Question 1

A(n) ____ strategy is a pattern of action that develops over time in an organization in the absence of missions and goals, or despite missions and goals.

Accepted Answer

Emergent strategy is developed over time based on the actions and decisions of an organization, without necessarily following predefined missions and goals. It is often a result of trial and error, experimentation, and learning from experience. Valid, deliberate, reliable, and synergistic strategies, on the other hand, are intentionally planned and executed based on specific goals and objectives.

Question 2

Fort Howard Paper Company has a cost-saving manufacturing process that its competitors cannot imitate. Fort Howard Paper enjoys

Accepted Answer

Since Fort Howard Paper Company has a manufacturing process that its competitors cannot imitate, this gives the company a sustained competitive advantage, which is a long-term advantage over its competitors. Therefore, the best choice is D.

Question 3

MySpace was the first big social network, but headlines about predator dangers created an opportunity for Facebook to arrive as the "safer" place to network. The safe perception of Facebook is a(n)

Accepted Answer

The answer of MySpace was the first big social network,...

Question 4

A(n) ____ strategy is a plan chosen and implemented to support specific goals, such as an increase of market share by 5 percent.

Accepted Answer

A deliberate strategy is a plan that is specifically chosen and implemented to achieve certain goals or objectives. In this case, the goal is to increase market share by 5 percent. Valid refers to whether the strategy is sound, reliable refers to whether it can be depended on, and emergent refers to a strategy that emerges over time rather than being planned from the outset. Synergistic refers to combining different components for greater effectiveness, which may or may not be relevant in this context. Therefore, B (deliberate) is the best choice for this question.

Question 5

Datril was introduced into the pain-reliever market as a product just like Tylenol. The makers of Datril used ____ to copy Tylenol's distinctive competence.

Accepted Answer

Strategic imitation involves studying and copying a competitor's distinctive competence, which is what the makers of Datril did with Tylenol. Product aping, tactical imitation, and product emulation are all similar concepts but do not fully capture the intentional and strategic nature of the copying in this case. Product integration is not relevant to the question.

Question 6

In a small community in Michigan, there are two funeral homes. One of them clips all pictures from the local paper, laminates them, and mails them to the person photographed with a brief note. This is an attempt to build positive relations with potential customers during happy times. If the other funeral home chose to make similar customer contact, the competitors would have

Accepted Answer

The other funeral home choosing to make similar customer contact would be an example of strategic imitation, as they are copying the actions of their competitor in an attempt to level the playing field and potentially gain similar benefits.

Question 7

When one disposable shaver maker introduced a three-blade shaver, the other introduced three blades within months. They repeated the process with four blades. This is an example of

Accepted Answer

The answer of When one disposable shaver maker introduced a...

Question 8

Chaparral Steel is so efficient in its steel production and casting processes that it is the only U.S. steel producer that regularly exports its products to Japan. This is an example of Chaparral Steel's

Accepted Answer

Chaparral Steel's efficiency in steel production and casting processes is a distinctive competence, which sets it apart from other U.S. steel producers and allows it to export its products to Japan regularly. The term distinctive competence refers to a company's unique strengths or abilities that give it a competitive advantage in the marketplace.

Question 9

In their book In Search of Excellence , Peters and Waterman found that successful companies "stuck to their knitting." In other words, they concentrated on those things that they do well. To which component of organizational strategy does this idea most directly relate?

Accepted Answer

"Sticking to their knitting" means focusing on the things that a company does well - this idea relates most directly to distinctive competence, which is the unique set of capabilities and strengths that give a company a competitive advantage. Organizational opportunity, resource deployment, and scope are all important components of organizational strategy, but they are not as directly related to this concept. Common strength may be related, but it is not the best choice because it does not capture the idea of focusing on a unique set of competencies.

Question 10

Google bought YouTube even though it operated at a loss. The business strategy for YouTube is ____.

Accepted Answer

The answer of Google bought YouTube even though it operated...

Question 11

Siemens corporate research earns on average 20 patents a day. The patents give Siemens ____.

Accepted Answer

Earning 20 patents a day gives Siemens a sustained competitive advantage as it allows them to protect their innovations and products from being copied by competitors, thus increasing their market share and profits.

Question 12

Starstruck Eateries has been very successful over the years by monitoring what successful restaurants in other cities are doing and copying them. This is known as

Accepted Answer

Strategic imitation refers to the practice of monitoring successful businesses and imitating their strategies to gain a competitive advantage. This is what Starstruck Eateries is doing by studying successful restaurants in other cities and copying their methods. Competitive parity refers to matching the competition in terms of quality and price, while competitive advantage refers to having a unique advantage over competitors. Distinctive competence and tactical differentiation refer to a company's unique abilities and differentiating themselves in the market, respectively, and are not relevant to the given scenario.

Question 13

The starting point in formulating strategies is usually

Accepted Answer

A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is typically the starting point in formulating strategies. This analysis helps to identify internal and external factors that can affect the organization's success and can inform strategic decisions.

Question 14

In environmental SWOT analysis, the external organizational position is analyzed according to its

Accepted Answer

Environmental SWOT analysis involves analyzing an organization's external position based on its opportunities and threats. This analysis helps organizations identify potential opportunities for growth and areas where they may face threats or challenges. It is important to conduct this analysis regularly to ensure that the organization is well-positioned to take advantage of new opportunities and adapt to changes in its environment.

Question 15

The Windows operating system is used in 90% of the world's PCs. Microsoft has an international

Accepted Answer

The fact that Windows operating system is used in 90% of the world's PCs shows Microsoft's international strength as it has a dominant market share globally.

Question 16

Trollbeads was the original maker of bead bracelets where beads are like individual charms and can be changed by the wearer. Trollbeads success let Pandora, Chamilia, and a slew of jewelry designers start making bead charms. Pandora used

Accepted Answer

While Pandora may have imitated Trollbeads' concept of bead bracelets, the fact that they strategically entered the market and positioned themselves as a high-end jewelry brand indicates that it was a deliberate and calculated move. They did not simply copy Trollbeads without a plan, but rather strategically imitated them in order to capture a specific segment of the market.

Question 17

AirTran Airlines (formerly ValuJet) has an airplane fleet that is older than those owned by other airlines. This is a potential ____ because it can give the company an image of poor quality or unsafe planes.

Accepted Answer

An older airplane fleet can be considered an organizational weakness because it may negatively affect the company's reputation and customer perception, suggesting issues with quality or safety.

Question 18

Many companies make bead jewelry, but Chamilia is the only one with a licensing agreement with Disney to make beads of Disney characters. The agreement is a(n) ____ for Chamilia.

Accepted Answer

The licensing agreement with Disney is a unique strength for Chamilia that sets them apart from other companies in the industry. They have a competitive advantage in being able to offer charm bracelets and beads featuring popular Disney characters that are not available from other bead jewelry makers.

Question 19

Smart cars are the only cars that can park perpendicular to the curb, which is especially beneficial in cities. This is an example of

Accepted Answer

Distinctive competence refers to a unique ability or advantage that a company has over its competitors. In this case, the ability to park perpendicular to the curb is a distinctive competence of smart cars, as it sets them apart from other cars in the market and provides a clear benefit to consumers in urban areas.

Question 20

Yahoo! has a business strategy that creates revenue by selling ads. Yahoo! uses a(n) ____ strategy.

Accepted Answer

Yahoo!'s business strategy of selling ads is a deliberate strategy, as it is a planned approach to generate revenue.

Quiz 7: Managing Strategy and Strategic Planning