Deck 8: Strategy Formulation and Implementation

Question 1

Because of Circuit City's errors in strategy, they have fallen from number one to number three in the consumer electronics retail industry.

Answer 1

True

Question 2

There are four categories of grand strategies: growth, stability, retrenchment and diversification.

Answer 2

False

Question 3

The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy.

Answer 3

True

Question 4

Tools 4 All, a department store, sold all of its inventories at 80 percent off and permanently closed its doors. This is referred to as liquidation.

Question 5

Globalization refers to the world-wide standardization of product design and advertising.

Question 6

A transnational strategy seeks to achieve both global integration and national responsiveness.

Question 7

The essence of formulating strategy is choosing how the organization will be identical to its key competitors in the industry.

Question 8

Business, corporate, and global are the three levels of strategy.

Question 9

Value refers to the combination of benefits received and costs paid by the customer.

Question 10

Front-line mangers have the final responsibility for strategic planning.

Question 11

Stability is also referred to as a pause strategy.

Question 12

Top mangers and chief executives have the final responsibility for strategic planning.

Question 13

Strategic planning has taken on new importance in today's world of globalization, deregulation, advancing technology, and changing demographics and lifestyles.

Question 14

When K-Mart laid off thousands of people and closed over 100 stores, it was following a retrenchment strategy.

Question 15

With a multidomestic strategy, a company will achieve the globalization or standardization of marketing and production approaches.

Question 16

Just-for-You, Inc.'s ability to market its products better than its competitors is an example of its core competence.

Question 17

A multidomestic strategy standardizes global products/advertising strategies.

Question 18

Grand strategy is the general plan of major action by which a firm intends to achieve its long-term goals.

Question 19

Divestiture means selling of a business unit for the cash value of the assets, thus terminating its existence.

Question 20

Internal growth can include development of new or changed products.

Question 21

The BCG (Boston Consulting Group) matrix evaluates SBUs with respect to their business growth rate and geographical location.

Question 22

The administration and execution of the strategic plan is strategy implementation.

Question 23

Corporate-level strategy pertains to the organization as a whole.

Question 24

SWOT analysis includes a review of the internal threats and opportunities.

Question 25

The bargaining power of the government, according to Porter, is one of the five competitive forces affecting an organization's competitive environment.

Question 26

According to the BCG Matrix, the question mark exists in a new, rapidly growing industry but has only a small market share.

Question 27

Mergers and acquisitions represent the ultimate in collaborative relationships.

Question 28

Information and control systems include reward systems, pay incentives, budgets for allocating resources, information technology systems, and the organization's rules.

Question 29

Portfolio strategy pertains to the mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage for the corporation.

Question 30

Threats are characteristics of the internal environment that may prevent the organization from achieving its strategic goals.

Question 31

According to Unlocking Innovative Solutions Through PEOPLE in Chapter 8, managers and staff members at Four Seasons Hotel can implement ideas on how to improve customer service after asking middle management for an OK.

Question 32

In BCG Matrix, the circle size represents the relative profit made by each business in the company's portfolio.

Question 33

One of Porter's five competitive forces is bargaining power of customers.

Question 34

Situation analysis typically includes a search for SWOT--situation without threats.

Question 35

Preferred supplier arrangements occur when a company develops a special relationship with suppliers.

Question 36

Strategic decisions at the business level concern amount of advertising, direction and extent of R & D, product changes, new product development, equipment and facilities, and expansion or contraction of product lines.

Question 37

Differentiation, cost leadership, and focus are three of Porter's competitive strategies.

Question 38

For General Electric, a strong financial base, combined with an excellent reputation with creditors and the equity market, is with a significant strength to include in its SWOT analysis.

Question 39

Strategy implementation involves the planning and decision making that lead to the establishment of the firm's goals.

Question 40

"How do we compete?" question concerns functional-level strategy.

Question 41

Toy Trains, Inc. just introduced a new line of trains. This action is consistent with the grand strategy of

A) stability.
B) retrenchment.
C) internal growth.
D) external growth.
E) cash cow.

Question 42

In strategy implementation, human resources are the ability to influence people to adopt the new behaviors need.

Question 43

Joint Venture represents the ultimate in collaborative relationships.

Question 44

If ABC International has standardized its product line throughout the world it is pursuing a

A) multidomestic strategy.
B) retrenchment strategy.
C) diversity strategy.
D) globalization strategy.
E) liquidation strategy.

Question 45

Effective implementation is not a necessity if the strategies are truly creative.

Question 46

Divestiture is a type of a __________ strategy.

A) growth
B) global
C) retrenchment
D) stability
E) diversification

Question 47

Dobson Corporation is continually seeking out new markets and products, and is always on the lookout for acquisition candidates. Dobson is pursuing a grand strategy of

A) stability.
B) retrenchment.
C) growth.
D) liquidation.
E) divestiture.

Question 48

Structural design typically begins with the organizational chart.

Question 49

In strategy implementation, leadership is the ability to influence people to adopt the new behaviors need.

Question 50

Organization's with a focus strategy concentrate on a specific regional market or buyer group.

Question 51

The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as

A) strategy formulation.
B) strategic planning.
C) strategic management.
D) strategy implementation.
E) strategy evaluation.

Question 52

Which of these involves the selling off of businesses that no longer seem central to the corporation?

