Question 1

Tom and his family have developed a successful business selling a liquid spray fertilizer to farmers.The fertilizer consists of rich,organic,composted material.Recently NuBreed Seed,a national seed company,has been marketing a powdered chemical fertilizer to its customers;NuBreed's fertilizer is less expensive than Tom's product.NuBreed's efforts are an example of the ___ in Porter's model for industry analysis.

Accepted Answer

A)  buyers' negotiating influence
B)  competitive rivalry among competitors
C)  threats of substitute products and services
D)  power of the suppliers
E)  threats of new ideas

Question 2

When an organization operates several businesses to spread the risk,such as a landscaping company that offers not only landscaping services but also lawn care,snow removal,and other services,that business is utilizing a ____ strategy.

Accepted Answer

A)  diversity
B)  diversification
C)  focused-differentiation
D)  differentiation
E)  multiservice

Question 3

According to Harvard Business School professor Michael Porter,strategic positioning means _____ to achieve sustainable competitive advantage.

Accepted Answer

A)  aggressive growth
B)  distinctive positioning
C)  collaborative planning
D)  strategic alliances
E)  retrenchment

Question 4

In the 1970s,Atari singlehandedly created a market for home video games,offering a console and cartridges that contained games like Space Invaders,Centipede,and Asteroids.At the time,Atari effectively implemented a ______ strategy.

Accepted Answer

A)  greenfield
B)  diversification
C)  blue ocean
D)  defensive
E)  multiproduct

Question 5

Michael Porter proposed that business-level strategies originate with the primary competitive forces in the firm's environment;these forces are

Accepted Answer

A)  the threats of new entrants and the bargaining power of buyers and suppliers.
B)  the threats of substitute products and the services and competitive rivalries.
C)  the threats of new entrants and substitute products or services,the bargaining power of suppliers and buyers,and competitive rivalries.
D)  the threats of government paperwork and tax increases,the bargaining power of suppliers,and competitive rivalries.
E)  the bargaining power of suppliers. C

Question 6

A SWOT analysis is

Accepted Answer

A)  a search for the strengths,weaknesses,opportunities,and threats influencing an organization's competition.
B)  a diversity and synergy method used in vertical integration.
C)  a search for the strengths,weaknesses,opportunities,and threats affecting an organization.
D)  an analysis of strategies,ways to improve,output methods,and threats influencing a company.
E)  an inexpensive method of implementing a forecast.

Question 7

For over 20 years,ABC Manufacturing produced only one product,a car part for Moraine Assembly (the Moraine,Ohio,General Motors truck factory).Because its single-product business is so closely tied to Moraine Assembly,ABC is a vulnerable company.

Accepted Answer

A) True 
 B)False

Question 8

Imagine that you are the CEO of a national chain of pet stores,Pets R Us.Define competitive intelligence and explain how you would use it to assess the current reality/business climate.

Accepted Answer

Competitive intelligence means gaining i...

Question 9

This question contains two parts;be sure to answer both.First,explain the three key principles that underlie strategic positioning.Next,explain whether strategic management works as well for small companies as it does for large organizations,providing an example of how a small company can offer personal connections as a source of competitive advantage.

Accepted Answer

Strategic positioning attempts...

Question 10

With small businesses in very competitive industries,small differences in performance may affect that company's survival.In this case,it is worth the effort for the company's managers to implement

Accepted Answer

A)  organizational diversity.
B)  a synergy agenda.
C)  MBO.
D)  TQM.
E)  strategic planning.

Question 11

Quality Services is an organization that operates several companies that market food products,restaurant equipment,and paper and plastic products,and it even has a division that counsels restaurant owners,helping them launch new restaurants successfully.Quality Services is pursuing a _____ strategy.

