Management Tutorial Part 4 Chapter 6: Strategic Management: How Star Managers Realize a Grand Design Section A (Multiple Choice Questions) 1 . A large-scale action plan that sets the direction for an organization is called a A) mission. B) vision. C) strategy. D) forecast. E) central contingency plan. 2. Which of the following is the second stage in the strategic-management process? A) formulate the strategic plans B) maintain strategic control C) establish the grand strategy D) establish the mission and vision E) carry out the strategic plans 3. BBC Company has developed new products to appeal to more potential buyers.
BBC is pursuing a A) growth B) stability C) defensive D) reorganization E) reactor 4. Managers need to do a A) SOOT analysts B) growth strategy C) stability strategy D) defensive strategy E) planning analysis strategy. As a starting point in developing a grand strategy. 5. When analyzing the “W” in SOOT analysis, a manager might be assessing A) possible challenges in the market. B) competitors’ actions. C) high turnover of employees. D) good financial resources of the firm. E) governmental actions. 6. The company’s CEO puts pressure on the firm’s R managers to develop products that can be created cheaply for the world’s consumers.
The firm would be following a Strategic Management and Soot Analysis By Donaldson A) cost leadership B) differentiation C) cost focus D) retrenchment E) focused differentiation 7. Which two of the strategies below serve the narrow market in Porter’s competitive strategies? A) Cost leadership & cost focused B) Cost focused & focused differentiation C) Differentiation & focused differentiation D) Cost leadership & differentiation E) All of the above 8. A vision or projection of the future is called a A) trend. B) forecast. C) contingency. D) strategy. E) threat. 9. BBC Company phased out its line of typewriters last year.
BBC is engaged in a 2 10. Which of the following statements about strategic planning and strategic management is true? A) Strategic management is a process that involves managers from all parts of the organization. B) Managers at the top dictate ideas to be followed by people lower down. C) Middle managers need not understand the strategies; they simply need to follow them. D) Strategic planning is used to accomplish tactical goals. E) Strategic planning is not useful because it puts the organization into a straitjacket and does not allow for flexibility. Section B (Structure Questions) Describe the strategic management process.
Explain what the “feedback loop” is and why it is important. Explain what forecasting is and differentiate between the two types of forecasting. 3. What are the fundamental differences in examining internal and external environments when conducting a situation analysis? Give examples of what managers might look at in performing each element of a SOOT analysis. 4. Identify the three grand strategies and explain each of them. 5. What determines competitiveness within a particular industry using Porter’s five forces model? Describe Porter’s four competitive strategies and explain how they differ from each other. 3
