Podcast
Questions and Answers
What is trend analysis?
What is trend analysis?
Trend analysis is the process of collecting data and identifying patterns or trends over time.
A grand strategy that involves expansion of things like sales revenues, market share, or number of employees is known as a _____ strategy.
A grand strategy that involves expansion of things like sales revenues, market share, or number of employees is known as a _____ strategy.
growth
Hair Today/Gown Tomorrow increased its market share by using a(n) _____ strategy.
Hair Today/Gown Tomorrow increased its market share by using a(n) _____ strategy.
innovation
The creation of alternative hypothetical but equally likely future conditions is known as _____ planning.
The creation of alternative hypothetical but equally likely future conditions is known as _____ planning.
When Johnson & Johnson promoted its baby shampoo as a gentle cleanser suitable for adults, it exemplified a(n) _____ strategy.
When Johnson & Johnson promoted its baby shampoo as a gentle cleanser suitable for adults, it exemplified a(n) _____ strategy.
Juanita is using the process of _____ to compare her company with others.
Juanita is using the process of _____ to compare her company with others.
What are two things a company might do when using a defensive strategy? (Select all that apply)
What are two things a company might do when using a defensive strategy? (Select all that apply)
A business that wants to reach more customers and hires more employees to get this done is focusing on a _____ strategy.
A business that wants to reach more customers and hires more employees to get this done is focusing on a _____ strategy.
What does business growth rate refer to, as used in the BCG matrix?
What does business growth rate refer to, as used in the BCG matrix?
A(n) _____ strategy requires little or no change to a company's product or service.
A(n) _____ strategy requires little or no change to a company's product or service.
What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products that it does not currently offer?
What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products that it does not currently offer?
When a company freezes hiring and tightens expenses due to decreased demand for its products or services, it is involved in a(n) _____ strategy.
When a company freezes hiring and tightens expenses due to decreased demand for its products or services, it is involved in a(n) _____ strategy.
What type of strategy is Wisconsin Dairy using when it purchases Hydro Generator Corp.?
What type of strategy is Wisconsin Dairy using when it purchases Hydro Generator Corp.?
What does the BCG matrix evaluate? (Select all that apply)
What does the BCG matrix evaluate? (Select all that apply)
Which strategy is a company pursuing when it expands into businesses that provide the supplies it needs to make its products or distribute and sell its products?
Which strategy is a company pursuing when it expands into businesses that provide the supplies it needs to make its products or distribute and sell its products?
Strategic Positioning attempts to achieve sustainable competitive advantage by ______.
Strategic Positioning attempts to achieve sustainable competitive advantage by ______.
The sources from which strategic position emerges are having _____.
The sources from which strategic position emerges are having _____.
Select all of the true statements regarding the trade-offs required in competing.
Select all of the true statements regarding the trade-offs required in competing.
Corporate-level strategy does which of the following?
Corporate-level strategy does which of the following?
The ______ strategy of a company is concerned with the individual business units or production and service lines of the business.
The ______ strategy of a company is concerned with the individual business units or production and service lines of the business.
Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.
Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.
To be successful, strategic planning requires a company to have a _____ orientation.
To be successful, strategic planning requires a company to have a _____ orientation.
Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which _____ emerges.
Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which _____ emerges.
The 'feedback loop' in the strategic-management process involves _____.
The 'feedback loop' in the strategic-management process involves _____.
True or False: Since most strategic positions will fit with any company's products, a company doesn't need to be concerned about selecting the right strategy.
True or False: Since most strategic positions will fit with any company's products, a company doesn't need to be concerned about selecting the right strategy.
Jordan plans to open a computer repair business. Which stage of the strategic management process is he in?
Jordan plans to open a computer repair business. Which stage of the strategic management process is he in?
Which level of strategic management focuses on the organization as a whole?
Which level of strategic management focuses on the organization as a whole?
In which step of the strategic management process would a company use a SWOT analysis?
In which step of the strategic management process would a company use a SWOT analysis?
At what level of strategic management is Andrew, as senior vice president of marketing, responsible for determining budget allocations?
