Chapter 4 - Internal Assessment

1. It is known for excellent production and product design.

Maytag

2. It is known for superb marketing.

Procter & Gamble

3. These are established with the intention of capitalizing upon internal strengths and overcoming
weaknesses.
Objectives and strategies

4. A firm’s strengths that cannot be easily matched or imitated by competitors are called?
Distinctive competencies

5. These are designed in part to improve on a firm’s weaknesses, turning them into strengths—and
maybe even into distinctive competencies.
Strategies

6. The process of performing this closely parallels the process of performing an external audit.
Internal Audit

7. From throughout the firm, they need to be involved in determining a firm’s strengths and
weaknesses.
Representative managers and employees

8. This requires gathering and assimilating information about the firm’s management, marketing,
finance/accounting, production/operations, research and development (R&D), and management
information systems operations.
Internal Audit

9. This should be prioritized as described so that the firm’s most important strengths and
weaknesses can be determined Collectively.
Key factors

10. The process of performing this provides more opportunity for participants to understand how their
jobs, departments, and divisions fit into the whole organization.
Internal Audit

11. Maybe the most important word in management.

Communication

12. Performing this is an excellent vehicle or forum for improving the process of communication in the
organization.
Internal Audit

13. What is the Process of Gaining Competitive Advantage in a Firm?

Weaknesses ⇒ Strengths ⇒ Distinctive Competencies ⇒ Competitive Advantage
14. Performing this requires gathering, assimilating, and evaluating information about the firm’s
operations.
Internal Audit

15. It is a highly interactive process that requires effective coordination among management,
marketing, finance/accounting, production/operations, R&D, and management information
systems managers.
Strategic Management

16. It may need to restrict the number of feasible options available to operations managers.
Financial managers
17. It may develop products for which marketing managers need to set higher objectives.
R&D managers

18. It exemplifies the complexity of relationships among the functional areas of business.
Financial ratio analysis

19. This function is mixed with all other business functions and, like ink once mixed with water, it
cannot be set apart.
planning function

20. This is an approach to competitive advantage contends that internal resources are more
important for a firm than external factors in achieving and sustaining competitive advantage.
Resource-Based View (RBV)

21. This include all plant and equipment, location, technology, raw materials, machines.
Physical resources

22. This include all employees, training, experience, intelligence, knowledge, skills, abilities.
human resources

23. This include firm structure, planning processes, information systems, patents, trademarks,
copyrights, databases.
organizational resources

24. For a resource to be valuable, it must be either (1) rare, (2) hard to imitate, or (3) not easily
substitutable, these three characteristics of resources are often called?
empirical indicators

25. It can be defined as “a pattern of behavior that has been developed by an organization as it
learns to cope with its problem of external adaptation and internal integration, and that has
worked well enough to be considered valid and to be taught to new members as the correct way
to perceive, think, and feel.”
Organizational culture

26. These include values, beliefs, rites, rituals, ceremonies, myths, stories, legends, sagas, language,
metaphors, symbols, heroes, and heroines.
Cultural products

27. These products or dimensions are levers that strategists can use to influence and direct strategy
formulation, implementation, and evaluation activities.
Cultural products

28. It is an aspect of an organization that can no longer be taken for granted in performing an internal
strategic-management audit because culture and strategy must work together.
Culture

29. It significantly affects business decisions and thus must be evaluated during an internal strategic-
management audit.
Organizational culture

30. What are The Basic Functions of Management?

planning, organizing, motivating, staffing, and controlling.

31. The functions of this consist of five basic activities: planning, organizing, motivating, staffing, and
controlling.
management

32. It is the essential bridge between the present and the future that increases the likelihood of
achieving desired results.
Planning
33. It is the process by which one determines whether to attempt a task, works out the most effective
way of reaching desired objectives, and prepares to overcome unexpected difficulties with
adequate resources.
Planning

34. It is the start of the process by which an individual or business may turn empty dreams into
achievements.
Planning

35. It exists when everyone pulls together as a team that knows what it wants to achieve; it is the 2 +
2 = 5 effect.
Synergy

36. The purpose of this is to achieve coordinated effort by defining task and authority relationships.
Organizing

37. It means determining who does what and who reports to whom.
Organizing

38. It can be defined as the process of influencing people to accomplish specific objectives.
Motivating

39. The motivating function of management includes at least four major components, what are those?
leadership, group dynamics, communication, and organizational change

40. It is the lifting of a person’s vision to higher sights, the raising of a person’s performance to a
higher standard, the building of a person’s personality beyond its normal limitations.
Leadership

