Chapter 1

Question 1

Action Plans

Answer 1

Specific lists of tasks that must be performed to implement goals and objectives

Question 2

Balanced Scorecard
(Four things it analyzes)

Answer 2

A planning tool used by managers to obtain a balanced view of an organization by analyzing performance in four areas: Financial, customer, internal processes, and knowledge and innovation to improve the formulation of strategy.

Question 3

Business-Level

Answer 3

Planning and strategy that occurs at the division or business unit level and concern developing and sustaining a competitive advantage for the goods and services a business produces.

Question 4

Corporate-Level

Answer 4

Planning and strategy that occurs at the top level of management and concern the selection of business in which a company should compete and the development and coordination of that portfolios of business.

Question 5

Concentration on a Single Industry*

Answer 5

Reinvesting a company’s profits to strengthen its competitive position in it’s current industry. (Corporate Level Strategy)

Question 6

Differentiation strategy*

Answer 6

Distinguishing an organization’s products from the products of competitors on dimensions such as product design, quality, or after sales services. (Business Level Strategy)

Question 7

Diversification*

Answer 7

Expanding a company’s business operations into a new industry in order to produce new kinds of valuable goods or services. (Corporate Level Strategy)

Question 8

Environmental Scan

Answer 8

A planning tool used by managers to collect information on the current macro environment and uses it to fore cash changes and trends that will in pance an organization’s performance in the future.

Question 9

Exporting

Answer 9

Making products at home and selling them abroad.

Question 10

Five Forces Model

Answer 10

A planning tool that assesses competitive forces in the external environment and clarifies where power lies by looking at the strength of an organization’s current competitive position and the strength of potential future positions.

Question 11

Focused Differentiation Strategy*

Answer 11

Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment. (Business Level Strategy)

Question 12

Focused Low-Cost Strategy*

Answer 12

Serving only one segment of the overall market and trying to be the lowest cost organization serving that segment. (Business Level Strategy)

Question 13

Force Field Analysis

Answer 13

A planning and decision making tool that evaluates the forces (positive and negative) that influence a plan or pending change.

Question 14

Functional-Level

Answer 14

Planning and strategy that occurs at the department or functional level and concern business processes and the value chain.

Question 15

Global Strategy*

Answer 15

Selling the same standardized product and using the same basic marketing approach in each national market. Corporate Level Strategy

Question 16

Goals

Answer 16

General statements that give the organization a broad sense of direction by addressing “how” the organization will accomplish its mission, vision, and values.

Question 17

Importing*

Answer 17

Selling products at home that are made abroad. Corporate Level Strategy

Question 18

Joint Venture

Answer 18

A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business.

Question 19

Licensing*

Answer 19

Allowing foreign organization to take charge of manufacturing and distributing a product in its country’s or world region in return for a negotiated fee. Corporate Level Strategy

Question 20

Low-Cost Strategy*

Answer 20

Driving the organizations cost down below the cost of it’s rivals. (Business Level Strategy)

Question 21

Mission Statement

Answer 21

A broad declaration of an organization’s purpose that identifies the organization’s products and customers and distinguished the organization from it’s competitors.

Question 21

Multidomestic Strategy*

Answer 21

Customizing products and marketing strategies to specific national conditions. Corporate Level Strategy

Question 22

Objectives

Answer 22

Specific statements that address “how” the organization will achieve it’s goals.

Question 23

PEST Analysis

Answer 23

A planning tool used by managers to identify external factors (Political, economic, social, and technological) that can change an organizations and defend against them to gain a competitive advantage.

Question 24

Related Diversification*

Answer 24

Entering a new business or industry to create a competitive advantage in one or more of an organization’s existing divisions or business. (Corporate Level Strategy)

Question 25

SMART

Answer 25

An acronym for the essential characteristics of goals and objectives. Specific, Measurable, Attainable, Realistic, and Time Bounded.

Question 26

Strategic Alliance*

Answer 26

A relationship between two or more parties to share their resources or expertise in pursuit of the same objectives while remaining independent. Corporate Level Strategy

Question 27

Strategy Formulation

Answer 27

The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals.

Question 28

Strategy

Answer 28

A cluster of related managerial decisions and actions to help an organization attain one or more goals.

Question 29

SWOT Anyalysis

Answer 29

A planning tool used by managers for the purpose of formulation corporate, business, and functional strategies. SWOT identifies strengths, weaknesses that are internal to an organization and opportunities and threats that are external to an organization.

Question 30

Synergy

Answer 30

Performance gains that result when individuals and departments coordinate their actions.

Question 31

Time Horizon

Answer 31

The intended duration of a plan.

Question 32

Unrelated Diversification*

Answer 32

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. (Corporate Level Strategy)

Question 33

Vertical Integration*

Answer 33

Expanding a company’s operations either backward into an industry that produces inputs for it’s products or forward into an industry that uses, distributes, or sells its products. (Corporate Level Strategy)

Question 34

Wholly Owned Foreign Subsidiary*

Answer 34

Production operations established in a foreign country independent of any local direct involvement. Corporate Level Strategy