Question 1

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

Accepted Answer

The strategic management process begins with a careful assessment and clarification of an organization's mission, values, and objectives, setting the stage for strategy formulation and implementation.

Question 2

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

Accepted Answer

Vertical integration is the process where a company expands its operations into areas that are at different points on the same production path, such as when a manufacturer acquires its supplier or distributor to achieve greater control over its supply chain and potentially increase its market power.

Question 3

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

Accepted Answer

Strategy formulation encompasses revising missions and objectives, identifying existing missions, objectives, and strategies, and analyzing both the external environment and internal resources and capabilities.

Question 4

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

Accepted Answer

B2B (Business-to-Business) strategies involve the use of information technology and the Internet to link organizations vertically with members of their supply chains. This approach is focused on improving the efficiency and effectiveness of the supply chain and involves transactions between businesses, such as manufacturers and suppliers.

Question 5

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

Accepted Answer

Related diversification involves a company expanding its operations into areas that are similar to its existing business lines, leveraging its existing knowledge, capabilities, or market presence to enter new, but related, markets.

Question 6

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

Accepted Answer

Core competencies are the unique strengths or strategic advantages that distinguish an organization from its competitors, reflecting what it does best.

Question 7

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 _______

Accepted Answer

These issues are internal factors that negatively affect the company's ability to achieve its objectives, thus they are considered weaknesses in a SWOT analysis.

Question 8

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.

Accepted Answer

Opportunities in a SWOT analysis refer to external factors that the company can exploit to its advantage, such as new markets, technologies, and competitors' weaknesses.

Question 9

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

Accepted Answer

A(n) e-business strategy is the strategic use of the Internet to gain competitive advantage. This involves leveraging online resources and technologies to improve efficiency, effectiveness, and competitive positioning.

Question 10

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.

Accepted Answer

According to Porter's five forces model, an attractive industry is characterized by less intense competition, few threats from new entrants or substitutes, and low bargaining power among suppliers and buyers. This makes it more favorable for companies to achieve higher profitability.

Question 11

Important strategic management tasks include all of the following EXCEPT ___________

Accepted Answer

Providing visionary and inspirational leadership, while important for leaders and managers, is not typically classified as a strategic management task. Strategic management focuses more on the planning, execution, and analysis of strategies to achieve organizational goals.

Question 12

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

Accepted Answer

Experienced and competent management is considered a strength, not a weakness, in a SWOT analysis. Weaknesses typically involve areas where the organization is lacking or has vulnerabilities, such as weak management or outdated technologies.

Question 13

Strategic alliances include which of the following possibilities?

Accepted Answer

Strategic alliances can encompass a wide range of collaborations between organizations, including developing preferred supplier relationships to ensure a steady flow of quality materials (A), joining together for sales and distribution purposes (B), and contracting to purchase important services from another organization (C). All these options are examples of strategic alliances, making D the correct answer.

Question 14

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

Accepted Answer

The answer of __________ refers to a leader's capability to...

Question 15

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?

Accepted Answer

Peter Drucker's five questions for formulating an organization's strategy do not explicitly include asking who the competitors are. His framework focuses on the organization's mission, the customers, what customers value, the results, and planning for the future, rather than directly on competitors.

Question 16

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

Accepted Answer

Opportunities and threats are typically identified in the macroenvironment and the industry environment, as these external factors can influence an organization's strategic planning and decision-making.

Question 17

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

Accepted Answer

A concentration strategy involves growth strategies within the same business area, focusing on increasing the scale or scope of a corporation's operations in its current industry.

Question 18

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

Accepted Answer

Industry environmental factors in a SWOT analysis encompass all elements that exist outside the company but can significantly impact its operations. This includes competitors, customers, and resource suppliers, as they all play a crucial role in the organization's strategic planning and decision-making processes. Competitors influence market positioning, customers determine demand, and resource suppliers affect the supply chain, all of which are critical for an organization's success.

Question 19

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?

Accepted Answer

The crucial questions for enabling the success of strategic management focus on the organization's own goals, performance, and strategies rather than directly on the specifics of competitors' operations.

Question 20

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

Accepted Answer

The answer of A(n) __________ strategy involves growth through the...

Quiz 9: Strategic Management