Deck 1: Strategic Management

Question 1

In general,a restructuring strategy is one that deals with companies that are operating at a surplus and are typically described as "money-making."

Answer 1

False

Question 2

Dynamic capabilities are the abilities of an organization to adapt and renew its competencies in accordance with a changing business environment.

Answer 2

True

Question 3

"Core competencies" refers to the integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

Answer 3

True

Question 4

A vision statement would answer the questions "Who are we?" and "Why are we here?"

Question 5

Hard objectives deal with social issues such as the ethics and values of an organization.

Question 6

Strategic intent is an intangible corporate goal.

Question 7

The decision to merge with another company is an example of a growth strategy.

Question 8

There are three competitive positions used in most strategy textbooks: cost,differentiation,and flexibility.

Question 9

Porter's model of business strategy has been criticized for having categories that overlap.

Question 10

Values guide the behaviour of individuals within an organization.

Question 11

A company can have one corporate strategy but many business strategies.

Question 12

When a company can no longer pay its creditors,the company may file for bankruptcy.

Question 13

To be successful,a company must adopt only one corporate strategy.

Question 14

SWOT analysis refers to the systematic and regular monitoring of environmental factors influencing the organization.

Question 15

Competitive advantage of an organization includes the characteristics that enable it to earn higher rates of interest on its investments than its competitors.

Question 16

A "harvest" strategy can also be conceptualized as a "retrenchment" strategy because the goal is to restructure and not grow.

Question 17

Examples of corporate strategy include decisions to compete internationally or to merge with other companies.

Question 18

Opportunities and threats are environmental conditions external to the firm that have limited benefit and are harmful to the organization.

Question 19

An acquisition is seen as two organizations joining to gain economies of scale,whereas a merger occurs when one company acquires another.

Question 20

Emergent strategy is the plan that changes incrementally due to environmental changes.

Question 21

On the Quality Greens Farm Market website are the words "to make healthy,locally grown farm food products accessible to lower-income residents." What is this an example of?

A) mission
B) vision
C) values
D) objectives

Question 22

What is a tangible corporate goal that represents a point of view about the competitive positions a company hopes to build over a decade?

A) strategic plan
B) strategic intent
C) strategic implementation
D) strategic formulation

Question 23

Southwest Airlines has used multiple strategies since its inception in 1974.Why has its current focus on organizational culture been such an effective strategy for the airline?

A) Southwest's culture is variable and substitutable like the strategies it applies.
B) Southwest's culture is inspirational so that its employees achieve greater work-life balance.
C) Southwest's culture is unique,and strategic mimicry by other airlines is not possible.
D) Southwest's culture is responsible for its low-cost,low-price,no-frills flights strategy.

Question 24

Which of the following is typical of an organization that follows Porter's best-cost provider strategy?

A) a hamburger served by a waiter on a plate with potato salad
B) a hamburger and fries in a paper bag served by the drive-through operator
C) a hamburger and baked potato placed on a tray and served by the takeout counter clerk
D) a hamburger and baby greens salad in a plastic bubble package bought at the grocery store

Question 25

Managers in a department store have decided that the shoe department is not a profitable part of the store and that it would be better suited to being an independent organization that rented space from the store.What type of strategy is demonstrated if the shoe department is separated from the department store into a separate entity?

A) merger
B) divestiture
C) bankruptcy
D) growth

Question 26

Which of the following best describes the core values of a company?

A) the organization's long-term plan
B) the basic direction of the organization
C) the basic beliefs that govern workers' behaviour in an organization
D) the reason an organization exists

Question 27

If employees understand the behaviours and performance levels that will be rewarded on the job,what type of benefit is produced that will help managers formulate a strategy?

A) clarity
B) incentives
C) change
D) efficiency

Question 28

What is entire process of conceptualizing the mission of an organization,identifying the strategy,and developing long-range performance goals?

A) strategic plan
B) strategic intent
C) strategic implementation
D) strategic formulation

Question 29

What type of strategy is an agreed-upon plan that is arrived at through formal planning processes?

A) discarded
B) emergent
C) realized
D) intended

Question 30

How is the successful implementation of strategy judged?

A) by whether it satisfies top management's expectations
B) by whether it realizes organizational goals and objectives
C) by whether it engages employees to do their best
D) by whether it meets financial targets and ratios

Question 31

According to the textbook,what are the three types of corporate strategy?

