Question 1

Volvo's strategy of stressing safety is an example of a differentiation strategy.

Accepted Answer

A differentiation strategy is one in which a company seeks to distinguish its products or services from those of its competitors by offering unique features or benefits. Volvo's emphasis on safety sets it apart from other carmakers and is an example of a differentiation strategy.

Question 2

General Electric's goal is to have each of its divisions be #1 or #2 in its industry.This illustrates the principle that "goal setting helps to define corporate culture."

Accepted Answer

General Electric's goal of having each division be #1 or #2 in its industry is a clear and specific goal that sets the tone for the company's culture of striving for excellence and being a leader in their respective fields. This illustrates the principle that goal setting can help shape and define a company's culture.

Question 3

Contingency planning is an organization's method for dealing with emergencies.

Accepted Answer

The answer of Contingency planning is an organization's method for...

Question 4

3M allocates more resources to new projects with large sales potential than it allocates to mature products with low growth potential.This illustrates the principle that "goal setting helps managers assess performance."

Accepted Answer

The statement in the question does not relate to the principle of goal setting helping managers assess performance. It simply illustrates a common business strategy of allocating resources to projects with high sales potential.

Question 5

A corporate-level strategy is developed to identify the various businesses that a company will be in.

Accepted Answer

A corporate-level strategy is the highest level of strategy in a company, and it involves identifying the various businesses that the company will be in, as well as how the company will manage and coordinate those businesses.

Question 6

CN's diversification into trucking is an example of related diversification.

Accepted Answer

CN's main business is rail transportation, and adding trucking services is related to their core competencies in transportation and logistics. This is an example of related diversification.

Question 7

Two companies may have the same purpose but very different mission statements.

Accepted Answer

Two companies can have the same overall goal or purpose, such as providing quality products or services to customers, but their mission statements may differ in terms of their specific strategies, values, or target markets.

Question 8

The three major kinds of goals that a firm sets are long-term,intermediate,and short-term.

Accepted Answer

This is a true statement. A firm sets long-term goals that may take several years to achieve, intermediate goals that may take 1-3 years, and short-term goals that may take a few months to a year to accomplish.

Question 9

Strategic goals are derived directly from the firm's mission statement.

Accepted Answer

Strategic goals are formulated to fulfill the firm's mission and vision, which are the guiding principles that dictate the organization's overall purpose and direction. Therefore, strategic goals are directly derived from the mission statement.

Question 10

In a SWOT analysis,strengths,weaknesses,opportunities,and threats are factors external to the firm.

Accepted Answer

Strengths and weaknesses are internal factors while opportunities and threats are external factors in a SWOT analysis.

Question 11

The final step in the strategic formulation process is to match the environmental analysis with the organization analysis in an attempt to identify specific strategies.

Accepted Answer

This is true. The final step in the strategic formulation process is to use the environmental analysis and organization analysis to identify potential strategies that will help the organization achieve its goals and objectives.

Question 12

Not every business needs specific goals.

Accepted Answer

Every business needs specific goals in order to have direction, focus, and a way to measure success. Without specific goals, a business may lack purpose and struggle to make progress.

Question 13

The mission statement is the documentation of a corporation's reason for being.

Accepted Answer

The answer of The mission statement is the documentation of...

Question 14

An environmental analysis involves scanning the business environment for strengths and weaknesses.

Accepted Answer

An environmental analysis involves scanning the business environment for opportunities and threats, while strengths and weaknesses are assessed in an internal analysis.

Question 15

Talon Corp.has adopted a strategy of boosting the sales of its existing products by more aggressive selling in the firm's current markets.Talon is pursuing a product development strategy.

Accepted Answer

Talon Corp. is pursuing a market penetration strategy, not a product development strategy, as it focuses on increasing sales of existing products in current markets.

Question 16

When Maple Leaf Gardens Ltd.acquired the Toronto Raptors,this was an example of related diversification because Maple Leaf already owned the Toronto Maple Leafs.

Accepted Answer

Related diversification is when a company acquires a new business that is related to its existing business. In this case, Maple Leaf Gardens Ltd. already owned the Toronto Maple Leafs and acquiring the Toronto Raptors, another professional sports team, was related diversification.

Question 17

Target acquired many Zellers stores as it prepared to enter the Canadian market.This is an example of horizontal integration.

Accepted Answer

Horizontal integration refers to a business strategy where a company acquires or merges with its competitors. In this scenario, Target acquired Zellers stores, which was a competitor in the Canadian market. Therefore, it is an example of horizontal integration.

Question 18

The first step in strategy formulation is the setting of strategic goals.

Accepted Answer

The first step in strategy formulation is setting strategic goals, which provide a clear direction and vision for the organization to achieve.

Question 19

Gildan Activewear is pursuing a cost leadership business-level strategy.

Accepted Answer

Gildan Activewear is known for producing affordable, high-quality blank clothing items for various markets. This approach aligns with a cost leadership strategy, which focuses on offering products or services at a lower cost than competitors. Therefore, the given statement is true.

Question 20

Short-term goals usually cover a range of one to five years.

Accepted Answer

Short-term goals typically cover a range of a few days to a year, while goals spanning one to five years are generally considered medium-term.

Quiz 6: Managing the Business Enterprise