Question 1

Which of the following does environmental analysis examine?
A)Competitors
B)Board of directors
C)Organizational climate
D)Organizational culture
E)Social capital

Accepted Answer

Successful strategic management depends on an accurate and thorough evaluation of the competitive environment and macroenvironment. The important activities in an environmental analysis include competitor analysis.

Question 2

Resources are viewed as a company's core capabilities when they are _____.
A)common
B)imitable
C)intangible
D)tangible
E)rare

Accepted Answer

If resources are difficult to imitate (a firm has exclusive rights to technological applications), they provide a source of competitive advantage.

Question 3

In a SWOT analysis, an example of an organization's strength would be
A)geographical expansion.
B)new technology.
C)new entrants.
D)skilled management.
E)imitable resources.

Accepted Answer

A SWOT analysis is a comparison of a company's strengths, weaknesses, opportunities, and threats that helps executives formulate strategy. Strengths and weaknesses refer to internal resources. Skilled management is an example of a strength to a company.

Question 4

A clear and concise expression of what an organization does, whom it does it for, its basic goods or services, and its values is known as its _____.
A)vision
B)mission
C)objective
D)policy
E)business definition

Accepted Answer

The mission is a clear and concise expression of the basic purpose of an organization. It describes what the organization does, whom it does it for, its basic good or service, and its values.

Question 5

A _____ strategy involves adding new businesses that produce related products or are involved in related markets and activities.
A)concentration
B)differentiation
C)concentric diversification
D)conglomerate diversification
E)lateral diversification

Accepted Answer

Concentric diversification is a strategy used to add new businesses that produce related products or are involved in related markets and activities. Because the businesses are related, the products, markets, technologies, or capabilities used in one business can be transferred to another.

Question 6

_____ are inputs to production that can be accumulated over time to enhance the performance of a firm.
A)Strategies
B)Core capabilities
C)Resources
D)Benchmarks
E)Patents

Accepted Answer

Resources are inputs to production that can be accumulated over time to enhance the performance of a firm. Resources can take many forms, but they tend to fall into two broad categories: tangible and intangible assets.

Question 7

Which of the following best describes strategic vision?
A)A set of procedures for translating broad strategic goals and plans into specific goals and plans
B)A narrative that describes a particular set of future conditions
C)A set of practices aimed at discovering and harnessing an organization's intellectual resources
D)The long-term direction and strategic intent of a company
E)The action by which a business competes in a particular industry or market

Accepted Answer

The strategic vision points to the future; it provides a perspective on where the organization is headed and what it can become. Ideally, the vision statement clarifies the long-term direction of the company and its strategic intent.

Question 8

Intangible assets include
A)real estate.
B)production facilities.
C)company reputation.
D)raw materials.
E)inventory.

Accepted Answer

Tangible assets include real estate, production facilities, raw materials, and so on; intangible assets include company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience.

Question 9

Which of the following is a major component of an internal analysis?
A)Marketing audits
B)Political activity
C)Competitor analysis
D)Industry growth
E)Social issues

Accepted Answer

An internal analysis provides strategic decision makers with an inventory of an organization's existing functions, skills, and resources, as well as its overall performance level. It includes financial analysis, marketing audit, operations analysis, other internal resource analyses, and human resource assessment.

Question 10

"To fly what others only imagine" is an example of a _____.
A)strategic vision statement
B)mission statement
C)low-cost strategy
D)scenario
E)domain selection

Accepted Answer

The strategic vision points to the future; it provides a perspective on where an organization is headed and what it can become. Ideally, the vision statement clarifies the long-term direction of a company and its strategic intent.

Question 11

Overnight Delivery has a unique software program that tracks packages in real time and maps every step of their journey. Such a technology, which gives the company an edge over competitors, would be called a _____.
A)strategic advantage alliance
B)core capability
C)better business benefit
D)competitive benchmark
E)comprehensive advantage

Accepted Answer

When resources are valuable, rare, inimitable, and organized, they can be viewed as a company's core capabilities. A core capability is a unique skill and/or knowledge an organization possesses that gives it an edge over competitors.

Question 12

Farouk's Falafels, a chain of Middle Eastern restaurants, periodically compares its quality and service levels to other successful restaurants in order to continually improve its own performance. This practice is known as _____.
A)maneuvering
B)strategic mapping
C)benchmarking
D)corporate espionage
E)competitive intelligence

Accepted Answer

To assess and improve performance, some companies, such as Farouk's in the scenario, use benchmarking-the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies.

