Q&A Hero

Q: (p. 303) Which of the following is NOT an example of a quality of effective short-term objectives? A. Measurability B. Priorities C. Definition of the market D. Linked to long-term objectives

Q: (p. 303) ______ identify who is responsible for each action in the plan. A. Action ideas B. Long-term objectives C. Action plans D. Policies

Q: (p. 303) Which of the following items is NOT an example of how action plans enhance short-term objectives? A. Specificity B. Link to long-term strategy C. Time frame for completion D. Definition of who is responsible for what

Q: (p. 303) _______ are usually accompanied by subsequent action plans. A. Action ideas B. Long-term objectives C. Short-term objectives D. Policies

Q: (p. 303) Short-term objectives are usually accompanied by subsequent: A. Action ideas B. Long-term objectives C. Action plans D. Policies

Q: (p. 302) Short-term objectives assist strategy implementation by identifying measurable outcomes of action plans or functional activities, which can make feedback, correction and evaluation A. More relevant and acceptable B. More expensive C. More difficult D. More geared toward growth

Q: (p. 302) Discussion about and agreement on short-term objectives help raise issues and potential conflicts within an organization that usually: A. Need little coordination B. Require additional personnel C. Focus on public relations D. Require organizational coordination

Q: (p. 302) If X-Corp.'s car polish division has committed to a 30 percent gain in revenue over six years, they must consider the specific target in revenue during the current quarter to indicate they are making appropriate progress. This smaller objective for the fiscal quarter is called a: A. Short-term objective B. Short-term technique C. Long-term objective D. Strategic goal

Q: (p. 302) Short-term objectives __________ long-term objectives. A. Limit the effectiveness of B. Operationalize C. Decrease the need for D. Justify

Q: (p. 302) Short-term objectives are usually: A. Completed within two months B. Quantitative C. Qualitative D. Set to be completed within five years

Q: (p. 302) ___________ are measurable outcomes achievable or intended to be achieved in one year or less. A. Targets B. Goals C. Short-term objectives D. Long-term objectives

Q: (p. 302) To make business strategies, grand strategies and long-term objectives a reality, the people in an organization who ________ need guidance in exactly what they need to do. A. "Do the work" B. Make corporate decisions C. Manage the business unit D. Compete

Q: (p. 302) Business strategies, grand strategies, and ______ are critically important in crafting a successful future. A. Long-term objectives B. Core rigidities C. Business units D. Functional hierarchies

Q: What is patching? Describe patching and its corporate focus.

Q: How does the corporate parent add value according to the parenting strategy approach?.

Q: What is the parenting opportunities framework? Briefly describe this perspective.

Q: What does it mean to leverage core competencies?

Q: Why must each core competency provide a relevant competitive advantage to the intended businesses when pursuing a synergy approach?

Q: What two elements are critical in meaningful shared opportunities? Identify each and give an example.

Q: Identify and describe the four industry environments defined by the two dimensions of BCG's strategic environments matrix.

Q: What is the industry attractiveness-business strength matrix? How does this improve upon the BCG matrix?

Q: What are portfolio techniques? How do they help multibusiness firms?

Q: (p. 294) The fundamental argument of the _______ approach is that no one can predict how long a competitive advantage will last, particularly in turbulent markets. A. Patching B. Parenting C. Portfolio D. Strategic environment

Q: (p. 294) _______ need to be brief, be axiomatic and convey fundamental guidelines to decisions or actions. A. Key rules B. Fundamental rules C. Competitive advantages D. Simple rules

Q: (p. 294) Simple rules need to: A. Provide just enough structure to limit managers' flexibility to a safe amount B. Capture opportunities that may not always be consistent with corporate intent C. Provide enough structure to allow managers to move quickly to capture opportunities that are consistent with corporate intent D. Define the sources of competitive advantage within a firm's industry

Q: (p. 295) Spelling out key features of how a process is executed is the purpose of which type of simple rules? A. Boundary rules B. Priority rules C. How-to Rules D. Exit rules

Q: (p. 295) Gizmo Co. has rules for product development. Its project teams must know when a product has to be delivered to the customer and total product development time must be less than 1 year. This represents an example of: A. Exit rules B. Timing rules C. Boundary rules D. Priority rules

Q: (p. 295) Firms should use _______ to help managers decide when to pull out of old opportunities that are no longer promising. A. Exit rules B. Boundary rules C. Abandonment rules D. Priority rules

Q: (p. 295) _________ focus on which opportunities can be pursued and which ones are beyond pursuing. A. Timing rules B. Boundary rules C. Financial rules D. Project rules

Q: (p. 295) Which type of simple rules help managers rank the accepted opportunities? A. How-to rules B. Financial rules C. Priority rules D. Boundary rules

Q: (p. 294) The position-based approach to strategy works best in: A. Moderately changing, well-structured markets B. Rapidly changing, ambiguous markets C. Turbulent markets D. Slowly changing, well-structured markets

Q: (p. 293) Eisenhardt and Sull suggest that managers should flexibly seize opportunities: A. As long as that flexibility is disciplined B. As long as the opportunities has positive net present value C. As long as the capital raised in capital markets can finance the opportunities D. As long as the managers keep a corporate strategic focus on profitability

