Question 1

_____ is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

Accepted Answer

The answer of _____ is the set of decisions and...

Question 2

The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.
A) production
B) leadership
C) information and control systems
D) structural design
E) human resource

Accepted Answer

The function that is responsible for recruiting, selecting, training, transferring, promoting, and laying off employees to achieve strategic goals is human resource management. Option A (production) deals with the creation of goods and services. Option B (leadership) is concerned with guiding and directing individuals or groups in an organization. Option C (information and control systems) involves collecting and analyzing data to guide decision-making and control organizational processes. Option D (structural design) is related to how the organization is designed and structured to achieve its objectives.

Question 3

The question What business are we in? concerns the _____ strategy.

Accepted Answer

The answer of The question What business are we in?...

Question 4

Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low?
A) Globalization
B) Multidomestic
C) Export
D) Transnational
E) Import

Accepted Answer

When the need for both national responsiveness and global integration is low, a company can focus on exporting their products to other countries without the need for significant customization or localization. This allows the company to benefit from global markets without investing heavily in international operations or adjusting their products too much to meet local demands. Therefore, a company should adopt the export strategy.

Question 5

Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries?
A) Domestic strategy
B) Global strategy
C) Transnational strategy
D) Multidomestic strategy
E) Region design strategy

Accepted Answer

A transnational strategy combines global coordination to attain efficiency with flexibility to meet specific needs in various countries, whereas a global strategy focuses on standardization and a multidomestic strategy focuses on localization. Domestic strategy and region design strategy are not relevant in this context.

Question 6

Which of the following is NOT one of the tools used for putting strategy into action?
A) Visible leadership
B) Diversification
C) Human Resources
D) Communication
E) Clear roles and accountability

Accepted Answer

Diversification is not a tool used for putting strategy into action. It is a strategy itself, which involves expanding a company's product or service offerings into new markets or industries. The other choices - visible leadership, human resources, communication, clear roles and accountability - are all tools that help ensure successful execution of a strategy.

Question 7

A business activity that an organization does particularly well relative to its competition is known as a(n) _____.

Accepted Answer

The answer of A business activity that an organization does...

Question 8

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is called a(n) _____.

Accepted Answer

The answer of The plan of action that prescribes resource...

Question 9

Scenario - SS.com
 Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-SS.com subsidiary for Swift Stocks can be classified as a _____.
A) cash cow
B) dog
C) star
D) question mark
E) stuck in the middle business

Accepted Answer

The SS.com subsidiary for Swift Stocks can be classified as a question mark, also known as a "problem child" in the BCG growth-share matrix. This is because the subsidiary has less than one percent market share and is facing fierce competition in the industry. However, it also has a high business growth rate, indicating that it has potential for future success.

Question 10

Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to implement strategy?
A) Leadership
B) Structural design
C) Human resources
D) Information and control systems
E) Compensation

Accepted Answer

Persuasion, motivation, and changes in cultures and values are related to the leadership dimension of strategy implementation.

Question 11

Scenario - Theresa Teutul 
Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970's was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market.
-Using the logic of the BCG grid, Theresa should recognize that her strategic business unit was in which quadrant?
A) Star
B) Cash Cow
C) Question Mark
D) Dog
E) None of these

Accepted Answer

The color television market in the late 1970s was mature with slowed sales growth, indicating it was a "Cash Cow" in the BCG grid, generating steady cash flow but with limited growth prospects.

Question 12

Scenario - SS.com
 Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-Swift Stock is following which strategy, according to Porter, through the .com subsidiary?
A) Stability
B) Cost leadership
C) Focus
D) Differentiation
E) Retrenchment

Accepted Answer

Swift Stocks, Inc., through the establishment of its online stock investment and trading subsidiary SS.com, is employing a cost leadership strategy. This is evident in the announcement that it offers the lowest rates in the industry, which is a clear indication of a cost-focused approach to attracting and retaining customers.

