strategy

Question 61

If a bank evaluates the capabilities of its training and development department employees prior to implementing a new training program designed to change their method of providing customer service, it is completing what step in the strategic management process?

A) external analysis
B) identify the organization's current mission, goals, and strategies
C) internal analysis
D) formulate strategies
E) implement strategies

Question 62

When an organization attempts to grow by merging with or acquiring firms in different but associated industries, the strategy is known as a __________ strategy.

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

Question 63

The major value-creating capabilities and skills of the organization are knows as ______________.

A) core competencies
B) human resources
C) financial resources
D) leadership expertise
E) training and development programs

Question 64

When an organization grows by combining operations with competitors, the strategy is known as a __________ strategy.

A) retrenchment
B) horizontal integration
C) vertical integration
D) stability
E) diversification

Question 65

Once managers have completed their analysis of the strengths, weaknesses, opportunities, and threats facing the organization, they can proceed to the next step of the strategic management process, which is to __________.

A) identify competitors
B) identify the organization's current mission, goals, and strategy
C) implement strategies
D) formulate strategies
E) identify environmental trends

Question 66

Over the last century, the Campbell Soup Company has expanded by acquiring other packaged consumer food companies such as Pace, V8, Pepperidge Farms, Swanson, and Godiva Chocolatiers. Campbell was pursuing which corporate strategy?

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

Question 67

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

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

Question 68

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

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

Question 69

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

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

Question 70

When Kimberly-Clark Corporation merged with Scott Paper Company to form the world's largest producer of tissue paper, they were pursuing which growth strategy?

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

Question 71

Bella Vista Clothing targets teenaged girls with a range of affordable ready-to-wear clothing. The company is opening two new outlets, as sales have been excellent. Which of the following represents a strength for the company?

A) The company's in-house designers have a knack for identifying and popularizing fashion trends.
B) Disposable income is rising, and consumers will have more money to spend on clothes.
C) Overseas customers have shown an interest in buying Bella Vista clothes through the company's online store.
D) A long-time competitor recently went out of business, so Bella Vista can cut down on its advertising budget.
E) Teenage girls are increasingly taking part-time jobs so they can afford to buy more clothes.

Question 72

An organization that has been able to excel in product research and design, manufacturing, marketing and managing its human resources to reach a leadership position in the marketplace is taking advantages of its _________.

A) competitive advantage
B) leadership expertise
C) creativity and innovation
D) core competencies
E) marketing expertise

Question 73

Organizations grow by using strategies of ________.

A) concentration, integration, or diversification
B) concentration, integration, or innovation
C) integration, diversification, or differentiation
D) integration, diversification, or stabilization
E) differentiation, integration, or innovation

Question 74

When an organization attempts to grow by merging with or acquiring firms in different and unrelated industries, the strategy is known as a __________ strategy.

A) unrelated diversification
B) horizontal integration
C) vertical integration
D) unrelated differentiation
E) retrenchment

Question 75

When L'Oreal acquired The Body Shop, it carried out ________.

A) horizontal integration
B) forward horizontal integration
C) backward horizontal integration
D) diversified integration
E) unrelated diversification

Question 76

Pat's Pets has developed a reputation as the industry leader in quality pet care. It has exceptionally skilled employees who are known for their humane and loving treatment of animals. For Pat's, these resources would be considered __________.

A) opportunities
B) differential benefits
C) competitive assets
D) primary resources
E) core competencies

Question 77

When athletic sportswear manufacturer Nike decided to open its own chain of retail stores, it was pursuing which corporate strategy?

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

Question 78

The renewal strategy of __________ is used to correct less serious performance setbacks, while a __________ strategy is used for more critical performance problems.

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

Question 79

Which of the following is one of the drawbacks to strong organizational cultures that a manager should consider when completing the strategic management process?

A) They always hinder the organization's strategic actions.
B) Employees will have less understanding of the planning process.
C) Employee attitudes tend to be strong, but their organizational values are weak.
D) They cancel out any organizational distinctive competence.
E) They are difficult to change.

Question 80

The Jim Pattison Group has grown by acquiring firms in diverse industries. Today, Jim Pattison owns food retail chains, car dealerships, radio stations, a fishing company, a sign company, a packaging company, and several museum-themed tourist attractions. Jim Pattison has pursued a strategy of __________.

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