Q&A Hero

Q: (p. 26) All of these are economic goals that guide the strategic direction of organizations EXCEPT A. Survival B. Market share C. Profitability D. Growth

Q: (p. 24) The combination of which of these factors describe the company's business activities? A. Basic product or service, primary markets and principal technology B. Self-concept, managerial philosophy and public image C. Concern for survival through growth, self-concept and primary markets D. Economic goals, core competencies and primary and secondary customers

Q: Hickory Divine is one of the leading manufacturers in the hardwood furniture industry. Hickory Divine has many small competitors, none of which controls a significant portion of the industry. Hickory, like most of the furniture manufacturers, sells its products to a broad variety of small furniture stores throughout the country, none of which represents a large percentage of Hickory's sales. When purchasing the products it uses for manufacturing its furniture, Hickory is able to choose from many suppliers since the wood it uses is an undifferentiated commodity, and Hickory is able to easily switch to any supplier that has the best price and delivery times. While growth in the hardwood furniture industry has historically been in the double digits, the industry growth rate has slowed considerably into the single digits, to approximately 5% in recent years; consumers have been purchasing less expensive furniture made of composite wood that is considerably less expensive than hardwood furniture but that looks and functions very similarly once it is painted.The threat of buyers in this industry is best described asA) high because there are many suppliers, none of which represents a significant portion of the hardwood furniture industry's sales.B) low because of the slow industry growth and the commodity nature of the suppliers.C) low because there are many suppliers, none of which represents a significant portion of the hardwood furniture industry's sales.D) high because of the slow industry growth and the commodity nature of the suppliers.

Q: (p. 24) Three indispensable components of the mission statements are: A. Basic product or service, primary markets and principal technology B. Self-concept, managerial philosophy and public image C. Concern for survival through growth, self-concept and primary markets D. Economic goals, core competencies and primary and secondary customers

Q: (p. 24) A mission statement should include all of these components EXCEPT A. Basic types of products or services to be offered B. The firm's managerial philosophy C. The public image the firm seeks D. The government regulations the firm must meet

Q: (p. 24) When should a company redefine its mission? A. When the competition have failed B. When the board meets with top management annually C. When the business is forced by competitive pressures to alter its products of market D. When the government requires the business to redefine it

Q: (p. 24) In deriving a mission statement, which of the following should be included? A. Tax advantages B. Secondary markets to be served C. Concern for survival through growth D. Employee rules and policies

Q: (p. 24) The process of defining the company mission for a specific business can be best understood by A. Thinking about the business at its inception B. Looking at the industry attributes C. Analyzing the regulatory requirements of what to include in a mission D. Analyzing the most successful competitors in the marketplace

Q: (p. 24) In general terms, which of the following questions is addressed by the mission statement? A. How should we price our products? B. What are our economic goals? C. Which employees should we hire? D. What leverage structure should we follow?

Q: ________ costs exist when customers make investments in order to use a firm's particular products or services. A) Strategic-switching B) Competitive-switching C) Customer-switching D) Resource-switching

Q: (p. 24) In general terms, the mission statement addresses all of the following questions EXCEPT A. What are our economic goals? B. What is our operating philosophy in terms of quality, company image and self-concept? C. What customers do and can we serve? D. Who are our competitors and how can we collaborate with them?

Q: ________ valuable assets are resources required to successfully compete in an industry. A) Strategically B) Pedestrian C) Globally D) Domestically

Q: (p. 24) Which one of the following is NOT an outcome designed to be accomplished by a company mission? A. To provide a unifying purpose for the organization B. To provide a basis for strategic objective setting C. To provide a basis for decision making D. To reward stockholders

Q: Consolidation strategy is a good option in what type of industry? A) Mature B) Emerging C) Fragmented D) Declining

Q: (p. 23) A revised mission will contain _____ components as the original. A. the same B. more C. fewer D. different

Q: (p. 23) The mission statement is a message designed to be inclusive of the expectations of _______ stakeholders for the company's performance over the ______. A. All; long run B. Only key; short run C. All; short run D. Only key; long run

Q: ________ are advantages that come to firms that make important strategic and technological decisions early in the development of an industry. A) Visionary advantages B) First-mover advantages C) Comparative advantages D) Missionary advantages

Q: Industries in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies are called ________ industries. A) fragmented B) mature C) emerging D) declining

Q: (p. 23) Characteristically, the company mission is a statement of all of these EXCEPT A. Attitudes B. Outlooks C. Measurable targets D. Orientation

Q: Firms that engage in a long, systematic phased withdrawal from an industry, extracting as much value as possible during the withdrawal period, are following a(n) ________ strategy. A) niche B) expansion C) divestment D) harvest

Q: (p. 23) The company mission reflects the firm's A. Vision B. Self-concept C. Corporate governance D. Agency costs

Q: The most promising opportunity for a firm in a declining industry is to A) establish itself as a first mover in the post-shakeout industry. B) become a market leader in the pre-shakeout industry. C) become a fast follower in the pre-shakeout industry. D) merge with another firm.