41. It play a major role in employee morale and satisfaction.

Group dynamics

42. It perhaps the most important word in management, is a major component in motivation.
Communication

43. It is also called personnel management or human resource management, includes activities such
as recruiting, interviewing, testing, selecting, orienting, training, developing, caring for, evaluating,
rewarding, disciplining, promoting, transferring, demoting, and dismissing employees, as well as
managing union relations.
Staffing

44. This function of management includes all of those activities undertaken to ensure that actual
operations conform to planned operations.
controlling

45. It can be described as the process of defining, anticipating, creating, and fulfilling customers’
needs and wants for products and services.
Marketing

46. There are seven basic functions of marketing, what are those?
(1) customer analysis, (2) selling products/services, (3) product and service planning, (4)
pricing, (5) distribution, (6) marketing research, and (7) opportunity analysis.

47. The examination and evaluation of consumer needs, desires, and wants—involves administering
customer surveys, analyzing consumer information, evaluating market positioning strategies,
developing customer profiles, and determining optimal market segmentation strategies.
Customer analysis
48. It includes many marketing activities, such as advertising, sales promotion, publicity, personal
selling, sales force management, customer relations, and dealer relations.
Selling

49. It includes activities such as test marketing; product and brand positioning; devising warranties;
packaging; determining product options, features, style, and quality; deleting old products; and
providing for customer service.
Product and service planning

50. It is one of the most effective product and service planning techniques that allow an organization
to test alternative marketing plans and to forecast future sales of new products.
Test Marketing

51. Five major stakeholders affect this decisions: consumers, governments, suppliers, distributors,
and competitors. What is this?
pricing
52. This includes warehousing, distribution channels, distribution coverage, retail site locations, sales
territories, inventory levels and location, transportation carriers, wholesaling, and retailing.
Distribution

53. It is the systematic gathering, recording, and analyzing of data about problems relating to the
marketing of goods and services.
Marketing research

54. It involves assessing the costs, benefits, and risks associated with marketing decisions.
cost/benefit analysis

55. It is often considered the single best measure of a firm’s competitive position and overall
attractiveness to investors.
Financial condition

56. It comprise three decisions: the investment decision, the financing decision, and the dividend
decision.
Finance/Accounting Functions

57. It is the most widely used method for determining an organization’s strengths and weaknesses in
the investment, financing, and dividend areas.
Financial ratio analysis

58. It is also called capital budgeting, is the allocation and reallocation of capital and resources to
projects, products, assets, and divisions of an organization.
investment decision

59. It determines the best capital structure for the firm and includes examining various methods by
which the firm can raise capital (for example, by issuing stock, increasing debt, selling assets, or
using a combination of these approaches).
financing decision

60. These are decisions concern issues such as the percentage of earnings paid to stockholders, the
stability of dividends paid over time, and the repurchase or issuance of stock.
Dividend decisions

61. Key financial ratios can be classified into the following five types, what are those?
Liquidity ratios, Leverage ratios, Activity ratios, profitability ratios, Growth ratios

62. It measure a firm’s ability to meet maturing short-term obligations.

Liquidity ratios

63. It measure the extent to which a firm has been financed by debt.
Leverage ratios
64. It measure how effectively a firm is using its resources.
Activity ratios

65. It measure management’s overall effectiveness as shown by the returns generated on sales and
investment.
Profitability ratios

66. It measure the firm’s ability to maintain its economic position in the growth of the economy and
industry.
Growth ratios

67. This function of a business consists of all those activities that transform inputs into goods and
services.
production/operations

68. What are The Basic Functions (Decisions) Within Production/Operations?

process, capacity, inventory, workforce, and quality

69. These decisions include choice of technology, facility layout, process flow analysis, facility
location, line balancing, process control, and transportation analysis. Distances from raw
materials to production sites to customers are a major consideration.
Process

70. These decisions include forecasting, facilities planning, aggregate planning, scheduling, capacity
planning, and queuing analysis. Capacity utilization is a major consideration
Capacity

71. These decisions involve managing the level of raw materials, work-in-process, and finished
goods, especially considering what to order, when to order, how much to order, and materials
handling.
Inventory

72. These decisions involve managing the skilled, unskilled, clerical, and managerial employees by
caring for job design, work measurement, job enrichment, work standards, and motivation
techniques.
Workforce

73. These decisions are aimed at ensuring that high-quality goods and services are produced by
caring for quality control, sampling, testing, quality assurance, and cost control.
Quality

