Question 1

__________ is the process of allocating resources and putting strategies into action.

Accepted Answer

Strategy implementation is the process of allocating resources and putting strategies into action, ensuring that the strategic plans of an organization are effectively executed.

Question 2

The __________ is an environment that contains a few players who do not directly compete against one another.

Accepted Answer

An oligopoly environment is characterized by a market structure with a small number of firms that do not engage in direct competition, often because they differentiate their products or collude to set prices.

Question 3

Strategy provides the plan to allocate and organise resources with strategic __________ to focus an organisation's activities toward a unified and compelling goal.

Accepted Answer

Strategy involves the planning and organization of resources with a strategic intent, which focuses an organization's activities towards a unified and compelling goal.

Question 4

The essence of __________ is looking ahead, understanding the environment and the organisation, and effectively positioning the organisation for competitive advantage.

Accepted Answer

Strategic management involves looking ahead, understanding both the external environment and the organization itself, and positioning the organization for competitive advantage through planning and executing strategies.

Question 5

The environment in which there are at many organisations who compete directly with each other is known as a(n):

Accepted Answer

A hypercompetition environment is characterized by an intense level of competition where many organizations compete directly with each other, often through rapid and aggressive strategies to gain market share.

Question 6

From the perspective of Porter's five forces model, a(n) __________ is one in which intense rivalry already exists among competitors, there are substantial threats in terms of new competitors and substitute products, and suppliers and buyers are very powerful in bargaining over prices and quality.

Accepted Answer

An unattractive industry, according to Porter's five forces model, is characterized by high competition among existing firms, significant threats from new entrants and substitute products, and strong bargaining power of suppliers and buyers, all of which reduce profitability potential.

Question 7

Which of the following statements about the competitive nature of organisational environments is CORRECT?

Accepted Answer

In a hypercompetitive environment, there are several key players who compete directly with each other, making it highly competitive.

Question 8

A __________ is a plan for using resources consistent with __________.

Accepted Answer

A strategy is a plan for allocating resources in a way that aligns with the strategic intent of an organization, which refers to the overarching goals and direction the organization aims to achieve.

Question 9

Aircraft manufacturers such as Airbus and Boeing can be considered to operate in a(n) ____________.

Accepted Answer

Aircraft manufacturers like Airbus and Boeing operate in an oligopoly environment because there are only a few firms that dominate the market, making it difficult for new entrants to compete.

Question 10

Which one of the following statements provides an accurate description of the monopoly environment?

Accepted Answer

The answer of Which one of the following statements provides...

Question 11

According to Harvard scholar Michael Porter, the ultimate goal for any business should be ________.

Accepted Answer

According to Michael Porter, a leading authority on competitive strategy, the ultimate goal for any business should be superior profitability. This is because profitability is a key indicator of a company's overall health and its ability to deliver value to shareholders.

Question 12

Evolving customer demands and conditions in the general operating environment increasingly drive __________ in contemporary organisations.

Accepted Answer

Strategy is the correct answer because it is the process of developing a long-term plan to achieve a specific goal. It is driven by evolving customer demands and conditions in the general operating environment.

Question 13

_________ are those returns that exceed what an investor could earn by investing in alternative opportunities of equivalent risk.

Accepted Answer

Above-average returns are those that exceed what an investor could earn from other investments with similar risk, reflecting the ability to outperform the market or the relevant benchmark.

Question 14

Which of the following statements does NOT characterise the environment of hypercompetition?

Accepted Answer

Hypercompetition is characterized by rapid and aggressive moves and countermoves among firms, where competitive advantages are quickly eroded, making them anything but permanent.

Question 15

Successful strategic management occurs when organisations formulate and implement strategies that _______.

Accepted Answer

Achieving long-term, sustainable competitive advantage is the primary goal of successful strategic management.

Question 16

__________ refers to an organisation acquiring or developing an attribute or combination of attributes that allows it to outperform its rivals.

Accepted Answer

Competitive advantage refers to the unique attributes or capabilities that enable an organization to outperform its competitors. These attributes can be in the form of superior technology, brand, customer service, or cost efficiency, among others.

Question 17

Which of the following statements is FALSE?

Accepted Answer

The ultimate goal of any organization is typically to achieve a sustainable competitive advantage, not just a competitive advantage, as sustainability ensures long-term success and differentiation from competitors.

Question 18

__________ is a pattern in a stream of decisions an organisation takes.

Accepted Answer

Strategy is a pattern in a stream of decisions an organization takes, reflecting its objectives and the means to achieve them.

Question 19

In doing a SWOT analysis, the examination of threats within the industry and macroenvironments should address all of the following elements EXCEPT:

Accepted Answer

Threats in a SWOT analysis typically focus on external challenges that could harm the organization's performance, such as substitute products, new regulations, changing market tastes, and new competitors. An abundance of resources is generally considered an opportunity rather than a threat, as it implies more access to what the organization might need to operate and grow.

Question 20

An oligopoly environment can be described an environment:

Accepted Answer

An oligopoly is characterized by a small number of firms that dominate the market, leading to situations where these firms can earn excessive profits due to limited competition (A), are significantly influenced by the actions of their competitors due to the interdependent nature of their decisions (B), and can sustain long-term competitive advantages due to barriers to entry and the strategic interactions among the few existing firms (C).

Quiz 9: Strategic Management