Chapter 8 Managing Strategy and Strategic Planning MULTIPLE CHOICE 1 Effective strategies a develop long range plans for resource allocation b provide an in depth analysis of the organization s internal strengths and weaknesses c provide managers with a list of environmental contingency factors d align the organization and environment to achieve strategic goals e focus on the mission statement ANS D 2 Krispy Kreme sells doughnuts It markets them primarily to people who want something quick and sweet for breakfast or as a morning snack This is an example of Krispy Kreme s a industry niche b synergy c scope d resource deployment e entropy ANS C 3 Which of the following areas does a well conceived strategy address a The organizational chart b Scope c Suppliers and distributors d Pricing strategy e Tactical goals ANS B 4 Food 4 All Inc sold its three nonfood businesses and replaced them with firms in the food industry Which element of corporate strategy does this choice to compete in the food industry specifically address a Scope b Resource deployment c Distinctive competence d Synergy e Alignment ANS A 5 The Culinary Institute of America CIA teaches cooking and operates French Italian and American restaurants It also sells cooking supplies This is an example of CIA s a alignment b synergy c distinctive competence d resource deployment e Scope ANS E 6 Coca Cola sells soft drinks bottled water and sports drinks This is an example of Chapter 8 1 2011 Cengage Learning All Rights Reserved May not be scanned copied or duplicated or posted to a publicly accessible website in whole or in part a b c d e alignment synergy scope resource deployment entropy ANS C 7 Wal Mart sought approval for an industrial bank charter This is an example of changing a alignment b synergy c scope d resource deployment e entropy ANS D 8 When an airline uses profits from one region to lower prices in another region it is using a alignment b synergy c scope d resource deployment e entropy ANS D 9 is the component of strategy that indicates what the organization does exceptionally well a Resource deployment b Synergy c Scope d Distinctive competence e None of these choices ANS D 10 In the 1980s if you mentioned Harley Davidson motorcycles to the average consumer he or she immediately thought of motorcycle gangs more specifically Hell s Angels Now the price of a Harley can top 20 000 and there are riding clubs like Rubs Rich urban riders that include executives attorneys and doctors The club members are attracted to Harleys for their wild and free image Harley Davidson s image is a n not easily imitated by competitors a organizational weakness b strategic limitation c Entropy d distinctive competence e organizational opportunity ANS D 11 Business level strategy focuses primarily on a which markets to enter and how to use the firm s money people and physical facilities b which markets to enter and in what areas the firm may have a competitive edge c which markets to enter and how the parts of the organization enhance the entry d the areas in which the firm may have an advantage and how much various organizational parts enhance each other e the firm s competitive advantage s Chapter 8 2 2011 Cengage Learning All Rights Reserved May not be scanned copied or duplicated or posted to a publicly accessible website in whole or in part ANS D 12 Strategy formulation is a a set of processes involving the organization s strategies b the method by which strategies are operationalized c the same as goal development d also called corporate level strategy e a form of functional strategy ANS A 13 After so many people complimented Robin Hoder s honey mustard she decided to start a small business called Naples Valley Products to manufacture and market her mustard At this juncture Hoder was engaged in a strategic marketing b tactical implementation c strategic formulation d corporate strategy e competitive response ANS C 14 GE competes in industries ranging from medical devices to appliances to television networks GE s mixed strategy is an example of strategy a corporate level b long term c business level d functional e short term ANS A 15 The primary concern of strategy implementation is a the content of the strategy b how the strategy is operationalized and executed c goal development d corporate level strategy e functional strategy ANS B 16 A n strategy is a plan chosen and implemented to support specific goals such as an increase of market share by 5 percent a valid b deliberate c reliable d emergent e synergistic ANS B 17 A n strategy is a pattern of action that develops over time in an organization in the absence of missions and goals or despite missions and goals a valid b deliberate Chapter 8 3 2011 Cengage Learning All Rights Reserved May not be scanned copied or duplicated or posted to a publicly accessible website in whole or in part c reliable d emergent e synergistic ANS D 18 Google bought YouTube even though it operated at a loss The business strategy for YouTube is a valid b deliberate c reliable d emergent e synergistic ANS D 19 Don opened a pizza shop It was successful so he opened a restaurant it failed So he opened a bed and breakfast it succeeded He wanted to save a historic building so he turned it into a retreat center Don uses a n strategy a valid b deliberate c reliable d emergent e synergistic ANS D 20 In environmental SWOT analysis the external organizational position is analyzed according to its a opportunities and threats b opportunities and weaknesses c strengths and threats d strengths and weaknesses e return on investment ANS A 21 The starting point in formulating strategies is usually a a SWOT analysis b goal implementation c operational plans d a mission statement e a control function ANS A 22 Krispy Kreme has a distribution network that allows fresh doughnuts to be transported to convenience stores supermarkets and Krispy Kreme outlets before dawn so that consumers can enjoy them that same day This is an example of a n for the Krispy Kreme organization a organizational strength b scope extension strategy c defender strategy d distinctive strategy e competitive disadvantage ANS A Chapter 8 4 2011 Cengage Learning All Rights Reserved May not be scanned copied or duplicated or posted to a publicly accessible website in whole or in part 23 Coca Cola s success in global marketing is the result of its distribution system and its marketing communications which are two of the company s a organizational