Handout 8

Question 1

is the short-term game plan for key functional areas within a company. It is an approach to achieving corporate and business unit objectives and strategies by maximizing resource productivity.

Answer 1

Functional strategy

Question 2

It deals with pricing, selling, and distributing a product or service.

Answer 2

Marketing Strategy

Question 3

It is a strategy that falls under the category of business growth. This strategy helps companies and businesses approach new customers properly by introducing new or existing products to penetrate the market and gain a dominant market share.

Answer 3

Market development strategy.

Question 4

A company or business unit can develop new products or services for existing markets or new ones for new markets.

Answer 4

Product development strategy.

Question 5

A company or business unit may use a successful brand name to market other products.

Answer 5

Brand extension.

Question 6

A company or business unit may engage in trade promotion to gain shelf space in retail outlets.

Answer 6

Push strategy.

Question 7

A company or business unit may engage in wide consumer advertising designed to build brand awareness so that shoppers will ask for the company’s products and services.

Answer 7

Pull strategy.

Question 8

It examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action.

Answer 8

Financial Strategy.

Question 9

A corporation can raise capital by selling company stock to investors.

Answer 9

Equity financing

Question 10

A corporation can raise capital by borrowing money to acquire an asset.

Answer 10

Debt financing

Question 11

It deals with product and process innovation and improvement.
It also concerns how new technology should be accessed through internal development, external acquisition, or strategic alliances.

Answer 11

Research and Development Strategy.

Question 12

Focuses on pioneering innovation.

Answer 12

Technological Leader.

Question 13

Deals with imitating the products of competitors.

Answer 13

Technological Follower

Question 14

A newer approach in which a firm uses alliances and connections with cooperations, governments, academic labs, and consumers to develop new products and processes.

Answer 14

Open Innovation

Question 15

It determines how and where a product or service is to be manufactured or delivered, the level of vertical integration in the production process, deployment of physical resources, and relationships with suppliers.

Answer 15

Operations Strategy.

Question 16

In this strategy, a small manufacturing system handles customized production using skilled labor. Products are customized based on customer specifications.

Answer 16

Job shop

Question 17

In this strategy, each machine functions like a job shop but is positioned in the same order as the parts are processed.

Answer 17

Connected line batch flow

Question 18

In this strategy, parts are grouped into manufacturing families to produce a wide variety of mass-produced items.

Answer 18

Flexible manufacturing systems.

Question 19

In this strategy, highly automated assembly lines create a single mass-produced product using little human labor.

Answer 19

Dedicated transfer lines.

Question 20

In this strategy, many low-cost, standardized goods can be produced.

Answer 20

Mass-production system.

Question 21

In this strategy, people, processes, units, and technology reconfigure themselves to give customers exactly what they want when they want it.

Answer 21

Mass customization.

Question 22

Service-oriented firms must ensure that they deliver error-free services that match customers’ needs based on standard requirements.

Answer 22

Quality.

Question 23

Service-oriented firms must ensure that their service design can handle the multiple demands of the clients.

Answer 23

Flexibility

Question 24

Service-oriented firms must pay attention to their scheduling and capacity planning management to deliver their services at an acceptable time.

Answer 24

Speed.

Question 25

Service-oriented firms must be consistent in the value that their service provides.

Answer 25

Dependability.

Question 26

Service-oriented firms must maintain reasonable prices for their services by analyzing where their operations costs are incurred and cutting down on unnecessary expenses.

Answer 26

Cost.

Question 27

It deals with obtaining the raw materials, parts, and supplies needed to perform the operations function.

Answer 27

Purchasing Strategy.

Question 28

deals with the flow of products into and out of the manufacturing process.

Answer 28

Logistics Strategy.

Question 29

Companies find that having a diverse workforce is a competitive advantage.

Answer 29

Human Resources Management Strategy.

Question 30

Corporations have always used this strategy to give their business units a competitive advantage.

Answer 30

Information Technology Strategy.