If a bank estimates the capabilities of its training and development department

Faculty of Management sciences

MGT 200

Review sheet Topic (5)

Name: ………………………

ID: ………………………….

Complete the following statement:-

1.________________is the set of managerial decisions and actions that determines the Long-term

performance of an organization. (Strategic management)

2.Evaluating an organization’s intangible assets is part of doing an ________________ in the

strategic management process. (internal analysis)

3.Activities that an organization does well or resources that it has available are called

________________. (capabilities)

4.Exceptional or unique organizational resources are known as ________________.

(Core capabilities)

5.________________ includes an analysis of an organization’s strengths, weaknesses,

opportunities and threats.( SWOT analysis)

6.________________ are the plans for how the organization will do what it’s in business to do,

how it will compete successfully, and how it will attract and satisfy its customers in order to

achieve its goals. (strategies)

7.___________ and ___________ are outcomes from a study of the external environment.

(Opportunities; threats)

8.________________are an organization’s financial, physical, human, and intangible assets that

are used to develop, manufacture, and deliver products or services to its customers

(its resources)

Multiple-Choice Questions

1.Studies of the factors that contribute to organizational performance have shown _____________

relationship between strategic planning and performance.

a.No

b.A mixed

c.A negative

d.A positive

2.Why is strategic management important?

a.It has little impact on organizational performance.

b.It is involved in many of the decisions that managers make.

c.Most organizations do not change.

d.Organizations are composed of similar divisions and functions.

Warning: TT: undefined function: 32 Warning: TT: undefined function: 32 38) Middle-level managers typically are responsible for A) competitive B) organizational C) operational D) corporate Answer: A Diff: 2 Page Ref: 167 Topic: Corporate Strategies strategies. 39) strategy determines what businesses an organization should be in. A) Business B) Organizational C) Operational D) Corporate Answer: D Diff: 2 Page Ref: 167 Topic: Corporate Strategies 40) When PepsiCo seeks to integrate the strategies of Pepsi, 7-Up International, and Frito-Lay, it is developing what level of business strategy? A) functional B) system C) management D) corporate Answer: D Diff: 2 Page Ref: 167 Topic: Corporate Strategies 41) What are the three main types of corporate strategies? A) concentration, integration, and diversification B) growth, stability, and renewal C) retrenchment, turnaround, and clicks-and-bricks D) cost leadership, differentiation, and focus Answer: B Diff: 1 Page Ref: 167 Topic: Corporate Strategies 42) There are three main types of growth strategies: A) concentration, integration, and diversification B) concentration, integration, and exfoliation C) integration, diversification, and infiltration D) concentration, integration, and focus Answer: A Diff: 1 Page Ref: 167 Topic: Corporate Strategies 38) Middle-level managers typically are responsible for A) competitive B) organizational C) operational D) corporate Answer: A Diff: 2 Page Ref: 167 Topic: Corporate Strategies strategies. 39) strategy determines what businesses an organization should be in. A) Business B) Organizational C) Operational D) Corporate Answer: D Diff: 2 Page Ref: 167 Topic: Corporate Strategies 40) When PepsiCo seeks to integrate the strategies of Pepsi, 7-Up International, and Frito-Lay, it is developing what level of business strategy? A) functional B) system C) management D) corporate Answer: D Diff: 2 Page Ref: 167 Topic: Corporate Strategies 41) What are the three main types of corporate strategies? A) concentration, integration, and diversification B) growth, stability, and renewal C) retrenchment, turnaround, and clicks-and-bricks D) cost leadership, differentiation, and focus Answer: B Diff: 1 Page Ref: 167 Topic: Corporate Strategies 42) There are three main types of growth strategies: A) concentration, integration, and diversification B) concentration, integration, and exfoliation C) integration, diversification, and infiltration D) concentration, integration, and focus Answer: A Diff: 1 Page Ref: 167 Topic: Corporate Strategies 23) The first steps of the strategic management process describe the planning that must take place. A) two B) three C) four D) five Answer: C Diff: 2 Page Ref: 164 Topic: Strategic Management Process 24) In the first step of strategic management, the mission of the firm answers the question,

