Ch 6

Question 1

Corporate-Level Plan

Answer 1

Top management’s decisions pertaining to the organization’s mission, overall strategy, and structure.

Question 2

Corporate-Level Strategy

Answer 2

A plan that indicates in which industries and national markets an organization intends to compete.

Question 3

Business-Level Plan

Answer 3

Divisional managers’ decisions pertaining to divisions long-term goals overall strategy, and structure

Question 4

Business-Level Strategy

Answer 4

outlines the specific methods a division, business unit, or organization will use to compete effectively against its rivals in an industry

Question 5

Functional-Level Plan

Answer 5

Functional managers’ decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals

Question 6

Functional-level strategy

Answer 6

A plan of action to improve the ability of each of an organization’s functions to perform its task-specific activities in ways that add value to an organization’s goods and services.

Question 7

Standing Plans

Answer 7

Use in programmed decision situations

Question 8

Single-Use Plans

Answer 8

Developed for a one-time, non-programmed issue

Question 9

Policies

Answer 9

general guides to action.

Question 10

Rules

Answer 10

formal written specific guides to action.

Question 11

Standard operating procedures (SOP)

Answer 11

specify an exact series of actions to follow

Question 12

Programs

Answer 12

integrated plans achieving specific goals.

Question 13

Project

Answer 13

specific action plans to complete programs.

Question 14

Mission Statement

Answer 14

A broad declaration of an organization’s purpose that identifies the organization’s products and customers and distinguishes the organization from its competitors

Question 15

Strategic leadership

Answer 15

the ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates

Question 16

Low-Cost Strategy

Answer 16

Driving the organization’s total costs down below the total costs of rivals

Question 17

Differentiation

Answer 17

Distinguishing an organization’s products from the products of competitors on dimensions such as product design, quality, or after-sales service

Question 18

Focused low-cost strategy

Answer 18

Serving only one segment of the overall market and trying to be the lowest-cost organization serving that segment.

Question 19

Focused differentiation strategy

Answer 19

Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment.

Question 20

Concentration on a Single Industry

Answer 20

reinvesting a company’s profits to strengthen its competitive position in its current industry

Question 21

Vertical Integration

Answer 21

expanding a company’s operations either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products

Question 22

Diversification

Answer 22

expanding a company’s business operations into a new industry in order to produce new kinds of valuable goods or services

Question 23

Related Diversification

Answer 23

entering a new business or industry to create a competitive advantage in one or more of an organization’s existing divisions or businesses

Question 24

Unrelated diversification

Answer 24

entering a new industry or buying a company in a new industry that is not related in any way to an organization’s current businesses or industries

Question 25

Strategic alliance

Answer 25

managers pool resources with those of a foreign company

Question 26

Joint venture

Answer 26

strategic alliance among companies that agree to jointly establish and share the ownership of a new business

Question 27

Wholly Owned Foreign Subsidiary

Answer 27

managers invest in establishing production operations in a foreign country independent of any local direct involvement