GMS200 - Chapter 10

The most appropriate first question to ask in strategic planning is:

• Where do we want to be in the future?

• How well are we currently doing?

• How can we get where we want to be?

• Why aren’t we doing better?

The ability of a firm to consistently outperform its rivals is called:

• vertical integration

• competitive advantage

• incrementalism

• strategic intent

In a complex conglomerate such as General Electric that owns a large number of different businesses, a(n) ____ level strategy sets strategic direction for a strategic business unit:

• institutional

• corporate

• business

• functional

The ____ is a predominant value system for an organization as a whole:

• strategy

• core competency

• mission

• corporate culture

Cost efficiency and product quality are two examples of ____ objectives of organizations:

• official

• operating

• informal

• institutional

An organization that is downsizing by laying off workers to reduce costs is implementing a ____ strategy:

• growth

• cost differentiation

• restructuring

• vertical integration

When Canadian Tire acquired the Forzani Group, owner of Sport Chek and other sporting goods chains, the firm’s strategy was growth by

• vertical integration

• concentration

• cooperation

• related diversification

The two questions asked by Porter to identify competitive strategies for a business or product line are: 1—What is the market scope? 2—What is the _____?

• source of competitive advantage

• market share

• core competency

• 1. industry attractiveness

In Porter’s five forces framework, having _____ increases industry attractiveness:

• low bargaining power of suppliers
• many substitute products

• many rivals

• few barriers to entry

A ____ in the BCG Matrix would have a high market share in a low-growth market, and the correct grand or master strategy is ____:

• Cash Cow, stability
• Dog, growth

• Question Mark, stability

• Star, retrenchment