CHAPTER 1

Question 1

The formulation of organizational objectives, competitive scopes, and action plans for gaining advantage.

Answer 1

STRATEGY

Question 2

The plan that changes incrementally due to environmental changes.

Answer 2

EMERGENT STRATEGY

Question 3

The formulated plan.

Answer 3

INTENDED STRATEGY

Question 4

The implemented plan.

Answer 4

REALIZED STRATEGY

Question 5

Strategy that is deemed inappropriate due to changing circumstances.

Answer 5

DISCARDED STRATEGY

Question 6

2 strategic types:

Answer 6

1. CORPORATE STRATEGIES
2. BUSINESS STRATEGIES

Question 7

3 corporate strategy options:

Answer 7

1. RESTRUCTURING
2. GROWTH
3. STABILITY

Question 8

4 restructuring options:

Answer 8

1. TURNAROUND
2. DIVESTITURE
3. LIQUIDATION
4. BANKRUPTCY

Question 9

An attempt to increase the viability of an organization.

Answer 9

TURNAROUND STRATEGY (OR RETRENCHMENT STRATEGY)

Question 10

The sale of a division or part of an organization.

Answer 10

DIVESTITURE

Question 11

The termination of a business and the sale of its assets.

Answer 11

LIQUIDATION

Question 12

A formal procedure in which an appointed trustee in bankruptcy takes possession of a business’ assets and disposes of them in an orderly fashion.

Answer 12

BANKRUPTCY

Question 13

3 ways growth can be achieved:

Answer 13

1. INCREMENTALLY
2. INTERNATIONALLY
3. MERGERS AND ACQUISITION

Question 14

Attained by expanding the client base, increasing the products or services, changing the distribution networks, or using technology.

Answer 14

INCREMENTAL GROWTH

Question 15

Attained by seeking new customers or markets by expanding internationally.

Answer 15

INTERNATIONAL GROWTH

Question 16

The purchase of one company by another.

Answer 16

ACQUISITION

Question 17

Two organizations combine resources and become one.

Answer 17

MERGER

Question 18

Maintaining status quo or temporary strategy until environmental conditions are more favorable for growth.

Answer 18

STABILITY STRATEGY

Question 19

Corporate-wide plans used to manage and control various units that exist within an organization.

Answer 19

CORPORATE STRATEGY

Question 20

Plans to build a competitive focus in one line of business.

Answer 20

BUSINESS STRATEGY

Question 21

Describes the organization’s future direction, performance targets, and approaches to achieve the targets.

Answer 21

STRATEGIC PLAN

Question 22

7 steps in strategic planning:

Answer 22

1. ESTABLISH THE MISSION, VISION, AND VALUES
2. DEVELOP OBJECTIVES
3. ANALYZE THE EXTERNAL ENVIRONMENT
4. IDENTIFY THE COMPETITIVE ADVANTAGE
5. DETERMINE THE COMPETITIVE POSITION
6. IMPLEMENT THE STRATEGY
7. EVALUATE THE PERFORMANCE

Question 23

An articulation of the purpose of the organization and the value it creates for customers.

Answer 23

MISSION STATEMENT

Question 24

Defines an organization’s long-term goals uniting the organization’s efforts.

Answer 24

VISION STATEMENT

Question 25

The basic beliefs that govern individual and group behavior in an organization.

Answer 25

VALUES

Question 26

The characteristics of a firm that enable it to earn higher rates of profit than its competitors.

Answer 26

COMPETITIVE ADVANTAGE

Question 27

A complex combination of people and processes that represent the firm’s capacity to exploit resources that have been specially integrated to achieve a desired result.

Answer 27

CAPABILITIES

Question 28

4 criteria for a sustained competitive advantage:

Answer 28

1. VALUABLE
2. RARE
3. INIMITABLE
4. ORGANIZED

Question 29

Resources and capabilities that serve as a firm’s competitive advantage.

Answer 29

CORE COMPETENCIES

Question 30

The ability to adapt and renew competencies in accordance with changing business environment.

Answer 30

DYNAMIC CAPABILITIES

Question 31

A statement of the fundamental benefits of the products or services being offered in the marketplace.

Answer 31

VALUE PROPOSITION

Question 32

The process by which a strategy is put into action.

Answer 32

STRATEGY IMPLEMENTATION

Question 33

The steps or activities necessary to accomplish a goal.

Answer 33

PROGRAM

Question 34

The steps required to get a job done.

Answer 34

PROCEDURES