STR. MNG. FINAL Exam With Practical Questions And Well Elaborated Answers.

Deciding what a firm is not going to do is just as important to strategy as deciding what it is going to do. - correct answer T Strategic management is a process that involves building a careful understanding of how changes in the world might affect a particular firm. - correct answer T Trends and events of the external environment seldom affect the overall state of an organization. - correct answer F The idea of "stratego," from which the word strategy is derived, refers to the idea of defeating an enemy by effectively using resources. - correct answer T Most strategic ploys are illegal. - correct answer F A viable business model requires that a firm: - correct answer sell goods or services for more than it costs the firm to create and distribute those goods. Economies of _____ refer to a cost advantage that is created when a firm can produce a good or service at a lower per unit price due to producing the good or service in large quantities. - correct answer scale Roomz, a mid-range hotel, used to provide only food and accommodation facilities. It soon realized that most of its customers are foreign tourists who constantly ask for directions and advice on places to visit. The hotel then decided to start a travel desk which would help tourists select and visit places of historical and cultural significance. This is an example of a(n) _____ strategy. - correct answer emergent _____ involves an organization granting the right to use its brand name, products, and processes to other organizations in exchange for an upfront payment and a percentage of revenues generated by the other organizations. - correct answer Franchising The key question examined by strategic management is: - correct answer Why do some companies outperform other companies? A well-formulated vision that is embraced by employees can give an organization an edge over its rivals. - correct answer T Customer measures of performance are commonly articulated and emphasized within an organization's annual report to shareholders. - correct answer F The triple bottom line framework ignores traditional organization profits as a measure of organizational performance. - correct answer F A CEO celebrity can serve as an intangible asset for the CEO's firm. - correct answer T Entrepreneurial thinking and doing is limited to those who begin in their garage with a new idea, financed by family members or personal savings. - correct answer F An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2025. The progress of the project can be easily calculated and assessed. The fact that this project can be easily assessed reflects the _____ dimension of a goal. - correct answer measurable A performance _____ is a benchmark used to make sense of an organization's standing along a performance measure. - correct answer referent _____ refers to an approach to assessing performance that targets managers' attention on four areas: financial, customer, internal business process, and learning and growth. - correct answer The balanced scorecard A supermarket purchases its vegetables from local farmers. The fact that the supermarket purchases its vegetables from local farmers and demonstrates social responsibility reflects the _____ aspect of the triple bottom line framework. - correct answer people Which of the following statements describes the term "innovativeness" as a dimension of entrepreneurial orientation? - correct answer It refers to the tendency to pursue creativity and experimentation. PESTEL analysis is an important tool for organizing factors within the general environment and identifying how these factors influence industries and the firms within them. - correct answer T Rivalry tends to be fierce among an industry's competitors if the growth rate of demand for the industry's offerings is high. - correct answer F Rivalry in fragmented industries tends to become bitter and fierce. - correct answer T Viable substitutes are available in all industries. - correct answer F As buyers, large companies like Walmart have the power to insist on price concessions because their sales volumes are so high. - correct answer T The general environment, a component of the environment of an organization, is also called the: - correct answer macro-environment Farmers rely heavily on cheap labor provided by illegal immigrants. A tightening of the immigration policy would reduce their profit margins and potentially increase the prices of agricultural products. For these farmers, this aspect of illegal immigration represents the _____ segment of PESTEL analysis. - correct answer political New entrants are more likely to join an industry if: - correct answer existing competitors lack economies of scale Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if: - correct answer suppliers' goods or services cannot be substituted effectively. Bad publicity associated with massive layoffs is an example of _________ - correct answer Exit barriers All difficult to imitate strategic resources are protected by various legal means including trademarks, patents, and copyrights. - correct answer T Tangible resources are more likely to meet the criteria for strategic resources than are intangible resources. - correct answer F Best value supply chains strive to excel along four measures: speed, quality, cost, and flexibility. - correct answer T Strengths and weaknesses, as a part of the SWOT analysis, refer to external events and trends. - correct answer F The four main types of intellectual property are patents, trademarks, copyrights, and trade secrets. - correct answer T A resource is _____ to the extent that it helps a firm create strategies that capitalize on opportunities and ward off threats. - correct answer valuable _____ are the four Ps of the marketing mix. - correct answer Promotion, Place, Price, Product McDonald's golden arches, the Nike swoosh, and Apple's outline of an apple are examples of _____. - correct answer trademarks Which of the following theories for explaining a firm's competitiveness centers on the extent to which firms copy each other's strategies? - correct answer Institutional theory Most cost leaders spend little on advertising, market research, or research and development in order to be efficient. - correct answer T Cost leaders are often large companies, and this allows them to demand price concessions from their suppliers. - correct answer T A firm following a differentiation strategy attempts to convince customers to pay a premium price for its good or services by providing unique and desirable features - correct answer T The big risk when using a differentiation strategy is that customers will not be willing to pay extra to obtain the unique features that a firm is trying to build its strategy. - correct answer T Which of the following are accurate regarding a best-cost strategy? - correct answer Advertising cost can make it prohibitive It is difficult to execute Product development cost can make it prohibitive Companies that manage to implement an effective best-cost strategy are often very successful. A firm is said to be _____ if it does not offer features that are unique enough to convince customers to buy its offerings and its prices are too high to effectively compete on based on price. - correct answer stuck in the middle Healthie is a health drink company that is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotically flavored drinks. It also charges higher than the other health drink companies. Another company offers the same drinks a lower price. Customers who were once loyal to Healthie immediately switch over to the new company which is charging a lower price for the same drinks. This is an example of _____. - correct answer price sensitivity Pete opens a new pizzeria in town. He promises home delivery of pizzas within a period of thirty minutes. He also makes a unique offer that if the pizzas are not delivered within thirty minutes of placing the order, then the customer will not be charged for the pizza. None of the other pizzerias in his town offer such a deal. This is an example of a(n) _____ strategy. - correct answer differentiation Typically, most disruptive innovations are overnight sensations. - correct answer F First moves that build on strategic resources, such as patented technology, are difficult for rivals to imitate and thus are likely to succeed. - correct answer T Instead of trying to outmaneuver its competition, a firm using a blue ocean strategy tries to make the competition irrelevant. - correct answer T The three factors that determine the likelihood of a firm responding to a competitive move are awareness, motivation, and capacity. - correct answer F Fighting brands prevent devaluation of a firm's established brands. - correct answer T Which of the following is true about a firm following the concept of bricolage? - correct answer Executives apply the concept of bricolage when they combine ideas from existing businesses in order to create a new business. Kellogg's and General Mills compete fiercely for the breakfast cereal market not only in the United States but in many countries around the world. This is an example of: - correct answer multipoint competition. A _____ is a cooperative arrangement that involves two or more organizations each contributing to the creation of a new entity. - correct answer joint venture In June 2011, Twitter and Yahoo! Japan entered into a cooperative arrangement that involves relevant Tweets appearing within various functions offered by Yahoo! Japan. This arrangement did not involve the creation of a new entity. Such a cooperative arrangement is an example of a _____. - correct answer strategic alliance Which of the following best describes the foothold strategy? - correct answer It involves a firm intentionally establishing a small position within a market in which it does not yet