30 Questions
What is the primary purpose of a business-level plan?
To outline specific methods for a division to compete against rivals in an industry
What is the primary focus of a functional-level plan?
To improve the ability of each function to perform task-specific activities
What is the primary difference between a short-term plan and a long-term plan?
The time horizon of the plan
What type of plan is used in programmed decision situations?
Standing plan
What is the relationship among corporate-, business-, and functional-level strategies?
They are hierarchical and interconnected
What is the duration of an intermediate-term plan?
1 to 5 years
What characteristic should goals possess in an organization?
Being challenging but realistic
What is the main role of the CEO and top managers in strategic leadership?
Conveying a compelling vision to subordinates
What does the SWOT analysis identify in an organization?
Internal strengths and weaknesses, and external opportunities and threats
What is the result of increased competition in the five forces model?
Lower prices and profits
What is the consequence of having only a few suppliers of important items?
Supply costs rise
What is hypercompetition characterized by?
Permanent and ongoing intense competition
What is the primary goal of a low-cost strategy?
To minimize the organization's total costs
What is the main challenge with pursuing a 'stuck in the middle' strategy?
It is hard to reduce costs and add unique features simultaneously
What is the key difference between a focused low-cost strategy and a low-cost strategy?
The size of the target market
What is the primary goal of a focused differentiation strategy?
To be the most differentiated organization in a specific segment
What is the main purpose of a corporate-level strategy?
To strengthen the company's competitive position in its current industry
What is an example of a discussion topic based on business-level strategies?
Analyzing four companies in an industry that pursue different business-level strategies
What type of plan specifies an exact series of actions to follow?
Standard Operating Procedures
What is the primary purpose of setting goals in an organization?
To provide a sense of direction
What do mission statements typically aim to achieve?
To connect people and make them more productive
What is the main difference between standing plans and single-use plans?
The scope of application
What is the main purpose of determining an organization's mission and goals?
To define the organization's sense of direction
What question helps define the organization's business in determining its mission and goals?
Who are our customers?
Which international expansion strategy involves customizing products and marketing strategies to specific national conditions?
Multi-Domestic Strategy
What type of international expansion involves selling at home products that are made abroad?
Importing
What is the term for allowing a foreign organization to take charge of manufacturing and distributing a product in its country in return for a negotiated fee?
Licensing
What type of international expansion involves a strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business?
Joint Venture
What is the term for when managers invest in establishing production operations in a foreign country independent of any local direct involvement?
Wholly Owned Foreign Subsidiary
What is the term for selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits?
Franchising
Test your understanding of different levels of planning in business, including business-level plans and functional-level plans. Learn how divisional managers and functional managers make decisions to achieve long-term goals and compete effectively in the industry.
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