Question 1

When United Technologies uses its profits from U.S.operations to develop new business opportunities in Europe,it is using

Accepted Answer

United Technologies is engaging in resource deployment by reinvesting profits from one region (U.S.) into developing new business opportunities in another region (Europe).

Question 2

The starting point in formulating strategies is usually

Accepted Answer

A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) allows a company to identify its internal strengths and weaknesses and external opportunities and threats which will help in formulating effective strategies. It provides a detailed analysis of the company's current situation and helps in identifying the areas where improvements are needed to achieve the company's goals.

Question 3

Abercrombie sells clothing for "tween" girls who are no longer little girls,but not quite teens either.Abercrombie and Fitch is the clothing line for older people.Abercrombie uses a(n)____ strategy.

Accepted Answer

Abercrombie uses a focus strategy by targeting a specific market segment, "tween" girls, with its clothing line.

Question 4

When Steve Jobs was CEO of Apple his charisma,marketing skills,and technical vision helped create a(n)____ at apple that made it the leader in mobile devices.

Accepted Answer

Steve Jobs' leadership and vision created a distinctive competency at Apple in terms of innovation, design, and user experience, which enabled them to become a leader in the mobile device market.

Question 5

The set of processes for determining the strategies that will be used by an organization are known as

Accepted Answer

The set of processes for determining the strategies that will be used by an organization are known as strategy formulation. Strategy formulation involves analyzing the external and internal factors influencing the organization, setting goals, and developing a plan of action to achieve those goals. SWOT analysis, GE grid analysis, and contingency planning are all tools that may be used during the strategy formulation process, but they are not the set of processes themselves. Strategy implementation is the process of putting the formulated strategy into action.

Question 6

The product life cycle

Accepted Answer

The product life cycle shows how sales volume changes over time for products, can help managers recognize that strategies need to evolve over time, begins when a new product or technology is first introduced, and generally consists of four stages. Therefore, all of these options are the best choice.

Question 7

There are a lot of companies that make decorative items for the home.Franklin Mint makes decorative gift items that it sells as collectibles.For instance,each decorator plate that is markets is given a number,and only a finite quantity of each plate is manufactured.By use of a(n)____ strategy,Franklin Mint distinguishes itself from other companies that make decorative items for the home.

Accepted Answer

By focusing on producing decorative gift items as collectibles with unique numbers and a finite quantity, Franklin Mint distinguishes itself from other companies in the market. This strategy allows them to appeal to collectors and position their products as valuable and exclusive.

Question 8

Iphone 3,4,4S,and 5 are all available for purchase.The iphone 3 is at which stage of the product life cycle?

Accepted Answer

The iPhone 3 is an older model that has been replaced by newer versions (4, 4S, 5), which means it is most likely in the decline stage of the product life cycle. This stage is characterized by decreasing sales and the eventual discontinuation of the product.

Question 9

Which of the following is a true statement?

Accepted Answer

Option A is a correct statement as corporate-level strategy involves managing different businesses under the same corporate umbrella. Option B is incorrect as business-level strategy is made by managers at a higher level of the organization hierarchy than corporate-level strategy. Option C is partially correct as business-level strategy involves selling a particular set of products/services in a particular market, but it also includes various other aspects such as pricing, distribution, and promotion. Therefore, Option D is the correct answer as all of the options are partially correct except option E, which is entirely incorrect.

Question 10

When Chelsea Milling Company produces Jiffy Mixes and sells them inexpensively without spending one cent on advertising,it is pursuing a(n)____ strategy.

Accepted Answer

Chelsea Milling Company is pursuing an overall cost leadership strategy, as they are able to produce and sell their Jiffy Mixes inexpensively without spending any money on advertising. This allows them to offer their products at a lower price than their competitors, which attracts price-sensitive customers and creates a cost advantage for the company.

Question 11

Goals can

Accepted Answer

Goals serve as a tool to guide and direct individuals towards achieving their objectives. By setting clear goals, individuals can improve their planning and decision-making capabilities. Furthermore, goals serve as a source of motivation for employees to work harder and improve their performance. Finally, goals provide a measure of success and help to control and evaluate progress towards achieving objectives. Therefore, all of the given options are correct.

