Question 1

The set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as:
A) competitive advantage.
B) strategic planning.
C) strategic management.
D) a SWOT analysis.
E) a strategy.

Accepted Answer

Strategic management involves the entire process of formulating, implementing, and evaluating strategies to achieve organizational goals. This includes analyzing the external and internal environment, setting objectives, formulating strategies, implementing and executing the strategies, and evaluating the outcomes. Competitive advantage, strategic planning, SWOT analysis, and strategy are all important components of strategic management, but they are not the same as strategic management itself.

Question 2

__________-levelstrategy pertains to the major functional departments within the business unit.
A) Operational
B) Corporate
C) National
D) Business
E) Functional

Accepted Answer

Functional-level strategy pertains to the major functional departments within the business unit, such as marketing, finance, human resources, and operations. It involves developing strategies specific to each department to achieve the overall business unit's objectives. Therefore, option E, functional, is the correct answer.

Question 3

To achieve competitive advantage, companies should develop strategies that:
A) target specific customers.
B) sprovide synergy.
C) focus on core competencies.
D) create value.
E) all of these.

Accepted Answer

All of these strategies are important for achieving competitive advantage. Targeting specific customers allows for a more tailored approach and can lead to higher customer satisfaction and loyalty. Providing synergy through coordinated efforts and shared resources can lead to cost savings and a stronger overall performance. Focusing on core competencies allows companies to excel in areas where they have unique strengths and can create a competitive edge. Creating value through product differentiation, cost leadership, or other means can justify premium prices and attract customers. Therefore, companies should develop strategies that combine these elements to achieve a sustainable competitive advantage.

Question 4

Ford's decision to completely redesign its Ford Taurus can be classified as a __________ strategy.
A) corporate-level
B) business-level
C) functional-level
D) retrenchment
E) portfolio

Accepted Answer

Ford's decision to redesign its Ford Taurus is related to the business-level strategy, which focuses on how a company competes within a particular market or industry. Redesigning the Taurus is part of Ford's effort to improve its competitiveness in the sedan segment of the automotive industry.

Question 5

For successful execution, alignment of everyone in the organization must occur.

Accepted Answer

Alignment of everyone in the organization is crucial for successful execution of plans and achieving organizational goals. It ensures that everyone is working towards the same objectives with clarity and focus. When there is alignment, communication and collaboration become easier, and the likelihood of conflict and confusion reduces. Therefore, it is vital for leaders to communicate their vision clearly and ensure that everyone in the organization understands their roles, responsibilities, and how their work contributes to the overall objectives.

Question 6

When Coca-Cola introduced Surge, a new citrus soft drink, what type of strategy was being pursued?
A) Functional-level
B) Multidomestic
C) Corporate-level
D) Glocalization
E) Business-level

Accepted Answer

The introduction of a new product (Surge) is a business-level strategy, as it involves decisions on the specific products offered and how they are marketed to target customers.

Question 7

A business-level strategy is concerned with which of the following questions?
A) What business are we in?
B) How do we compete?
C) How do we support the functional-level strategy?
D) Where do we market our products?
E) Should we promote from within?

Accepted Answer

A business-level strategy is focused on how a company competes in a particular industry or market segment. It involves making choices and allocating resources to achieve a sustainable competitive advantage. The other options are more related to other levels of strategy or operational decisions.

Question 8

Sarah owns a clothing boutique. Her focus on operational efficiency enables her to keep costs low compared to other clothing stores in her area. Sarah's expertise on operational efficiency is an example of which element of competitive advantage?
A) Targeting customers
B) Building synergy
C) Delivering value
D) Exploiting core competencies
E) All of these

Accepted Answer

Sarah's expertise on operational efficiency is a core competency, which is the unique capability or expertise that sets a business apart from competitors. By exploiting this core competency, Sarah is able to keep costs low and create a competitive advantage. The other elements listed (targeting customers, building synergy, delivering value) are also important aspects of creating a competitive advantage, but they are not directly related to Sarah's expertise on operational efficiency.

Question 9

Managers help their companies create value by devising strategies that __________and __________.
A) attain synergy; target customers
B) target customers; exploit core competencies
C) exploit core competencies; attain synergy
D) attain synergy; expose external opportunities and threats
E) expose internal strengths and weaknesses; target customers

Accepted Answer

Managers create value by devising strategies that exploit core competencies (what a company does best) and attain synergy (where the whole is greater than the sum of its parts), allowing the company to operate more effectively and efficiently.

Question 10

__________ can be defined as the combination of benefits received and costs paid by the customer.
A) Organizational benefits
B) Value
C) Competitive advantage
D) Synergy
E) Core competence

Accepted Answer

Value is defined as the combination of benefits received and costs paid by the customer. Organizational benefits refer to the benefits accrued by an organization as a result of its operations, while competitive advantage refers to the advantage a company has over its competitors. Synergy refers to the combined effect of two or more entities being greater than the sum of their individual effects, and core competence refers to the unique strengths and capabilities of a company that give it a competitive advantage.

Question 11

The plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals is known as a(n):
A) goal.
B) objective.
C) mission.
D) vision.
E) strategy.

Accepted Answer

The definition given in the question aligns with the concept of a strategy. A goal or objective is a specific target that the organization aims to achieve. A mission is a statement of the company's purpose and reason for existence, while a vision is a future-oriented description of what the organization hopes to achieve. Therefore, the most suitable option is E - strategy.