Question 13

Some people argue that _____ is the most difficult and most important part of strategic management.
A) SWOT analysis
B) strategic formation
C) strategic execution
D) strategic analysis
E) strategy evaluation

Accepted Answer

While each step of strategic management is crucial, strategic execution is often considered the most difficult and most important part. This is because it involves translating the formulated strategy into action and ensuring that every aspect of the organization is aligned with the strategy. It involves leading and motivating people, allocating resources, establishing processes and systems, and monitoring progress towards goals. Without effective execution, even the best formulated strategies will fail. Therefore, strategic execution is considered the ultimate test of a manager's ability to deliver results.

Question 14

People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These actions are part of which tool for putting strategy into action?
A) Visible leadership
B) Candid communication
C) Human resources
D) Clear roles and accountability
E) Bargaining power of employees

Accepted Answer

Clear roles and accountability are a tool for putting strategy into action by defining individual actions and responsibilities towards achieving organizational goals. Delegating authority, creating teams, and defining roles help employees understand how their actions contribute to the overall strategy. Therefore, D is the best choice. The other options (A, B, C, E) may also contribute to implementing the strategy, but they are not directly related to delegation, team creation, or role definition.

Question 15

Scenario - Theresa Teutul 
Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970's was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market.
-The strategy that the BCG matrix suggests that Theresa should take for this SBU is:
A) invest and grow.
B) liquidate while still profitable.
C) ask her astrologer for advice.
D) keep the SBU healthy and use its excess earnings to invest in other SBU's.
E) divestiture.

Accepted Answer

The BCG matrix suggests that for a "cash cow" SBU, which is characterized by low growth but high market share, the strategy should be to maintain its health and use its excess earnings to invest in other SBUs.

Question 16

The question How do we compete? concerns _____ strategy.

Accepted Answer

The answer of The question How do we compete? concerns...

Question 17

Scenario - SS.com
 Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-Swift Stock's traditional brokerage business could be classified as a _____.
A) cash cow
B) dog
C) star
D) question mark
E) stuck in the middle business

Accepted Answer

The answer of Scenario - SS.com
 Faced with rapidly growing...

Question 18

_____ refers to the modification of product design and advertising strategies to suit the specific needs of individual countries.
A) Domestic strategy
B) Global strategy
C) Transnational strategy
D) Multidomestic strategy
E) Market design strategy

Accepted Answer

Multidomestic strategy refers to modifying the product design and advertising to suit the specific needs of individual countries. Domestic strategy refers to focusing on the domestic market only. Global strategy focuses on standardizing products and advertising globally. Transnational strategy combines global standardization with local customization. Market design strategy is not a commonly used term in the field of international business.

Question 19

When organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone, _____ occurs.

Accepted Answer

The answer of When organizational parts interact to produce a...

Question 20

Scenario - SS.com
 Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-If Swift Stock's traditional brokerage business were to face a declining business growth, it may need to be reclassified as a _____.
A) cash cow
B) dog
C) star
D) question mark
E) dead business

Accepted Answer

If Swift Stock's traditional brokerage business were to face declining growth, it would still have a high market share, which means it would still generate a lot of income. This income would be considered a cash cow, meaning it provides a steady cash flow for the company with minimal investment needed to maintain it.

Quiz 8: Strategy Formulation and Execution

_____ is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.

The question What business are we in? concerns the _____ strategy.

Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low?

Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries?

Which of the following is NOT one of the tools used for putting strategy into action?

A business activity that an organization does particularly well relative to its competition is known as a(n) _____.

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is called a(n) _____.

Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to implement strategy?

Some people argue that _____ is the most difficult and most important part of strategic management.

People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These actions are part of which tool for putting strategy into action?

The question How do we compete? concerns _____ strategy.

_____ refers to the modification of product design and advertising strategies to suit the specific needs of individual countries.

When organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone, _____ occurs.