74. These expenditures are directed at developing new products before competitors do, at improving
product quality, or at improving manufacturing processes to reduce costs.
Research and development

75. R&D in organizations can take two basic forms, what are these?
(1) internal R&D, (2) contract R&D

76. It is in which an organization operates its own R&D department.

internal R&D

77. It is in which a firm hires independent researchers or independent agencies to develop specific
products.
contract R&D

78. It ties all business functions together and provides the basis for all managerial decisions.
Information

79. Its purpose is to improve the performance of an enterprise by improving the quality of managerial
decisions.
 management information system
80. This system receives raw material from both the external and internal evaluation of an
organization.
management information system

81. It is one strategic-planning software product that parallels this text and offers managers and
executives a simple yet effective approach for developing organizational strategies.
CheckMATE

82. It should thus be simple and Unsophisticated.

Strategic-Planning Software

83. It allows wide participation among managers in a firm.

Simplicity

84. It is essential for effective strategy implementation.

participation

85. It refers to the process whereby a firm determines the costs associated with organizational
activities from purchasing raw materials to manufacturing product(s) to marketing those products.
Value Chain Analysis (VCA)

86. It is an analytical tool used to determine whether a firm’s value chain activities are competitive
compared to rivals.
Benchmarking

87. This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in
the functional areas of a business, and it also provides a basis for identifying and evaluating
relationships among those areas.
Internal Factor Evaluation (IFE) Matrix

CHAPTER 5 STRATEGIES IN ACTION

1. It involve the active implementation and execution of planned approaches to achieve

organizational objectives.
strategies in action

2. What are the relevance of strategies in action?

Achieving Objectives, Resource Optimization, Adaptation to Change

3. It refer to the overarching goals and outcomes that an organization aims to achieve over an
extended period, typically spanning several years.
Long-term objectives

4. It used to identify and improve various internal business functions and their resulting external
outcomes.
strategic management performance metric

5. It represent the results expected from pursuing certain strategies.

Long-term objectives

6. It represent the actions to be taken to accomplish long-term objectives. The time frame for
objectives and strategies should be consistent, usually from two to five years.
Strategies

7. What are The Desired Characteristics of Objectives?

 1. Quantitative 2. Measurable 3. Realistic 4. Understandable 5. Challenging 6. Hierarchical
7. Obtainable 8. Congruent across departments

8. The idea is to keep on doing about the same things in the same ways because things are going
well.
Managing by Extrapolation

9. It is based on the belief that the true measure of a really good strategist is the ability to solve
problems.
Managing by Crisis

10. It is actually a form of reacting rather than acting and of letting events dictate the what and when
of management decisions.
Managing by Crisis

11. It is built on the idea that there is no general plan for which way to go and what to do; just do the
best you can to accomplish what you think should be done.
Managing by Subjectives

12. It is based on the fact that the future is laden with great uncertainty and that if we try and do not
succeed, then we hope our second (or third) attempt will succeed.
Managing by Hope

13. Developed in 1993 by Robert Kaplan and David Norton?

The Balance Scorecard

14. It derives its name from the perceived need of firms to “balance” financial measures that are
oftentimes used exclusively in strategy evaluation and control with nonfinancial measures such as
product quality and customer service.
Balanced Scorecard

15. What are the two types of diversification strategy?

Related Diversification, Unrelated Diversification

16. It aim to organize all the world’s information into searchable form, diversifying the firm beyond its
roots as a Web search engine that sells advertising.
Related Diversification

17. It favors capitalizing on a portfolio of businesses that are capable of delivering excellent financial
performance in their respective industries, rather than striving to capitalize on value chain
strategic fits among the businesses.
Unrelated Diversification

18. It occurs when an organization regroups through cost and asset reduction to reverse declining
sales and profits.
Retrenchment

19. Sometimes called a turnaround or reorganizational strategy, it is designed to fortify an

organization’s basic distinctive competence.
Retrenchment

20. It is selling a division or part of an organization, it is often is used to raise capital for further
strategic acquisitions or investments.
Divestiture

21. It can be part of an overall retrenchment strategy to rid an organization of businesses that are
unprofitable.
Divestiture
 22. It is selling all of a company’s assets, in parts, for their tangible worth.
Liquidation
23. It is a recognition of defeat and consequently can be an emotionally difficult strategy.
Liquidation

24. What are the five generic strategies?

Low-cost strategy, Best-value strategy, Differentiation, Low-cost focus strategy, Best-
value focus strategy

