Question 1

Competitive intelligence, SWOT analysis, forecasting, benchmarking, and Porter's five competitive forces are all tools that can be used to gather data and make projections to develop a grand strategy.

Accepted Answer

Competitive intelligence, SWOT analysis, forecasting, benchmarking, and Porter's five competitive forces are all commonly used tools for gathering data and making projections, which are then used to develop a comprehensive grand strategy.

Question 2

An organization's vision is its short-term goals.

Accepted Answer

An organization's vision is its long-term aspirations, while its short-term goals are typically outlined in its mission statement.

Question 3

To develop a grand strategy, you need to gather data and make projections, using the tools of competitive intelligence, SWOT analysis, forecasting, benchmarking, and Porter's five competitive forces.

Accepted Answer

To develop a grand strategy, data gathering and projections using competitive intelligence tools like SWOT analysis, forecasting, benchmarking, and Porter's five competitive forces are necessary.

Question 4

A forecast is a vision or projection of the future.

Accepted Answer

A forecast is a vision or projection of the future based on current and past data and trends.

Question 5

Competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.

Accepted Answer

Competitive intelligence is the process of collecting and analyzing information about competitors' activities, strengths, and weaknesses to gain a better understanding of the market and make informed strategic decisions. By anticipating their moves, companies can develop effective strategies to gain a competitive advantage.

Question 6

Recently Paul, the CEO of Stage Productions, felt the company's strategic plan is getting off track. Immediately he discussed this situation with the other members of the top management team and adjustments were made to correct the situation. To steer a strategic plan back on track, organizations should engage as few employees as possible and make the plan very specific, covering only the needed scenarios for the future.

Accepted Answer

To steer a strategic plan back on track, organizations should engage as many employees as possible and make the plan comprehensive and inclusive of all relevant scenarios for the future. A more collaborative and inclusive process is likely to result in greater buy-in and commitment from all employees, ultimately resulting in a more successful implementation of the plan.

Question 7

Organizational threats are an environmental factor that can hinder an organization's ability to achieve a competitive advantage.

Accepted Answer

Organizational threats refer to external factors such as economic downturns, changing market conditions, and increased competition that can impede an organization's success in achieving a competitive advantage.

Question 8

Often strategy implementation means overcoming resistance by people who feel the plans threaten their influence or livelihood.

Accepted Answer

This statement is true. Resistance to change is a natural human response, and when new strategies threaten the status quo or people's roles within an organization, they may resist implementation. Overcoming this resistance through effective communication, engagement, and addressing concerns is a key part of successful strategy implementation.

Question 9

Once Instructor Services, an IT company, analyzes the company's strengths, weaknesses, opportunities, and threats, managers will be able to do forecasting to develop a long-term strategy.

Accepted Answer

Conducting a SWOT analysis helps the company to identify its strengths, weaknesses, opportunities, and threats, and this analysis can be used by managers to develop a long-term strategy.

Question 10

At a time when many retailers are offering men's suits at cheap prices and reducing their quality to compete, Suave Clothing has continued to live by the tagline "Quality never goes out of style," believing that offering a quality product to the customer always will mean success. It has also aggressively focused on ways to reduce costs. Suave clothing is utilizing a stability strategy.

Accepted Answer

The company's focus on offering quality products and cost reduction aligns with a stability strategy.

Question 11

Sandra and her partner are involved in the time-consuming, yet vital process of choosing among different strategies and altering them to best fit the long-term goals of their preschool for the next three years. This process is known as goals formulation.

Accepted Answer

Strategy formulation is the process of choosing among different strategies and altering them to best fit the organization's needs.

Question 12

Mona, the CEO of an auto dealership, told her managers that "based on the high sales for this year, the forecast for next year looks very good." So after completing their budget for the upcoming year, based on the forecast that predicts continued strong sales, Mona and her managers are developing a plan in case sales drop unexpectedly. This type of planning is known as contingency planning.

Accepted Answer

The given statement describes the process of contingency planning, which involves developing a plan in case of unexpected events or changes in the forecast.

Question 13

A stability strategy involves little or no significant change.

Accepted Answer

A stability strategy focuses on maintaining the current business operations, market position, and products/services, without introducing significant change or innovation.

Question 14

The top management of Finest Papers has set a strategic goal of cutting costs over the next three years. Upper management is researching possible roadblocks within the company's structure and culture and if the right people and control systems are available to execute their strategic plans to accomplish this goal. This is an example of strategy implementation.

Accepted Answer

The scenario describes the process of implementing a strategic goal of cutting costs, by researching possible roadblocks and ensuring the availability of necessary people and control systems. This is an example of strategy implementation.

Question 15

The upper-level managers of Brooms International, a 120-year-old broom and mop manufacturing company, realize that their production facility is outdated. Therefore, they know their competitors, with newer production plants, have gained a competitive advantage over their organization. This is an example of an external weakness.

Accepted Answer

Does your organization have obsolete technology? Outdated facilities? A shaky marketing operation? These are examples of organizational weaknesses,the drawbacks that hinder an organization in executing strategies in pursuit of its mission.

Question 16

Instructor Services, a technology training company, realizes that with the closing of factories in the area, there will be a large increase in the number of individuals needing computer training to prepare for the workplace. This is an opportunity for Instructor Services.

Accepted Answer

The increased demand for computer training presents an opportunity for Instructor Services to provide their services and meet the needs of the community.

Question 17

Organizations use the three types of forecasting to make decisions regarding the future: trend analysis, scenario development, and contingency planning.

Accepted Answer

The two types of forecasting are trend analysis and contingency planning.

Question 18

The managers of a small bakery decided to do a SWOT analysis to study the strengths and weaknesses within the organization and the external environment so they can better formulate strategies in pursuit of the firm's mission. This defines the benefits of a SWOT analysis.

Accepted Answer

A SWOT analysis is designed to assess both the internal and external factors affecting a company's performance and can help managers identify areas of strength, weakness, opportunity, and potential threats. By doing so, managers can develop better strategies to achieve the company's objectives and fulfill its mission. Therefore, the statement is true.

Question 19

A growth strategy involves the increase in employee knowledge.

Accepted Answer

A growth strategy is a grand strategy that involves expansion,as in sales revenues,market share,number of employees,or number of customers or (for nonprofits)clients served.

Question 20

A defensive strategy is a grand strategy that involves reduction in the organization's efforts.

Accepted Answer

A defensive strategy,or a retrenchment strategy,is a grand strategy that involves reduction in the organization's efforts.

Quiz 6: Strategic Management: How Exceptional Managers Realize a Grand Design