MGT 5 Strategies in Action

Question 1

These represent the results expected from pursuing certain strategies.

Answer 1

Long term Objectives

Question 2

In large firms how many levels of strategy are there?

Answer 2

4. Corporate, Divisional, Functional, Operational

Question 2

This type of integration involves gaining ownership or increased control over distributors or retailers.

Answer 2

Forward Integration
(Basically going from just making the product, to also selling it)

Question 2

Who argues that bonuses or merit pay for managers today must be based to a greater extent on long term objectives and strategies?

Answer 2

Arthur D. Little

Question 2

What objectives include those associated with growth in revenues, earnings, higher dividends, profit margins, etc.?

Answer 2

Financial Objectives

Question 2

Long term objectives are needed at what levels of an organization?

Answer 2

Corporate, Divisional, and Functional levels

Question 2

When and who developed the Balanced Scorecard?

Answer 2

It was developed in 1993, by Harvard Business School professors Robert Kaplan and David Norton

Question 2

What objectives includes things like higher market share and product quality, higher QoL compared to rivals, etc.?

Answer 2

Strategic Objectives

Question 2

2 types of objectives that are especially common in organizations.

Answer 2

Financial and Strategic Objectives

Question 2

This type of managing by objectives follows the idea of continuing to do the same things in the same ways because things are going well.

Answer 2

Managing by Extrapolation

Question 2

Managing by Crisis is a form of reacting rather than acting and letting events dictate the what and when of management decisions.

Answer 2

This is a statement, might appear on true and false.

Question 2

This type of managing by objectives is built on the idea that there is no general plan for which way to go and what to do; just do the best you can to accomplish what you think should be done.

Answer 2

Managing by Subjectives

Question 2

Who explained that strategic planning involves “choices that risk resources” and “tradeoffs that sacrifice opportunity”?

Answer 2

Hansen and Smith

Question 2

What principle does Managing by Extrapolation adhere to?

Answer 2

It adheres to the principle “If it ain’t Broke, don’t fix it”

Question 2

What do the ff acronyms mean?
CIM
TQM
CEO
CFO
CIO
CMO
HRM
RIM
LBO
BPO

Answer 2

In the same order they mean,
Continuous improvement in Management
Total quality Management
Chief Executive Officer
Chief Finance Officer
Chief Information Officer
Chief Marketing Officer
Human Resource Manager
Research in Motion (Canadian Company)
Leveraged Buyout
Business Process Outsourcing

Question 2

This type of managing by objectives is based on the belied that the true measure of a really good strategist is the ability to solve problems.

Answer 2

Managing by Crisis

Question 2

This type of managing by objectives is based on the fact that the future is laden with great uncertainty and that if we try and do not succeed then we will hope that our second (or third) attempt will succeed.

Answer 2

Managing by Hope

Question 2

This is a strategy evaluation and control technique of where its name was derived from the perceived need of firms to “Balance” financial measures.

Answer 2

The Balanced Scorecard

Question 2

What is the overall aim of the balanced scorecard?

Answer 2

To balance shareholder objectives with customer and operational objectives.

Question 2

Many if not most orgs simultaneously pursue a combination of two or more strategies, but a combination strategy may be very risky if taken too far.

Answer 2

This is a statement, may appear on true and false

Question 2

For small firms how many levels of strategy are there?

Answer 2

3. Company, Functional, Operational

Question 2

Strategy planning is much more than a roll of the dice. It is a wager based on predictions and hypothesis

Answer 2

This is a statement, may appear on true and false

Question 3

This group of integration strategies allow a firm to gain control over distributors, suppliers, and/or competitors.

Answer 3

Vertical Integration strategies

Question 3

What is an effective means of implementing forward integration?

Answer 3

Franchising

Question 3

What type of integration strategies collectively make up Vertical Integration?

Answer 3

Forward Integration Backward Integration Horizontal Integration

Question 3

Who said "Keeping track of so many suppliers is onerous"

Answer 3

Mark Shimelonis

Question 3

This type of integration strategy of seeking ownership or increased control of a firm's suppliers

Answer 3

Backwards integration (basically from selling the product, to also making it)

Question 3

An unrelated diversification strategy favors capitalizing on a portfolio of businesses that are capable of delivering excellent financial performance in their respective industries.

Answer 3

This is a statement, may appear on true and false

Question 3

This type of integration strategy refers to seeking ownership or increased control over a firm's competitors.

Answer 3

Horizontal Integration (basically, owning the competition)

Question 3

What type of integration strategies falls under defensive strategies

Answer 3

Retrenchment Divestiture Liquidation

Question 3

Who made an observation about horizontal integration?

Answer 3

Kenneth Davidson

Question 3

This type of integration strategy seeks to increase market share for present products or services through greater marketing efforts.

Answer 3

Market Penetration (Market Coke to be more popular)

Question 3

This group of integration strategies are defined as so because they require intensive efforts if a firms competitive position with existing products is to improve

Answer 3

Intensive Strategies

Question 3

What type of integration strategies falls under Intensive Strategies?

Answer 3

Market Penetration Market Development Product Development

Question 3

This occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits.

Answer 3

Retrenchment

Question 3

This type of Integration strategy involves introducing present products or services into new geographic areas.

