Question 1

Discuss Michael Porter's five forces model and give an example for each force.

Accepted Answer

The answer of Discuss Michael Porter's five forces model and...

Question 2

To implement the fifth step of the strategic implementation process, a manager would

Accepted Answer

The fifth step of the strategic implementation process involves monitoring and evaluating the progress of the strategy, which includes gathering feedback from employees about the implementation.

Question 3

What is the major advantage of a multidomestic strategy?

Accepted Answer

A multidomestic strategy allows a company to tailor its products and marketing strategies to meet the specific needs and preferences of local markets, which can lead to increased market share and the ability to charge higher prices.

Question 4

Great Deal, Inc., is a highly profitable clothing store chain. Dom, the CEO, has decided it is time for the company to increase its competitive advantage. Dom is not worried about stability and wants to make sure he is able to be knowledgeable about all aspects of the company. Which of the following should Dom do?

Accepted Answer

By buying a fabric supplier and a clothing manufacturer, Dom can gain more control over the supply chain, reduce costs, and increase knowledge about the production process, which enhances competitive advantage.

Question 5

Michael Porter presented four ways in which the top management of an organization could select a business-level strategy for their organization. Discuss any two of these four ways of increasing the value of an organization's products and explain the advantages and disadvantages of the strategies that you choose.

Accepted Answer

The answer of Michael Porter presented four ways in which...

Question 6

FinePrint, Inc., is a major book publisher in the United States. However, the future of book sales is unpredictable, thereby making FinePrint's position precarious. Which of the following should the CEO of FinePrint do in order to provide the greatest stability for the company?

Accepted Answer

Diversifying into unrelated industries like cosmetics, auto parts, and baked goods can provide stability by reducing dependence on the unpredictable book market.

Question 7

Apportioning financial resources among divisions to increase financial returns or spread risks among different businesses is called a ________ strategy.

Accepted Answer

A portfolio strategy involves allocating financial resources among various divisions or businesses to optimize financial returns and manage risks effectively.

Question 8

Explain briefly the three levels in the planning and strategy-making process and give an example for each. Also mention how they are linked with each other.

Accepted Answer

The answer of Explain briefly the three levels in the...

Question 9

Callista is a manager at ThrillSeeker, Ltd., a company that makes amusement park rides. She has decided that she would like to create value by purchasing one of the companies that produces the materials ThrillSeeker needs to make its rides. She has already chosen a team of people and assigned them the responsibility to making sure the purchase happens. What should she do next?

Accepted Answer

The answer of Callista is a manager at ThrillSeeker, Ltd.,...

Question 10

According to Porter, organizations cannot simultaneously pursue both a low-cost strategy and a differentiation strategy. Illustrate why. Show how exceptions to this "rule" can be found, and give an example to demonstrate the point.

Accepted Answer

The answer of According to Porter, organizations cannot simultaneously pursue...

Question 11

To avoid development costs, a U.S. tennis racquet company forms a licensing agreement with a South African company, which allows the

Accepted Answer

A licensing agreement typically allows the licensee (South African company) to use the technology or intellectual property of the licensor (U.S. company) to produce goods, in this case, tennis racquets.

Question 12

Give the four major reasons why planning is important.

Accepted Answer

The answer of Give the four major reasons why planning...

Question 13

Explain a SWOT analysis. Describe briefly the steps involved in a SWOT analysis and give an example for each.

Accepted Answer

The answer of Explain a SWOT analysis. Describe briefly the...

Question 14

Managers can use four principal corporate-level strategies in order to help their organization to increase its sales and profits. Discuss any two of these strategies and explain the decisions that a manager would have to make in a business in order to design a program that used these two strategies. Also, give an example for each strategy you discuss.

Accepted Answer

The answer of Managers can use four principal corporate-level strategies...

Question 15

Business plans differ in the time horizons that they cover. Discuss the three major types of business plans in terms of their intended duration and explain why all three of these types of plans are important to a business.

Accepted Answer

The answer of Business plans differ in the time horizons...

Question 16

A backward vertical integration occurs when a company expands into a new industry that

Accepted Answer

Backward vertical integration refers to a company expanding its operations into an industry that produces inputs for its products, thereby gaining more control over its supply chain.

Question 17

In general, business planning involves three distinct steps. Discuss these three steps.

Accepted Answer

The answer of In general, business planning involves three distinct...

Question 18

Distinguish between a policy, a rule, and a standard operating procedure of an organization and give one example of each of these types of standing plans that would be used in a business.

Accepted Answer

The answer of Distinguish between a policy, a rule, and...

Question 19

Grand Productions has just produced a historical epic film that appeals to the U.S. male audience because of its realistic battle scenes. However, Grand Productions knows that audiences in other countries will be drawn to the film for different reasons, such as its romance or it struggle between classes. Considering this, Grand Productions should give the film an international release using a ________ strategy.

Accepted Answer

A multidomestic strategy allows a company to tailor its products or marketing strategies to fit the unique needs and preferences of different international markets, which is suitable for appealing to different aspects of the film in various countries.

Question 20

A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business is called a

Accepted Answer

A joint venture is a strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business.

Quiz 6: Planning, Strategy, and Competitive Advantage