A) Diversification
B) Transnational strategy
C) Synergy
D) Divestiture
E) Liquidation

Question 53

__________ means selling off a business unit for the cash value of the assets, thus terminating its existence.

A) Diversification
B) Transnational strategy
C) Synergy
D) Divestiture
E) Liquidation

Question 54

Which of these refers to the overall plan of action for the organization?

A) The mission statement
B) The grand strategy
C) A strategic plan
D) The organizational vision
E) Competitive plan

Question 55

Structural design pertains to managers' responsibilities, their degree of authority, and the consolidation of facilities, departments, and divisions.

Question 56

Diversification is usually associated with the grand strategy of

A) stability.
B) retrenchment.
C) internal growth.
D) external growth.
E) divestiture.

Question 57

The management of Mugs, Inc. decided on growing slowly and in a controlled fashion. This is consistent with the grand strategy of

A) growth.
B) stability.
C) divestiture.
D) liquidation.
E) external growth.

Question 58

When the organization goes through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses, it is called

A) retrenchment.
B) growth.
C) cash cow.
D) multidomestic.
E) stability.

Question 59

As part of a liquidation strategy, Rose International would

A) look to acquire similar organization.
B) attempt to grow in a controlled manner.
C) sell off part of its business.
D) develop new products.
E) market its products aggressively.

Question 60

The acquisition of businesses that are related to current product lines or that takes the corporation into new areas is referred to as

A) retrenchment.
B) diversification.
C) liquidation.
D) cash cow.
E) internal growth.

Question 61

A strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries is referred to as a

A) domestic strategy.
B) global strategy.
C) transnational strategy.
D) multidomestic strategy.
E) region design strategy.

Question 62

Which of these refers to the modification of product design and advertising strategies to suit the specific needs of individual countries?

A) Domestic strategy
B) Global strategy
C) Transnational strategy
D) Multidomestic strategy
E) Market design strategy

Question 63

When Coca-Cola introduced Surge, a new citrus soft-drink, it was pursuing a

A) functional-level strategy.
B) multi-domestic strategy.
C) corporate-level strategy.
D) retrenchment strategy.
E) business-level strategy.

Question 64

Sears' decision to sell off much of its financial services division is an example of a

A) corporate-level strategy.
B) business-level strategy.
C) functional-level strategy.
D) growth strategy.
E) stability strategy.

Question 65

Ford's decision to completely redesign its Ford Taurus can be classified as a

A) corporate level strategy.
B) business level strategy.
C) functional level strategy.
D) retrenchment strategy.
E) stability strategy.

Question 66

Which of these questions is central to a functional-level strategy?

A) What business are we in?
B) How do we compete?
C) How do we support our chosen strategy?
D) What business do we buy?
E) Where to market our products?

Question 67

A __________ is a business activity that an organization does especially well relative to its competition is known as

A) strategy
B) synergy
C) cash cow
D) core competence
E) multidomestic

Question 68

Which of these typically includes a search for SWOT that affect organizational performance?

A) Strengths and weaknesses
B) Opportunities and threats
C) Situational analysis
D) External environment analysis
E) Cultural analysis

Question 69

Which of these refers to the use of managerial tools to direct resources toward the achievement of strategic goals?

A) Strategy formulation
B) Strategy coordination
C) Strategy implementation
D) Strategy control
E) Strategy planning

Question 70

When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a

A) corporate-level strategy.
B) business-level strategy.
C) functional-level strategy.
D) multidomestic strategy.
E) retrenchment strategy.

Question 71

A corporate-level strategy is concerned with the question

A) what business are we in?
B) how do we compete?
C) how do we support our chosen strategy?
D) where do we market our products?
E) should we promote from within?

Question 72

The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as

A) core competence.
B) synergy.
C) value creation.
D) business-level strategy.
E) multidomestic strategy.

Question 73

__________ pertains to the organization as a whole.

A) Business-level strategy
B) Functional-level strategy
C) Corporate-level strategy
D) Operational-level strategy
E) Competitive-level strategy

Question 74

Barney has been assigned to conduct a situation analysis for his organization, Let's Share, Inc. As part of this assignment, Barney will

A) conduct an external wage survey.
B) search for the strengths, weaknesses, opportunities, and threats that impact his firm.
C) choose a grand strategy for his firm.
D) do a cost/benefit analysis.
E) develop a mission.

Question 75

When AT&T decided to buy Media One, a cable company, it was pursuing a

A) functional-level strategy.
B) internal growth strategy.
C) multi-domestic strategy.
D) corporate-level strategy.
E) business-level strategy.

Question 76

The assumption that a single global market exists would lead to a

A) globalization strategy.
B) multidomestic strategy.
C) diversity strategy.
D) domestic strategy.
E) liquidation strategy.

Question 77

The planning and decision making that lead to the establishment of the organization's goals and of a specific strategic plan is known as

A) strategy formulation.
B) strategy implementation.
C) strategy coordination.
D) strategy control.
E) SWOT.

Question 78

Which of these can be defined as the combination of benefits received and costs paid by the customer?

A) Organizational benefits
B) Value
C) Cost-benefit diversity
D) Synergy
E) Core competence

Question 79

Decisions regarding the proper amount of advertising for a particular good or service are related to

A) corporate-level strategies.
B) functional-level strategies.
C) tactical-level strategies.
D) business-level strategies.
E) retrenchment strategies.

Question 80

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n)

A) goal.
B) objective.
C) mission.
D) vision.
E) strategy.