At what level of strategic management is Andrew, as senior vice president of marketing, responsible for determining budget allocations?
Strategy _______ is the process of choosing among different strategies and altering them to best fit the organization's needs.
Strategy _______ is the process of choosing among different strategies and altering them to best fit the organization's needs.
True or False: It is common practice today for most small business owners to engage in strategic planning.
True or False: It is common practice today for most small business owners to engage in strategic planning.
Put the steps in the strategic-management process in the correct order.
Put the steps in the strategic-management process in the correct order.
Which of the following are accurate regarding Step 4 (Execute the Strategy) in the strategic management process?
Which of the following are accurate regarding Step 4 (Execute the Strategy) in the strategic management process?
In which step of the strategic-management process does an organization establish the mission and vision statements?
In which step of the strategic-management process does an organization establish the mission and vision statements?
In which step of the strategic-management process does the organization monitor progress and take corrective action?
In which step of the strategic-management process does the organization monitor progress and take corrective action?
The second step of the strategic management process involves _____
The second step of the strategic management process involves _____
When other companies cannot duplicate the value provided by a competitor, the competitor has established a(n) _____ competitive advantage.
When other companies cannot duplicate the value provided by a competitor, the competitor has established a(n) _____ competitive advantage.
Which are characteristics of strategy formulation?
Which are characteristics of strategy formulation?
Within a SWOT analysis, the letter 'T' represents a company's _____.
Within a SWOT analysis, the letter 'T' represents a company's _____.
To be successful, strategic planning requires a company to have a _____ orientation.
To be successful, strategic planning requires a company to have a _____ orientation.
Putting strategic plans into effect is referred to as _____.
Putting strategic plans into effect is referred to as _____.
The ABC car company has a superior reputation within the industry. In a SWOT analysis, this company's reputation is an example of a(n) _____.
The ABC car company has a superior reputation within the industry. In a SWOT analysis, this company's reputation is an example of a(n) _____.
Louis owns an online clothing store. Which step in the strategic management process does customer feedback through surveys represent?
Louis owns an online clothing store. Which step in the strategic management process does customer feedback through surveys represent?
Peterson Electric Inc. has outdated manufacturing facilities. Within a SWOT analysis, this would be an example of an organizational _____.
Peterson Electric Inc. has outdated manufacturing facilities. Within a SWOT analysis, this would be an example of an organizational _____.
Luxury Linens Inc. produces the highest thread-count sheets available and does so at a price that competitors cannot duplicate. This indicates that Luxury Linens has a(n) _____.
Luxury Linens Inc. produces the highest thread-count sheets available and does so at a price that competitors cannot duplicate. This indicates that Luxury Linens has a(n) _____.
Skate/24 had only one competitor in the local market, which just went out of business. This is an example of an organizational _________.
Skate/24 had only one competitor in the local market, which just went out of business. This is an example of an organizational _________.
A _____ analysis is an assessment of the strength, weakness, opportunities, and threats affecting the organization.
A _____ analysis is an assessment of the strength, weakness, opportunities, and threats affecting the organization.
Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would be considered an external organizational ______ in a SWOT analysis.
Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would be considered an external organizational ______ in a SWOT analysis.
Precise work processes and high-ranking customer service are examples of organizational ______ in a SWOT analysis.
Precise work processes and high-ranking customer service are examples of organizational ______ in a SWOT analysis.
The skills and capabilities that give an organization special competencies are called organizational _____.
The skills and capabilities that give an organization special competencies are called organizational _____.
What is an example of an organizational weakness based on a SWOT analysis?
What is an example of an organizational weakness based on a SWOT analysis?
Which of these situations provides an external opportunity that the company may exploit to gain competitive advantage?
Which of these situations provides an external opportunity that the company may exploit to gain competitive advantage?
After completing his competitor analysis, Justin realized his company was the only one with all-natural ingredients. What aspect of a SWOT analysis has Justin uncovered?
After completing his competitor analysis, Justin realized his company was the only one with all-natural ingredients. What aspect of a SWOT analysis has Justin uncovered?
In addition to value, what characteristics are being addressed in a VRIO analysis?