Accepted Answer

A)  single-product
B)  diversification
C)  focused-differentiation strategy
D)  differentiation
E)  multiproduct

Question 12

Donna's Restaurant is a popular café that specializes in home-cooked meals,friendly service,and a menu that contains vegan and vegetarian dishes, (menu items that no other restaurant in the area offers).Donna's Restaurant is engaging in strategic positioning by offering the unique menu items of vegan and vegetarian dishes.

Accepted Answer

A) True 
 B)False

Question 13

This question contains two parts;be sure to answer both.First,summarize the three sources from which strategic position emerges,providing an example of a company with each strategic position.(You will be providing three examples. )Second,select either McDonald's or Apple Computer and discuss the company's strategic position.

Accepted Answer

Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.It means,according to Michael Porter,"performing different activities from rivals,or performing similar activities in different ways."
Strategic position emerges from three sources:
(1)Few needs,many customers:A strategic position can be derived from serving the few needs of many customers.Example:Jiffy Lube provides only lubricants,but it provides them to all kinds of people with all kinds of motor vehicles.
(2)Broad needs,few customers:A strategic position may be based on serving the broad needs of just a few customers.Example:Wealth management and investment advisory firm Bessemer Trust focuses exclusively on high-net-worth clients.
(3)Broad needs,many customers:The strategy may be oriented toward serving the broad needs of many customers.Example:National movie theater operator Carmike Cinemas operates only in cities with populations of fewer than 200,000 people.
McDonald's strategic position stems from few needs and many customers.The overall "need" is a meal,whether breakfast,lunch,or dinner.It serves all kinds of people,of all ages,in many different locations across the country (and across the world).
Apple's strategic position stems from broad needs and many customers.The overall "needs" in this case is a wide range of electronic devices for personal and workplace use and entertainment.Apple serves the needs of many customers around the world;it has one of the world's two dominant operating systems (the other is owned by Microsoft).

Question 14

Organic Market sells high-quality products and grocery items that are unique to its area;in addition it offers delivery for customers who are unable to leave their home and a number of regular workshops regarding healthy eating.By offering these types of products and services,Organic Market is pursuing a _____ strategy.

Accepted Answer

A)  cost-savings
B)  cost-focus
C)  value-focused
D)  differentiation
E)  focused-differentiation

Question 15

Competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.For example,managers gain competitive intelligence by reading business publications,such as the,in order to understand competitors' business plans,goals,and strategies.

Accepted Answer

A) True 
 B)False

Question 16

The growth,stability,and defensive strategies are common

Accepted Answer

A)  leadership strategies.
B)  cost-leadership strategies.
C)  types of differentiation plans.
D)  stabilization strategies.
E)  grand strategies.

Question 17

Bryan Barry suggests that to keep a strategic plan on track,organizations should

Accepted Answer

A)  engage people,keep it simple,stay focused,and keep moving.
B)  engage people,keep people happy,provide fun activities,and provide good benefits.
C)  provide fun activities,provide good benefits,and keep it simple.
D)  engage people,keep it simple,stay focused,and offer a good benefits package.
E)  aggressively compete,cut costs,focus on customer service,and engage people.

Question 18

The strategic-management process is often touched off by a crisis.

Accepted Answer

A) True 
 B)False  True

Question 19

Delux Technology has a reputation of reliability and a winning customer service,qualities that helped to build this highly respected name brand over the last 15 years.Speaking at a recent business conference,Steve,the CEO of Delux,told his audience,"We have built our reputation by changing little over the last several years,but consistently helping customers with great,caring service and a reliable product." Which type of strategy does Delux Technology use?

Accepted Answer

A)  defensive strategy
B)  merger approach
C)  retrenchment strategy
D)  growth strategy
E)  stability strategy

Question 20

A and B Office Supply,a small family-owned company,sells high-priced desks,some as expensive as $10,000,to executives in its area.Very few companies have chosen to market this product,and A and B has enjoyed record profits over the last 25 years.A and B Office Supply is an example of a company that would typically not choose to utilize strategic planning.