Q: (p. 23) Which of these is NOT true about the company mission? A. It embodies the business philosophy of the firm's strategic decision makers B. It implies the image the firm seeks to project C. It provides specific strategies for front-line managers D. It reflects the firm's self-concept

Q: Mature industries are characterized by A) an increase in total industry demand. B) faster increases in production capacity. C) a slowdown in the introduction of new products or services. D) a decrease in the amount of international competition.

Q: (p. 23) The company mission identifies the A. Key competitors in the marketplace B. Board of directors' responsibility towards the owners C. Specific strategies for gaining market share D. Scope of its operations in product and market firms

Q: An industry in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies is known as a(n) ________ industry. A) fragmented B) consolidated C) mature D) emerging

Q: In general, first-mover advantages can arise from any of these sources except A) technological leadership. B) preemption of strategically valuable assets. C) the creation of customer switching costs. D) using an imitative strategy to introduce improved versions of competitors' new products.

Q: (p. 23) The mission reflects the: A. Values of the decision makers B. Goals of the decision makers C. Experiences of the decision makers D. Policies of firm

Q: If your customers value your products more when they have your product and another firm's product rather than when they have your product alone, the other firm is considered to be a A) competitor. B) complementor. C) rival. D) substitute.

Q: The advantages that come to firms that make important strategic and technological decisions early in the development of an industry are known as ________ advantages. A) first-mover B) competitive C) early-entrant D) first-comer

Q: (p. 24) As the business grows or is forced by competitive pressures to alter its product, market, or technology, ______ the company mission may be necessary. A. redefining B. abandoning C. writing D. discarding

Q: Overall, the average level of performance in an industry is likely to be highest when A) the threat level of all five forces is high. B) the threat level of rivalry and substitutes is low, but the threat level of suppliers, buyers and new entrants is high. C) the threat level of rivalry, substitutes and new entrants is high, but the threat level of buyers and supplies is low. D) the threat level of all five forces is low.

Q: (p. 23) The mission: A. Sets policy B. Describes the firm's product C. Identifies stakeholders D. Creates the board of directors

Q: ________ industries are newly created, or newly recreated industries formed by technological innovations, changes in demand, or the emergence of new customer needs. A) Mature B) Emerging C) Fragmented D) Declining

Q: Buyers tend to have less power when A) a firm has only one buyer, or a small number of buyers. B) the products or services being sold to buyers are standard and not differentiated. C) the supplies they purchase are an insignificant portion of the costs of their final products. D) they are not earning significant economic profits.

Q: (p. 23) The company mission is a broadly framed but enduring statement of A. A firm's intent B. Corporate structure C. A firm's competitive positioning D. Stakeholder analysis

Q: The major opportunity facing firms in fragmented industries is A) refining their current products and emphasizing an increase in service quality. B) developing new products and technologies. C) creating a first-mover advantage through technological leadership. D) the implementation of strategies that began to consolidate the industry into a smaller number of firms.

Q: Which of the following is the best example of forward vertical integration? A) A car dealership opening up its own automobile manufacturing plant B) A car company opening its own dealerships to sell its products directly to customers C) A car company opening its own chain of video rental stores D) A car company opening a plant to product motorcycles

Q: (p. 23) _____ is a statement, not of measurable targets but of attitude, outlook, and orientation. A. Company mission B. Company vision C. Company strategy D. Company policy

Q: Which if the following attributes makes suppliers a stronger threat? A) The supplier's industry is dominated by a small number of firms. B) When the product or service provided by suppliers is not highly differentiated C) When suppliers are threatened by substitutes D) When suppliers are not able to enter into and begin competing in a firm's industry

Q: (p. 23) Which external body requires that a company have a mission statement? of A. None B. SEC C. Justice Department D. IRS

Q: (p. 23) The unique purpose that sets a company apart from others of its type and identifies the scope of its operations. In product, market and technology terms is defined as the A. Adverse selection B. Company mission C. Moral hazard problem D. Vision statement

Q: ________ make a wide variety of raw materials, labor and other critical assets available to firms. A) Buyers B) Rivals C) Suppliers D) Substitutes

Q: What implications can be drawn from viewing strategic management as a process? Explain?

Q: Which of the following statements regarding substitutes is accurate? A) In the extreme, substitutes can ultimately replace an industry's products or services. B) Substitutes place a floor on the prices firms in an industry can charge and on the profits firms in an industry can earn. C) Substitutes rarely impact the profitability that firms in an industry can earn. D) The importance of substitutes in reducing the profit potential in a wide variety of industries is decreasing.