Question 12

Many companies make bead jewelry,but Chamilia is the only one with a licensing agreement with Disney to make beads of Disney characters.The agreement is a(n)____ for Chamilia.

Accepted Answer

The licensing agreement with Disney provides Chamilia with a unique advantage over its competitors, making it a strength for the organization.

Question 13

Southwest Airlines does not charge to check up to two bags,which is different than most airlines in the US.Southwest is attempting to retain loyalty among the specific group of customers.This is part of a(n)____ strategy.

Accepted Answer

Southwest Airlines is attempting to retain loyalty among a specific group of customers by offering a differentiated service, which is not charging to check up to two bags. This is part of a focus strategy, which is a marketing strategy that focuses on a specific target market and develops products and services that meet the needs of that market.

Question 14

The component of strategy that indicates how the organization intends to allocate resources is

Accepted Answer

Resource deployment refers to the way an organization allocates and utilizes its resources, such as financial, human, and physical assets. This aspect of strategy is critical for achieving organizational objectives and gaining a competitive advantage in the market. A well-planned resource deployment strategy can maximize efficiency, minimize waste, and help the organization achieve its goals effectively.

Question 15

GE competes in industries ranging from medical devices,to financial services,to turbine engines.GE's mixed strategy is an example of

Accepted Answer

GE's mixed strategy, which involves competing in diverse industries, is an example of corporate-level strategy. This strategy focuses on the overall portfolio of businesses of the company and how they fit together to create value. In this case, GE uses a corporate-level strategy to manage its portfolio of businesses across different industries, seeking to optimize the overall growth and profitability of the company.

Question 16

Mercedes-Benz sells high quality automobiles at high prices.It uses a(n)

Accepted Answer

Mercedes-Benz's pricing and focus on luxury and quality indicate a differentiation strategy, where they differentiate their product through superior quality, design, and features to justify their high prices.

Question 17

____ is a useful framework for managers to use as they plot business strategy over time.

Accepted Answer

The product life cycle is a framework that provides managers with a useful tool for plotting business strategy over time. It describes the stages a product goes through from introduction, growth, maturity to decline, and each stage comes with unique challenges and opportunities that require distinct strategies. By understanding where your product falls in the life cycle, you can make informed decisions about pricing, marketing, distribution, and product improvements to stay competitive and achieve long-term success.

Question 18

MSNBC covers stories from a left of center political point of view.This appeals to viewers who want this point of view confirmed instead of informed.MSNBC use a(n)____ strategy.

Accepted Answer

MSNBC's strategy is focused on catering to viewers who have a left of center political point of view. They have a clear focus on this specific audience and their values, rather than trying to be all things to all people or differentiate their approach in the market.

Question 19

In the 1980s if you mentioned Harley-Davidson motorcycles to the average consumer,he or she immediately thought of motorcycle gangs¾more specifically,Hell's Angels.Now the price of a Harley can top $20,000 and there are riding clubs like Rubs (Rich urban riders)that include executives,attorneys,and doctors.The clubs are attracted to Harleys for the wild and free image.Harley Davidson's image is a(n)____ not easily imitated by competitors.

Accepted Answer

Harley Davidson's distinctive competence is their wild and free image that is associated with their brand. This image is not easily imitated by competitors, which gives them a competitive advantage in the motorcycle industry.

Question 20

Southwest Airlines gained access to the Atlanta market when it purchased Air Tran.This is an example of a change in Southwest's

Accepted Answer

The acquisition of Air Tran and entry into the Atlanta market represents a change in Southwest's scope, as it has expanded its reach into a new geographic market. This does not necessarily represent a change in resource deployment or their distinctive competencies, and there is no information provided to suggest a change in strategic goal or mission statement.

Quiz 3: Planning and Strategic Management

When United Technologies uses its profits from U.S.operations to develop new business opportunities in Europe,it is using

The starting point in formulating strategies is usually

Abercrombie sells clothing for "tween" girls who are no longer little girls,but not quite teens either.Abercrombie and Fitch is the clothing line for older people.Abercrombie uses a(n) ____ strategy.

When Steve Jobs was CEO of Apple his charisma,marketing skills,and technical vision helped create a(n) ____ at apple that made it the leader in mobile devices.