MGMT 3000 Chapter 8

Question 1

how important is strategic management?

Answer 1

it determines which organizations succeed and which ones struggle

Question 2

what means taking the long term view and seeing the big picture, including the organization and the competitive environment and considering how they fit together?

Answer 2

strategic thinking

Question 3

is strategic thinking good for both businesses and nonprofits?

Answer 3

yes

Question 4

in for profit firms, what does strategic planning refer to?

Answer 4

pertains to competitive actions in the marketplace

Question 5

in non profit firms, what does strategic planning refer to?

Answer 5

pertains to events in the external environment

Question 6

what refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals ?

Answer 6

strategic management

Question 7

what questions do managers ask when using strategic management?

Answer 7

○ What changes and trends are occurring in the competitive environment?
○ Who are our competitors, and what are their strengths and weakness?
○ Who are our customers?
○ What products or services should we offer?
○ What does the future hold for our industry and how can we change the rules of the game?

Question 8

what is the first step in strategic management which is the plan of action that describes resource allocation and activities for dealing with he environment, achieving a competitive advantage, and attaining the organizations goals

Answer 8

strategy

Question 9

what refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace ?

Answer 9

competitive advantage

Question 10

what are the elements of competitive advantage?

Answer 10

• target customers
• exploit core competence
• achieve synergy
• create value

Question 11

what are the three levels of strategy in organizations?

Answer 11

• corporate level
• business- level
• functional- level

Question 12

what question do we ask for corporate level strategy?

Answer 12

what business are we in?

Question 13

what question do we ask for business level strategy?

Answer 13

how do we compete?

Question 14

what question do we ask for functional level strategy?

Answer 14

how do we support the business level strategy?

Question 15

what aspects are with business level strategy?

Answer 15

• consumers product unit
• biotechnology unit
• media unit

Question 16

what pertains to the organization as a whole and the combination of business units and product lines that makes up the corporate entity?

Answer 16

corporate level strategy

Question 17

what level of strategy pertains to each business unit or product line?

Answer 17

business level strategy

Question 18

what level of strategy pertains to the major functional departments within the business unit?

Answer 18

functional level strategy

Question 19

what is swot analysis?

Answer 19

includes a careful assessment of the strengths, weaknesses, opportunities and threats that affect organizational performance

Question 20

what are the internal aspects of SWOT?

Answer 20

strengths and weaknesses

Question 21

what are the external aspects of SWOT?

Answer 21

opportunities and threats

Question 22

what comprises the planning and decision making that lead to the establishment of the firms goals and the development of a specific strategic plan?

Answer 22

strategy formulation

Question 23

what is the use of managerial and organizational tools to direct resources toward accomplishing strategic results?

Answer 23

strategy execution

Question 24

strategy execution is the administration and implementation of the strategic plan true or false?

Answer 24

true

Question 25

what are the 3 approaches to formulating the corporate level strategy?

Answer 25

- portfolio strategy - the BCG Matrix - diversification

Question 26

what is a division in the business unit that has a unique business mission, product line, competitors and markets relative to other SBUs in the corporation ?

Answer 26

strategic business units (SBUs)

Question 27

what pertains to the mix of SBUs and product lines that fit together in a logical way to provide synergy and competitive advantage ?

Answer 27

portfolio strategy

Question 28

what is a concept that evaluates strategic business units with respect to two dimensions (business growth rate and market share) and classifies them as cash cows, stars question marks or dogs?

Answer 28

BCG matrix

Question 29

what are the 2 dimensions of the BCG matrix?

Answer 29

market share and business growth rate

Question 30

what has high market share and high business growth rate?

Answer 30

stars

Question 31

what has high market share and low business growth rate?

Answer 31

cows

Question 32

what has low market share and high business growth rate?

Answer 32

question marks (bright prospects)

Question 33

what has low market share and low business growth rate?

Answer 33

dogs

Question 34

what is diversification?

Answer 34

the strategy of moving into new lines of business

Question 35

what type of diversification is when the business is related to the company's existing business activities, the organization is implementing a strategy of related diversification?

Answer 35

related diversification

Question 36

what type of diversification occurs when an organization expands into a totally new line of business?

Answer 36

unrelated diversification

Question 37

what is vertical integration?

Answer 37

the company expands into businesses that either produce the supplies needed to make its products and services or that distribute and sell those products and services to customers

Question 38

what is the concern with formulating business level strategy?

Answer 38

concern is how to compete

Question 39

what is the popular model for formulating business strategy ?

Answer 39

Porters 5 forces

Question 40

what are porters 5 forces?

Answer 40

1. rivalry among competitors 2. potential new entrants 3. bargaining power of buyers 4. bargaining power of suppliers 5. threat of substitute products

Question 41

what are porters competitive strategies?

Answer 41

- differentiation - cost leadership - focus

Question 42

what quadrant is the differentiation strategy in?

Answer 42

1

Question 43

what type of competitive strategy involves an attempt to distinguish the firms products or services from others in the industry?

Answer 43

differentiation strategy

Question 44

what quadrant is cost leadership strategy in?

Answer 44

2

Question 45

what type of competitive strategy is when the organization aggressively seeks efficient facilities, pursues cost reductions and uses tight cost controls to produce products more efficiently than competitors?

Answer 45

cost leadership

Question 46

what quadrant(s) is focus strategy in?

Answer 46

quadrant 3 (differentiation) and quadrant 4 (cost leadership)

Question 47

what competitive strategy is when the organization focuses on a specific regional market or buyer group ?

Answer 47

focus

Question 48

what global strategy treats the world as a single global marketing?

Answer 48

globalization strategy

Question 49

what type of global strategy has a High need for global integration, low need for national responsiveness?

Answer 49

globalization

Question 50

what type of global strategy handles markets independently for each country ?

Answer 50

multi domestic

Question 51

what type go global strategy has Low need for global integration, high need for national responsiveness ?

Answer 51

multi domestic

Question 52

what type of global strategy seeks to balance global efficiencies and local responsiveness?

Answer 52

glocalization

Question 53

what type of global strategy has a High need for global integration, high need for national responsiveness ?

Answer 53

glocalization

Question 54

what is the final step of strategic management?

Answer 54

strategy execution

Question 55

what is how strategy is implemented and put into action?

Answer 55

strategy execution

Question 56

what is ○ A deep understanding and acceptance of organizational direction and purpose throughout the organization ?

Answer 56

embeddedness

Question 57

when strategy is ____ everyones daily decisions and actions help move the firm in the right direction, toward achieving important goals?

Answer 57

embedded

Question 58

what are factors that contribute to the failure of strategy execution?

Answer 58

- employee resistance (39%) - manager behavior doesn't support new direction (33%) - inadequate budget or resources (14%)

Question 59

what are the tools for putting strategy into action?

Answer 59

- visible leadership - clear roles and accountability - Human Resources - candid communication