In the Five Forces Model, the ease with which companies can enter into competition with other companies within the industry is known as which type of force?
the threat of substitute products
the power of suppliers
the power of customers
the level of rivalry
the potential for entry
In which step of SWOT analysis would “obsolete, narrow product line” be most likely to arise?
T
O
W
both O and T
S
An organization that treats customers better than its rivals is wasting money.
The development of a set of functional-level strategies to increase the performance of the operating system a company uses to transform inputs into finished goods and services is known as:
value chain management
research and development
utilizing new technology
materials management
efficiency management
An organization attempts to gain a competitive advantage by aiming its efforts at driving down its production costs per unit below those of its competitors. This is known as which type of strategy?
low-cost strategy
focused differentiation strategy
unrelated diversification strategy
related diversification strategy
concentration on a single business strategy
A general guide to action for the managers of an organization is known as:
a rule
a policy
none of the above
a standing plan
an SOP
Another name for contingency planning is:
divisional-level planning
scenario planning
synergy planning
business-level planning
ad hoc planning
Organizations that use a global strategy typically customize the product to meet the needs of customers in different countries.
Another name for contingency planning is scenario planning.
The more desired attributes an organization builds into its products, lower the price they can charge to attract customers.
When an organization updates its five-year plan annually in order to take into account changing conditions within the organization and in the organization's external environment, this is known as which type of plan?
SWOT
scenario
functional
inflexible
rolling
Another name for the departmental level of the organization is the __________ level of the organization.
divisional
corporate
business
first-line
The set of decisions that managers make to assist the organization in the attainment of its goals is called the strategy of the organization.
PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This was an example of:
a low cost strategy
vertical integration
a diversification strategy
horizontal integration
a global strategy
Fast inventory turnover was not a factor influencing competitive advantage in the retailing industry.
Managers monitor and evaluate the organization's strategy to see if it is working using the controlling function.
The service function controls the movement of physical materials through the value chain.
When an organization enters a new type of industry that is not similar in any way to the current businesses of the organization, this is known as a(n) ____________ strategy.
related diversification
international expansion
unrelated diversification
concentration on a single business
The marketing and sales functions of a company are responsible for the creation of a good or service.
All of the following are major corporate-level strategies that managers can use to help their organization increase its sales and profits EXCEPT:
focus
diversification
A department of the organization (such as manufacturing, accounting, marketing) that contains employees who have the same skills and use the same organizational resources to perform their jobs is known as a(n) __________ of the organization.
function
division
synergy
General Electric Company sets a goal that every product line of the company should be either first or second in its industry in market share. What type of goal does this represent?
business-level
divisioanl level
multidomestic-level
functional-level
corporate-level
Anything new or better about the way an organization operates, or the goods or services it produces, is the result of innovation.
A formal, written guide to action for managers in an organization is known as:
a heuristic
An organization creates a list of possible future forecasts of business situations and creates a plan to respond to each of these forecasts. This is known as:
functional planning
When an organization designs a corporate-level strategy that includes expanding its operations into a new type of business for the organization, this is known as a(n) __________ strategy.
concentration
sybergistic
A broad statement of the organization's purpose, its products, and its customers is called a mission statement.
High quality products have superior design, features, reliability, and after-sales support.
A group of managers analyzes both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. What type of analysis is this?
functional analysis
mission analysis
SWOT analysis
Unilever sells different products using a different marketing approach in Great Britain than it uses when marketing these products in the United States. This is an example of:
a multidomestic strategy
a focused low-cost strategy
Managerial goals should be both challenging and realistic.
Functional goals and strategies need not be consistent with divisional goals and strategies.
The information systems function controls the electronic systems for managing inventory, tracking sales, pricing products, selling products, dealing with customer service inquires, and so on.
An organization attempts to succeed by distinguishing its products from those of the competition. What type of strategy is this?
SWOT is a part of:
all of the above
business-level strategy
functional-level strategy
corporate-level strategy
The first step in defining an organization's mission is to define its business.
The fewer the inputs required to produce a given output, the lower is the efficiency and the higher the cost of outputs.
__________ means producing goods and services with superior design, features, reliability, and after-sales support.
efficiency
responsiveness
quality
flexibility
innovation
The ___________ function can create a perception of superior value by solving customer problems and supporting customers after they have purchased the product.
production
information systems
service
marketing
Firestone Tire and Rubber Company purchases rubber plantations in Africa so that it will have a source of supply for its tire manufacturing plants in Akron, Ohio. This is an example of:
forward vertical integration
a focused differentiation strategy
backward vertical integration
Two divisions of a company decide to use the same distribution channels for their products to reduce the overlap of their marketing efforts. This is an example of:
a differentiation strategy
a low-cost strategy
a focused-differentiation strategy
Procter & Gamble uses a joint sales force to sell both its laundry detergent products and its bath soap products to the same supermarket chains. This is an example of:
The company that customizes every product to the unique demands of individual customers is likely to see its cost structure:
become obsolete
become lowers as demand increases rapidly
rise as unit revenues rise
SWOT analysis is the last step in the strategy formulation process.
