Final

Question 1

Is a process of formulating, implementing and evaluating cross-functional decisions that enable the organization to define and achieve its mission, and ultimately to create value.

Answer 1

Strategic Management

Question 2

The strategic management process is comprised of ____ interrelated steps.

Answer 2

Five

Question 3

What are the 5 steps that the strategic management process is comprised of?

Answer 3

1. Establish the vision and mission of the organization
2. Perform a situation analysis
3. Set objectives and craft a strategy
4. Implement the strategy
5. Asses the success of the strategy

Question 4

What is the primary focus and the ultimate outcome of successful strategic management?

Answer 4

Value Chain

Question 5

Is the means to achieve its vision, mission, and objective:

Answer 5

Strategy

Question 6

What are the three levels of strategy?

Answer 6

1. Corporate or organizational
2. Business Unit
3. Functional

Question 7

Strategic decisions set or influence the future direction of the organization.

Answer 7

Directive

Question 8

Strategic decisions require the cooperation and coordination of multiple functions and activities across the organization.

Answer 8

Cross-functional

Question 9

Strategic decisions require resource commitments by the organization. Strategies must be financed (internally or externally), investments are made and operations are changed in some way.

Answer 9

Resource-dependent

Question 10

Who is responsible for the strategy and performance of the organization?

Answer 10

The senior management team and chief executive officer

Question 11

What are the four conditions necessary for an exchange?

Answer 11

1. two or more parties have to be able to make the exchange (ability)
2. They each have to have a desire to exchange (need or desire)
3. They have to know about what is to be exchanged (awareness)
4. They have to be willing to make the exchange (willingness)

Question 12

What are the four Ps?

Answer 12

Product, Place, Promotion, and Price

Question 13

What are the value disciplines, or paths to market leadership?

Answer 13

1. Operational excellence
2. Customer intimacy
3. Product leadership

Question 14

Example of operational excellence?

Answer 14

McDonalds

Question 15

Example of Customer Intimacy?

Answer 15

Amazon

Question 16

Example of Product Leadership?

Answer 16

Apple

Question 17

Segmenting and targeting markets precisely and ten tailoring these offerings to match exactly the demands of those niches.

Answer 17

Customer intimacy

Question 18

Providing customers with reliable products or services at competitive prices and delivered with minimal difficulty or inconvenience.

Answer 18

Operational excellence

Question 19

Offering customers leading-edge products and services that consistently enhance the customer’s use or application in the market, thereby making rivals’ goods obsolete.

Answer 19

Product leadership

Question 20

A sustainable enterprise contributes to sustainable development by delivering economic (profit), environmental (Planet), and social (people) benefits.

Answer 20

Triple Bottom Line

Question 21

What are the four different growth strategies?

Answer 21

1. Market Penetration
2. Market Development
3. Product Development
4. Diversification

Question 22

Achieving growth by selling more of our existing products in existing markets

Answer 22

Market penetration

Question 23

Achieving growth by taking existing products into new markets or market segments.

Answer 23

Market Development

Question 24

The creation of new products for markets we currently serve.

Answer 24

Product Development

Question 25

Branching out into a new industry; diversification suggests an expansion outside the firm's current core business(es) into a new product market sector.

Answer 25

Diversification

Question 26

How can firms integrate vertically?

Answer 26

By acquiring or developing their own sources of supply (known as backward integration) or by acquiring or developing their own distributions or retailers.

Question 27

When a firm acquires one of its competitors, it is pursuing.....

Answer 27

Horizontal integration

Question 28

A broad term encompassing many forms of cooperative agreement between two or more organizations.

Answer 28

Strategic Alliance

Question 29

A specific kind of strategic alliance with equity contributions from partners to form a third, separate entity that stands alone for a specified time period.

Answer 29

Joint Ventures

Question 30

ROE Formula=

Answer 30

(Net Profit/Sales) * (Sales/Assets) * (Assets/Equity)

Question 31

What are the four major categories of ratio analysis?

Answer 31

1. Liquidity 2. Leverage 3. Activity 4. Profitability

Question 32

Current Ratio=

Answer 32

Current Assets/Current Liabilities

Question 33

Quick Ratio=

Answer 33

Current Assets minus inventory/Current Liabilities

Question 34

What are the goals of an external audit?

Answer 34

1. identify and analyze important current issues and trends 2. articulate or forecast likely emerging issues and trends 3. Foster strategic thinking and action throughout the organization 4. Identify opportunities and threats for planning purposes

Question 35

What are the five forces of competition?

Answer 35

1. Rivalry among direct competitors 2. Power of Suppliers 3. Power of Customers 4. Substitute Products or services 5. Threat of New Entrants

Question 36

Cost advantage due to large size of production, research, and marketing

Answer 36

Economies of Scale

Question 37

What are some Barriers to entry?

Answer 37

``` Economies of scale product differentiation Capital requirements Disadvantages other than size Distribution channels Regulation and/ or licensing requirements ```

Question 38

What does the External Audit SEES stand for?

Answer 38

Scanning, Estimating, Evaluating, and Sharing