A) What business should we be in? B) What is our reason for being in business? C) Who are our customers? D) Who are our creditors? Answer: B Diff 2 Page Ref: 164 Topic: Strategic Management Process 25) What provides clues to what an organization sees as its purpose? A) the organization's goals B) the organization's strategies C) the organization's business model D) the organization's mission Answer: D Diff: 1 Page Ref: 164 Topic: Strategic Management Process 26) In the first step of strategic management, identifying the current strategies and goals provides A) a basis to determine if the goals need to be changed B) an understanding of what the competition is doing C) an idea of what trends and changes are occurring D) important information about an organization's specific resources and capabilities Answer: A Diff: 2 Page Ref: 164 Topic: Strategic Management Process 27) In analyzing the environment, managers should know A) the competition's stock price B) pending legislation that might affect the organization C) the organization's purpose D) the goals currently in place and the strategies currently being used Answer: B Diff: 2 Page Ref: 165 Topic: Strategic Management Process 43) Growth through its own business operations. A) concentration B) horizontal integration C) vertical integration D) related diversification Answer: A Diff: 2 Page Ref: 167 Topic: Corporate Strategies is achieved when an organization chooses to grow by increasing 44) In , the organization gains control of its outputs by becoming its own distributor. A) backward horizontal integration B) forward horizontal integration C) backward vertical integration D) forward vertical integration Answer: D Diff: 2 Page Ref: 168 Topic: Corporate Strategies 45) When an organization attempts to combine with other organizations in the same industry, the strategy is known as A) concentration B) horizontal integration C) vertical integration D) a stability strategy Answer: B Diff: 2 Page Ref: 168 Topic: Corporate Strategies 46) If United Airlines were to merge with Northwest Airlines, this would be an example of what kind of growth strategy? A) horizontal integration B) acquisition C) expansion D) vertical integration Answer: A Diff: 3 Page Ref: 168 Topic: Corporate Strategies 47) An organization that is diversifying its product line is exhibiting what type of growth strategy? A) stability B) retrenchment C) growth D) maintenance Answer: C Diff: 2 Page Ref: 168 Topic: Corporate Strategies 33) are the organization's major value-creating skills, capabilities, and resources that determine the organization's competitive weapons. A) Strengths B) Opportunities C) Core competencies D) Weaknesses Answer: C Diff: 2 Page Ref: 165 Topic: Strategic Management Process 34) An example of a core competency of a firm is A) the corporate reputation B) communicating with customers in their own languages worldwide C) developing least-squared exemptions within its accounting system D) evaluating

1. The third step in strategic management is related to analysis of A) the external environment B) the internal environment C) the alternatives the firm faces D) time pressures involved in serving the customer Answer: B Diff: 2 Page Ref: 165 Topic: Strategic Management Process

2. What are an organization's financial, physical, human, and intangible assets that are used to develop, manufacture, and deliver products or services to its customers? A) its resources B) its capabilities C) its opportunities D) its core competencies Answer: A Diff: 1 Page Ref: 165 Topic: Strategic Management Process

3. If a bank estimates the capabilities of its training and development department employees prior to implementing a new training program designed to change their method of providing customer service, it is completing what step in the strategic management process? A) doing an external analysis B) identifying the organization's current mission, goals, and strategies C) doing an internal analysis D) formulating strategies Answer: C Dill 2 Page Ref: 165 Topic: Strategic Management Process

4. In the BCG matrix, a business unit that exists in a high anticipated growth rate and a low market share is known as a A) cash cow B) star C) dog D) question mark Answer: D Diff: 2 Page Ref: 169 Topic: Corporate Strategies

5. In the BCG matrix. a no improved performance. A) cash cow B) star C) dog D) question mark Answer: C Diff: 2 Page Ref: 169 Topic: Corporate Strategies does not consume or produce much casts and holds little or

6. Managers should "milk" cash cows for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in and A) more cash cows; question marks B) stars; dogs C) stars; question marks D) question marks; dogs Answer: C Diff: 2 Page Ref: 169 Topic: Corporate Strategies

7. Heavy investment in maintain high market share. A) cash cows B) stars C) question marks D) dogs Answer: B Diff: 3 Page Ref: 169 Topic: Corporate Strategies will help take advantage of the inarket's growth and help

