Question 1

A ________ strategy determines what businesses a company is in or wants to be in,and what it wants to do with those businesses.

Accepted Answer

Corporate strategy is concerned with determining a company's overall direction and scope by defining its businesses and how they fit together. It involves decisions about resource allocation, portfolio management, and diversification. Competitive strategy, on the other hand, is concerned with how a company competes within a specific market or industry. Functional strategy pertains to how each functional area of the business (finance, marketing, operations, etc.) supports the overall corporate and competitive strategies. Focus strategy involves targeting a specific segment of the market and tailoring the company's offerings to meet their unique needs.

Question 2

A study of the external environment allows a manager to understand the ________ and ________ for the organization.

Accepted Answer

A study of the external environment allows a manager to understand the opportunities and threats for the organization, which are the key factors to be evaluated for making strategic decisions. Understanding opportunities helps the manager to identify potential avenues for growth and profitability, while understanding threats helps the manager to anticipate and prepare for potential challenges and risks. Therefore, D is the correct answer.

Question 3

The major value-creating capabilities of the organization are known as its ________.

Accepted Answer

Core competencies are the unique capabilities and resources that a company possesses that give it a competitive advantage over its rivals. These abilities allow the organization to deliver superior value to its customers and create differentiation in the market. Strengths refer to any areas where the organization has a competitive advantage or is performing well, while resources are the assets and capabilities that the company can leverage to create value. Opportunities refer to external factors that the organization can use to its advantage.

Question 4

Lower-level managers are responsible for ________ strategies.

Accepted Answer

Lower-level managers are responsible for implementing the functional strategies formulated by the middle-level managers. Functional strategies are focused on a particular functional area or department, such as marketing, finance, operations, etc. Therefore, lower-level managers play a critical role in executing the functional strategies and achieving the operational goals of the organization. Stability, corporate, and growth strategies are formulated by the top-level management team and are focused on the overall direction and growth of the organization.

Question 5

Helen,the owner of Crazy Cupcakes,is conducting a SWOT analysis of her company to find out where she can improve her business and to identify possibilities for expansion.Which of the following represents an opportunity for expansion?

Accepted Answer

The trend toward personalized cupcakes for various occasions represents an opportunity for expansion, as Crazy Cupcakes can create new offerings and potentially attract new customers. The other options (B, C, and D) represent strengths of the business but do not necessarily provide opportunities for expansion.

Question 6

Managers do an external analysis so that they know about ________.

Accepted Answer

Managers do an external analysis to gather information about their competitors and how they are operating in the industry so that they can develop strategies to stay competitive. Option A and D are related to internal analysis, while option C is not a primary objective of external analysis.

Question 7

What are the three main types of corporate strategies?

Accepted Answer

The three main types of corporate strategies are growth, stability, and renewal. Option A includes stability and turnaround, which are subcategories of the stability strategy. Option C includes cost leadership and differentiation, which are subcategories of the growth strategy. Option D includes stability and focus, which are two subcategories of the stability and growth strategies, respectively. Therefore, option B is the best choice, as it includes the three main corporate strategies.

Question 8

Top-level managers are responsible for ________ strategies.

Accepted Answer

Top-level managers are responsible for developing corporate strategies, which set the overall direction and objectives for the entire organization. Differentiation, competitive, and functional strategies are typically developed by lower-level managers or functional area leaders.

Question 9

________ are positive trends in the external environment.

Accepted Answer

Opportunities are positive trends in the external environment, such as new technologies or changes in consumer behavior, that can be leveraged by an organization to achieve its goals. Strengths are internal factors that provide an advantage over competitors, weaknesses are internal areas that need improvement, and threats are negative trends in the external environment that can harm an organization's performance.

Question 10

The final step in the strategic management process allows an organization to understand the ________.

Accepted Answer

The final step in the strategic management process is the evaluation and control phase, which allows an organization to understand the effectiveness of the strategies used. Through this evaluation, an organization can determine whether its strategies are leading to the desired outcomes, and make any necessary adjustments to improve future performance. Option B refers to the implementation phase, option C to the formulation phase, and option D to the analysis phase.

Question 11

The first four steps of the strategic management process describe the strategic ________ that must take place in an organization.

Accepted Answer

The first four steps of the strategic management process are planning, which includes evaluating the organization's internal and external environment, setting goals and objectives, and formulating strategies to achieve them. Implementation and control come after the planning stage. Therefore, the best choice is C - planning, as it accurately describes the first four steps of the strategic management process.

Question 12

The third step in strategic management process is related to the analysis of the ________.

Accepted Answer

The answer of The third step in strategic management process...

Question 13

Computer peripherals provider Ascent plans to enter a new market in another country.Which of the following represents a threat for Ascent?

Accepted Answer

The fact that the laws in the country do not favor foreign businesses represents a threat for Ascent's entry into the new market. Ascent will need to carefully plan and navigate the legal environment to be successful in this new market. The other options (A, B, D) are challenges or areas for improvement, but do not necessarily pose a threat to Ascent's entry into the new market.

Question 14

When an organization is analyzing its labor supply,it is studying its ________.

Accepted Answer

The answer of When an organization is analyzing its labor...

Question 15

Bella Vista Clothing targets teenage girls with a range of affordable ready-to-wear clothing.The company is opening two new outlets,as sales have been excellent.Which of the following represents a strength for the company?

Accepted Answer

The company's in-house designers' ability to identify and popularize fashion trends is a strength because it allows the company to offer trendy and in-demand clothing to its target market of teenage girls. This can lead to increased sales and customer loyalty. The rise in disposable income (B) and overseas interest in the company's online store (C) are external opportunities that may or may not result in increased sales for the company. The competitor going out of business (D) is also an external factor and may provide some cost savings, but it is not necessarily a strength of the company itself.

Question 16

A ________ describes the rationale of how a company is going to make money.

Accepted Answer

A business model is a framework for how a company creates value, delivers that value to customers, and generates revenue from those customers. It describes the company's strategy for making money and can include elements such as revenue streams, cost structure, target market, and value proposition.

Question 17

The combined external and internal analyses are called ________.

Accepted Answer

SWOT analysis combines the external (opportunities and threats) and internal (strengths and weaknesses) analyses of a company. It's a strategic planning tool used to evaluate a company's current position and determine a course of action for the future.

Question 18

If a bank estimates the capabilities of its employees who provide customer service prior to implementing a new training program designed to change their method of providing customer service,it is ________.

Accepted Answer

The bank is analyzing the capabilities of its own employees, which is an internal analysis.

Question 19

An organization's financial,physical,human,and intangible assets are known as its ________.

Accepted Answer

Resources refer to an organization's assets which include financial, physical, human, and intangible resources such as patents, trademarks, and reputation. Capabilities are the organization's ability to utilize those resources effectively to achieve its goals. Opportunities refer to external factors that can potentially benefit the organization. Core competencies refer to the unique capabilities and strengths that differentiate an organization from its competitors. Therefore, the best choice is A) resources.

Question 20

Defining the organizational mission forces managers to identify ________.

Accepted Answer

Defining the organizational mission means identifying the purpose and reason for the organization's existence. It includes determining what the organization is in business to do, its values, goals, and objectives. The other options (labor supply, competitors, legislation) may be important factors for managers to consider but are not directly related to defining the organizational mission.

Quiz 9: Strategic Management