Question 1

Which of the following is true about operational objectives?

Accepted Answer

Operational objectives are specific, measurable, time-bound statements that direct activities toward key performance areas within an organization, helping to achieve the overall strategy or underlying business model. They are not intended to set forth the organization's purpose (which is typically established in the mission or vision statement), guide behavior, or set standards for accomplishing the mission.

Question 2

Which of the following is true about oligopoly?

Accepted Answer

Oligopoly refers to a market structure where there are only a few competitors operating in the market.

Question 3

An)________ expresses the organization's reason for existence in society.

Accepted Answer

A mission statement outlines an organization's purpose and reason for being. It often includes the organization's values and goals, and serves as a guide for decision-making and strategy development. A statement of purpose and operating objectives can be related to a mission statement, but they do not necessarily encompass the same depth and breadth of the organization's overall purpose and values. Cash flow and net worth statements are financial statements and do not provide information about an organization's purpose or reason for existence.

Question 4

Which of the following is a defining characteristic of a SWOT analysis?

Accepted Answer

SWOT analysis identifies the Strengths, Weaknesses, Opportunities, and Threats of an organization, especially in relation to its competition. It highlights factors that can inhibit performance (weaknesses and threats) as well as those that can support it (strengths and opportunities). This helps the organization to make better strategic decisions. Options A, B, D, and E do not accurately describe the defining characteristic of a SWOT analysis.

Question 5

Any special strength that gives an organization a competitive advantage is referred to as its ________.

Accepted Answer

Core competency refers to a unique ability or expertise that a company possesses, which gives it a competitive advantage in the market. This strength can be in product design, technology, brand recognition, or any other area that sets the company apart from its competitors. This unique strength allows the company to offer products or services at a lower cost or of higher quality than its competitors, ultimately leading to increased market share and profitability.

Question 6

The entire process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage is referred to as:

Accepted Answer

Strategic management includes all three components mentioned in the question (strategic analysis, strategy formulation, and strategy implementation), as well as monitoring and adjusting strategies as needed to maintain competitive advantage over the long term. Strategic outsourcing may be a part of a company's strategy, but is not the comprehensive process of strategic management.

Question 7

________ decreases the attractiveness of the market.

Accepted Answer

The answer of ________ decreases the attractiveness of the market.
...

Question 8

Karen Inc.changes its business strategy from a focused differentiation strategy to a focused cost leadership one.Which of the following steps in the process of strategic management ideally includes this action?

Accepted Answer

The step of strategy formulation involves choosing a competitive strategy such as cost leadership, differentiation, or focus. In this case, the company is changing its strategy from focused differentiation to focused cost leadership, which falls under the umbrella of strategy formulation.

Question 9

Which of the following is the first step in the process of strategic management?

Accepted Answer

Strategic analysis is the first step in the process of strategic management. It involves analyzing the organization's internal and external environment, identifying strengths, weaknesses, opportunities, and threats (SWOT analysis), and setting goals and objectives. This information is then used in formulating strategies to achieve the organization's objectives.

Question 10

According to Porter,which of the following is one of the five forces that affect industry competition?

Accepted Answer

Porter's five forces include the bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitute products, and intensity of competitive rivalry. Out of the choices given, substitute products is the only one that fits within Porter's framework.

Question 11

________ is the process of crafting strategies to guide the allocation of resources.

Accepted Answer

Strategy formulation is the process of crafting strategies to guide the allocation of resources. This involves analyzing the internal and external environment, setting strategic goals and objectives, and identifying the best course of action to achieve them. Once the strategies have been formulated, they can be implemented through action plans and resource allocation.

Question 12

The difference between a corporate strategy and a functional strategy is that:

Accepted Answer

A corporate strategy sets the long-term direction for the entire organization, while a functional strategy guides the activities within one specific area of operations. For example, a corporate strategy may focus on entering new markets, while a functional strategy in marketing may focus on how to promote the product in those new markets.

Question 13

Which of the following is the last step in the process of strategic management?

Accepted Answer

Strategy implementation is the last step in the process of strategic management, where the chosen strategy is put into action and the organization aligns its resources and processes to achieve its objectives.

Question 14

________ are broad beliefs about what is or is not appropriate behavior.

Accepted Answer

Core values are broad beliefs about what is or is not appropriate behavior. Corporate subcultures are the shared values and beliefs within a specific department or area of a company. Marketing values refer to the values that guide a company's marketing decisions. Diversified values and functional values are not commonly used terms in regards to company values.

Question 15

If there are many competitors and the barriers to entry are low,the:

Accepted Answer

When there are many competitors and the barriers to entry are low, it means that it is easy for new competitors to enter the market and increase competition. This makes the industry unattractive for existing players as they have to constantly fight to maintain their market share and profitability. Additionally, low barriers to entry often lead to price wars, which can further erode profitability.

Question 16

Aquamarine Inc.is the market leader of car batteries primarily because of its unique distribution system.The distribution system that has given the company an advantage over its competitors is an example of the company's ________.

Accepted Answer

A core competency is a unique capability or advantage that sets a company apart from its competitors. In this case, the unique distribution system has given Aquamarine Inc. an advantage over its competitors, making it the market leader in car batteries.

Question 17

Strategic analysis typically refers to the process of:

Accepted Answer

Strategic analysis refers to the process of analyzing an organization's competitive position, evaluating its resources and capabilities, and assessing the external environment to guide the formulation of strategies. Therefore, E is the best choice that captures the essence of strategic analysis. The other options (A, B, C, D) describe various aspects of the strategic management process but do not specifically refer to analysis.

Question 18

Which of the following increases the attractiveness of a market?

Accepted Answer

The answer of Which of the following increases the attractiveness...

Question 19

________ is the predominant value system for the enterprise as a whole.

Accepted Answer

Organizational culture refers to the shared values, beliefs, customs, practices, and behaviors that characterize how an organization operates. It is the overarching value system that guides and influences behavior within the enterprise as a whole. Corporate subcultures, managerial value systems, functional cultures, and leadership value systems may exist within an organization but they are all encompassed within the larger organizational culture.

Question 20

A ________ begins with a systematic evaluation of the organization's resources and capabilities and focuses on identifying the organization's core competencies.

Accepted Answer

A SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is a strategic planning method used to identify and evaluate an organization's internal strengths and weaknesses and external opportunities and threats. It helps in identifying the organization's core competencies and resources that can be leveraged to gain a competitive advantage. Thus, the option E is the correct answer.

Quiz 10: Strategy and Strategic Management