Q&A Hero

Q: It is okay for firms to create expectations that exceed the service the firm can or will offer if it will attract customers.

Q: List some guidelines for when market development would be a particularly good strategy to pursue.

Q: Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated by competitors.

Q: Explain the relationship between strategic management and competitive advantage for firms. How can a firm achieve sustained competitive advantage?

Q: In 2011, Walt Disney, Starbucks, and Fiat were the three most admired socially responsible companies according to Fortune magazine.

Q: A firm can usually serve two or more market segments with the same strategy.

Q: Define and give an example of three intensive strategies.

Q: Which stage in the strategic-management process is most difficult? Explain why.

Q: Corporate social policy should be reaffirmed or changed during strategy implementation.

Q: Multidimensional scaling involves examining three or more criteria simultaneously in a product-positioning analysis.

Q: List some guidelines for when forward integration would be a particularly good strategy to pursue.

Q: In a CPM, the ratings and total weighted scores for rival firms can be compared to the sample firm.

Q: Compare and contrast strategic planning with strategic management.

Q: Corporate social policy should be designed and articulated during strategy formulation.

Q: In general, the Internet makes market segmentation easier.

Q: Define and give an example, where available, of three integrative strategies.

Q: The critical success factors in a CPM are not grouped into opportunities and threats as they are in an EFE.

Q: The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction. A) logical; systematic; subjective B) intuitive; disorganized; subjective C) logical; systematic; objective D) intuitive; disorganized; objective E) inconsistent; systematic; subjective

Q: After decades of debate and struggle, firms have finally definitively determined the appropriate social policies.

Q: After segmenting markets so a firm can target particular customer groups, the next step is to find out what customer groups want and expect.

Q: According to journalists' findings, what is a serious obstacle for many small business owners? A) A lack of business ethics B) An excess of employees and managerial staff C) A lack of experience in networking D) A lack of strategic-management knowledge E) Having too many suppliers

Q: What is a CPM and how is it different from a EFE Matrix?

Q: Organizations should take a(n) ________ approach in their industry. A) adversarial rather than a collegial B) collegial rather than an adversarial C) reactive rather than a proactive D) proactive rather than a reactive E) cooperative rather than a competitive

Q: Social policy concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.

Q: The most dramatic new market-segmentation strategy is the targeting of regional tastes.

Q: When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called A) marketing. B) outsourcing. C) licensing. D) franchising. E) divestiture.

Q: List five steps that comprise an effective framework for conducting an EFE Matrix. Explain the details involved in performing any one of the steps.

Q: The strategic-management process is becoming more widely used by A) small firms. B) nonprofit institutions. C) governmental organizations. D) multinational conglomerates. E) all of the above

Q: The first social responsibility of any business must be to make enough profit to cover the costs of the future because if this is not achieved, no other social responsibility can be met.

Q: Segmenting industrial markets is generally simpler and easier than segmenting consumer markets.

Q: There are annually more than 10,000 mergers in the United States that total more than A) $700 billion. B) $825 billion. C) $975 billion. D) $1 trillion. E) $3 trillion.

Q: Discuss the following statement: "Planning would be impossible without assumptions."

Q: Both business and military organizations must ________ and ________ to be successful. A) be impervious to change; continually improve B) adapt to change; continually improve C) shun change; stay the course D) be impervious to change; stay the course E) none of the above

Q: Ralph Nader believes that big firms like ExxonMobil, which has more assets than most countries, have an obligation to help society cure its many ills.

Q: Segmentation often reveals that large, random fluctuations in demand actually consist of several small, predictable, and manageable patterns.

Q: Mergers and acquisitions are created for all of the following reasons EXCEPT to A) gain new technology B) reduce tax obligations C) gain economies of scale D) smooth out seasonal trends in sales E) increase the number of employees

Q: According to Michael Porter, what are the five competitive forces that create vital opportunities and threats for organizations? Which force do you feel is most important in the computer industry today? Why?

Q: Military strategy is based on an assumption of ________, whereas business strategy is based on an assumption of ________. A) conflict; cooperation B) conflict; competition C) cooperation; conflict D) competition; conflict E) cooperation; competition

Q: Some strategists agree with Ralph Nader, who asserts that organizations have no obligation to do any more for society than is legally required.

Q: The most common bases for segmenting markets are geographic and demographic.

Q: When two organizations of about equal size unite to form one enterprise, which of these occurs? A) Hostile takeover B) Merger C) Acquisition D) LBO E) Divestiture

Q: Agree or disagree with and discuss the following statement: "Corporate intelligence is not corporate espionage because 95 percent of the information a company needs to make strategic decisions is available and accessible to the public."

Q: A strong ________ heritage underlies the study of strategic management. A) military B) government C) political D) social E) cultural

Q: The EEOC recovered $376 million on behalf of office romance victims in 2009.

Q: With market segmentation, a firm can better operate with limited resources.

