ch 7 review Flashcards
Which is the best question to ask to start the strategic management process?
“what is our mission?”
The ability of a business firm to consistently outperform its rivals is called ____________.
competitive advantage
General Electric is a complex conglomerate that owns many firms operating in very different industries. The strategies pursued for each individual firm within GE umbrella would best be called ___________ level strategies.
business
An organization that is downsizing by cutting staff to reduce costs can be described as pursuing a ___________ strategy.
retrenchment
When you buy music downloads online, the firm selling them to you is engaging in which type of e-business strategy?
B2C
The alliance that link firms in supply chain management relationships are examples of how businesses can use ______________ strategies.
cooperation
Among the global strategies that international businesses might pursue, the _____________ strategy most directly tries to customize products to fit local needs and cultures in different countries.
multidomestic
If Google’s top management were to announce that the firm was going to buy Federal Express, this would be a strategy of growth by ____________.
diversification
_____________ are special strengths that an organization has or does exceptionally well and that help it outperform competitors.
core competencies
A ___________ in the BCG Matrix would have a high market share in a low-growth market.
cash cow
In Porter’s five forces model, which of the following conditions is most favorable from the standpoint of industry attractiveness?
low bargaining power of suppliers
The two questions Porter asks to identify the correct competive strategy for a business or product line are: 1- What is the market scope? 2- What is the ________?
source of competitive advantage
When Coke and Pepsi spend millions on ads trying to convince customers that their products are unique, they are pursuing what Porter calls a ____________ strategy.
differentiation
A firm that wants to compete with rivals by selling a very-low-priced product in a broad market would need to successfully implement a ____________ strategy.
cost leadership
In addition to focusing on strategy implementation and strategic control, the responsibility for strategic leadership of an organization involves success with ______________.
the process of continuous change