Q: (p. 293) According to the patching approach, strategic analysis should: A. Focus on strategic processes alone B. Focus on strategic processes more than strategic positioning C. Focus on strategic positioning more than strategic planning D. Focus on strategic positioning more than strategic processes

Q: (p. 294) Under the ________ approach to strategy, establishing a vision, building resources and leveraging across markets are all strategic steps to be taken by the firm. A. Patching B. Parenting C. Resources D. Position

Q: (p. 293) The strategic logic of patching is to: A. Pursue more resources B. Leverage resources C. Establish a defensible position D. Pursue opportunities

Q: (p. 293) When markets are turbulent and rapidly changing, _______ is seen as critical to the creation of economic value in a multi-business company. A. Positioning B. Leveraging resources C. Patching D. Parenting

Q: (p. 293) _______ is the process by which corporate executives routinely remap businesses to match rapidly changing market opportunities. A. Parenting B. Patching C. Portfolio matching D. Environmental strategy

Q: (p. 293) The duration of an advantage in patching is: A. Unpredictable B. Sustained C. Short-term D. Dependent on resources

Q: (p. 288) Which one of the following is NOT a lever by which corporate parents add value according to the BCG parenting strategy approach? A. corporate engagement B. strategy development C. financing advantages D. business synergies

Q: (p. 287) Governments, regulators, unions and suppliers represent ________ who potentially could be managed more effectively by the parent, than by the individual business units. A. Specialized expertise B. Predictable errors C. External stakeholders D. Internal stakeholders

Q: (p. 287) Whether apparent or not, _______ among business units within or outside the parent company may be complex or difficult to establish without parent company help. A. Capabilities B. Expertise C. Sales D. Linkages

Q: (p. 287) Lengthy product life cycles can lead to over reliance on old products. This is an example of: A. External relations B. Linkage C. Predictable error D. Specialized expertise

Q: (p. 286) Consider Vepco, a company that began as a rocket propulsion development firm and grew through vertical integration. The firm is trying to figure out how to keep pace with the accelerated trends toward outsourcing that has developed in the last 10 years. Which type of parenting opportunity does this represent? A. Business definition/redefinition B. Management C. Specialized expertise D. Predictable errors

Q: (p. 286) Ensuring that certain issues are addressed, objectively assessed and assisting in any resolution may be a parenting opportunity that could add value. These issues--like attracting and keeping people with specialized skills--are: A. Marketing-based B. Management-based C. Age-based D. Part of the business definition

Q: (p. 286) The _________ perspective sees multi-business companies as creating value by influencing the businesses they own. A. Strategic environment B. Growth-share matrix C. Patching D. Parenting

Q: (p. 286) In the parenting framework, the corporate office of a multibusiness company is the A. child B. brother C. parent D. sister

Q: (p. 285) Realizing ____ from shared capabilities and core competencies is a key way value is added in multibusiness companies. A. competencies B. profits C. synergies D. resources

Q: (p. 285) For competitive advantage to be sustainable, any combination of competencies must be: A. Expensive B. Easily imitated C. Unique D. Sustainable themselves

Q: (p. 285) The least profitable firms are: A. Broadly diversified firms whose strategies are build around very general resources such as money B. Ones that involve combining resources into competitive advantage C. Rigidly specialized in an attractive industry D. Flexible

Q: (p. 283) Situations that involve _______ occur when no real overlapping capabilities or products exist other than financial resources. A. Financial diversification B. Unrelated diversification C. Related diversification D. Leveraged businesses

Q: (p. 283) _______ is those that rely on the same or similar capabilities to be successful and attain competitive advantage in their respective product markets. A. Leveraged businesses B. Networked businesses C. Related businesses D. Unrelated businesses

Q: (p. 283) The core competency must represent a major source of value to be a basis for competitive advantage. Furthermore, the core competence: A. Must be negotiable B. Must be financial C. Must be diversified D. Must be transferable

Q: (p. 280) The most compelling reason companies should diversify can be found in situations when: A. Core competencies are not similar B. Core competencies can be leveraged with other products or into other markets C. Management is similar in various businesses D. Cash resources can be leveraged

Q: (p. 281) Which of the following represents an operating opportunity to build value or sharing? A. Shared inbound or outbound shipping and materials handling B. Shared management know-how C. Shared after-sales service D. Shared brand name

Q: (p. 281) Enhanced bargaining power with distributors and retailers to gain shelf space, shelf positioning, stronger push, more dealer attention and better profit margins represents which of the following sources of value building in multi-business companies? A. Market-related opportunities B. Functional-related opportunities C. Potential competitive advantage D. Operating opportunities

Q: (p. 280) The most compelling reason companies should diversify can be found in situations where _______ can be leveraged with other products or into markets that are not a part of where they were created. A. cash B. disruptive competencies C. core competencies D. finances

Q: (p. 280) __________ is concerned with whether or not the potential competitive advantages expected to arise from each value opportunity have materialized. A. Strategic choice B. Strategic analysis C. Strategic evaluation D. Strategic growth

