Question 1

St.Luke's Hospital started offering deeply discounted computerized tomography (CT)scans for smokers worried about lung cancer.St.Luke's willingness to change the price is an example of change in

Accepted Answer

St. Luke's Hospital's decision to offer discounted CT scans for smokers reflects a change in resource deployment. This involves reallocating or adjusting how resources (in this case, the CT scan services) are used or priced to achieve a specific objective, such as attracting a particular group of patients or addressing a public health concern.

Question 2

Abercrombie & Fitch uses its ability to manage its supply chain more effectively than most of its competitors to create

Accepted Answer

Abercrombie & Fitch's ability to manage its supply chain more effectively than most of its competitors is a distinctive competence, which means it is a unique capability that sets them apart from their competition.

Question 3

Stars,question marks,and dogs could all be net cash users.

Accepted Answer

Stars, question marks, and dogs refer to categories within the Boston Consulting Group (BCG) matrix, a tool for analyzing a company's portfolio of products or business units. Stars and question marks often require significant investment to grow or maintain market share, making them potential net cash users. Dogs, which have low market share in low-growth markets, might also consume more cash than they generate, especially if a company attempts to turn them around.

Question 4

Hewlett Packard made PCs.Projected industry sales of smartphones were expected to be almost double expected sales of PCs.HP went through the strategy change process looking first at the content of its strategy.That was

Accepted Answer

The process of reviewing and potentially altering the overall direction and approach of a company is known as strategic formulation. This includes evaluating the content of the company's existing strategy, as HP did in response to changes in the industry. The other options listed relate to different stages of the strategic process, such as implementing a specific plan (strategy implementation) or executing specific actions within that plan (tactical implementation).

Question 5

There are three types of diversification strategies: single-product strategy,related diversification,and unrelated diversification.

Accepted Answer

This statement is true. The three types of diversification strategies are single-product strategy, related diversification, and unrelated diversification.

Question 6

Which of the following areas does a well-conceived strategy address?

Accepted Answer

Scope defines the boundaries of the organization's activities and the markets it serves.

Question 7

When Steve Jobs was CEO of Apple,his charisma,marketing skills,and technical vision helped create a(n)____ at Apple that made it the leader in mobile devices.

Accepted Answer

Distinctive competence refers to a unique strength of a company that sets it apart from its competitors. In this case, Steve Jobs' charisma, marketing skills, and technical vision helped create a distinctive competence at Apple that allowed it to become the leader in mobile devices.

Question 8

Effective strategies

Accepted Answer

Aligning the organization with the environment to achieve goals is the most effective strategy as it involves assessing both the internal strengths/weaknesses and external factors to create a comprehensive plan that addresses both. Long-range planning (A) is important but may not consider changes in the environment, while providing a list of environmental factors (C) may not provide sufficient information for managers to develop a strategy. Focusing solely on competition (E) may miss other important factors in the environment that could impact the organization's success.

Question 9

GE competes in industries ranging from medical devices,to financial services,to turbine engines.GE's mixed strategy is an example of ____ strategy.

Accepted Answer

The fact that GE competes in multiple industries indicates that it is utilizing a corporate-level strategy, as it is making strategic decisions related to the overall organization and its various businesses. Business-level strategies would be focused on specific industries or products, while functional strategies would be related to specific areas within the organization (such as marketing or operations). Long-term and short-term strategies refer to the time horizon of the strategy, rather than its level or focus.

Question 10

The primary concern of strategy implementation is

Accepted Answer

Strategy implementation is concerned with the actual execution and operationalization of the strategy. It involves translating the strategy into actions, assigning responsibilities, allocating resources, and monitoring progress towards achieving the objectives. The content of the strategy (A) and goal development (C) are important aspects of strategy formulation, while corporate-level strategy (D) and functional strategy (E) are different levels of strategy.

Question 11

Most organizations start out diversified.

Accepted Answer

Most organizations typically start out focusing on a single product or service and may diversify their offerings as they grow and seek to capitalize on new markets or reduce risk.

Question 12

Southwest Airlines gained access to the Atlanta market when it purchased Air Tran.This is an example of a change in Southwest's

Accepted Answer

Scope refers to the range of markets, products, and services that a company operates within. With the purchase of Air Tran, Southwest expanded its scope to include the Atlanta market.

Question 13

Coca-Cola sells soft drinks,bottled water,and sports drinks.This is an example of

Accepted Answer

This is an example of scope, which refers to the range of products or services a company offers. Coca-Cola has a broad range of offerings within the beverage category, including soft drinks, bottled water, and sports drinks.

Question 14

An international strategy in which the company attempts to combine the benefits of global scale efficiencies with the benefits and advantages of local responsiveness is called global strategy.

Accepted Answer

This description refers to a transnational strategy, not a global strategy. A global strategy emphasizes efficiency through global integration, while a transnational strategy aims to combine global efficiency with local responsiveness.

Question 15

Strategy formulation is

Accepted Answer

Strategy formulation involves the processes of developing and selecting strategies for an organization, which includes analyzing the internal and external environment, setting goals, and identifying resources and capabilities. It is a crucial step in the strategic management process.

Question 16

When an airline uses profits from one region to lower prices in another region it is using

Accepted Answer

This is an example of resource deployment, which refers to the allocation and use of resources to achieve organizational objectives. In this case, the airline is using profits from one region to lower prices in another region, which involves deploying resources (i.e. financial resources) to achieve the objective of pricing competitiveness.

Question 17

An international strategy in which the company manages itself as a collection of domestic markets is called a home replication strategy.

Accepted Answer

The answer of An international strategy in which the company...

Question 18

____ is the component of strategy that indicates what the organization does exceptionally well.

Accepted Answer

Distinctive competence is the component of strategy that indicates what the organization does exceptionally well, which gives it a competitive advantage over its rivals. This can be a specialized set of skills, unique technology, or innovative processes that sets the organization apart from its competitors. A company's distinctive competence is often the basis for its competitive strategy and can help it to achieve sustainable competitive advantage. A, B, C, and E are not correct as they do not accurately describe this component of strategy.

Question 19

Hewlett Packard contemplated selling its PC division.This is an example of change in ____.

Accepted Answer

The contemplated sale of HP's PC division represents a change in the scope of the company's operations, as it would involve a significant reduction in the range of products and services offered by the company. The other options (alignment, synergy, distinctive competence, and resource deployment) do not accurately describe this specific change.

Question 20

Business-level strategy focuses primarily on

Accepted Answer

The answer of Business-level strategy focuses primarily on
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Quiz 7: Managing Strategy and Strategic Planning

St.Luke's Hospital started offering deeply discounted computerized tomography (CT) scans for smokers worried about lung cancer.St.Luke's willingness to change the price is an example of change in