Question 1

In general, a well-conceived strategy addresses three areas: distinctive competence, scope, and resource deployment.

Accepted Answer

A well-conceived strategy should clearly define the organization's distinctive competence, the scope of its operations, and how resources will be deployed to achieve its goals.

Question 2

Most organizations have a difficult time focusing on weaknesses.

Accepted Answer

It is often easier for organizations to focus on their strengths rather than their weaknesses. However, acknowledging and addressing weaknesses can ultimately lead to growth and improvement.

Question 3

The implementation stage focuses on what the strategy is.

Accepted Answer

The implementation stage focuses on how the strategy will be executed, not what the strategy is. The strategy should have already been developed during the planning stage.

Question 4

During the maturity stage of the product life cycle, sales volume for a product typically reaches its peak.

Accepted Answer

During the maturity stage, sales volume for the product typically reaches its peak, and competition in the market increases.

Question 5

Business - level strategy is the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets.

Accepted Answer

Business-level strategy focuses on how a company competes in a particular industry or market. It's about gaining competitive advantage in specific markets, rather than managing operations across several industries.

Question 6

The key to implementing business strategies is integrating different functions.

Accepted Answer

Integrating different functions helps to ensure that all parts of the business are working together to achieve the overall strategy. This includes functions such as marketing, finance, operations, and human resources. Without integration, there can be silos and conflicting priorities that hinder the success of the strategy.

Question 7

Strategic formulation is the set of processes involved in executing strategic plans.

Accepted Answer

Strategic formulation is the process of creating or developing strategic plans, while strategic implementation involves executing and putting those plans into action.

Question 8

Ugg makes footwear and accessories for men, women, and children. That is the company's resource deployment.

Accepted Answer

The answer of Ugg makes footwear and accessories for men,...

Question 9

Emergent strategies are ineffective and should be avoided.

Accepted Answer

Emergent strategies can be effective in dynamic and unpredictable environments, as they allow organizations to adapt and respond to changing situations. However, they must be balanced with deliberate, planned strategies to ensure consistency and alignment with long-term goals.

Question 10

The concept of product life cycle can be used to choose which strategy is appropriate for a given product at a particular point in time.

Accepted Answer

The product life cycle helps in understanding the various stages of a product's life and choosing the appropriate strategy for each of these stages. Hence, the statement is true.

Question 11

SWOT analysis determines the primary strategy, wages, operations, and tactics in an organization.

Accepted Answer

SWOT analysis is a tool used for analyzing the internal and external factors that impact an organization's performance. It helps identify strengths, weaknesses, opportunities, and threats. The strategies, wages, operations, and tactics of an organization may be influenced by a SWOT analysis, but they are not determined by it.

Question 12

The filter specifies the range of markets in which an organization will compete.

Accepted Answer

The filter refers to the criteria or strategic considerations a company uses to determine where it will compete, not the range itself. The range of markets is the outcome of applying the filter based on the company's goals, resources, and external opportunities.

Question 13

Manufacturing creates the organization's products or services.

Accepted Answer

Manufacturing is the process of producing goods or services by utilizing various resources, such as labor, machines, and materials, to transform raw materials into finished products or services.

Question 14

Ralston-Purina's products include a number of old standbys, but a large percentage of its revenues comes from products that did not exist five years ago. Ralston-Purina's approach represents a prospector strategy.

Accepted Answer

Ralston-Purina's focus on developing new products indicates a prospector strategy, which involves actively searching for new market opportunities and developing innovative products to meet changing customer needs.

Question 15

Chanel, Monte Blanc, and Allen Edmonds pursue an overall cost leadership strategy.

Accepted Answer

Chanel, Monte Blanc, and Allen Edmonds pursue a differentiation strategy, not an overall cost leadership strategy. They focus on providing high-end and differentiated products to their customers rather than competing on pricing.

Question 16

The function of accounting and finance in a business that is implementing a differentiation strategy is to control the flow of funds without discouraging the creativity needed to constantly develop new products and services to meet customer needs.

Accepted Answer

The differentiation strategy requires constant innovation and creativity to develop new products and services that meet the changing needs of customers. The accounting and finance function should support this strategy by controlling the flow of funds and resources, without stifling innovation or limiting opportunities for growth. This may involve developing new financial models or metrics to measure the success of innovative ideas and investments, while also ensuring that financial resources are allocated efficiently and effectively to support the development and launch of new products and services.

Question 17

An impulsive CEO can turn a deliberate strategy into an emergent strategy.

Accepted Answer

An impulsive CEO may make sudden changes to the planned strategy, causing it to become emergent. Emergent strategies are developed through a process of trial-and-error and continuous adaptation, as opposed to being pre-planned.

Question 18

Devising successful strategies is a simple task.

Accepted Answer

Devising successful strategies is a complex task that requires careful planning, analysis, and decision-making based on a variety of factors. It involves considering different options, assessing risks, and anticipating potential obstacles. Additionally, strategies must be regularly reviewed and adapted to changing circumstances to ensure continued success.

Question 19

Each business or set of businesses within an organization is frequently referred to as a star business unrelated, or SBU .

Accepted Answer

An SBU, or Strategic Business Unit, is a division or unit within an organization that operates like an independent business, with its own mission, objectives, and competitors, not necessarily "unrelated."

Question 20

In general, when the level of competitive rivalry, the power of suppliers and buyers, and the possibility of substitutes and new entrants are all low, an industry has relatively few opportunities and numerous threats.

Accepted Answer

If the level of competitive rivalry, power of suppliers and buyers, and possibility of substitutes and new entrants are all low, it suggests that the industry is relatively stable and may present few threats. However, it may also indicate limited opportunities for growth and innovation. Therefore, the statement in the question is false.

Quiz 7: Managing Strategy and Strategic Planning