Question 1

SWOT analysis includes

Accepted Answer

Assessing the organization's strengths, weaknesses, opportunities, and threats normally is referred to as a SWOT analysis.

Question 2

A _________ strategy focuses on a single business competing in a single industry.

Accepted Answer

A concentration strategy focuses on a single business competing in a single industry.

Question 3

The process of assessing how well one company's basic functions and skills compare to those of another company or set of companies is called

Accepted Answer

To assess and improve performance, some companies use benchmarking, the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies.

Question 4

A unique skill or knowledge an organization possesses that gives it an edge over competitors is called a

Accepted Answer

A core competence is a unique skill and/or knowledge an organization possesses that gives it an edge over competitors.

Question 5

Portland's Pizza, a chain of specialty pizzerias, periodically compares its quality and service levels to other successful restaurants in order to continually improve its own performance. This practice is known as

Accepted Answer

To assess and improve performance, some companies such as Portland's use benchmarking, the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies.

Question 6

To reduce production costs, Putnam Oil Exploration decided to buy out a refinery and several retailers to sell its oil and gasoline products to end users. This strategy is an example of __________ strategy.

Accepted Answer

A vertical integration strategy involves expanding the domain of the organization into supply channels or to distributors. Vertical integration generally is used to eliminate uncertainties and reduce costs associated with suppliers or distributors.

Question 7

Resources can be a source of competitive advantage if a firm can

Accepted Answer

If resources are difficult to imitate (the firm has exclusive rights to technological applications), they provide a source of competitive advantage.

Question 8

Intangible assets include

Accepted Answer

Tangible assets include real estate, production facilities, raw materials, and so on; intangible assets include company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience.

Question 9

Both a concentration strategy and a vertical integration strategy are alternatives for a firm's _________ strategy.

Accepted Answer

A corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses. Figure 4.6 shows four basic alternatives for a corporate strategy, including a concentration strategy and a vertical integration strategy.

Question 10

An internal analysis of strengths and weaknesses within the strategic management process assesses the organization's

Accepted Answer

An internal analysis provides strategic decision makers with an inventory of the organization's existing functions, skills, and resources, as well as its overall performance level.

Question 11

Tangible assets include

Accepted Answer

Tangible assets include real estate, production facilities, raw materials, and so on; intangible assets include company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience.

Question 12

Strategic goals evolve from an organization's

Accepted Answer

Strategic goals evolve from the mission and vision of the organization. The chief executive officer of the organization, with the input and approval of the board of directors, establishes the mission, vision, and major strategic goals.

Question 13

A _________ strategy involves the acquisition or development of new businesses that produce parts or components of the organization's product.

Accepted Answer

Vertical integration is the acquisition or development of new businesses that produce parts or components of the organization's product.

Question 14

Stakeholders are

Accepted Answer

Stakeholders are groups and individuals who affect and are affected by the achievement of the organization's mission, goals, and strategies. They include buyers, suppliers, competitors, government and regulatory agencies, unions and employee groups, the financial community, owners and shareholders, and trade associations.

Question 15

A technique for assessing the organization's internal and external environments in order to formulate strategy is called a

Accepted Answer

Assessing the organization's strengths, weaknesses, opportunities, and threats normally is referred to as a SWOT analysis. Strengths and weaknesses refer to internal resources. Opportunities and threats arise in the macroenvironment and competitive environment.

Question 16

Inputs to production that can be accumulated over time to enhance performance are known as

Accepted Answer

Resources are inputs to production (recall systems theory) that can be accumulated over time to enhance the performance of a firm. Resources can take many forms, but they tend to fall into two broad categories: tangible and intangible assets.

Question 17

Environmental analysis examines which of the following?

Accepted Answer

The important activities in an environmental analysis include the ones listed in Table 4.1, including a competitor analysis.

Question 18

When large grocery stores build bakeries in which all of the store-brand bread, rolls, and pastries are baked and are then sold in the stores, which type of corporate strategy is being employed?

Accepted Answer