Question 1

According to Michael Porter, managers have two basic ways of increasing the value of an organization's product: differentiating the product or lowering the costs of making it. Define each strategy and analyze its impact on profits and the entry of new competitors into the industry.

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Question 2

Define the three levels of planning and their respective strategies. Give an example of a strategy that can be applied at each level.

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Question 3

List and describe the different methods of international expansion. Arrange the methods according to the level of foreign involvement and investment and subsequent degree of risk starting from the least to the highest.

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Question 4

After several months of planning, a team of managers has defined new strategies for the organization and is ready for implementation. What additional planning activities will the managers likely face to implement the strategies?

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Question 5

The CEO of a restaurant chain announces that the company will be fully compliant with improved nutritional standards within the next three years. As the marketing manager for the restaurant, Brenda is tasked with developing goals and a plan for promoting the changes in concert with other areas within the company. Brenda's efforts are considered ________ planning.
A)divisional-level
B)time horizon
C)functional-level
D)scenario
E)corporate-level

Accepted Answer

Brenda's efforts are considered functional-level planning because she is focusing on marketing, which is a specific function within the company.

Question 6

Scenario planning is one of the most widely used planning methods or techniques. Explain why it is so popular and how scenario planning improves the planning process.

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Question 7

List the five steps involved in implementing an organizational strategy and explain why these steps are important for managers.

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Question 8

List and describe the principal corporate-level strategies that managers can use to help a company maintain or grow its position in an industry or reorganize to stop a decline.

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Question 9

Jason is pursuing a focused differentiation strategy for his startup business. How will technology (IT)affect his small company's competitiveness against larger and more powerful companies?

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Question 10

________ is the process of developing an action plan that will allow an organization to achieve its goals, while using techniques such as SWOT analysis and the five forces model.
A)Functional planning
B)Diversification
C)Strategy formulation
D)Strategic alliance
E)Strategic leadership

Accepted Answer

Strategy formulation is the process of developing an action plan to achieve organizational goals, often using tools like SWOT analysis and the five forces model.

Question 11

Differentiate global strategy from multidomestic strategy for a business wanting to compete abroad. Discuss the advantages and disadvantages of each strategy.

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Question 12

Explain the differences between standing and single-use plans and describe when each type might be used.

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Question 13

A multidomestic company identifies a risk that regulations in some national markets will likely change over time. Such changes could impact product design and distribution in each market and have varying impacts on the company's financial success. What technique would best address the possible impacts of this risk when formulating strategic plans?
A)standard operating procedure planning
B)single-use planning
C)SWOT analysis
D)vertical integration
E)scenario planning

Accepted Answer

Scenario planning is a technique used to anticipate and prepare for possible future changes by considering various potential scenarios and their impacts, making it suitable for addressing regulatory changes in different markets.

Question 14

Explain the purpose of Michael Porter's five forces model. List the five factors that Porter identifies as major threats and describe their impacts.

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Question 15

Planning is an essential activity in any organization. Discuss the four primary benefits of planning.

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Question 16

According to Henri Fayol, effective plans should have the qualities of unity, continuity, accuracy, and flexibility. Describe each quality in the context of planning and provide an example where the lack of that quality would be a problem for an organization.

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Question 17

José is launching a management consulting business. What three steps would you recommend to José as he embarks on business planning?

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Question 18

What is a SWOT analysis? What might a SWOT analysis of your educational institution reveal?

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Question 19

A ________ is a type of strategic alliance characterized by the creation of a new organization where ownership is shared by two or more companies.
A)licensing agreement
B)franchising agreement
C)joint venture
D)vertical integration
E)wholly owned subsidiary

Accepted Answer

A joint venture is a strategic alliance where two or more companies create a new entity and share ownership.

Question 20

When employees buy into a corporate vision and model their behavior on an executive who compels them to undertake the hard work necessary to achieve big goals, the executive is exhibiting effective
A)strategic leadership.
B)functional-level planning.
C)vertical integration.
D)strategic alliance.
E)risk taking.

Accepted Answer

Strategic leadership involves inspiring and motivating employees to work towards a common goal. The executive in the question is doing this by compelling employees to undertake the hard work necessary to achieve big goals.

Quiz 8: The Manager As a Planner and Strategist