25. It offers products or services to a wide range of customers at the lowest price.
Low-cost Strategy

26. It Offers products or services to a wide range of customers at the best price-value.
Best-value strategy

27. It Aimed at producing products and services considered unique industrywide.

Differentiation

28. It Offers products or services to a small range (niche group) of customers at the lowest price
available on the market.
Low-cost focus strategy

29. It Offers products or services to a small range of customers at the best price-value available on
the market.
Best-value focus strategy

30. For collaboration between competitors to succeed, both firms must contribute something
distinctive, such as technology, distribution, basic research, or manufacturing capacity.
Cooperation Among Competitors

31. It occurs when two or more companies form a temporary partnership for the purpose of
capitalizing on some opportunity.
Joint Venture/Partnering

32. It occurs when two organizations of about equal size unite to form one enterprise.
merger

33. It occurs when a large organization purchases (acquires) a smaller firm, or vice versa.
acquisition

34. It refer to the benefits a firm may achieve by entering a new market or developing a new product
or service prior to rival firms.
Advantage

35. It is a rapidly growing new business that involves companies taking over the functional
operations, such as human resources, information systems, payroll, accounting, customer
service, and even marketing of other firms.
Business-process outsourcing (BPO)

36. Developing strategies involves determining how the institution will achieve its goals.
EDUCATIONAL INSTITUTION

37. Creating home health services, establishing nursing homes, and forming rehabilitation centers.
MEDICAL ORGANIZATION

38. They are using a strategic-management approach to develop and substantiate formal requests
for additional funding.
Government agencies
 39. It involve combining different parts of an organization to achieve synergy, increase efficiency, and
enhance competitiveness.
Integration Strategies
40. It focus on increasing market penetration, market development, and product development to
boost sales and revenue.
Intensive strategies

CHAPTER 6 STRATEGY ANALYSIS AND CHOICE

1. This chapter focuses on generating and evaluating alternative strategies, as well as selecting
strategies to pursue.
Strategy analysis and choice

2. It seek to determine alternative courses of action that could best enable the firm to achieve its
mission and objectives.
Strategy analysis and choice

3. What is the strategy-formulation analytical framework?

Stage 1: THE INPUT STAGE , Stage 2: THE MATCHING STAGE, Stage 3: THE DECISION
STAGE

4. The input tools require strategists to quantify subjectivity during early stages of the strategy-
formulation process.
THE INPUT STAGE

5. What is under the input stage?

External factor evaluation matrix (EFE), Competitive profile matrix (CPM), Internal Factor
evaluation Matrix (IFE)

6. This focuses upon generating feasible alternative strategies by aligning key external and internal
factors.
THE MATCHING STAGE

7. What is under the matching stage?

SWOT, SPACE, BCG MATRIX, IE MATRIX, Grand strategy matrix

8. It use a firm’s internal strengths to take advantage of external opportunities.

Strength Opportunities Strategies

9. It use a firm’s strengths to avoid or reduce the impact of external threats.

Strength Threats Strategies

10. Are defensive tactics directed at reducing internal weakness and avoiding external threats.
Weaknesses Threats Strategies

11. It aims at improving internal weaknesses by taking advantage of external opportunities.

Weakness Opportunities Strategies

12. Its a four-quadrant framework indicates whether aggressive, conservative, defensive, or

competitive strategies are most appropriate for a given organization.
STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX

13. A planning tool that uses graphical representations of a company’s products and services in an
effort to help the company decide what it should keep, sell, or invest more in.
BOSTON CONSULTING GROUP MATRIX

14. The BCG growth-share matrix contains four distinct categories, what are these?
Dogs, Cash cows, Stars, and Question marks
 15. The matrix helps companies decide how to prioritize their various business activities.
BOSTON CONSULTING GROUP MATRIX
16. It is a portfolio management tool used for comparing divisions of an organization in terms of
revenue and percentage of profit with respect to the Internal Factor Evaluation (IFE) matrix and
External Factor Evaluation (EFE) matrix scores.
Internal-External (IE) Matrix

17. It is the instrument for creating alternative and different strategies for the organization.
Grand strategy matrix

18. The Grand Strategy Matrix is based on two dimensions, what are these two?
Competitive position and Market growth

19. It is under the decision stage?

Quantitative Strategic Planning Matrix (QSPM)

20. Analytical technique in the literature designed to determine the relative attractiveness of feasible
alternative actions.
Quantitative Strategic Planning Matrix (QSPM)

