Chapter 10: Strategy and Strategic Management

The most appropriate first question to ask in strategic planning is ____________.

• "Where do we want to be in the future?"

• "How well are we currently doing?"

• "How can we get where we want to be?"

• "Why aren't we doing better?"

The ability of a firm to consistently outperform its rivals is called ____________.

• vertical integration

• competitive advantage

• incrementalism

• strategic intent

In complex conglomerate such as General Electric that owns a large number of different businesses, a(n) ___________ level strategy sets strategic direction for a strategic business unit.

• institutional

• business

• corporate

• functional

The _________ is a predominant value system for an organization as a whole.

• strategy

• mission

• core competency

• corporate culture

Cost efficiency and product quality are two examples of _________ objectives of organizations.

• official

• informal

• operating

• institutional

An organization that is downsizing by laying off workers to reduce costs is implementing a ____________ strategy.

• growth

• cost differentiation

• restructuring

• vertical integration

When PepsiCo acquired Tropicana, a maker of orange juice, the firm's strategy was growth by _____________.

• related diversification

• concentration

• vertical integration

• cooperation

In Porter's five forces framework, having ____________ increases industry attractiveness.

• related diversification

• concentration

• vertical integration

• cooperation

A ________________ in the BCG matrix would have a high market share in a low-growth market, and the correct grand or master strategy is ____________.

• dog, growth

• cash cow, stability

• question mark, stability

• star, retrenchment

Strategic alliance that link together airlines in code sharing and joint marketing agreements are examples of how businesses can use _____________ stratgies.

• diverstiture

• growth

• cooperation

• backward integration