Deck 1: Strategic Management

Question 1

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 3 to 5 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.

Answer 1

A

Question 2

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

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

Answer 2

D

Question 3

"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

Answer 3

D

Question 4

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 5

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 6

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 7

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

Question 8

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 9

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

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

Question 10

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 11

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 12

Which strategy is synonymous with logical incrementalism?

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

Question 13

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 14

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 15

Managers in a department store have decided that the shoe department is not a profitable part of the store and 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 16

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 17

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

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

Question 18

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

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

Question 19

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

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

Question 20

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 21

According to Toyota, a good vision statement must challenge and protect the organization.

Question 22

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

Question 23

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

Question 24

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

Question 25

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 26

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

Question 27

Strategic intent is an intangible corporate goal.

Question 28

Which of the following is an example 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 take-out counter clerk
D) a hamburger and baby greens salad in a plastic bubble package bought at the grocery store

Question 29

According to the textbook, which of the following is NOT an element of the Company's Strategy-Making Hierarchy?

A) corporate strategy with the organization
B) business strategy for each business
C) operating strategies within each business
D) executing strategy within each business

Question 30

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 31

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

Question 32

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 33

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 34

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

Question 35

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 36

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 37

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

Question 38

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 39

Cara has been a very effective business because of its ability to apply a values statement that reflects its core values. Which of the following is Cara's most important core value?

A) passion for winning and quality
B) self-responsibility and leadership
C) integrity and trustworthiness
D) people and virtual teamwork

Question 40

In what year, did Michael E. Porter write his seminal book entitled Competitive Advantage?

A) 1945
B) 1965
C) 1985
D) 2005

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

Rolls Royce would be an example of a company using a best-cost provider strategy.

Question 46

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

Question 47

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

Question 48

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

Question 49

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

Question 50

Values guide the behaviour of individuals within an organization.

Question 51

List the steps (from initial planning to end stages) in strategic planning.

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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 57

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

Question 58

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

Question 59

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