21. It is a tool that allows strategists to evaluate alternative strategies objectively, based on previously
identified external and Internal critical success factors.
Quantitative Strategic Planning Matrix (QSPM)

22. What are the components of QSPM?

Strategic Alternatives, Key Factors, Weights, Attractiveness Scores (AS), Total
Attractiveness Scores (TAS), Sum Total Attractiveness Score

23. It includes the set of shared values, beliefs, attitudes, customs, norms, personalities, heroes, and
heroines that describe a firm.
Culture

24. It is the unique way an organization does business.

Culture

25. It is a group of individuals who are elected by the ownership of a corporation to have oversight
and guid- ance over management and who look out for shareholders' interests.
board of directors

26. The act of oversight and direction is referred to as?

Governance

CHAPTER 7 IMPLEMENTING STRATEGIES: MANAGEMENT AND OPERATION ISSUES

1. Establishing this is a decentralized activity that directly involves all managers in an organization.
annual objectives

2. Active participation in establishing this can lead to acceptance and commitment.

annual objectives

3. It refers to specific guidelines, methods, procedures, rules, forms, and administrative practices
established to support and encourage work toward stated goals.
policy

4. It is a central management activity that allows for strategy execution.

 Resource allocation

5. It does not guarantee successful strategy implementation because programs, personnel, controls,
and commitment must breathe life into the resources provided.
Resource allocation

6. What are the 4 TYPES OF RESOURCES THAT CAN BE USED TO ACHIEVE DESIRED
OBJECTIVES?
Financial Resources, Physical Resources, Human Resources, Technological Resources

7. It largely dictates how objectives and policies will be established.

Structure

8. It dictates how resources will be allocated.

Structure

9. It is Most widely used structure?

functional structure

10. It often leads to short-term and narrow thinking that may undermine what is best for the firm as a
whole.
functional structure

11. The divisional structure can be organized in one of four ways, what are those?
by geographic area, by product or service, by customer, or by process

12. Activities are organized according to the way work is actually performed?
By process

13. This structure is a framework used by organizations to effectively manage and organize their
diverse business operations. It involves grouping different divisions or business units based on
shared characteristics, such as market focus, product lines, or customer segments.
Strategic Business Unit (SBU)

14. It makes the tasks of planning and control by the corporate office more manageable.
Strategic Business Unit (SBU)

15. It iis the most complex of all designs because it depends upon both vertical and horizontal flows
of authority and communication.
matrix structure

16. It can result in higher overhead because it creates more management positions.
matrix structure

17. It facilitates the use of specialized personnel, equipment, and facilities.

matrix structure

18. It can be defined as a disagreement between two or more parties on one or more issues.
Conflict

19. Establishing this can lead to conflict because individuals have different expectations and
perceptions, schedules create pressure, personalities are incompatible, and misunderstandings
between line managers (such as production supervisors) and staff managers (such as human
resource specialists) occur.
annual objectives

20. It also called downsizing, rightsizing, or delayering.

Restructuring
21. It involves reducing the size of the firm in terms of number of employees, number of divisions or
units, and number of hierarchical levels in the firm’s organizational structure.
Restructuring

22. It is also called as process management, process innovation, or process redesign—involves

reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality,
service, and speed.
Reengineering

23. It is a term that incorporates all the activities that enterprises perform to improve productivity,
optimize resources, deliver quality products and services, and meet customer expectations and
demand.
e-Engineering

24. What are the Form of Incentive Compensation?

Dual Bonus Systems, Profit Sharing Systems, Gain Sharing Systems

25. It can be considered the single greatest threat to successful strategy implementation.
Resistance to change

26. It regularly occurs in organizations in the form of sabotaging production machines, absenteeism,
filing unfounded grievances, and an unwillingness to cooperate.
Resistance

27. It must be viewed as an opportunity rather than as a threat by managers and employees.
Change

28. What are Three commonly used strategies?

force change strategy, educative change strategy, rational or self-interest change strategy

29. It involves giving orders and enforcing those orders; this strategy has the advantage of being fast,
but it is plagued by low commitment and high resistance.
force change strategy

30. It is one that presents information to convince people of the need for change.
educative change strategy

31. It is one that attempts to convince individuals that the change is to their personal advantage.
When this appeal is successful, strategy implementation can be relatively easy. However,
implementation changes are seldom to everyone’s advantage.
rational or self-interest change strategy

32. What are the Ways and Means for Altering an Organization’s Culture?
Recruitment, Training, Transfer, Promotion, Restructuring, Reengineering, Role modeling