Which of the following is NOT a reason to try to boost product quality?
To charge a higher price
All of these are reasons
To provide a higher quality product, for the same price, as the competition
To become more responsive to customers
To increase efficiency
Organizational plans that cover a timespan of one to five years are typically referred to as _____________ plans.
short-term plans
corporate-term plans
intermediate-term plans
long-term plans
division-term plans
Differentiation raises costs.
A functional-level plan spells out the goals of the __________ that are intended to assist the organization to achieve its __________ goals.
department;corporate
division;corporate
business;divisional
division;business
A business plan that is updated every year depending on the changes in the organization and in the external environment that have taken place in the previous year is known as a rolling plan.
IBM has a written set of guidelines for its managers in terms of behavior that IBM considers to be either ethical or unethical. This set of written guidelines is called:
rules
a single-use plan
policy
a standard operating procedure
a mission statement
Which type of organizational strategy states the industries and markets in which the organization intends to compete?
divisional-level strategy
departmental-level strategy
The cluster of decisions that managers make to assist the organization to achieve its goals is known as:
strategy
Which level of management of a large organization contains the organization's marketing department, R&D department, and human resources department?
multidomestic
vertical
Procter & Gamble uses the same distribution system to deliver its oral care products and its hair care products to drugstore chains. This is an example of:
an unrelated diversification strategy
The corporate-level plan of an organization contains the decisions that are related to the organization's mission, goals, strategy, and structure.
Planning is a goal-making but not a strategy-making process.
Wal-Mart, the US retailing giant, has created the most efficient ________________ function in the retail industry by tightly controlling the flow of goods from its suppliers through its stores into the hands of customers.
When Gallo (wine producer) purchased a company that makes wine bottles, it was involved in:
strategic alliance
upward integration
Most customers prefer products with few features to products with many features.
If Organization A is able to provide, for the same price, a product of higher quality than Organization B's product, Organization A is serving its customers better, but it is not being more responsive.
What type of strategy specifies the activities of managers at the departmental level of the organization?
top-level strategy
When Matsushita sells its TVs and VCRs using the same basic marketing approach in various countries, this is an example of:
In the typical organization, top managers are primarily responsible for planning that takes place at the business level of the organization.
An organization's strategy is an outcome of its planning processes.
Which type of plan details the goals, strategy, and structure of a division within an organization?
departmental-level plan
corporate-level plan
business-level plan
functional-level plan
Southwest's low-cost operating system focuses only on improving the maintenance of aircraft.
Managers at ABC, Inc. analyze the current situation of their organization and then develop plans to help their organization to accomplish its mission and achieve its goals. This is known as:
strategy formulation
When General Electric Company expanded its operations by acquiring NBC television, this was an example of which type of strategy?
Organizational plans that cover a time-span of up to one year are referred to as __________ plans.
Through brand positioning and advertising, the __________ function can increase the value that customers perceive to be contained in a company's product.
In managing the value chain to add value, functional managers need to find ways to attain superior quality, efficiency, innovation, and responsiveness to customers.
The production function of a company can perform its activities in a way that is consistent with high product quality, which leads to _____________ and _____________.
Disgruntled employees; better sales
Product differentiation; higher costs
Product differentiation; lower costs
Inconsistencies; higher costs
Happy employees; more mistakes
According to Michael Porter's theory, it is possible for managers to pursue both a low-cost strategy and a differentiation strategy at the same time.
With a multidomestic strategy, managers decide to sell the same product with the same marketing approach in all of the countries in which the product is sold.
When managers focus on being ___________ to their customers, and not just on producing or providing a product, they see new ways to reduce costs and increase quality.
friendly
honest
ethical
efficient
responsive
Which plan of the organization contains top management's decisions about the organization's mission, goals, strategy, and structure?
divisional-level plan
When PepsiCo purchased Frito-Lay and expanded its operations into the snack-food business, this was an example of which type of strategy?
The last step in a SWOT analysis is to identify the organization's internal strengths and internal weaknesses.
The term “value chain” refers to the idea that a company is a chain of functional activities that transforms inputs into an output of goods or services that customers value.
The management of the value-chain activities that bring new products or services to market is called ________________.
product development
JIT
product innovation
CRM
TQM
Firestone Tire and Rubber Company set up a chain of Firestone retail stores to sell its tires to American consumers. This is an example of:
