Chapter 7

Question 1

is a comprehensive plan guiding resource allocation to achieve long-term organization goals

Answer 1

strategy

Question 2

focuses organization al energies on achieving a compelling goal

Answer 2

strategic intent

Question 3

is an ability to outperform rivals

Answer 3

competitive advantage

Question 4

is achieved in ways that are difficult to imitate

Answer 4

sustainable competitive advantage

Question 5

sets long-term direction for the total enterprise

Answer 5

corporate strategy

Question 6

identifies how a division or strategic business unit will compete in its product or service domain

Answer 6

business strategy

Question 7

guides activities within one specific area of operations

Answer 7

functional strategy

Question 8

involves expansion of the organization’s current operations

Answer 8

growth strategy

Question 9

growth by expansion within a existing business area

Answer 9

concentration

Question 10

growth by expansion by entering related or new business areas

Answer 10

diversification

Question 11

growth by acquiring suppliers or distributors

Answer 11

vertical integration

Question 12

changes in operations to correct weaknesses

Answer 12

retrenchment strategy

Question 13

occurs when a business closes and sells it’s assets to pay creditors

Answer 13

liquidation

Question 14

reduces the scale or mix of operations

Answer 14

restructuring

Question 15

protects an insolvent firm from creditors during a period of reorganization for restore profitability

Answer 15

Chapter 11 bankruptcy

Question 16

decreases the size of operations

Answer 16

downsizing

Question 17

involves selling off parts of the organization to refocus attention on core business areas

Answer 17

divestiture

Question 18

adopts standardized products and advertising for use worldwide

Answer 18

globalization strategy

Question 19

tries to operate globally with out having a strong national identity

Answer 19

transnational firm

Question 20

organizations join together in partnership to pursue an area of mutual interest

Answer 20

strategic alliance

Question 21

is the strategy of working with rivals on projects of mutual benefit

Answer 21

co-opitition

Question 22

strategically uses the internet to gain competitive advantage

Answer 22

e-business strategy

Question 23

uses IT and web portals to link organizations vertically in supply chains

Answer 23

B2B business strategy

Question 24

uses IT and web portals to link businesses to customers

Answer 24

B2C business strategy

Question 25

uses social media to better engage with an organization's customers clients and external audiences in general

Answer 25

social media strategy

Question 26

strategy uses the internet to engage customers and potential customers in providing opinions and suggestions on products and their designs

Answer 26

crowdsourcing

Question 27

is the process of formulating and implementing strategies

Answer 27

strategic management

Question 28

is the process of creating strategies

Answer 28

strategy formulation

Question 29

is the process of purring strategies into action

Answer 29

strategy implementation

Question 30

is the organization;s reason for existence in society

Answer 30

mission

Question 31

are specific results that organizations try to accomplish

Answer 31

operating objectives

Question 32

is a special strength that gives an organization a competitive advantage

Answer 32

core competency

Question 33

offers products that are unique and different form those of the competition

Answer 33

differentiation strategy

Question 34

seeks to operate with lower costs than competitors

Answer 34

cost leadership strategy

Question 35

offers a unique product to a special market segment

Answer 35

focused differentiation strategy

Question 36

seeks the lowest costs of operations within a special market segment

Answer 36

focused cost leadership strategy

Question 37

examines organizational strengths and weaknesses as well as environmental opportunities and threats

Answer 37

SWOT analysis

Question 38

analyzes business opportunities according to market growth rate and market share

Answer 38

BCG Matrix

Question 39

inspires people to implement organizational strategies

Answer 39

strategic leadership

Question 40

makes sure strategies are will implemented and that poor strategies are scrapped or changed

Answer 40

strategic control