Question 1

In general,a well-conceived strategy addresses three areas: distinctive competence,scope,and resource deployment.

Accepted Answer

A well-conceived strategy typically addresses distinctive competence (what sets the company apart), scope (the markets, products or services the company will focus on), and resource deployment (how the company will allocate and use its resources to achieve its goals).

Question 2

Chanel,Monte Blanc,and Allen Edmonds pursue an overall cost leadership strategy.

Accepted Answer

Chanel, Monte Blanc, and Allen Edmonds are known for pursuing a differentiation strategy, which focuses on creating unique products with high perceived value and charging premium prices. An overall cost leadership strategy, on the other hand, aims to provide products or services at the lowest possible cost in the industry.

Question 3

Most organizations have a difficult time focusing on weaknesses.

Accepted Answer

It is often easier for organizations to focus on their strengths and overlook their weaknesses. However, it is important for organizations to address their weaknesses in order to improve and stay competitive.

Question 4

During the maturity stage of the product life cycle,sales volume for a product typically reaches its peak.

Accepted Answer

During the maturity stage, sales volume for a product typically reaches its peak before eventually leveling off or declining in the decline stage.

Question 5

Strategic formulation is the set of processes involved in executing strategic plans.

Accepted Answer

Strategic formulation is the process of developing and creating strategies, whereas strategic implementation is the process of executing or implementing those strategies. Therefore, the statement is false.

Question 6

Business-level strategy is the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets.

Accepted Answer

Business-level strategy focuses on how a company competes in a particular industry or market. It's about gaining competitive advantage in specific markets, rather than managing operations across several industries.

Question 7

The function of accounting and finance in a business that is implementing a differentiation strategy is to control the flow of funds without discouraging the creativity needed to constantly develop new products and services to meet customer needs.

Accepted Answer

Accounting and finance have a critical role in implementing a differentiation strategy by enabling the company to invest in research and development, marketing, and other areas that contribute to product differentiation. They must ensure that the company has sufficient funds to support its growth and expansion while also managing costs and risks. At the same time, they need to provide flexibility and support for the creativity and innovation necessary for product differentiation. By controlling the flow of funds, accounting and finance can help the company achieve its strategic goals without limiting its ability to innovate and adapt to market changes.

Question 8

The key to implementing business strategies is integrating different functions.

Accepted Answer

Different functions within a business, such as marketing, finance, and operations, need to work together to effectively implement a business strategy. Integration allows for a cohesive approach and ensures that all aspects of the strategy are aligned and working towards the same goals.

Question 9

Devising successful strategies is a simple task.

Accepted Answer

Devising successful strategies is not a simple task. It requires research, analysis, creativity, and implementation skills to develop strategies that are effective and efficient. Successful strategies also require ongoing evaluation and adaptation to changing circumstances, making it a complex process.

Question 10

SWOT analysis determines the primary strategy,wages,operations,and tactics in an organization.

Accepted Answer

SWOT analysis is a strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. It does not directly determine primary strategy, wages, operations, and tactics but helps in making informed decisions regarding them.

Question 11

The concept of product life cycle can be used to choose which strategy is appropriate for a given product at a particular point in time.

Accepted Answer

The product life cycle concept involves the stages of introduction, growth, maturity, and decline that a product may go through over time. Each stage requires a different strategy to maximize profits and maintain market share. Therefore, understanding where a product is in its life cycle can help determine the most appropriate strategy to adopt.

Question 12

An impulsive CEO can turn a deliberate strategy into an emergent strategy.

Accepted Answer

An impulsive CEO may take sudden decisions that are not part of the deliberate strategy, leading to the emergence of a new strategy. This happens when the CEO acts on instinct, receives new information, or takes advantage of unexpected opportunities. However, this emergent strategy may not be as effective as a deliberate one, as it may lack proper planning, evaluation, and alignment with the company's goals and values.

Question 13

Ralston-Purina's products include a number of old standbys,but a large percentage of its revenues comes from products that did not exist five years ago.Ralston-Purina's approach represents a prospector strategy.

Accepted Answer

Ralston-Purina's focus on new products and exploration of new markets suggests a prospector strategy, where the company seeks out new opportunities and creates new products.

Question 14

Ugg makes footwear and accessories for men,women,and children.That is the company's resource deployment.

Accepted Answer

The statement describes the product offerings of Ugg, not the company's resource deployment. Resource deployment refers to how a company allocates its resources, such as finances, personnel, and materials, to achieve its objectives.

Question 15

Manufacturing creates the organization's products or services.

Accepted Answer

Manufacturing is the process of transforming raw materials into finished goods or products, or providing services through the use of machinery, labor, and other resources. Therefore, manufacturing is directly responsible for creating an organization's products or services.

Question 16

In general,when the level of competitive rivalry,the power of suppliers and buyers,and the possibility of substitutes and new entrants are all low,an industry has relatively few opportunities and numerous threats.

Accepted Answer

When the level of competitive rivalry, the power of suppliers and buyers, and the possibility of substitutes and new entrants are all low, an industry has relatively few threats and more opportunities. This is because there are no strong competitors, suppliers, buyers or substitutes to pose a threat, and it is easier for new entrants to establish themselves in the market. Therefore, the statement is false.

Question 17

The filter specifies the range of markets in which an organization will compete.

Accepted Answer

The filter refers to the criteria or strategic considerations a company uses to determine where it will compete, not the range itself. The range of markets is the outcome of applying the filter based on the company's goals, resources, and external opportunities.

Question 18

Emergent strategies are ineffective and should be avoided.

Accepted Answer

Emergent strategies are actually valuable in certain situations, such as when there is great uncertainty or when market conditions are rapidly changing. These strategies emerge from experimentation and adaptation rather than being predetermined, and they can be more flexible and responsive than preconceived plans. While they may not always be successful, emergent strategies can be important for innovation and growth.

Question 19

The implementation stage focuses on what the strategy is.

Accepted Answer

The implementation stage focuses on how the strategy will be executed or put into action.

Question 20

Each business or set of businesses within an organization is frequently referred to as a star business unrelated,or SBU.

Accepted Answer

An SBU, or Strategic Business Unit, is a division or unit within an organization that operates like an independent business, with its own mission, objectives, and competitors, not necessarily "unrelated."

Quiz 7: Managing Strategy and Strategic Planning