Chapter 6

Question 1

focuses on external events that may influence the present position of a business.

Answer 1

Environmental Scanning

Question 2

is primarily concerned with the trends of events.

Answer 2

Environmental Monitoring

Question 3

gives preferential importance on information about competitors.

Answer 3

Competitive Intelligence

Question 4

evaluates the level of competition and assesses the attractiveness of an industry itself.

Answer 4

Porter’s Five Forces of Competition Model

Question 5

To determine how culture influences strategy formulation.

Answer 5

Corporate Culture

Question 6

To determine what structure can effectively and efficiently achieve organizational goals.

Answer 6

Organizational Culture

Question 7

To determine which business resource contributes to the achievement of competitive advantage.

Answer 7

Business resources

Question 8

evaluates the internal strengths and weaknesses of a company against what the external opportunities and threats offer.

Answer 8

SWOT ANALYSIS

Question 9

To assess a company’s strengths and weaknesses so that opportunities are exploited and threats are avoided or minimized.

Answer 9

SWOT ANALYSIS

Question 10

a strategic management tool that assess the resources of a company to achieve competitive advantage

Answer 10

VRIO FRAMEWORK

Question 11

if it can add value for the customer and if it provides the company the capability to exploit opportunities or defend against threats

Answer 11

valuable

Question 12

only a few company possess it

Answer 12

Rare

Question 13

if it can be hardly imitated or is costly to imitate

Answer 13

Imitability

Question 14

when the activities of different functional units, systems, processes, and structures are coordinated, planned and arranged properly

Answer 14

Organized

Question 15

To identify a company’s resource that is considered valuable, rare, and difficult to imitate and to assess if the company is organized to use it to sustain a competitive advantage

Answer 15

VRIO FRAMEWORK

Question 16

developed by Michael Porter – is a strategic management tool that evaluates the internal activities of a company when producing goods or delivering services.

Answer 16

VALUE CHAIN ANALYSIS MODEL

Question 17

Inbound logistics Operations Outbound logistics Marketing Service

Answer 17

Primary Activities -

Question 18

Company infrastructure Human resource management Technology development Procurement

Answer 18

Support Activities -

Question 19

represents the benefits that are derived from a product or service.

Answer 19

value

Question 20

can be attained by adopting an efficient manufacturing process.

Answer 20

creating value

Question 21

The focus of the analysis is on the activities that create cost to the company and how they can be reduced.

Answer 21

Cost Advantage -

Question 22

The focus of the analysis is on the activities that create value for the customers and how they can be improved.

Answer 22

Differentiation Advantage -

Question 23

developed by Bruce Herderson of the Boston Consulting Group (BCG) in 1970, is a strategic management model that assesses a company’s business units or products in terms of market share and market growth.

Answer 23

BCG GROWTH-SHARE MATRIX MODEL

Question 24

To determine the status of a company’s unit of product portfolio in terms of market share and growth.

Answer 24

BCG GROWTH-SHARE MATRIX MODEL

Question 25

also known as scenario analysis or scenario thinking, is a strategic management technique used by organizations to anticipate and prepare for possible future events and uncertainties.

Answer 25

SCENARIO PLANNING

Question 26

It involves creating a set of alternative scenarios or narratives that describe different plausible future states of the world.

Answer 26

SCENARIO PLANNING

Question 27

the specific strategic tool used to scan the societal environment is the

Answer 27

PESTEL or STEEP analysis

Question 28

The strategic approach that is used to analyze the physical environment is ______ .

Answer 28

environmental scanning.

Question 29

To gather, evaluate, and disseminate reliable and relevant information about the societal environment, the approach used is an _________

Answer 29

environmental scanning