Question 1

When an organization is analyzing its labor supply, it is studying its ________.

Accepted Answer

The answer of When an organization is analyzing its labor...

Question 2

________ are positive trends in the external environment.

Accepted Answer

Opportunities are positive trends or changes in the external environment that can be leveraged by an organization to achieve its goals. Strengths and weaknesses refer to internal factors, while threats are negative trends in the external environment.

Question 3

The final step in the strategic management process allows an organization to understand the ________.

Accepted Answer

The final step in the strategic management process is the evaluation and control stage, which allows an organization to measure the effectiveness of the strategies used. This helps the organization to identify any necessary adjustments or improvements that need to be made to ensure success in achieving its goals.

Question 4

The first four steps of the strategic management process describe the strategic ________ that must take place in an organization.

Accepted Answer

The first four steps of the strategic management process are planning, which involves analyzing the organization's current situation, setting goals and objectives, identifying strategies to achieve those goals and objectives and evaluating the resources required to implement the strategies. Therefore, the correct answer is C) planning. The other options are part of the later stages of the strategic management process.

Question 5

What are the three main types of corporate strategies?

Accepted Answer

The three main types of corporate strategies are growth, stability, and renewal. Growth strategies involve expanding the company's business, while stability strategies involve maintaining the current business without significant changes. Renewal strategies involve changing or revitalizing the company's current operations. Choice A is incorrect as turnaround is a type of renewal strategy. Choice C is incorrect as cost leadership and differentiation are examples of competitive strategies, not corporate strategies. Choice D is incorrect as differentiation is a type of competitive strategy, not a corporate strategy.

Question 6

Helen, the owner of Crazy Cupcakes, is conducting a SWOT analysis of her company to find out where she can improve her business and to identify possibilities for expansion.Which of the following represents an opportunity for expansion?

Accepted Answer

The trend toward personalized cupcakes for a variety of occasions represents an opportunity for expansion, as Crazy Cupcakes can capitalize on this trend by offering customized cupcakes for different events and occasions. This can attract more customers and increase sales potential.

Question 7

A study of the external environment allows a manager to understand the ________ and ________ for the organization.

Accepted Answer

A study of the external environment allows a manager to understand the opportunities and threats for the organization. Strengths and weaknesses are internal factors.

Question 8

A ________ describes the rationale of how a company is going to make money.

Accepted Answer

A business model outlines the plan for generating revenue and earning profits in a sustainable way. It involves identifying the target customers, defining the value proposition, determining the distribution channels, and analyzing the cost structure. A functional strategy refers to a specific plan of action for a functional area, such as marketing or finance. A SWOT analysis is a tool for assessing the internal strengths and weaknesses, as well as the external opportunities and threats, of a business. A core competency represents the unique strengths and capabilities of a company that give it a competitive advantage in the marketplace.

Question 9

The combined external and internal analyses are called ________.

Accepted Answer

SWOT analysis combines both internal and external analyses to identify a company's strengths, weaknesses, opportunities, and threats.

Question 10

Top-level managers are responsible for ________ strategies.

Accepted Answer

Top-level managers are responsible for developing corporate strategies that determine the overall direction of the organization. Competitive strategies are the responsibility of middle-level managers, and functional strategies are the responsibility of lower-level managers. Differentiation strategies are a type of competitive strategy and are not specific to top-level managers. Therefore, the best choice is B) corporate.

Question 11

If a bank estimates the capabilities of its employees who provide customer service prior to implementing a new training program designed to change their method of providing customer service, it is ________.

Accepted Answer

By estimating the capabilities of its employees, the bank is conducting an internal analysis to assess its current resources and capabilities.

Question 12

Defining the organizational mission forces managers to identify ________.

Accepted Answer

Defining the organizational mission helps managers to identify what the organization is in business to do, its purpose, and its overall goals. It does not necessarily involve analyzing labor supply, competition, or pending legislation.

Question 13

The third step in strategic management process is related to the analysis of the ________.

Accepted Answer

The third step in the strategic management process involves analyzing the internal environment to assess the organization's resources, capabilities, and core competencies.

Question 14

A ________ strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses.

Accepted Answer

Corporate strategy is concerned with determining the overall direction of the company and the businesses it wants to be in, as well as deciding on the allocation of resources and the desired level of diversification. Competitive strategy focuses on how the company will compete in a specific industry, functional strategy concerns the specific activities and functions within a business unit, and focus strategy is a subset of competitive strategy that targets a specific market niche.

Question 15

Managers do an external analysis so that they know about ________.

Accepted Answer

Managers do an external analysis to understand what the competition is doing, what opportunities and threats exist in the external environment, and how to position the organization to succeed in that environment. They may also examine industry trends, government regulations, and other factors that could impact the organization's performance. While understanding the firm's beliefs, resources, and core competencies are also important, they are generally viewed as internal factors that are evaluated through a different analysis (such as a SWOT analysis).

Question 16

The major value-creating capabilities of the organization are known as its ________.

Accepted Answer

Core competencies refer to the unique capabilities and resources that give an organization a competitive advantage in the marketplace. They are the skills, technologies, processes, and knowledge that an organization possesses and can leverage to create value for customers and generate revenue. Strengths are a more general term that can refer to any aspect of an organization that contributes to its success, while opportunities and resources are external factors that may impact an organization but are not necessarily value-creating capabilities.

Question 17

Bella Vista Clothing targets teenage girls with a range of affordable ready-to-wear clothing.The company is opening two new outlets, as sales have been excellent.Which of the following represents a strength for the company?

Accepted Answer

The fact that Bella Vista Clothing's in-house designers have a knack for identifying and popularizing fashion trends is a significant strength for the company as it ensures that their products are up-to-date, relevant, and in demand. This gives them a competitive edge over other clothing brands.

Question 18

An organization's financial, physical, human, and intangible assets are known as its ________.

Accepted Answer

Resources refer to an organization's financial, physical, human, and intangible assets that enable it to perform its business activities and achieve its goals. Capabilities, on the other hand, refer to an organization's ability to use its resources effectively and efficiently to accomplish its objectives. Opportunities are external factors that an organization can leverage to achieve its objectives, and core competencies are the unique strengths that differentiate an organization from its competitors.

Question 19

Computer peripherals provider Ascent plans to enter a new market in another country.Which of the following represents a threat for Ascent?

Accepted Answer

The laws in the new country not favoring foreign businesses is a threat for Ascent and the company will have to plan its entry carefully in order to comply with the regulations and operate successfully in the market. Options A, B, and D represent challenges or areas of improvement for Ascent, but they do not represent direct threats to entering the new market.

Question 20

Lower-level managers are responsible for ________ strategies.

Accepted Answer

Lower-level managers are responsible for implementing the functional-level strategies that support the broader corporate and business strategies developed by higher-level managers. These strategies include decisions related to specific functional areas, such as finance, marketing, and operations. Stability and growth strategies are typically developed at higher levels in the organization, while lower-level managers focus on execution and implementation.

Quiz 9: Strategic Management