Question 1

In an organization, the single independent businesses which formulate their own competitive strategies are known as ________.
A) strategic growth units
B) strategic business units
C) strategic profit units
D) service units

Accepted Answer

Strategic business units (SBUs) are independent businesses or divisions within an organization that formulate their own competitive strategies. They often have their own products, customers, and competitors, and are managed as separate entities within the larger organization. SBUs allow organizations to focus on different markets or customer segments, and tailor their strategies accordingly. Other options such as A) strategic growth units and C) strategic profit units are not commonly used terms in business management, and D) service units may refer to a specific department or function within an organization rather than an independent business.

Question 2

Discuss the corporate portfolio matrix and the Boston Consulting Group (BCG) matrix.

Accepted Answer

The answer of Discuss the corporate portfolio matrix and the...

Question 3

A cost leadership strategy requires a firm to ________.
A) maintain the lowest cost structure
B) maintain the lowest prices to its customers
C) aim at a cost advantage in a niche market
D) match its competition's prices

Accepted Answer

A cost leadership strategy requires a firm to maintain the lowest cost structure among all competitors. This can be achieved through various means such as efficient supply chain management, economies of scale, and streamlined production processes. With a lower cost structure, the firm can either pass on the savings to customers by offering lower prices or maintain a higher profit margin than competitors while charging the same price. However, maintaining the lowest prices to customers, aiming at a cost advantage in a niche market, or matching competitors' prices are not necessarily part of a cost leadership strategy.

Question 4

A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.

Accepted Answer

Horizontal integration involves merging with or acquiring competitors in the same industry to expand market share or reduce competition. Acquiring gasoline stations would be an example of vertical integration, where a company expands its operations by acquiring suppliers or distributors in the same industry.

Question 5

Which of the following is a competitive force under the five forces model?
A) past rivalry with competitors
B) bargaining power of distributors
C) vertical integration
D) threat of new entrants

Accepted Answer

The threat of new entrants is a competitive force because it increases competition within the industry and can potentially decrease profits for existing firms. Past rivalry with competitors is not a competitive force because it is a reflection of the industry's competitiveness rather than a force driving competition. The bargaining power of distributors and vertical integration are both aspects of the industry structure, but are not considered competitive forces in the context of the five forces model.

Question 6

When used to connect with customers or to connect employees with co-workers in other locations, social media ________.
A) provide a means for customers to order products online
B) create distractions that can keep employees from being productive
C) provide information for competitors that give them a competitive advantage
D) can create a competitive advantage

Accepted Answer

Social media can create a competitive advantage by allowing companies to engage with customers and employees in real-time, provide personalized service, and quickly respond to feedback or concerns. It can also be used for collaboration and knowledge-sharing among employees in different locations, leading to increased efficiency and innovation. While social media can be a distraction if not managed properly, it can also be a powerful tool for enhancing communication and building relationships within and outside of the organization.

Question 7

A stability strategy is an organizational strategy in which an organization maintains the status quo.

Accepted Answer

A stability strategy is defined as maintaining the current state of the organization, without any significant changes or growth. This can be an intentional strategy, especially if the organization is satisfied with its current market position and profitability, and wants to avoid the risks of expansion or diversification.

Question 8

List and discuss the different types of corporate strategies.

Accepted Answer

The answer of List and discuss the different types of...

Question 9

Discuss the methods by which an organization grows. Give relevant examples.

Accepted Answer

The answer of Discuss the methods by which an organization...

Question 10

A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.

Accepted Answer

A turnaround strategy is used when an organization is in serious trouble or facing financial distress. The aim of using this strategy is to bring the company back to profitability and sustain its growth.

Question 11

A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

Accepted Answer

A retrenchment strategy is a short-term approach used by an organization to cut back on expenses and focus on core operations in order to stabilize the company, revitalize resources and capabilities, and prepare to compete again in the future.

Question 12

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.
A) design thinking
B) inventory management
C) strategic flexibility
D) e-business strategies

Accepted Answer

Kiva Systems demonstrates the power of design thinking by "teaching" its robots to perform new tasks such as disposing of used cardboard and assisting in gift wrapping.