Accepted Answer

A) True 
 B)False

Exam 6: Strategic Management: How Exceptional Managers Realize a Grand Design

Correct Answer
verified

When an organization operates several businesses to spread the risk,such as a landscaping company that offers not only landscaping services but also lawn care,snow removal,and other services,that business is utilizing a ____ strategy.

Correct Answer
verified

According to Harvard Business School professor Michael Porter,strategic positioning means _____ to achieve sustainable competitive advantage.

Correct Answer
verified

In the 1970s,Atari singlehandedly created a market for home video games,offering a console and cartridges that contained games like Space Invaders,Centipede,and Asteroids.At the time,Atari effectively implemented a ______ strategy.

Correct Answer
verified

Michael Porter proposed that business-level strategies originate with the primary competitive forces in the firm's environment;these forces are

Correct Answer
verified
C

A SWOT analysis is

Correct Answer
verified

For over 20 years,ABC Manufacturing produced only one product,a car part for Moraine Assembly (the Moraine,Ohio,General Motors truck factory).Because its single-product business is so closely tied to Moraine Assembly,ABC is a vulnerable company.

Correct Answer
verified

Imagine that you are the CEO of a national chain of pet stores,Pets R Us.Define competitive intelligence and explain how you would use it to assess the current reality/business climate.

Correct Answer
verified
Competitive intelligence means gaining i...
View Answer

Correct Answer
verified
Strategic positioning attempts...
View Answer

With small businesses in very competitive industries,small differences in performance may affect that company's survival.In this case,it is worth the effort for the company's managers to implement

Correct Answer
verified

Quality Services is an organization that operates several companies that market food products,restaurant equipment,and paper and plastic products,and it even has a division that counsels restaurant owners,helping them launch new restaurants successfully.Quality Services is pursuing a _____ strategy.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

The growth,stability,and defensive strategies are common

Correct Answer
verified

Bryan Barry suggests that to keep a strategic plan on track,organizations should

Correct Answer
verified

The strategic-management process is often touched off by a crisis.

Correct Answer
verified
True

Correct Answer
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verified

Exam 6: Strategic Management: How Exceptional Managers Realize a Grand Design

Correct AnswerverifiedShow Answer

When an organization operates several businesses to spread the risk,such as a landscaping company that offers not only landscaping services but also lawn care,snow removal,and other services,that business is utilizing a ____ strategy.

Correct AnswerverifiedShow Answer

According to Harvard Business School professor Michael Porter,strategic positioning means _____ to achieve sustainable competitive advantage.

Correct AnswerverifiedShow Answer

In the 1970s,Atari singlehandedly created a market for home video games,offering a console and cartridges that contained games like Space Invaders,Centipede,and Asteroids.At the time,Atari effectively implemented a ______ strategy.

Correct AnswerverifiedShow Answer

Michael Porter proposed that business-level strategies originate with the primary competitive forces in the firm's environment;these forces are

Correct AnswerverifiedC

A SWOT analysis is

Correct AnswerverifiedShow Answer

For over 20 years,ABC Manufacturing produced only one product,a car part for Moraine Assembly (the Moraine,Ohio,General Motors truck factory).Because its single-product business is so closely tied to Moraine Assembly,ABC is a vulnerable company.

Correct AnswerverifiedShow Answer

Imagine that you are the CEO of a national chain of pet stores,Pets R Us.Define competitive intelligence and explain how you would use it to assess the current reality/business climate.

Correct AnswerverifiedCompetitive intelligence means gaining i...View AnswerShow Answer

Correct AnswerverifiedStrategic positioning attempts...View AnswerShow Answer

With small businesses in very competitive industries,small differences in performance may affect that company's survival.In this case,it is worth the effort for the company's managers to implement

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The growth,stability,and defensive strategies are common

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Bryan Barry suggests that to keep a strategic plan on track,organizations should

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The strategic-management process is often touched off by a crisis.

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