Q: Define strategic control. Give an example of strategic control from a managerial perspective?

Q: The products or services provided by a firm's substitutes meet ________ customer needs in ________ ways as the product provided by the firm itself. A) different; the same B) approximately the same; the same C) different; different D) approximately the same; different

Q: Differentiate between generic and grand strategies?

Q: The products or services provided by a firm's rivals meet ________ customer needs in ________ ways as the product provided by the firm itself. A) different; the same B) approximately the same; the same C) different; different D) approximately the same; different

Q: Rivalry tends to be high when A) there are few firms in an industry and these firms tend to be unequal in size. B) the industry growth rate is higher. C) firms are unable to differentiate their products. D) production capacity can be added in small increments.

Q: Define and briefly describe any five components of the strategic management model?

Q: Discuss the benefits of strategic management?

Q: Who are the strategy makers in an organization?

Q: Frequent price cutting by firms in an industry, frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of A) high power of buyers. B) high threat of entry. C) high levels of rivalry. D) high threat of substitutes.

Q: Describe the three different modes of formality, according to Mintzberg?

Q: What is meant by formality in strategic management? What forces determine how much formality is needed in strategic management?

Q: All other things being equal, which of the following would lead to lower barriers to entry in an industry? A) The existence of economies of scale in the industry B) Products are highly differentiated in the industry. C) Industry incumbents have learning-curve cost advantages. D) Raw materials are widely and readily available at a competitive price.

Q: How do the characteristics of strategic management decisions vary with the level of strategic activity considered?

Q: ________ exist when a firm's cost rise as a function of its volume of production. A) Economies of scale B) Economies of scope C) Diseconomies of scale D) Learning cure effects

Q: With regards to the levels of strategy, compare and contrast single-business firms versus multiple-business firms?

Q: Describe the three levels of strategy in an organization. Provide an example of each?

Q: In the S-C-P model, ________ refers to the strategies that firms in an industry implement. A) structure B) strategy C) conduct D) performance

Q: Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ________ in the five forces framework. A) barriers to entry B) new entrants C) suppliers D) buyers

Q: Strategic issues have several key dimensions. Briefly describe any four of them?

Q: Define strategic management. Identify any five of the nine critical tasks of strategic management?

Q: A(n) ________ is any individual, group, or organization outside a firm that seeks to reduce the level of that firm's performance. A) environmental threat B) environmental opportunity C) environmental equalizer D) competitive advantage

Q: (p. 17) The strategy management process is: A. Stationary B. Dynamic C. Static D. Radical

Q: Civil wars, political coups, terrorism, wars between countries, famines, and country or regional economic recessions are all examples of which element of the general environment? A) Demographics B) Specific international events C) Economics D) Culture

Q: (p. 17) Strategic management processes need which of the following to enhance future decision making? A. Testing B. Feedback C. Discontinuity D. Projecting

Q: Which type of competition is characterized by a small number of firms, homogeneous products and costly entry and exit? A) Perfect competition B) Monopolistic competition C) Oligopoly D) Monopoly

Q: When activity in an economy is relatively low for a short period of time, the economy is said to be in a A) recession. B) depression. C) prosperous cycle. D) boom.

Q: (p. 15) Strategic formulation and implementation of a plan are: A. Sequential B. Simultaneous C. Random D. Reversible

Q: Which type of competition is characterized by a large number of firms, heterogeneous products and low cost of entry and exit? A) Perfect competition B) Monopolistic competition C) Oligopoly D) Monopoly

Q: (p. 15) Influential individuals and groups that are vitally interested in the actions of the business are called A. Stockholders B. Stakeholders C. Strategists D. Customers

Q: The values, beliefs and norms that guide behavior in society are known as A) climate. B) demographics. C) economics. D) culture.

Q: (p. 15) A flow of information through interrelated stages of analysis toward achievement of an aim is: A. A process B. A procedure C. A policy D. A system

Q: Firms in industries characterized by ________ can expect to earn only competitive parity. A) perfect competition B) monopolistic competition C) oligopoly D) monopoly

Q: (p. 15) Which of these is a form of strategic control in which managers are encouraged to be proactive in improving all operations of the firm? A. Continuous improvement B. Adaptive mode C. Functional tactics D. Planning mode

Q: ________ is/are the distribution of individuals in a society in terms of age, sex, marital status, income, ethnicity, and other personal attributes that may determine buying patterns. A) Demographics B) Economics C) Technological trends D) Culture

Q: (p. 15) _____ is concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises and making necessary adjustments. A. Restructuring strategy B. Strategic control C. Internal analysis D. Functional tactics