8. When an organization attempts to combine with other organizations in different. but associated industries, the strategy is known as a strategy. A) growth B) horizontal integration C) vertical integration D) related diversification Answer: D Diff: 2 Page Ref: 168 Topic: Corporate Strategies

9. When an organization attempts to combine with other organizations in different and disassociated industries, the strategy is known as a(n) strategy. A) unrelated diversification B) horizontal integration C) vertical integration D) stability Answer: A Duff: 2 Page Ref: 168 Topic: Corporate Strategies

10. A(n) strategy addresses organizational weaknesses, helps stabilize operations, and revitalizes organizational resources and capabilities. A) unrelated diversification B) horizontal integration C) vertical integration D) retrenchment Answer: D Diff: 2 Page Ref: 169 Topic: Corporate Strategies

11. What type of strategy is a renewal strategy for times when the organization's performance problems are more critical? A) retrenchment B) turnaround C) focus D) differentiation Answer: B Diff: 2 Page Ref: 169 Topic: Corporate Strategies

12. In the Boston Consulting Group (BCG) matrix, a business unit that exists in a low anticipated growth rate and a high market share is known as a A) cash cow B) star C) dog D) question mark Answer: A Diff: 2 Page Ref: 169 Topic: Corporate Strategies

13. To a degree. an organization's commitment to quality and continuous improvement can differentiate it from competitors. but constant improvement and reliability of an organization's products and/or services may result in a competitive advantage that is A) weighted B) sustainable C) conservative D) uncertain Answer: B Diff: 3 Page Ref: 170 Topic: Competitive Strategies

14. What can challenge managers' attempts at creating a long-term, sustainable competitive advantage? A) old technologies B) predictable changes C) competitive strategics D) market instabilities Answer: D Diff: 2 Page Ref: 171 Topic: Competitive Strategies

15. Cost leadership as a strategy requires a firm to. A) aggressively search out efficiencies to maintain the lowest cost structure B) be unique in its product offering C) aim at a cost advantage in a niche market D) aim to be similar to its competition in most operations Answer A Diff: 3 Page Ref: 172 Topic: Competitive Strategies

16. Differentiation as strategy requires a firm to A) aggressively search out efficiencies to maintain the lowest cost structure B) be unique in its product offering C) aim at a cost advantage in a niche market D) aim to be similar to its competition in all operations Answer B Diff: 3 Page Ref: 172 Topic: Competitive Strategies

17. Practically any successful consumer product or service can be identified as an example of the A) differentiation strategy B) focus strategy C) breadth strategy D) cost leadership strategy Answer. A Diff: 2 Page Ref: 172 Topic: Competitive Strategies

18. The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which drain organizational resources. Answer: TRUE Diff: 2 Page Ref: 169 Topic: Corporate Strategies

19. Stars, one of the four business groups in the corporate portfolio matrix, are characterized by low growth and low market share. Answer: FALSE Diff: 2 Page Ref: 169 Topic: Corporate Strategies

20. When managers "manage strategically" by following the strategic management process, the chosen strategies will always lead to positive outcomes. Answer: FALSE Diff: 1 Page Ref: 171 Topic: Competitive Strategies

21. What is a strategic design for how a company intends to profit from its strategies, work processes, and work activities'? A) business model B) strategic model C) strategic management model D) competitive model Answer: A Diff: I Page Ref: 163 Topic: Strategic Management

management C) competitive advantage D) an opportunity Answer: A Diff: 1 Page Ref: 173 Topic: Current Strategic Management Imes 81) Process development strategies seek to achieve a competitive advantage by A) looking for ways to enhance existing work processes B) committing to scientific research C) making the firm more effective D) improving on existing technology Answer: A Diff: 1 Page Ref: 175 Topic: Current Strategic Management Issues 82) The first organization to bring a product or service to market is often referred to as the A) prime player B) market leader C) first mover D) trailblazer Answer: C Diff: 1 Page Ref: 175 Topic: Current Strategic Management Issues 83) What is a strategic advantage of being a first mover? A) certainty over the direction of technology and market B) low development costs C) no financial or strategic risks D) cost and teaming benefits Answer: D Diff: 2 Page Ref: 176 Topic: Current Strategic Management Issues 84) What is a strategic disadvantage of being a first mover? A) a slow start at fonning customer relationships and customer loyalty B) risk of competitors imitating innovations C) reputation for being a follower D) no control over resources Answer: B Diff: 2 Page Ref: 176 Topic: Current Strategic Management Issues 77) Customer service strategies involve giving the customers what they want, effective communication, and. A) providing employees with incentives and bonuses for good service B) providing employees with customer service training C) commitment from upper management D) applying existing technology to new uses Answer: B Diffi2 Page Ref: 174 Topic: Current Strategic Management Issues

