Question 1

Capabilities are 'what' an organisation has;resources are 'how' it uses what it has.

Accepted Answer

Capabilities refer to the company's ability to use its resources effectively to achieve a specific goal or outcome, while resources are the assets, skills, and attributes the company owns or controls.

Question 2

In a short essay,describe the final four steps in the strategic management process.

Accepted Answer

The answer of In a short essay,describe the final four...

Question 3

Which of the following best defines goals?

Accepted Answer

Goals are defined as desired outcomes for the future. It is something that an individual or organization wants to achieve in the long term. Goals help in providing direction and motivation for individuals or organizations to work towards achieving them.

Question 4

Recently,Taco Rocket has considered buying a local competitor and the two would combine under the Taco Rocket name.This is an example of which of the following?

Accepted Answer

Horizontal integration involves the acquisition of a company in the same industry and at the same stage of production, and it can lead to increased market power and reduced competition. In this case, Taco Rocket is buying a local competitor, which falls under horizontal integration.

Question 5

Core competencies include an organisation's major capabilities and its resources.

Accepted Answer

The answer of Core competencies include an organisation's major capabilities...

Question 6

The first step in the strategic management process is analysing the external environment.

Accepted Answer

The first step in the strategic management process is typically defining the organization's mission and objectives. Analyzing the external environment comes later in the process, often as part of the situation analysis or environmental scanning.

Question 7

'Build a better mousetrap' is a way of describing a competitive advantage.

Accepted Answer

"Build a better mousetrap" means creating a superior product or solution that outperforms competitors and provides a competitive advantage.

Question 8

Strategic management is the act of figuring out how an organisation will compete in the marketplace and attract loyal customers.

Accepted Answer

Strategic management involves analyzing the internal and external factors that affect a business and devising strategies to achieve its goals, which includes determining how the organization will compete in the marketplace and retain customer loyalty.

Question 9

A focus strategy seeks to appeal to a narrow segment of a market.

Accepted Answer

A focus strategy aims to serve a specific and narrow segment of a market effectively. This approach involves tailoring products, services, and marketing efforts to meet the unique needs and preferences of a particular group of customers.

Question 10

For a limited time,Taco Rocket is thinking of coming out with a new Fifth Degree Burrito that is so hot it 'burns a hole in the plate'.Catering to the small segment of the market that likes super-hot food is an example of a ________.

Accepted Answer

A focus strategy targets a specific market segment, in this case, the small segment that prefers super-hot food.

Question 11

SWOT analysis includes the identification of an organisation's strengths,weaknesses,opportunities and threats.

Accepted Answer

SWOT analysis is a strategic planning tool used to identify an organization's internal strengths and weaknesses and external opportunities and threats.

Question 12

If a company wants to employ a competitive strategy,what are their three strategic options?

Accepted Answer

The answer of If a company wants to employ a...

Question 13

The final three steps in the strategic management process involve the creation,implementation and evaluation of strategies for realising organisational goals.

Accepted Answer

The creation, implementation, and evaluation of strategies are the final three steps in the strategic management process. These steps are crucial in achieving an organization's goals and objectives.

Question 14

When going through the strategic management process,a company first formulates the strategy,and then undertakes a SWOT analysis.

Accepted Answer

The correct sequence is to first undertake a SWOT analysis, and then formulate a strategy based on the findings from the analysis.

Question 15

Strategic management aims to enable the organisation's departments to work independently to achieve structural goals.

Accepted Answer

Strategic management aims to align the organization's departments and resources towards achieving overall goals and strategic objectives, ensuring that all parts of the organization work together cohesively.

Question 16

A company with a stability strategy will plan to dramatically increase market share in a highly competitive market.

Accepted Answer

A stability strategy means maintaining the current level of operations and not taking any risks to expand or diversify. Therefore, a company with this strategy would not plan to dramatically increase market share in a highly competitive market.

Question 17

If a company wants to adopt a corporate strategy,what are their three strategic options?

Accepted Answer

The answer of If a company wants to adopt a...

Question 18

An external analysis will identify the threats to a company's well-being,but not opportunities for success.

Accepted Answer

An external analysis will identify both threats and opportunities for a company's success. It looks at the external environment, including competitors, market trends, and regulatory changes, to identify potential threats as well as opportunities to capitalize on.

Question 19

The most drastic renewal strategy an organisation can carry out is a retrenchment strategy.

Accepted Answer

A retrenchment strategy involves scaling back operations to reduce size or diversity, which is less drastic than a turnaround strategy, where fundamental changes are made to reverse declines and revitalize the organization.

Question 20

What are the six steps of the strategic management process?

Accepted Answer

The answer of What are the six steps of the...

Quiz 4: Foundations of Planning