A core competence is something a company does especially well relative to its competitors.

To remain competitive, companies should develop strategies that focus on core competencies, providing synergy, and creating value for _____. a. customers b. suppliers c. stockholders d. employees

. 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.

Which of the following is a business activity that an organization does especially well relative to its competition? a. Strategy b. Synergy c. Cash cow d. Core competence

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.

When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line. a. synergy b. competitors c. government contacts d. command structure

_____ 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

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon? a. Strategy execution b. Portfolio strategy c. Core competency d. Synergy

When AT&T decided to buy Media One, a cable company, it was pursuing a(n) _____ strategy. a. functional-level b. internal growth c. multi-domestic d. corporate-level

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

Which of the following pertains to the organization as a whole? a. Business-level strategy b. Functional-level strategy c. Corporate-level strategy d. Operational-level strategy

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?

a. what business are we in?

When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued? a. Functional-level strategy b. Multi-domestic strategy c. Corporate-level strategy d. Retrenchment strategy e. Business-level strategy

e. Business-level strategy

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.

Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with? a. How do we compete? b. What business are we in? c. How does marketing support the business? d. How can we maximize profits?

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.

d. business-level strategies.

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?

c. How do we support our chosen strategy?

hich of the following lists the strategic management process in proper order? a. Formulate strategy; Evaluate strategy; Perform SWOT analysis; Define new mission/goals; Execute strategy; Control strategy. b. Perform SWOT analysis; Evaluate current mission/goals; Formulate strategy; Execute strategy; Define new mission/goals. c. Evaluate current mission/goals; Define new mission/goals; Formulate strategy; Execute strategy; Perform SWOT analysis . d. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy.

Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy.

. Which of the following refers to the planning and decision making that lead to the establishment of the organization's goals and of a specific strategic plan? a. Strategy formulation b. Strategy implementation c. Strategy coordination d. Strategy control

. Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred 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.

b. search for the strengths, weaknesses, opportunities, and threats that impact his firm.

How business units and product lines fit together in a logical way is the essence of: a. business-level strategy. b. portfolio strategy. c. competitive strategy. d. financial strategy.

The BCG matrix organizes along which of the following dimensions? a. Market share and profit b. Sales and market share c. Business growth rate and market share d. Business growth rate and profit

Business growth rate and market share

Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as: a. a dog. b. a star. c. a question mark. d. a cash cow.

Which of these is true about the cash cow? a. It generates tremendous profits in a rapidly growing industry. b. It has a small market share in a rapidly growing industry. c. It has a small market share in a slow growth industry. d. It has a large market share in a slow growth industry.

d. It has a large market share in a slow growth industry.

The star has a: a. large market share in a rapidly growing industry. b. large market share in a slow growth industry. c. small market share in a rapidly growing industry. d. small share of a slow growth market.

a. large market share in a rapidly growing industry.

Which of the following portfolio categories is made up of poor performers who command only a small share of a slow growth market? a. Star b. Cash cow c. Question mark d. Dog

The question mark has a: a. large market share in a rapidly growing industry. b. large market share in a slow growth industry. c. small market share in a rapidly growing industry. d. small share of a slow growth market.

small market share in a rapidly growing industry.

. Gillette operates numerous strategic business units. Most of its units in the personal care division have low market share but high business growth. These units are classified as _____. a. dogs b. question marks c. stars d. cash cows

When an organization expands into a totally new line of business, it is implementing a strategy of: a. Related diversification b. Unrelated diversification c. Cross-functional diversification d. Product line diversification

Unrelated diversification

Semway, a regional bank, recently announced that it would soon begin offering financial planning services. This is an example of which of these? a. Related diversification b. Unrelated diversification c. Cross-functional diversification d. Product line diversification

The purpose of _____ is to expand the firm’s business operations to produce new kinds of valuable products and services? a. retrenchment b. diversification c. liquidation d. cash cow

All of the following are Porter's competitive forces except: a. differentiation. b. bargaining power of buyers. c. bargaining power of suppliers. d. threat of substitute products. e. potential new entrants.

The _____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors. a. cost leadership b. differentiation c. focus d. internal growth

FLY Industries is a global conglomerate company headquartered in the United States that does business in over fifty countries. The company seeks to balance global efficiencies and local responsiveness by hiring locally as well as from home. It can best be described as using which global corporate strategy? a. Globalization strategy b. Multidomestic strategy c. Export strategy d. Transnational strategy

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.

d. globalization strategy.

The assumption that a single global market exists would lead to a: a. globalization strategy. b. multidomestic strategy. c. diversity strategy. d. domestic strategy.

a. globalization strategy.

_____ 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

Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries? a. Domestic strategy b. Global strategy c. Transnational strategy d. Multidomestic strategy

c. Transnational strategy

Core competence is something the organization does very well in comparison to its competitors. A core competence represents a competitive advantage because the company acquires expertise that competitors do not have.

. Synergy occurs when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone. The organization may attain a special advantage with respect to cost, market power, technology, or management skill

Value creation should be at the heart of strategy. Value is the combination of benefits received and costs paid by the customer. Managers help their companies create value by devising strategies that exploit core competencies and attain synergy.

Strategy implementation uses managerial and organizational tools to direct resources toward accomplishing strategic results

Strategy formulation includes the planning and decision making that lead to the establishment of the firm's goals and the development of a specific strategic plan. Also, it includes assessing the external environment and internal problems and integrating the results into goals and strategies.