In addition to value, what characteristics are being addressed in a VRIO analysis?
In a SWOT analysis, an organizational threat will come from the company's _____ environment.
In a SWOT analysis, an organizational threat will come from the company's _____ environment.
Carlos is doing a VRIO analysis for a product. The first question he asks is, 'Does this new capability minimize the threat of the main competitor gaining more market share?' Which aspect of the VRIO analysis does this question answer?
Carlos is doing a VRIO analysis for a product. The first question he asks is, 'Does this new capability minimize the threat of the main competitor gaining more market share?' Which aspect of the VRIO analysis does this question answer?
When conducting a VRIO analysis, one question that must be asked is, 'Is the resource currently controlled by only a few firms or no others?' This would determine the _____ associated with the resource.
When conducting a VRIO analysis, one question that must be asked is, 'Is the resource currently controlled by only a few firms or no others?' This would determine the _____ associated with the resource.
When considering SWOT analysis, what is an example of an organizational weakness?
When considering SWOT analysis, what is an example of an organizational weakness?
Sanjay knows it is costly for other companies to match the quality of his company's table linens. Which part of a VRIO analysis is he basing his opinion on?
Sanjay knows it is costly for other companies to match the quality of his company's table linens. Which part of a VRIO analysis is he basing his opinion on?
In terms of a SWOT analysis, organizational _____ are environmental factors that hinder an organization from achieving a competitive advantage.
In terms of a SWOT analysis, organizational _____ are environmental factors that hinder an organization from achieving a competitive advantage.
Miles is analyzing a new investment product and isn't sure the company has the right software in place. What aspect of the VRIO analysis is Miles considering?
Miles is analyzing a new investment product and isn't sure the company has the right software in place. What aspect of the VRIO analysis is Miles considering?
When would a company use a VRIO analysis?
When would a company use a VRIO analysis?
Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that 57% of consumers would demand high-end footwear. This vision is known as a _____.
Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that 57% of consumers would demand high-end footwear. This vision is known as a _____.
In the large city where Cassandra lives, many people are asking for her restaurant to deliver food. In a VRIO analysis, Cassandra has determined the _____ of this capability.
In the large city where Cassandra lives, many people are asking for her restaurant to deliver food. In a VRIO analysis, Cassandra has determined the _____ of this capability.
At first, Rohan thought it was a good idea to offer a car repair pick-up service, but realized it would be difficult to match Tow-It-Now Inc.'s service. Which part of a VRIO analysis helped Rohan evaluate this idea?
At first, Rohan thought it was a good idea to offer a car repair pick-up service, but realized it would be difficult to match Tow-It-Now Inc.'s service. Which part of a VRIO analysis helped Rohan evaluate this idea?
One question within a VRIO analysis is, 'Is the resource costly for other companies to produce in the same manner?' Which aspect of the VRIO analysis does this represent?
One question within a VRIO analysis is, 'Is the resource costly for other companies to produce in the same manner?' Which aspect of the VRIO analysis does this represent?
Using statistical analysis of historical data to predict future events is called ____.
Using statistical analysis of historical data to predict future events is called ____.
When conducting VRIO analysis, what question should you ask when considering organization and its effect on a potential resource?
When conducting VRIO analysis, what question should you ask when considering organization and its effect on a potential resource?
A _____ is a vision or projection of the future that is made following a SWOT analysis.
A _____ is a vision or projection of the future that is made following a SWOT analysis.
Contingency planning is also referred to as _____ analysis.
Contingency planning is also referred to as _____ analysis.
The process by which a company compares its performance with that of other high-performing organizations is known as _____.
The process by which a company compares its performance with that of other high-performing organizations is known as _____.
What did Mallory use to determine the peak time for the sale of her flip-flops?
What did Mallory use to determine the peak time for the sale of her flip-flops?
Study Notes
Strategic Positioning
- Strategic positioning aims for sustainable competitive advantage by preserving the company's distinctiveness.
- It involves understanding unique customer needs and preferences across various market segments.