Answer 3

Market Development (Take Coke to China for even more popularity)

Question 3

This type of integration strategy seeks increased sales by improving or modifying present products or services.

Answer 3

Product Development (Make Coke 2.0)

Question 3

The 2 general types of diversification strategies

Answer 3

Related and Unrelated

Question 4

Businesses are ___ when their value chain posses competitively valuable cross business strategic fits.

Answer 4

Related

Question 4

Businesses are ____ when their value chains are so dissimilar that no competitively viable cross business relationship exists.

Answer 4

Unrelated

Question 4

Who said "Management found it couldn't manage the beast"

Answer 4

Michael Porter

Question 4

Diversification strategies are becoming less popular as companies are finding it more difficult to manage diverse business activities (The reversal happened in the 1980s)

Answer 4

This is a statement, may appear on true and false

Question 5

What are other names for retrenchment?

Answer 5

Turnaround or Reorganizational Strategy

Question 6

Divestiture is often used to?

Answer 6

To raise capital for further strategic acquisitions or investments.

Question 6

In some cases, this can be an effective retrenchment strategy, because it can allow a firm to avoid major debt obligations and to void union contracts.

Answer 6

Bankruptcy

Question 7

Selling a division or part of a company is called?

Answer 7

Divestiture

Question 8

Selling all of a company's assets in parts for their tangible worth is called?

Answer 8

Liquidation

Question 8

This type of bankruptcy is a liquidation procedure used only when a corporation sees no hope of being able to operate successfully.

Answer 8

Chapter 7 Bankruptcy

Question 8

Liquidation is what?

Answer 8

A recognition of defeat and as such may be an emotionally difficult strategy.

Question 9

This type of Bankruptcy was created by the Family Farmer Bankruptcy act of ____ and provides special relief to family farmers with debts equal to or less than ____

Answer 9

Chapter 12, act of 1986, equal or less than 1.5 million USD

Question 9

This type of bankruptcy applies to municipalities

Answer 9

Chapter 9 Bankruptcy (some states don't allow municipalities to declare bankruptcy)

Question 9

What does focus mean in the context of Porter's 5 generic strategies

Answer 9

Focus is producing products and services that fulfill the needs of small groups of consumers.

Question 10

This type of bankruptcy allows organizations to reorganize and come back after filing a petition for protection

Answer 10

Chapter 11 Bankruptcy

Question 11

Example of Turbulent, High Velocity Markets

Answer 11

Pharmaceuticals, Computer Hardware, and basically all internet based industries, etc.

Question 11

This type of bankruptcy is a reorganization plan similar to Ch 11, but is only available to individuals with ____________

Answer 11

Ch 13, available to small businesses with unsecured debts less than 100k USD and secured debts of less than 300k USD

Question 11

According to Porter, strategies can allow organizations to gain competitive advantage from three different bases, what are those bases and what does Porter call them?

Answer 11

Cost leadership Differentiation Focus Porter calls them generic strategies

Question 12

What are the 5 types of differentiation strategies?

Answer 12

Cost leadership Type 1: Is a low cost strategy to offer products at the lowest price in the market Type 2: Is a best value strategy to offer products to a wide range of customers at the best price/value on the market Differentiation Type 3: Aimed at producing products and services considered to be unique in the industry Focus Type 4: Low cost focus strategy, making products for a niche group at the lowest price Type 5: Best value focus strategy, sometimes called focus differentiation.

Question 13

When can a cost leadership easily defeat a differentiation strategy?

Answer 13

When the unique product isn't valued enough to justify a higher price

Question 14

What di researchers call markets that change so fast?

Answer 14

Turbulent, High Velocity Markets

Question 14

What are the means for achieving successes are there? (In the book at least)

Answer 14

1. Cooperation Among Competitors 2. Joint Venture/Partnering 3. Merger/Acquisition 4. First Mover Advantage 5. Outsourcing

Question 15

This occurs when 2 organizations of about equal size unite to form 1 enterprise

Answer 15

Merger

Question 15

This is a popular strategy that occurs when 2 or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity.

Answer 15

Joint Venture/Partnering

Question 16

This occurs when a corporation's shareholders are bought by the company management using borrowed funds

Answer 16

Leveraged Buyout

Question 16

This occurs when a large organization purchases a smaller firm or vice versa

Answer 16

Acquisition

Question 16

This refers to the benefits a firm may achieve by entering a new market or developing a product prior to rival firms

Answer 16

First Mover Advantage

Question 17

What is a term used to describe a firm that agrees to acquire a firm that is currently under hostile takeover, and they acquire them with better terms.

Answer 17

White Knight

Question 17

When a merger or acquisition is desired or not desired by both parties it is called?

Answer 17

Friendly Merger or Hostile Takeover

Question 18

Other terms for slow mover

Answer 18

Fast Follower or Late mover

Question 18

This is a rapidly growing new business that involves companies taking over the functional operations of a firm.

Answer 18

Business Process Outsourcing

Question 18

Who Said the following words? "Strategies for taking the hill won't necessarily hold it" "The early bird gets the worm but the second mouse gets the cheese" "Even if you're on the right track, you'll get run over if you sit there" "Tomorrow always arrives. It is always different..................................." "Planning. Doing things today to make us better tomorrow................."

Answer 18

In the same order Amar Bhide Unknown Will Rogers Peter Drucker Eaton Corporation