Question 12

Which of the following pertains to the organization as a whole and the combination of business units and product lines that makes up the corporate entity?
A) Business-level strategy
B) Functional-level strategy
C) Corporate-level strategy
D) Operational-level strategy
E) Competitive-level strategy

Accepted Answer

Corporate-level strategy pertains to the overall direction and scope of the entire organization, including the various business units and product lines that make up the corporate entity. Business-level strategy focuses on individual business units, functional-level strategy pertains to specific functions within the organization, operational-level strategy deals with day-to-day operations, and competitive-level strategy focuses on competition within a specific industry.

Question 13

In strategy execution, leadership is the ability to influence people to adopt the new behaviors needed for putting the strategy into action.

Accepted Answer

Leadership is a critical component in strategy execution as it involves motivating and inspiring individuals to change their behavior and work towards achieving the organization's goals. It requires the ability to communicate a clear vision, set expectations, delegate responsibilities, and provide support and guidance to the team.

Question 14

When Philip Morris, the tobacco giant, bought Kraft Foods Group, Inc., it was pursuing a __________ strategy.
A) corporate-level
B) business-level
C) functional-level
D) multidomestic
E) glocalization

Accepted Answer

When a company acquires another company in a different industry, it is pursuing a corporate-level strategy. This acquisition involved a tobacco company buying a food company, indicating a move by Philip Morris to diversify its holdings and expand its business across different industries.

Question 15

The condition that exists when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as:
A) a core competence.
B) synergy.
C) value.
D) a business-level strategy.
E) competitive advantage.

Accepted Answer

Synergy refers to the phenomenon where the interaction between different parts of an organization creates a joint effect that is greater than the sum of the parts acting alone. This is often the result of effective collaboration and coordination between different functional areas, leading to improved performance and outcomes. Synergy can be a key source of competitive advantage for organizations, as it allows them to achieve more than they would be able to on their own.

Question 16

Sears' decision to sell off much of its financial services division is an example of a __________ strategy.
A) corporate-level
B) business-level
C) functional-level
D) glocalization
E) stability

Accepted Answer

Sears' decision to sell off much of its financial services division is an example of a corporate-level strategy, as it involves making changes to the overall company structure and direction rather than a specific business unit or function.

Question 17

When AT&T decided to buy MediaOne, a cable company, it was pursuing a(n) __________ strategy.
A) functional-level
B) internal growth
C) multidomestic
D) corporate-level
E) business-level

Accepted Answer

The decision to buy MediaOne, a cable company, involves corporate-level strategy, which concerns the overall scope of the organization and the way it manages its various businesses and units. AT&T's acquisition of MediaOne is an example of vertical integration, where the company seeks to strengthen its position in the value chain by acquiring a key supplier or distributor. This move also reflects a growth strategy, as AT&T aims to expand into new markets and generate greater revenue and profitability.

Question 18

The Internet and information technology has made it easier for many companies to find ways to distinguish themselves from their competitors.

Accepted Answer

The answer of The Internet and information technology has made...

Question 19

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of which element of competitive advantage?
A) Identifying internal strengths and weaknesses
B) Targeting customers
C) Exploiting core competencies
D) Building synergy
E) Delivering value

Accepted Answer

Building synergy refers to the combination of the strengths of two or more entities to achieve a greater outcome than what could be accomplished individually. In this case, the merger of Sunshine Systems and RTD Enterprises resulted in increased collaboration and cost reduction, leading to increased revenues in both areas. Therefore, building synergy is the best choice.

Question 20

Candid communication is one of the primary tools that managers must use for effective strategy execution.

Accepted Answer

Candid communication is important in ensuring that expectations are clear and feedback is given in a timely manner, which can help to align employees and teams towards strategic goals. Without candid communication, teams may not fully understand their roles or performance expectations, which can lead to confusion and suboptimal outcomes.

Quiz 8: Strategy Formulation and Execution

The set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as:

__________-levelstrategy pertains to the major functional departments within the business unit.

To achieve competitive advantage, companies should develop strategies that:

Ford's decision to completely redesign its Ford Taurus can be classified as a __________ strategy.

For successful execution, alignment of everyone in the organization must occur.

When Coca-Cola introduced Surge, a new citrus soft drink, what type of strategy was being pursued?

A business-level strategy is concerned with which of the following questions?

Sarah owns a clothing boutique. Her focus on operational efficiency enables her to keep costs low compared to other clothing stores in her area. Sarah's expertise on operational efficiency is an example of which element of competitive advantage?

Managers help their companies create value by devising strategies that and .

__________ can be defined as the combination of benefits received and costs paid by the customer.

The plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals is known as a(n) :

Which of the following pertains to the organization as a whole and the combination of business units and product lines that makes up the corporate entity?

In strategy execution, leadership is the ability to influence people to adopt the new behaviors needed for putting the strategy into action.

When Philip Morris, the tobacco giant, bought Kraft Foods Group, Inc., it was pursuing a __________ strategy.

The condition that exists when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as:

Sears' decision to sell off much of its financial services division is an example of a __________ strategy.

When AT&T decided to buy MediaOne, a cable company, it was pursuing a(n) __________ strategy.

The Internet and information technology has made it easier for many companies to find ways to distinguish themselves from their competitors.

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of which element of competitive advantage?

Candid communication is one of the primary tools that managers must use for effective strategy execution.