1. Innovation strategies should reflect the organization's philosophy about innovation, which is shaped by A) communication of innovations and innovation training

B) giving the customers what they want and targeting a narrow market segment with customized products C) innovation emphasis and innovation timing D) innovative technology and Internet technology Answer: C

Diff:2 Page Ref: 175

Topic: Current Strategic Management Issues

1. Senior managers must decide whether or not the emphasis of their innovation efforts is going to be based upon

A) market research

B) communication

C) process improvement

D) cost effectiveness

Answer: C

Diff:2 Page Ref: 175

Topic: Current Strategic Management Issues

Topic: Current Strategic Management Issues 78) Innovation strategies should reflect the organization's philosophy about innovation, which is shaped by. A) communication of innovations and innovation training B) giving the customers what they want and targeting a narrow market segment with customized products C) innovation emphasis and innovation timing D) innovative technology and Internet technology Answer: C Diff:2 Page Ref: 175 Topic: Current Strategic Management Issues 79) Senior managers must decide whether or not the emphasis of their innovation efforts is going to be based upon. A) market research B) communication C) process improvement D) cost effectiveness Answer: C Diff:2 Page Ref: 175 Topic: Current Strategic Management Issues 80) What company would benefit most from using a scientific research strategy to achieve high performance levels? A) Merck B) Wal-Mart C) Macy's

D) Delta Airlines Answer: A Diff:3 Page Ref: 175 Topic: Current Strategic Management Issues 57) The should be sold off or liquidated as they have low market share in markets with low growth potential. A) cash cows B) stars C) question marks D) dogs Answer: D Diff:2 Page Ref: 169 Topic: Corporate Strategies 58) What can provide a framework for understanding diverse businesses and help managers establish priorities for making resource allocation decisions? A) a competitive advantage B) a competitive strategy C)a corporate portfolio matrix D) a strategic business unit Answer: C Diff:2 Page Ref: 169 Topic: Corporate Strategies 59) For a small organization in only one line of business, the competitive strategy simply describes. A) how the company will compete in its main market

1. Strategic management is the set of managerial decisions and actions that determines the short- term performance of an organization. Answer: FALSE Ditf:2 Page Ref: 163 Topic: Corporate Strategies
2. "Strategic model” is a term that is often used in conjunction with strategic management and strategies. Answer: FALSE Diff: 1 Page Ref: 163 Topic: Corporate Strategies
3. The first step in the strategic management process is analyzing the external environment. Answer: FALSE Diff: 3 Page Ref: 164 Topic: Corporate Strategies
4. Within an industry, an environment can present opportunities to one organization and pase threats to another. Answer: TRUE Diff:2 Page Ref: 165 Topic: Corporate Strategies
5. Evaluating an organization's intangible assets is part of doing an internal analysis in the strategic management process. Answer: TRUE Diff: 1 Page Ref: 165 Topic: Corporate Strategies
6. Activities that an organization does well or resources that it has available are called

capabilities. Answer: FALSE Diff: 1 Page Ref: 165 Topic: Corporate Strategies 7) Exceptional or unique organizational resources are known as core capabilities. Answer: FALSE Diff:2 Page Ref: 165 Topic: Corporate Strategies 8) SWOT analysis includes an analysis of an organization's environmental opportunities and threats. Answer: TRUE Diff: 1 Page Ref: 165 Topic: Corporate Strategies

What is the last step of the strategic management process?

Why is strategic management important?

What is the first step in a strategic analysis process quizlet?

When an organization is in several different businesses all of whom are independent and formulate their own competitive strategies they are often called?