A) liquidation,bankruptcy,and growth
B) mergers,acquisitions,and joint ventures
C) growth,restructuring,and stability
D) turnaround,bankruptcy,and divestiture

Question 32

What type of objective would include being ethical and environmentally responsible?

A) long-term
B) short-term
C) soft
D) hard

Question 33

Which strategy is synonymous with logical incrementalism?

A) intended
B) emergent
C) discarded
D) realized

Question 34

If an organization decides that the company is an ideal size and decides to maintain it,then the organization is adopting a growth strategy.

Question 35

"Our company is committed to honesty and improving society." What type of statement does this quote describe?

A) attitude
B) policy
C) strategic
D) value

Question 36

What is the process called that formulates organizational goals,objectives,action plans,and the mission statement?

A) formulation
B) analysis
C) strategy
D) planning

Question 37

A discarded strategy is one that was found to be inappropriate because of changing circumstances.

Question 38

If no two organizations are the same,then logically all organizational strategies are unique.

Question 39

The question,"Should we be in business?" is an example of a business strategy.

Question 40

The strategic planning process is dynamic and evolves as environmental conditions change.

Question 41

If all organizations are different,what strategic concept demonstrates this reality?

A) solitary
B) unrivalled
C) exclusive
D) unique

Question 42

The owner of Whites Barbecues outlined the company's strategy.The focus of the strategy was concerned with how to build the company's competitive position.What type of strategy is Whites Barbecues adopting?

A) corporate
B) business
C) international
D) expansion

Question 43

RightWay Fencing Ltd.monitors the technological and economic trends in its external environment as well as its internal assets and resource capabilities.What is it most likely performing?

A) a competitive environment scan
B) an environment scan
C) a strategic plan
D) a SWOT analysis

Question 44

In order to achieve success implementing change,what two concepts do HR managers need to match together?

A) motivation and hiring practices
B) position modules and salary theories
C) principles and salary theories
D) HRM practices and organizational goals

Question 45

Which concept refers to a list that produces the sequential steps required to get the job done?

A) principles
B) procedures
C) program
D) policies

Question 46

An organization is influenced by a variety of elements from the external environment.On the other hand,which of the following appears to be derived from the internal environment of the organization?

A) technology
B) laws and regulations
C) HR diversity policy
D) demographic shifts

Question 47

Which of the following represents either a restructuring or stability strategy?

A) merger
B) liquidation
C) incremental
D) joint venture

Question 48

The senior leadership team at Price Warehouse have decided on the competitive position Price Warehouse wants to achieve.Price Warehouse is well-positioned to compete for the largest number of customers through the lowest prices.What type of strategy is Price Warehouse adopting?

A) broad differentiation strategy
B) low-cost provider strategy
C) focused strategy based on lower cost
D) focused strategy based on differentiation

Question 49

Pacific Kayaks Ltd.provides ocean kayaks with distinctive qualities valued by customers.The company attracts customers because it sets itself apart from the competition.It is successful because it has access to leading scientific research on polyethylene,a very abrasion-resistant material used in the construction of its kayaks.The company also has a strong sales and marketing team and a corporate reputation for quality and innovation.What competitive strategy is Pacific Kayaks Ltd.using?

A) low-cost provider
B) differentiation
C) market niche with lower cost
D) focus strategy

Question 50

Salad-O is a fast food outlet located in a shopping mall that tries to compete with Greens-Away by offering gourmet salad dressings.Which of Porter's competitive strategies is Salad-O applying?

A) low-cost provider
B) broad differentiation
C) market niche with lower cost
D) market niche with differentiation

Question 51

What are the two primary types of inputs that influence an organization's competitive advantage?

A) profitability and human capital
B) reputation and superior performance
C) culture and distinct advantage
D) capabilities and tangible assets

Question 52

The President and CEO of Walmart outlined the company's overall strategy and all its business interests.The focus of the strategy was on long-term growth and survival.What type of strategy is Walmart adopting?

A) corporate
B) business
C) international
D) expansion

Question 53

If a firm is applying a growth strategy,it will typically be focused on certain HR practices.Which of the following activities represent strategies that are NOT a growth strategy?

A) hoarding by managers
B) aggressive recruitment
C) rapidly rising wages
D) increased job creation

Question 54

Which of the following represents either a growth or a stability strategy?

