Chapter 4

Question 1

Business strategy

Answer 1

The major actions by which a business competes in a particular industry or market

Question 2

Concentration

Answer 2

A strategy employed for an organization that operates a single business and competes in a single industry

Question 3

Concentric diversification

Answer 3

A strategy used to add new businesses that produce related products or are involved in related markets and activities

Question 4

Conglomerate diversification

Answer 4

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities

Question 5

Core competence

Answer 5

A unique skill and/or knowledge an organization possesses that gives it an edge over competitors

Question 6

Corporate strategy

Answer 6

The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities

Question 7

Differentiation strategy

Answer 7

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

Question 8

Functional strategy

Answer 8

Strategies implemented by each functional area of the organization to support the organization’s business strategy

Question 9

Goal

Answer 9

A target or end that management desires to reach

Question 10

Low-cost strategy

Answer 10

A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product

Question 11

Mission

Answer 11

An organization’s basic purpose and scope of operations

Question 12

Operational planning

Answer 12

The process of identifying the specific procedures and processes required at lower levels of the organization

Question 13

Plans

Answer 13

The actions or means managers intend to use to achieve organizational goals

Question 14

Resources

Answer 14

Inputs to a system that can enhance performance

Question 15

Scenario

Answer 15

A narrative that describes a particular set of future conditions

Question 16

Situational analysis

Answer 16

A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration

Question 17

Stakeholders

Answer 17

Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies

Question 18

Strategic control system

Answer 18

A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action

Question 19

Strategic goals

Answer 19

Major targets or end results relating to the organization’s long-term survival, value, and growth

Question 20

Strategic management

Answer 20

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies

Question 21

Strategic planning

Answer 21

A set of procedures for making decisions about the organization’s long-term goals and strategies

Question 22

Strategic vision

Answer 22

The long-term direction and strategic intent of a company

Question 23

Strategy

Answer 23

A pattern of actions and resource allocations designed to achieve the organization’s goals

Question 24

SWOT analysis

Answer 24

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy

Question 25

Tactical planning

Answer 25

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing

Question 26

Vertical integration

Answer 26

The acquisition or development of new businesses that produce parts or components of the organization’s product