Q: (p. 281) Opportunities to build value via diversification, integration or joint venture strategies are usually NOT found in which of the following? A. Market-related activities B. Operations-related activities C. Management activities D. Non-value chain activities

Q: (p. 278) The ______ portrays the notion that firms need to be self-sufficient in capital. A. Environmental approach B. Parenting approach C. Portfolio approach D. Patching approach

Q: (p. 277) Which of the following is NOT a limitation of the portfolio approaches? A. Identifying individual businesses or distinct markets was not often as precise as the underlying assumptions required B. The underlying assumption about the relationship between C. The approach did not emphasize that market share and profitability are the same across different industries and market segments D. The portfolio approach limited strategic options, which were seen mostly as basic strategic missions rather than descriptions of the flow of resources in a company

Q: (p. 277) The only relationship between business units with the portfolio matrix is: A. Creation of competitive advantage B. Internally synergies C. Cash D. Core competencies

Q: (p. 276) The two dimensions in the BCGs Strategic Environments matrix are ____ and _____ of competitive advantage. A. length, timing B. yes and no C. sources, size D. many, few

Q: (p. 277) Skills in achieving differentiation characterize winners in ________ businesses A. Volume B. Stalemate C. Specialization D. Fragmented

Q: (p. 276) _________ has many sources of advantage and fined those advantages potentially sizable. A. Specialization businesses B. Stalemate businesses C. Fragmented businesses D. Volume businesses

Q: (p. 276) Skills in achieving differentiation in product design, branding expertise, innovation, first-mover and sometimes scale characterize winners in: A. Stalemate businesses B. Specialization businesses C. Volume businesses D. Fragmented businesses

Q: (p. 276) Which type of business involves differentiated products with low brand loyalty, easily replicated technology and minimal scale economies? A. Fragmented businesses B. Specialization businesses C. Volume businesses D. Stalemate businesses

Q: (p. 276) _________ has many sources of advantage. However, these are all small. A. Stalemate businesses B. Fragmented businesses C. Specialization businesses D. Volume businesses

Q: (p. 276) _________ has few sources of advantage, with most of them small. This results in very competitive situations. A. Fragmented businesses B. Volume businesses C. Stalemate businesses D. Specialization businesses

Q: (p. 276) _________ are those that have few sources of advantage, but the size is large--typically the result of scale economies. A. Volume businesses B. Stalemate businesses C. Specialization businesses D. Fragmented businesses

Q: (p. 275) Which matrix allows one way for multi-business companies to rationalize what businesses they are in--businesses that share core competencies and associated competitive advantages. A. Growth-share matrix B. Portfolio attractiveness matrix C. Strategic environments matrix D. Business strength matrix

Q: (p. 275) Which matrix involves a framework that can help ensure that businesses' strategies are consistent with strategies appropriate to their strategic environment? A. Strategic choice matrix B. Growth-share matrix C. Industry attractiveness-business strength matrix D. Strategic environments matrix

Q: (p. 275) Which of the following is a factor in the cost position that helps determine business strength? A. Delivery times B. Manufacturing flexibility C. Brand awareness D. Economies of scale

Q: (p. 275) Which of the following factors is considered in determining a business's strength for the industry attractiveness-business strength matrix? A. Threat of substitute products B. Economic factors C. Sociopolitical considerations D. Response time

Q: (p. 275) Which of the following factors is NOT considered in determining industry attractiveness? A. Nature of competitive rivalry B. Bargaining power of suppliers/customers C. Firm's level of differentiation D. Financial norms

Q: (p. 274) The industry attractiveness-business strength matrix improves on the BCG matrix in some fundamental ways. Which of the following is NOT one of these? A. The terminology associated with the industry attractiveness-business strength matrix is preferable because it is less offensive B. The terminology associated with the industry attractiveness-business strength matrix can be much more complicated than the BCG matrix C. The multiple measures associated with each division of the industry attractiveness-business strength matrix tap many factors relevant to business strength and market attractiveness besides market share and market growth D. There is broader assessment during the planning process of the industry attractiveness-business strength matrix

Q: (p. 274) The ______ decisions of the industry attractiveness-business strength matrix remain quite similar to those of the BCG growth-share matrix. A. Management approach B. Resource allocation C. Business strategy D. Functional strategy

Q: (p. 274) Which of the following is NOT a strategic approach suggested by the industry attractiveness-business strength matrix? A. Outsource management B. Invest to grow C. Invest selectively and manage for earnings D. Harvest or divest for resources

Q: (p. 274) In the industry attractiveness-business strength matrix, the position of a business is calculated by _______ its rating along the two dimensions of the matrix. A. Subjectively qualifying B. Objectively qualifying C. Subjectively quantifying D. Objectively quantifying

Q: (p. 274) Which matrix makes fine distinctions among business portfolio positions with the inclusion of high/medium/low axes? A. Industry strength matrix B. Growth-share matrix C. Strategic environments matrix D. Industry attractiveness-business strength matrix

Q: (p. 274) How many cells are in the industry attractiveness-business strength matrix? A. 4 B. 9 C. 12 D. 16