Concepts in Strategic Management

Question 1

1.

What are the two generic competitive strategies that Porter promotes as the means for outperforming other corporations in a particular industry?

Answer

		Competitive scope and differentiation
		Diversification and concentration
		Lower cost and competitive scope
		Lower cost and differentiation

4 points

Question 2

1.

When Dell Computer's customers use the Internet to design their own computers, this demonstrates which manufacturing strategy?

Answer

		Continuous improvement
		Mass production
		Job shop
		Mass customization

4 points

Question 3

1.

Which external growth strategy involves two or more corporations joining in a stock exchange and from which only one corporation survives?

Answer

		Mergers
		Strategic alliances
		Diversification
		Acquisitions

4 points

Question 4

1.

Wal-Mart, McDonald's, and Alamo are all examples of companies following which of Porter's competitive strategies?

Answer

		Differentiation
		Cost leadership
		Differentiation focus
		Competitive advantage

4 points

Question 5

1.

According to Porter, what is the competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors?

Answer

		Competitive scope
		Differentiation
		Concentration
		Lower cost

4 points

Question 6

1.

When Smith & Wesson puts its name on others' products like men's cologne, it is using which marketing strategy?

Answer

		Demand pricing
		Brand pricing
		Line extension
		Penetration extension

4 points

Question 7

1.

What is the technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives?

Answer

		IFAS Table
		EFAS Table
		SFAS Table
		TOWS Matrix

4 points

Question 8

1.

What is a corporate strategy that cuts across divisional boundaries to build synergy across business units to improve the competitive position of one or more business units?

Answer

		Vertical strategy
		Horizontal strategy
		Hierarchical strategy
		Portfolio strategy

4 points

Question 9

1.

What is the first company to manufacture and sell a new product or service?

Answer

		Opportunist
		First mover
		Cost leader
		Power broker

4 points

Question 10

1.

Which of the following is NOT one of the questions that management should raise in their attempt to assess the importance to the corporation of stakeholders' concerns?

Answer

		Which stakeholder group should be represented on the board of directors?
		How will this decision affect each stakeholder?
		How much of what the stakeholders want are they likely to get under a certain alternative?
		What are the stakeholders likely to do if they don't get what they want?

4 points

Question 11

1.

List and describe four popular options for international entry.

Answer

30 points

Question 12

1.

What is outsourcing? What are the seven major outsourcing errors that should be avoided?