BMGT 3510 Exam II Study Guide Questions with Verified Answers
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Course
BMGT
Institution
BMGT
Which is the best question to ask when starting the strategic management process? - Answer-"What is our mission?"
The ability of a firm to consistently outperform its rivals is called __________. - Answer-competitive advantage
General electric is a complex conglomerate that owns many firms op...
BMGT 3510 Exam II Study Guide
Questions with Verified Answers
Which is the best question to ask when starting the strategic management process? -
Answer-"What is our mission?"
The ability of a firm to consistently outperform its rivals is called __________. - Answer-
competitive advantage
General electric is a complex conglomerate that owns many firms operating in very
different industries. The strategies pursued for each of these units within GE would be
best called ____________- level strategies. - Answer-business
An organization that is downsizing by cutting staff to reduce costs can be described as
pursuing a _______ strategy. - Answer-retrenchment
When you buy music downloads online, the firm selling them to you is engaging in
which type of e-business strategy? - Answer-B2C
A _________ in the BCG matrix would have a high market share in a low-growth
market. - Answer-cash cow
In Porter's five forces model, which of the following conditions is most favorable from the
standpoint of industry attractiveness? - Answer-low bargaining power of suppliers
The alliances that link together firms in supply chain management relationships are
examples of how businesses try to use ________ strategies. - Answer-cooperation
Among the global strategies that international businesses might pursue, the ________
strategy most directly tries to tailor products to fit local needs and cultures in different
countries. - Answer-multidomestic
If Google's top management were to announce that the firm was going to buy Federal
Express, this would indicate a growth strategy of _________. - Answer-diversification
When coke and pepsi spend millions on ads trying to convince customers that their
products are unique, they are pursuing a ________ strategy. - Answer-differentiation
Porter's model of competitive strategies suggests a firm that wants to compete with its
rivals in a broad market by selling a very low prices product would need to successfully
implement a _______ strategy. - Answer-cost leadership
____________ are special strengths that an organization has or does exceptionally well
and that help it outperform its customers. - Answer-core competencies
, The two questions asked by Porter to identify the correct competitive strategy for a
business or product line are:
1 - What is the market scope? 2 - what is the ________? - Answer-source of
competitive advantage
Which is an example of a cooperative strategy? - Answer-strategic alliance
What is the difference between corporate strategy and functional strategy? - Answer-
Corporate strategy - sets long-term direction for an enterprise as a whole.
Functional strategy - sets directions so that business functions such as marketing and
manufacturing support the overall corporate strategy.
Why is a cost leadership strategy so important when one wants to sell products at lower
prices than competitors? - Answer-If you want to sell at lower prices and make a profit,
then you have to have a lower operating costs (profit * revenues = costs). Also operate
at lower costs in ways that are hard for your competitors to copy. Always seek ways to
lower costs and operate with greater efficiency than anyone else.
What strategy should be pursued for a "question mark" in the BCG Matrix, and why? -
Answer-Question mark has a low market share in a high growth industry. This means
that there is a lot of upside potential, but for now it is uncertain whether or not you will
be able to capitalize it. Thus, hard thinking is required.
Confident: growth
Not confident: retrenchment, and allow resources to become more promising.
What is strategic leadership? - Answer-Strategic Leadership - ability to enthuse people
to participate in continuous change, performance enhancement, and the implementation
of organization strategies.
The main purpose of organizing as a management function is to __________. - Answer-
arrange people and resources to accomplish work
An organization chart is most useful for __________. - Answer-showing designated
supervisory relationships
Rumors and resistance to change are potential disadvantages often associated with
_________. - Answer-informal structures
When an organization chart shows that vice presidents of marketing, finance,
manufacturing, and purchasing all report to the president, top management is using a
__________ structure. - Answer-functional
The "two-boss" system of reporting relationships is both a potential source of problems
and one of the key aspects of ___________ structures. - Answer-matrix
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