A) merger
B) turnaround
C) bankruptcy
D) liquidation

Question 55

Cupcasions is a small bakery that crafts and sells gourmet cupcakes and special-occasion cakes.To achieve its business objectives,the managers scan their external environment for threats and opportunities so they can make proactive changes to their strategic plan.What external factors would they scan for?

A) tangible assets
B) business processes
C) changing demographics
D) market leadership

Question 56

McDonald's incorporated many unique strategies to turn the restaurant around.Which of the following is part of a different restaurant's corporate strategy?

A) aligning itself with Paul Newman's salad dressing
B) allowing free refills for all beverages
C) introducing new foods that reflected regional food interests
D) opening stores in non-traditional locations

Question 57

The senior leadership team at Walmart outlined the company's corporate strategy,which included plans for increasing its products and services.What type of strategy is Walmart adopting?

A) restructuring
B) divestiture
C) business
D) growth

Question 58

Some organizations drift aimlessly during times of economic turmoil.What might be a concrete reason for an organization to be so unfocused?

A) The organization did not produce a vision statement to unite its employees.
B) The organization did not complete its long-term plan for the next three to five years.
C) The organization did not conduct a succession plan for its older managers.
D) The organization did not build a culture that supported work-life balance.

Question 59

What type of objective is represented by the ratio "return on investment?"

A) soft
B) short-term
C) long-term
D) hard

Question 60

In order for senior managers to determine who the company's customers are,where they are located,and what product or service characteristics the customers value,the managers must develop a statement of the fundamental benefits of the products or services being offered in the marketplace.What is this statement known as?

A) value proposition
B) vision statement
C) value statement
D) vision proposition

Question 61

With the information from external environment and internal competence analysis,
managers can summarize the conclusions using a SWOT analysis.What is a SWOT analysis?

Question 62

Rand Solar Technologies Ltd.is planning its future.In the process,the senior leadership team is preparing the organization's objectives,competitive scopes,and action plans to achieve its goals.What is the leadership team doing?

A) conducting a SWOT analysis
B) identifying the organization's competitive advantage
C) formulating the organization's strategy
D) applying principles of strategic management

Question 63

Describe one step in the strategic planning process.Identify an organization you are familiar with (such as from your work experience or from the course textbook).Provide an example of how your chosen organization performs the one strategic planning step.

Question 64

Cupcasions is a small bakery that crafts and sells gourmet cupcakes and cakes.Besides scanning and monitoring its external environment,the managers also consider what competitive advantage the organization possesses-that is,what characteristics enable them to generate more value for customers at a lower cost,thereby earning higher rates of profit than its competitors.List the three categories of resources and describe one example of a resource that Cupcasions would have that would allow them to perform more effectively or efficiently than its competitors.

Question 65

Compare and contrast corporate and business strategy.What is the difference between the two?

Question 66

What is a corporate strategy? Identify the three major corporate or organization-wide strategies outlined by the authors in the text and discussed in class and provide examples of each.

Question 67

Compare and contrast the HRM practices of a company using a low-cost provider strategy with one using a differentiation strategy.

Question 68

If an organization fails to engage in strategic planning,it will be burdened by many challenges.Which of the following is NOT one of these challenges?

A) failure to involve senior managers and executives so that there is no buy-in
B) failure to use the plan as the guide to make decisions and evaluate performance
C) failure to align incentives and other HR policies to the achievement of strategy
D) failure to incorporate information generated from 360-degree reviews

Question 69

An organization is influenced by a variety of elements from the internal environment.On the other hand,which of the following appears to be derived from the external environment of the organization?

A) technology and legislation
B) land and buildings
C) diversity policies and safety practices
D) skills and abilities of employees

Question 70

If a formulated plan is called an intended strategy,what strategy depicts the implemented plan?

A) intentional
B) ideal
C) realized
D) predicted

Question 71

According to the resource-based view,an organization's sustained competitive advantage must meet four criteria.List these four criteria.

Question 72

What type of competency is represented by resources and capabilities that serve as a firm's competitive advantage?

A) core
B) central
C) cultural
D) collective

Question 73

What are some of the benefits of strategy formulation to organizations? Identify and briefly describe five benefits.

Question 74

SunCore Consulting monitors demographic and labour market trends.It is most likely performing which of the following?

A) a human resource scan
B) an environment scan
C) a strategic analysis
D) a labour market analysis

Question 75

What type of strategy changes incrementally due to environmental changes?

A) intended
B) discarded
C) realized
D) emergent