Chapter 5

Question 1

A unique skill and/or knowledge an organization prossrsses that gives it an edge over competitors

Answer 1

Core capability

Question 1

Achieving the best possible balance among several goals

Answer 1

Optimizing

Question 1

A process in which group members generate as many ideas about a problem as they can; criticizing is withheld until all ideas have been proposed

Answer 1

Brainstorming

Question 2

The major action by which an organization competes in a particular industry or market

Answer 2

Business strategy

Question 3

A strategy and organization uses to build competitive advantage by being efficient and offering a standard, no-frills product

Answer 3

Low – cost strategy

Question 4

A system designed to support managers in evaluating the organization’s progress regarding the strategy and when discrepancies exist, taking corrective action

Answer 4

Strategic control system

Question 4

Ideas that have been seen or tried before

Answer 4

Ready-made solutions

Question 5

specify actions to take when a company’s initial plans have not worked well or events in the external environment require a sudden change.

Answer 5

Contingenncy Plan

Question 6

A target or end that management desires to reach

Answer 6

Goal

Question 7

Disadvantages of leading

Answer 7

Greater risk cost of technology development cost of market development and consumer education infrastructure costs cost of learning and eliminating defects possible cannabalism of existing products

Question 8

BCG matrix

Answer 8

Question 8

Steps for general decision-making

Answer 8

1) identifying and diagnosing the problem 2) generating alternative solutions 3) evaluating alternatives 4) making the choice 5) implementation 6) evaluation

Question 8

Stages of strategic planning

Answer 8

1) situational analysis 2) alternative goals and plans 3) goal and plan evaluation 4) goal and plan selection 5) implementation 6) monitor and control

Question 8

New, creative solutions designed specifically for the problem

Answer 8

Custom-made solutions

Question 10

a process planners use, within time and resources constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration

Answer 10

Situational analysis

Question 12

Hierarchy of goals and plans

Answer 12

Question 13

The process of identifying the specific procedures and processes required at lower-level of organization

Answer 13

Operational planning

Question 14

A structured debate comparing 2 conflicting courses of action

Answer 14

Dialectic

Question 15

strategies that typically are developed by functional area executives with input of and approval from the executives responsible for business strategy.

Answer 15

Functional Strategies

Question 16

A narrative that describes a particular set of future conditions

Answer 16

Scenario

Question 16

The long-term direction and strategic intent of a company

Answer 16

Strategic vision

Question 17

Strategies implemented by each functional area of the organization to support the organization’s business strategy

Answer 17

Functional strategies

Question 18

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a particular portion of the organization, such as a functional areas like marketing

Answer 18

Tactical planning

Question 18

The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities

Answer 18

Corporate strategy

Question 19

A person who has the job of criticizing ideas to ensure that there are downsides are fully explored

Answer 19

Devils advocate

Question 20

A pattern of actions and resource allocations designed to achieve the organization's goals

Answer 20

Strategy

Question 21

A condition that occurs when a decision-making group loses sight of its original goal and new ones, less important goals emerge

Answer 21

Goal displacement

Question 23

An effective goal should be:

Answer 23

1) specific 2) measurable 3) attainable 4) relevant 5) time bound

Question 24

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

Answer 24

Differentiation strategy

Question 25

The state that exists when decision-makers have accurate and comprehensive information

Answer 25

Certainty

Question 27

A strategy employed for an organization that operates a single business and competes in a single industry

Answer 27

Concentration

Question 27

People's belief that they can influence events, even when they have no control over what will happen

Answer 27

Illusion of control

Question 29

The actions or means managers intend to use to achieve organizational goals

Answer 29

Plants

Question 30

A set of procedures for making decisions about the organization's long-term goals and strategies

Answer 30

Strategic planning

Question 32

Groups and individuals who affect and are affected by the achievement of the organizations mission, goals and strategies

Answer 32

Stakeholders

Question 33

A bias weighing short-term costs and benefits more heavily than the long-term costs and benefits

Answer 33

Discounting the future

Question 35

Advantages of leading

Answer 35

1st mover advantage little or no competition great efficiency higher profit margins sustainable advantage reputation for innovation establishment of entry barriers occupation of best market niches opportunities to learn

Question 36

An organization's basic purpose and scope of operations

Answer 36

Mission

Question 37

Choosing an option that is acceptable, although not necessarily the best or perfect

Answer 37

Satisficing

Question 38

Formal planning steps

Answer 38

step 1 – situational analysis step 2 – alternative goals and plans step 3 – goal and plan evaluation step 4 – goal and plan selection step 5 – implementation step 6 – monitor and control

Question 39

A strategy used to add new businesses that produce related products or are involved in related markets and activities

Answer 39

Related diversification

Question 40

Major targets or end results relating to the organization's long-term survival, value and growth

Answer 40

Strategic goals

Question 42

A comparison of strengths, weaknesses, opportunities, and threats that help executives formulate strategy

Answer 42

SWOT analysis

Question 43

The state that exist when decision-makers have insufficient information

Answer 43

Uncertainty

Question 45

Inputs to a system that can enhance performance

Answer 45

Resources

Question 46

The acquisition or development of new businesses that produce parts or components of the organization product

Answer 46

Vertical integration

Question 46

A decision realizing the best possible outcome

Answer 46

Maximizing

Question 48

A phenomenon that occurs in decision-making when group members avoid disagreement as they strive for consensus

Answer 48

Groupthink

Question 49

Strategy use to add new businesses that produce unrelated products or are involved in unrelated markets and activities

Answer 49

Unrelated diversification

Question 50

A decision bias influence by the way in which a problem or decision alternative is phrase or present

Answer 50

Framing effects

Question 51

The state that exist when the probability of success is less than 100% and losses may occur

Answer 51

Risk

Question 52

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies

Answer 52

Strategic management