Sources of Strategic Position
- Strategic positions can emerge from several combinations regarding customer needs and the number of customers:
- Few needs and many customers
- Broad needs and few customers
- Broad needs and many customers
Trade-offs in Competing
- Some strategies are incompatible, requiring firms to make choices about what strategies to pursue and which to avoid.
- Companies choose narrow positioning strategies to enhance sales and operational efficiencies.
Corporate-level Strategy
- Focuses on the organization as a whole, addressing fundamental questions like the business scope and product/service offerings.
- Involves senior executives in strategic planning and decision-making.
Business-level Strategy
- Concerns individual business units and their specific production and service lines.
Michael Porter’s Definition
- Strategic positioning, as defined by Michael Porter, focuses on preserving what makes an organization distinct for achieving sustainable competitive advantage.
Strategic Planning Orientation
- Successful strategic planning requires a long-term orientation to anticipate future challenges and opportunities.
Feedback Loop
- Important in the strategic management process, the feedback loop ensures actions are revised as necessary based on performance evaluations and outcomes.
Steps in the Strategic Management Process
- The process includes establishing the mission, assessing current realities, formulating strategies, executing strategies, and maintaining strategic control.
Using SWOT Analysis
- A SWOT analysis identifies strengths, weaknesses, opportunities, and threats in the context of strategic planning and decision-making.
Characteristics of Strategy Formulation
- It serves as a foundation for long-term goal determination and tends to be a time-consuming process.
Market Opportunities
- External opportunities can arise from market dynamics, such as reduced competition or emerging consumer demands.
VRIO Analysis
- VRIO stands for Value, Rarity, Imitability, and Organization, essential for assessing resources and capabilities that provide competitive advantages.
Trend Analysis
- Involves using historical data analysis to forecast future trends and inform strategic decisions.
Benchmarking
- The process of comparing an organization’s performance metrics with high-performing competitors to identify areas for improvement.
Growth Strategy
- Involves expanding market share, customer base, or overall revenues, positioning the organization for increased competitiveness.
Contingency Planning
- Also known as scenario analysis, it prepares organizations for various future scenarios and potential challenges.
Defensive Strategies
- Implementing a defensive strategy can involve protecting market share and maintaining competitive advantages against potential threats.
Importance of Strategic Planning
- Essential for organizations to assess their current position, forecast future conditions, and remain competitive in their respective industries.### Business Strategies
- Phase Out Products or Services: The process of discontinuing a product line or service to cut losses or redirect focus.
- Declare Bankruptcy: A legal process for businesses unable to repay debts, allowing for the restructuring or liquidation of assets.
- Develop More Products: Actively creating additional offerings to meet customer needs and expand market share.
- Expand Operations Overseas: Entering international markets to increase customer base and potential revenue.
- Hire More Employees: Increasing workforce to support growth initiatives and meet demand.
Growth Strategy
- A business focusing on increasing customer base and expanding operations is pursuing a growth strategy.
Business Growth Rate
- Refers to the speed of industry growth, which is a key indicator of market dynamics in the BCG matrix.
Stability Strategy
- A stability strategy involves minimal changes to products or services, often adopted during times of uncertainty or reduced growth.
Diversification Strategy
- When American Tile Corp. acquires a company producing industrial cleaning products, it employs a diversification strategy, broadening its product offerings.
Defensive Strategy
- A company implementing hiring freezes and tightening expenses due to decreased demand is enacting a defensive strategy to maintain stability.
Unrelated Diversification
- Wisconsin Dairy, acquiring Hydro Generator Corp., is engaging in unrelated diversification, branching out beyond its primary industry to stimulate growth.
BCG Matrix Evaluation
- The BCG matrix assesses a company's market share and business growth rates to inform strategic decisions.
Vertical Integration Strategy
- Expanding into businesses that provide necessary supplies or distribution channels is an example of vertical integration, enhancing control over the supply chain.
Studying That Suits You
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Description
Test your knowledge on strategic positioning and competitive advantage with these flashcards from MNGT 301, Chapter 6. This quiz will help reinforce key concepts related to achieving sustainability in business. Perfect for students looking to deepen their understanding of management principles.