Question 13

A _____ strategy focuses on a single business competing in a single industry.
A)concentration
B)vertical integration
C)concentric diversification
D)conglomerate diversification
E)focal integration

Accepted Answer

A concentration strategy focuses on a single business competing in a single industry. In the food retailing industry, Kroger, Safeway, and A&P all pursue concentration strategies.

Question 14

Which of the following is true of an effective vision statement?
A)It clearly describes an organization as it currently operates.
B)It inspires the members of an organization.
C)It is an estimation of the profits of an organization.
D)It clarifies the short-term direction of a company.
E)It is a statement strictly based on financial targets.

Accepted Answer

The most effective vision statements inspire organization members. They offer a worthwhile target for the entire organization to work together to achieve. Often these statements are not strictly financial because financial targets alone may not motivate all organization members.

Question 15

Which of the following corporate strategies is being employed when a large grocery store purchases a dairy to supply all of the store-brand milk, yogurt, butter, and cheese?
A)Differentiation strategy
B)Conglomerate diversification
C)Vertical integration
D)Low-cost strategy
E)Functional strategy

Accepted Answer

A vertical integration strategy involves expanding the domain of the organization into supply channels or to distributors. Vertical integration generally is used to eliminate uncertainties and reduce costs associated with suppliers or distributors.

Question 16

The process of assessing how well one company's basic functions and skills compare to those of another company or set of companies is known as _____.
A)benchmarking
B)a situational analysis
C)strategic planning
D)operational planning
E)a SWOT analysis

Accepted Answer

To assess and improve performance, some companies use benchmarking, the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies.

Question 17

A fast-food restaurant chain, specializing in fried chicken, adds fried shrimp to its menu. Based on the given information, which of the following corporate strategies is the restaurant following?
A)Conglomerate diversification
B)Differentiation strategy
C)Vertical integration
D)Concentration strategy
E)Lateral diversification

Accepted Answer

A concentration strategy focuses on a single business (fast-food retail) competing in a single industry (fast-food retail). In the food retailing industry, Kroger, Safeway, and A&P all pursue concentration strategies.

Question 18

Tangible assets include
A)company reputation.
B)goodwill.
C)technical knowledge.
D)real estate.
E)company culture.

Accepted Answer

Tangible assets include real estate, production facilities, raw materials, and so on; intangible assets include company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience.

Question 19

Strategic goals evolve from an organization's
A)core capabilities.
B)suppliers and customers.
C)tactical plans.
D)mission and vision.
E)stakeholders.

Accepted Answer

Strategic goals evolve from the mission and vision of an organization. The chief executive officer of an organization, with the input and approval of the board of directors, establishes the mission, vision, and major strategic goals.

Question 20

A technique for assessing an organization's internal and external environments in order to formulate strategy is called a
A)BCG Matrix.
B)SWOT analysis.
C)benchmarking strategy.
D)diversification exercise.
E)functional strategy.

Accepted Answer

Assessing an organization's strengths, weaknesses, opportunities, and threats to help executives formulate strategy is normally referred to as a SWOT analysis. Strengths and weaknesses refer to internal resources. Opportunities and threats arise in the macroenvironment and competitive environment.

Quiz 4: Planning and Strategic Management

Which of the following does environmental analysis examine?

Resources are viewed as a company's core capabilities when they are _____.

In a SWOT analysis, an example of an organization's strength would be

A clear and concise expression of what an organization does, whom it does it for, its basic goods or services, and its values is known as its _____.

A _____ strategy involves adding new businesses that produce related products or are involved in related markets and activities.

_____ are inputs to production that can be accumulated over time to enhance the performance of a firm.

Which of the following best describes strategic vision?

Intangible assets include

Which of the following is a major component of an internal analysis?

"To fly what others only imagine" is an example of a _____.

Overnight Delivery has a unique software program that tracks packages in real time and maps every step of their journey. Such a technology, which gives the company an edge over competitors, would be called a _____.

Farouk's Falafels, a chain of Middle Eastern restaurants, periodically compares its quality and service levels to other successful restaurants in order to continually improve its own performance. This practice is known as _____.

A _____ strategy focuses on a single business competing in a single industry.

Which of the following is true of an effective vision statement?

Which of the following corporate strategies is being employed when a large grocery store purchases a dairy to supply all of the store-brand milk, yogurt, butter, and cheese?

The process of assessing how well one company's basic functions and skills compare to those of another company or set of companies is known as _____.

A fast-food restaurant chain, specializing in fried chicken, adds fried shrimp to its menu. Based on the given information, which of the following corporate strategies is the restaurant following?

Tangible assets include

Strategic goals evolve from an organization's

A technique for assessing an organization's internal and external environments in order to formulate strategy is called a