Question 13

People's Airlines offers what it calls "no frills" flights: no reserved seating, no snacks or meals on flights, small planes that fly to smaller airports away from the city centers. People's Airlines is likely following a ________ strategy.
A) differentiation
B) focus
C) quality
D) cost leadership

Accepted Answer

People's Airlines is following a cost leadership strategy by cutting out additional services and amenities in order to offer low prices.

Question 14

List and discuss the three levels of strategy that a large organization must develop.

Accepted Answer

The answer of List and discuss the three levels of...

Question 15

Bixler Corporation boasts that it has the fewest warranty claims in its industry. We can infer from this that ________.
A) Bixler's quality is a competitive advantage
B) Bixler has an ineffective TQM program
C) Bixler has employed design thinking in the development of its products
D) Bixler is using social media to promote its products

Accepted Answer

Bixler's low number of warranty claims suggests that its products are of high quality, which would give the company a competitive advantage in the market. It does not necessarily indicate anything about the effectiveness of Bixler's TQM program or the use of design thinking or social media.

Question 16

When the price of beef skyrockets, consumers switch to pork and chicken. This demonstrates ________.
A) the threat of new entrants
B) the threat of substitutes
C) the bargaining power of buyers
D) the bargaining power of suppliers

Accepted Answer

When consumers switch to pork and chicken due to the price increase of beef, it shows that pork and chicken are substitutes for beef. This is an example of the threat of substitutes, where customers have the power to choose alternatives to the product offered by the supplier.

Question 17

When one gas station lowers its price a penny, the station on the other corner of the intersection lowers its price, followed by the gas stations on the next block, and so on, until nearly every gas station in town has lowered its prices. This situation illustrates ________.
A) intense rivalry among competitors
B) a differentiation strategy
C) the treat of substitutes
D) a cost leadership strategy

Accepted Answer

The scenario described suggests that there is intense rivalry among competitors, as each gas station is trying to attract customers by lowering their prices in response to a competitor doing the same. This is an example of price competition, which is a common feature of industries with a large number of competitors selling similar products, such as the gas station industry.

Question 18

A ________ describes how a business will compete in its primary market.
A) mission statement
B) corporate strategy
C) competitive advantage
D) competitive strategy

Accepted Answer

A competitive strategy outlines how a business differentiates itself from competitors and how it plans to win market share.

Question 19

Stars, one of the four business groups in the BCG matrix, are characterized by low growth and high market share.

Accepted Answer

Stars are characterized by high growth and high market share.

Question 20

The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which ones drain organizational resources.

Accepted Answer

The BCG matrix is a tool used to evaluate an organization's various businesses and determine which ones have high growth potential and which ones are consuming organizational resources.

Quiz 9: Managing Strategy

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

Discuss the corporate portfolio matrix and the Boston Consulting Group (BCG) matrix.

A cost leadership strategy requires a firm to ________.

A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.

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

When used to connect with customers or to connect employees with co-workers in other locations, social media ________.

A stability strategy is an organizational strategy in which an organization maintains the status quo.

List and discuss the different types of corporate strategies.

Discuss the methods by which an organization grows. Give relevant examples.

A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.

A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

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.

People's Airlines offers what it calls "no frills" flights: no reserved seating, no snacks or meals on flights, small planes that fly to smaller airports away from the city centers. People's Airlines is likely following a ________ strategy.

List and discuss the three levels of strategy that a large organization must develop.

Bixler Corporation boasts that it has the fewest warranty claims in its industry. We can infer from this that ________.

When the price of beef skyrockets, consumers switch to pork and chicken. This demonstrates ________.

When one gas station lowers its price a penny, the station on the other corner of the intersection lowers its price, followed by the gas stations on the next block, and so on, until nearly every gas station in town has lowered its prices. This situation illustrates ________.

A ________ describes how a business will compete in its primary market.

Stars, one of the four business groups in the BCG matrix, are characterized by low growth and high market share.

The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which ones drain organizational resources.