Question 1

The stage of strategic management that involves the planning and decision making which then lead to the establishment of organisational goals is known as strategy implementation.

Accepted Answer

The stage of strategic management that involves the planning and decision making leading to the establishment of organizational goals is known as strategy formulation. Strategy implementation is the stage of putting the formulated strategies into action.

Question 2

The combination of benefits received and costs paid by the customer is referred to as value.

Accepted Answer

This statement is true. Value is determined by the benefits received by the customer in relation to the costs paid.

Question 3

An organisation's core competency is something the organisation does equally,if not better,than its competitors.

Accepted Answer

False

Question 4

The SWOT analysis framework assesses the strengths,weaknesses,opportunities and threats that affect organisational performance.

Accepted Answer

The SWOT analysis framework indeed assesses the strengths, weaknesses, opportunities, and threats that affect organisational performance.

Question 5

Coles Supermarkets and Target are divisions of Coles Ltd.It is correct to state that Coles Ltd managers would formulate the company's corporate-level strategies,while the manager of Coles Supermarkets and Target would be responsible for business-level strategies.

Accepted Answer

Corporate-level strategies are formulated by top-level managers of the parent company, while business-level strategies are formulated by managers of individual divisions or subsidiaries. Therefore, it is correct to state that Coles Ltd managers would formulate the company's corporate-level strategies, while the manager of Coles Supermarkets and Target would be responsible for business-level strategies.

Question 6

When an organisation has resources and capabilities that provide it with a distinctive edge for meeting customer or client needs in the marketplace,they are said to have a competitive advantage.

Accepted Answer

This statement is true. A competitive advantage is a factor that allows an organization to outperform its competitors in meeting customer or client needs in the marketplace. It can be achieved through having unique resources, capabilities, or strategies that are difficult for competitors to copy or imitate.

Question 7

The three levels of strategy are business,corporate and global.

Accepted Answer

The three levels of strategy are corporate, business, and functional.

Question 8

The set of decisions and actions used to formulate and implement goals that will provide competitively superior fit between the organisation and its environment is known as strategic management.

Accepted Answer

This is the definition of strategic management and it is true.

Question 9

The stage of strategic management that involves the use of managerial and organisational tools to direct resources towards achieving strategic outcomes is known as strategy formulation.

Accepted Answer

Strategy formulation is the stage where goals and objectives are set, and strategies are created to achieve these goals, not the stage where resources are directed towards achieving strategic outcomes. The latter is referred to as strategy implementation.

Question 10

A transnational strategy seeks to achieve both global integration and national responsiveness.

Accepted Answer

A transnational strategy aims to balance global integration for efficiency and national responsiveness to cater to local needs and preferences. Therefore, this statement is true.

Question 11

The question 'How do we compete?' concerns corporate-level strategy.

Accepted Answer

The question 'How do we compete?' concerns business-level strategy, focusing on how a company competes within a particular industry or market. Corporate-level strategy addresses broader questions about what businesses to compete in and how to manage these businesses to create synergy and maximize shareholder value.

Question 12

Globalisation refers to the worldwide standardisation of product design and advertising.

Accepted Answer

The answer of Globalisation refers to the worldwide standardisation of...

Question 13

An organisation's opportunities and threats typically emanate from the internal environment.

Accepted Answer

An organisation's opportunities and threats typically emanate from the external environment. The internal environment consists of factors such as an organisation's culture, structure, and resources that can impact its ability to respond to external factors.

Question 14

Synergy is a condition that exists when organisation's parts interact to produce a joint effect that is greater than the sum of the parts acting alone.

Accepted Answer

Synergy refers to the cooperative interaction of multiple parts to achieve a greater common outcome than that which could be produced if the individual parts acted alone. Therefore, the statement that "Synergy is a condition that exists when an organisation's parts interact to produce a joint effect that is greater than the sum of the parts acting alone" is true.

Question 15

The question,'How do we compete?' concerns functional-level strategy.

Accepted Answer

The question, "How do we compete?" concerns business-level strategy, which focuses on how a business competes within a particular industry or market. Functional-level strategy, on the other hand, is concerned with how each part of the business (like marketing, R&D, finance) supports the overall business-level strategy.

Question 16

Situation analysis typically includes a search for SWOT (situations without threats).

Accepted Answer

Situation analysis typically includes a search for SWOT (Strengths, Weaknesses, Opportunities, and Threats), which means assessing both internal and external factors that can impact a business or organization. Therefore, there are no situations without threats in a thorough SWOT analysis.

Question 17

The question 'What business are we in?' concerns corporate-level strategy.

Accepted Answer

The question "What business are we in?" is typically asked at the corporate level, as it pertains to defining the scope and focus of the entire organization's business activities. As such, it is a key question in the formation of corporate-level strategy.

Question 18

Target customers have a defined set of needs and wants that the company has a strategy to serve more effectively than as competition.

Accepted Answer

This statement accurately describes the concept of target market segmentation, where a company identifies and caters to a specific group of customers with distinct needs and preferences. By understanding and fulfilling those needs better than their competitors, the company can gain a competitive advantage in the marketplace.

Question 19

Strategic decisions at the business level concern the amount of advertising,direction and extent of R & D,product changes,new product development,equipment and facilities,and expansion or contraction of product lines.

Accepted Answer

Strategic decisions at the business level do indeed involve all of these factors.

Question 20

A plan of action that describes resource allocation and activities for dealing with the environment,achieving a competitive advantage,and attaining goals is known as a strategy.

Accepted Answer

This statement accurately defines the term "strategy".

Quiz 8: Strategy Formulation and Implementation