Question 1

________ is the ability to anticipate,envision,maintain flexibility,think strategically,and work with others in the organization to initiate changes that will create a viable and valuable future for the organization.

Accepted Answer

Strategic leadership involves the ability to anticipate and envision the future, maintain flexibility, think strategically, and work with others to initiate changes that will create a valuable future for the organization. Scientific management, on the other hand, is a management theory focused on improving efficiency and productivity through the use of scientific methods and standardized processes. Strategic competence and strategic flexibility are not commonly known or used terms in reference to leadership.

Question 2

How can an organization develop strategic flexibility?

Accepted Answer

Strategic flexibility refers to the ability of an organization to quickly adapt to changes in the environment and modify its strategies accordingly. One way to develop strategic flexibility is by having multiple alternatives when making strategic decisions. This allows the organization to quickly switch to a different strategy if the original one does not work out. Option A may lead to rigidity, as resources may be committed without considering changing circumstances. Option B is helpful in learning from past mistakes, but it does not necessarily lead to flexibility. Option C may limit the organization's ability to consider new and innovative ideas.

Question 3

Which of the following strategies involves a cost advantage or a differentiation advantage in a narrow segment?

Accepted Answer

The focus strategy involves targeting a narrow segment and achieving either a cost advantage or a differentiation advantage. The other options (flexibility strategy, functional strategy, leadership strategy) do not specifically relate to targeting a narrow segment with a competitive advantage.

Question 4

An organization that initially brings a product innovation to the market is known as the ________.

Accepted Answer

A first mover is an organization that introduces a product innovation to the market before any other organization, giving it a competitive advantage and potentially dominating the market. The other options do not relate to the concept of bringing a product innovation to the market.

Question 5

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

The answer of Kiva Systems,manufacturer of robots used in flexible...

Question 6

________ should be sold off or liquidated as they have low market share and low growth potential.

Accepted Answer

Dogs have low market share and low growth potential, therefore it is best to sell them off or liquidate them. The other categories, cash cows, stars, and question marks, may still have value and potential for growth.

Question 7

How can a cost leader use e-business to reduce costs?

Accepted Answer

Using Web-based inventory control systems that reduce storage costs is the best choice for a cost leader to use e-business to reduce costs. This would allow the company to efficiently manage inventory levels and reduce the amount of physical storage space needed, resulting in cost savings. Automating purchasing and payment systems, providing rapid online responses to service requests, and using Internet-based knowledge systems can also be beneficial for the company, but they may not have as direct of an impact on reducing costs as a Web-based inventory control system.

Question 8

Which of the following is an advantage of being a first mover?

Accepted Answer

The advantage of being a first mover is that it allows a company to begin building relationships with customers before competitors enter the market. This can help establish brand loyalty and a strong customer base, which can be difficult for later entrants to overcome. Option A is not always true, as being a first mover involves uncertainty about the adoption of the new technology or direction of the market. Option B and C are incorrect as being a first mover often entails higher development costs and significant financial and strategic risks.

Question 9

Which of the following is a competitive force under the five forces model?

Accepted Answer

The threat of substitutes is a competitive force under the five forces model. It refers to the availability of alternative products or services that can be used in place of the company’s offerings. This can pose a threat to the company’s market share and profitability. Past rivalry with competitors is also a competitive force, but it is not listed as an option in this question. Predictable changes in the market and vertical integration are not considered competitive forces, but rather external factors that can impact a company's operations.

Question 10

A cost leadership strategy requires a firm to ________.

Accepted Answer

A cost leadership strategy requires a firm to maintain the lowest cost structure in the industry, through efficient operations, economies of scale, and other cost-saving measures. This allows the firm to offer its products or services at a lower price than its competitors, and still earn a profit. Being unique in product offering, aiming at a cost advantage in a niche market, or matching its competition in terms of costs are not necessarily part of a cost leadership strategy.

Question 11

A firm that is "stuck in the middle" cannot develop ________.

Accepted Answer

Being "stuck in the middle" means that a firm is not able to fully commit to either a cost leadership or differentiation strategy. Therefore, the firm is unable to develop a clear advantage in either area.

Question 12

Who targets a narrow market segment with customized products?

Accepted Answer

Targeting a narrow market segment with customized products is the strategy of a focuser. A differentiator focuses on unique features to stand out in a broad market, while an integrator brings together different products or services to create a complete solution. A first mover is the first company to enter a new market or offer a new product or service.

Question 13

In an organization,the single independent businesses which formulate their own competitive strategies are known as ________.

Accepted Answer

Strategic business units are independent businesses within an organization that have their own strategy and are responsible for their own profits and losses.

Question 14

Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share.

Accepted Answer

Stars represent products or business units that have a high market share in a high-growth market. Heavy investment in stars will enable the company to take advantage of the market's growth and maintain its high market share. Therefore, heavy investment in stars is the best choice to achieve the stated objective.

Question 15

A company that competes by offering unique products that are widely valued by customers is following a ________.

Accepted Answer

A differentiation strategy is when a company sets itself apart from its competitors by offering unique products or services that are valued by customers. This can include things like superior quality, innovative features, or exceptional customer service. By offering something that competitors don't have, the company can attract customers and command a premium price for their products or services.

Question 16

An Internet-based knowledge management system that shortens customer response times would be an e-business technique that contributes to the competitive advantage of a ________.

Accepted Answer

Shortening customer response times through an internet-based knowledge management system can enhance a company's differentiation strategy by providing better customer service and satisfaction, leading to a competitive advantage.

Question 17

A ________ firm uses both online and traditional stand-alone locations.

Accepted Answer

A clicks-and-bricks firm uses both online and traditional stand-alone locations.

Question 18

Functional-level strategy directly supports the ________.

Accepted Answer

The answer of Functional-level strategy directly supports the ________.
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Question 19

________ is the ability to recognize major external changes,to quickly commit resources,and to recognize when a strategic decision is not working.

Accepted Answer

Strategic flexibility refers to the ability of a company to quickly adapt and respond to major external changes. This requires the ability to commit resources quickly and recognize when a strategic decision is not working. Strategic apprenticeship and strategic acceptability are not actual terms used in business strategy, while strategic leadership includes a broader set of skills beyond just flexibility.

Question 20

Managers should "milk" cash cows for as much as they can,limit any new investment in them,and use the large amounts of cash generated to invest in ________ and ________.

Accepted Answer

According to the BCG Matrix, a cash cow is a product/brand that has a high market share in a low-growth market. Therefore, it is suggested to use the generated cash to invest in products with high growth potential, which are the stars, and in the question marks, which are products with potential but uncertain success, to turn them into stars. Dogs, on the other hand, have low market share in a low-growth market and are generally recommended to be phased out or divested.

Quiz 9: Strategic Management