strategic management

The nature & strength of the competitive forces that prevail in an industry is generally a joint product of:

• competition from rival sellers.
• competition from producers of substitute products.
• competitive pressures stemming from the bargaining power of suppliers and buyers.
• all of these.

Rivalry increases when:

• buyer demand is increasing.
• when there is excess supply of unused production capacity.
• as the products of rival sellers become more strongly differentiated.
• all of these.

A company’s strategic plan:

• maps out the company’s history.
• links the company’s financial targets to control mechanisms.
• outlines the competitive moves and approaches to be used in achieving the desired business results.
• all of these.

A company’s strategic vision describes:

• why the company does certain things in trying to please its customers.
• management’s storyline of how it intends to make a profit with the chosen strategy.
• management’s aspirations for the future and delineates the company’s strategic course and long-term direction.
• what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.

Well-stated objectives are:

• quantifiable or measurable, and contain deadlines for achievement.
• clear, succinct, and concise so as to identify the company’s risk and return options.
• directly related to the dividend payout ratio for stockholder returns.
• all of these.

What managers do in internal analysis?

• Identify mission
• Environmental scanning
• Assessing organization resources
• Evaluate strategies

What is the last step of the Strategic Management Process?

• Formulating Strategies
• Implementing Strategies
• Evaluating Results
• Evaluating Weakness

What is the meaning of backward vertical integration? 

• Organization becomes its own supplier
• Organization becomes its own distributor
• Organization becomes its own seller
• Organization becomes its own buyer

What will be the factor for an organization to have if they want to obtain Competitive Advantage?

• Excellent Quality of Product
• Higher Profit
• Lesser innovation
• Bad customer service

Which of the below is not in the 5 forces model?

• Bargaining power of suppliers
• Bargaining power of buyers
• Threat of new innovation
• Threat of new entrants