Question 1

The distinct edge that sets an organization apart from its competitors is called a ________.

Accepted Answer

Competitive advantage is the distinct edge or advantage that an organization has over its competitors. This advantage could be in the form of cost advantage, differentiation, brand reputation, or any other factor that sets the organization apart in the marketplace. Core competency refers to the unique set of skills, knowledge, and capabilities that an organization possesses, while market capability refers to the ability of an organization to effectively operate and compete in a particular market. Proprietary advantage refers to the legal protection of a particular product, process, or technology that gives the organization exclusive rights to produce and distribute it.

Question 2

The BCG matrix evaluates businesses to identify which ones offer high potential and which ones drain organizational resources.

Accepted Answer

The BCG matrix is a tool used to evaluate businesses based on two dimensions: market growth rate and relative market share, with the aim of identifying which ones are high-potential and which ones are cash cows, dogs, or question marks. By doing so, it helps organizations allocate their resources effectively and prioritize their investments.

Question 3

Kiva Systems,manufacturer of robots used in flexible automation systems,demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.

Accepted Answer

Design thinking focuses on solving problems creatively and innovatively, which is demonstrated by Kiva Systems' approach to enhancing their robots' capabilities for specific tasks like disposing of used cardboard and assisting in gift wrapping, thereby improving efficiency in e-commerce warehouse fulfillment.

Question 4

In Michael Porter's five forces model of industry attractiveness,________ is determined by barriers to entry such as economies of scale and brand loyalty.

Accepted Answer

The threat of new entrants is determined by barriers to entry such as economies of scale and brand loyalty. This force considers the likelihood of new competitors entering the market and how difficult it would be for them to succeed.

Question 5

Design thinking gives organizations a competitive advantage by ________.

Accepted Answer

Design thinking is a problem-solving approach that involves empathizing with users, defining the problem, ideating potential solutions, prototyping, and testing to create new and innovative alternatives to problems. By adopting design thinking methodologies, organizations can come up with more effective and user-centric products and services, which can lead to a competitive advantage in the market.

Question 6

A competitive tool that can be applied to any organizational work problem by thinking outside existing alternatives and creating new alternatives is called ________.

Accepted Answer

Design thinking is a problem-solving approach that emphasizes creativity, empathy, and iterative design to come up with innovative solutions. It involves thinking outside existing alternatives and creating new ones. Design thinking can be applied to any organizational work problem and can help organizations gain a competitive advantage by developing new and unique solutions. Critical thinking is important in design thinking, but it is just one component of the process. Business strategy and competitive advantage are related to design thinking, but they are not the same thing.

Question 7

Successful ________ should reduce costs or increase revenue possibilities,or both.

Accepted Answer

The answer of Successful ________ should reduce costs or increase...

Question 8

When Air Canada acquired Canadian Airlines International,it was pursuing a strategy of growth by vertical integration.

Accepted Answer

The acquisition of Canadian Airlines International by Air Canada was a strategy of horizontal integration, as it involved the merger of two companies operating at the same level of the supply chain in the same industry.

Question 9

In Michael Porter's five forces model of industry attractiveness,________ is determined by the industry growth rate,increasing or falling demand,and product differences.

Accepted Answer

The intensity of current competitive rivalry within an industry is influenced by factors such as the industry growth rate, increasing or falling demand, and the degree of product differentiation. These elements affect how fiercely companies compete with one another.

Question 10

It is important for managers to learn how to use social media tools effectively to ________.

Accepted Answer

Social media can be used by managers to gather information about their industry, competitors, customers, and employees. By analyzing this information and using it to inform business strategy, a company can stay competitive and adapt to changing market conditions.

Question 11

In a short essay,discuss the strategies by which an organization grows.Give relevant examples to support your answer.

Accepted Answer

The answer of In a short essay,discuss the strategies by...

Question 12

A stability strategy may be appropriate in industries where there is rapid and dramatic change,as well as industries facing slow- or no-growth opportunities.

Accepted Answer

A stability strategy can be appropriate in industries where there is rapid and dramatic change, as it allows a company to maintain its current business and avoid taking risks that may not pay off in a rapidly changing market. It is also appropriate in industries facing slow- or no-growth opportunities, as it allows a company to continue to generate profits from its existing business without making significant investments in new products or markets.

Question 13

In Michael Porter's five forces model of industry attractiveness,________ is determined by the degree of supplier concentration and substitute inputs.

Accepted Answer

The bargaining power of suppliers is determined by the concentration of suppliers and their ability to provide substitute inputs. This force represents the degree of control that suppliers have over the prices and quality of inputs provided to the industry.

Question 14

An automobile manufacturer that decides to purchase a truck manufacturer and a recreational vehicles manufacturer is engaging in horizontal integration.

Accepted Answer

Horizontal integration refers to the strategy of acquiring or merging with competitors at the same stage of the production process to increase market share and reduce competition. In this scenario, the automobile manufacturer is acquiring companies in different markets (trucks and recreational vehicles), which is an example of conglomerate diversification.

Question 15

In a short essay,discuss the Boston Consulting Group (BCG)matrix and explain its usefulness in segmenting businesses.Include a discussion of the characteristics for each of the four categories based on the BCG matrix.

Accepted Answer

The answer of In a short essay,discuss the Boston Consulting...

Question 16

A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations,revitalize organizational resources and capabilities,and prepare to compete once again.

Accepted Answer

A retrenchment strategy focuses on reducing expenses and restructuring operations to improve financial stability and competitiveness in the short-term. It is typically used during times of crisis or when an organization is facing financial difficulties. The goal is to cut costs, improve efficiency, and streamline operations so that the company can weather the storm and emerge stronger in the long run.

Question 17

A renewal strategy is a corporate strategy designed to address organizational weaknesses that are leading to performance decline.

Accepted Answer

A renewal strategy is specifically focused on improving organizational weaknesses and turning around a decline in performance. Therefore, the statement is true.

Question 18

Changing costs and buyer loyalty are examples of strategic forces that determine the ________.

Accepted Answer

The answer of Changing costs and buyer loyalty are examples...

Question 19

A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.

Accepted Answer

A turnaround strategy is used specifically when an organization is in serious financial or operational distress, and aims to address the problems and turn the organization back towards success.

Question 20

Michael Porter proposes that some ________ are inherently more profitable than others.

Accepted Answer

Michael Porter's theory of competitive advantage suggests that some industries are inherently more profitable than others due to factors such as the level of competition, barriers to entry, and bargaining power of suppliers and buyers. Therefore, B (industries) is the best choice.

Quiz 10: Managing Strategically