Q: Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well? A) Conglomerate diversification B) Divestiture C) Joint venture D) Retrenchment E) Integration

Q: Explain how the Internet is changing businesses around the world.

Q: Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources. A) are irrelevant to B) are not enough to surmount C) can overcome D) can lead to E) unite

Q: In Europe, romantic relationships at work are frowned upon, and most firms have policies prohibiting the practice.

Q: There are five component variables in the marketing mix: product, place, promotion, price, and people.

Q: Which of the following is NOT a reason joint ventures fail? A) Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture. B) The venture may not be supported equally by both partners. C) The venture may benefit the partnering companies but may not benefit the customers who then complain about poorer service or criticize the companies in other ways. D) Stakeholders from both partners are equally satisfied. E) The venture may begin to compete more with one of the partners than the other.

Q: List three opportunities and three threats that could represent key factors facing your college or university.

Q: Business or military success is A) generally the happy result of accidental strategies. B) undermined by the element of surprise. C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions. D) unrelated to external conditions. E) none of the above.

Q: European firms are increasingly adopting explicit, American-style sexual harassment laws.

Q: Market penetration can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

Q: All of the following are cooperative arrangements EXCEPT A) R&D partnerships B) joint-bidding consortia C) cross-licensing agreements D) cross-manufacturing agreements E) marketing plans

Q: Identify five key economic variables that could represent major opportunities or threats to a bank in your town or city.

Q: According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy." A) competitive advantage B) war C) strategy D) formulation E) business

Q: A recent Wall Street Journal article reported that 80 percent of all firms sampled had no restrictions on relationships between a supervisor and a subordinate.

Q: Editorial content and advertising content are increasingly being mixed on blogs.

Q: What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity? A) Retrenchment B) A joint venture C) Liquidation D) Forward integration E) Divestiture

Q: Discuss the I/O approach in relation to competitive advantage.

Q: Terms such as objectives, mission, strengths, and weaknesses were first formulated to address problems A) on the battlefield. B) in the boardroom. C) on the trading floor. D) in the military hierarchy. E) in interpersonal relationships.

Q: Royal Dutch Shell PLC and several other companies recently paid a combined $236 million settlement due to allegations that they bribed foreign officials.

Q: An example of a marketing decision is whether or not to limit the share of business done with a single customer.

Q: Under which condition would a differentiation strategy be especially effective? A) when the target market niche is large, profitable and growing B) when technological change is fast paced and competition revolves around rapidly evolving product features C) when industry leaders do not consider the niche to be crucial to their own success D) when the industry has many different niches and segments, thereby allowing a company to pick a competitively attractive niche suited to its own resources E) when few, if any, other rivals are attempting to specialize in the same target segment

Q: Discuss the process of performing an external audit.

Q: Which of the following statements is false? A) No organization can pursue all the strategies that potentially could benefit the firm. B) Most organizations today recognize that strategic-management concepts and techniques can enhance the effectiveness of decisions. C) A key role of strategists is to facilitate continuous organizational learning and change. D) Effective strategic planning should accept the assumptions underlying the current corporate strategy. E) Even the most technically perfect strategic plan will serve little purpose if it is not implemented.

Q: In some foreign countries, paying bribes and kickbacks is acceptable.

Q: Being long-term in nature, strategy implementation affects top and middle managers but not lower-level employees.

Q: Under which condition would a cost leadership strategy be especially effective? A) when there are many ways to differentiate the product or service and many buyers perceive these differences as having value B) when buyer needs and uses are diverse C) when few rival firms are following a similar approach D) when technological change is fast paced and competition revolves around rapidly evolving product features E) when the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers

Q: What are the five major types of external forces that should be examined as part of an external audit? Give an example of each type of force.

Q: What is NOT a guideline given for effective strategic planning? A) Continually strengthen the "good ethics is good business" policy. B) It should not include jargon or arcane planning language. C) It should not be too formal, predictable, or rigid. D) It should welcome bad news. E) It should be controlled by "technicians."

Q: In order to be considered bribery, the gift offered must be either money or a physical item.

Q: Only 15 percent of formulated strategies are successfully implemented.

Q: According to Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market? A) Cost Leadership Low Cost B) Cost Leadership Best Value C) Focus Low Cost D) Focus Best Value E) Differentiation

Q: One difference between CPM and EFE is that A) CPM includes both internal and external issues. B) the weights and total weighted scores have different meanings. C) CPM ratings range from 1 to 10. D) CPM is performed only for the company, whereas EFE is performed for both the company and its competitors. E) CPM is only used in small firms.

Q: All of the following are guidelines for effective strategic planning EXCEPT A) it should be simple and nonroutine. B) it should be a learning process for all managers and employees. C) it should be a paper process more than a people process. D) it should not disregard qualitative information. E) it should not be a formal system for control.

Q: A bribe is a gift bestowed to influence another's conduct.

Q: Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market? A) Cost Leadership Low Cost B) Cost Leadership Best Value C) Focus Low Cost D) Focus Best Value E) Differentiation