GROUP 3 - INTERNAL SCANNING: ORGANIZATIONAL ANALYSIS

IDENTIFICATION

1. Assumes that past developments in the given technology cannot be extrapolated into the future
because every technology has its limits?
Answer: CORPORATE PLANNING PROCESS

2. This is a support activities that is involve in machines and supplies
Answer: PROCUREMENT

3. System that can operate at relatively low production rates
Answer: Intermittent (Job Shop) Manufacturing System

4. In experience curve, what is declining by 20 – 30% every time production doubles?
Answer: PRODUCTION COSTS

5. Examine the potential synergies among the value chains of different product lines.
Answer: CORPORATE VALUE CHAIN ANALYSIS

6. Set of value-creating activities beginning with basic raw material and ending with distributors
getting final goods into hands of customers
Answer: VALUE CHAIN

7. This model has many buyers & sellers
Answer: SWITCHBOARD MODEL

8. Pertains to Intensity as degree of acceptance and Integration as shared values
Answer: ATTRIBUTES OF CORPORATE CULTURE

9. This is the right end of the Growth stage
Answer: COMPETITIVE TURBULENCE

10. The 4Ps are variables of what strategic marketing issue?
Answer: MARKETING MIX

TRUE OR FALSE

1. Internal strategic factors consist of critical strengths and weaknesses that are not unlikely to
determine if the firm will be able to take advantage of opportunities while avoiding threats. T

2. In the 5-Step Resource Approach to Strategy Analysis, the fifth step is Identify resource gaps
invest in strengths. F

3. Value chain is linked set of value-creating activities beginning with basic final goods and ending
with distributors getting raw materials into hands of customers. F

4. Strategic business unit is not always a unique mission. F

5. Strategic business unit has always unidentifiable competitors. F

F 15. T MULTIPLE CHOICE 1. F 14. Technological Competence is the ability to move products from research to the market. F 11. none of the above c. corporate planning technology b. F 17. T 9. 6. This is a process in which it is generally assumed that incremental progress in technology will occur. F 16. expectations. Corporate culture serves as a frame of reference for employees to make sense of organizational activities and as a guide for behavior. Distinctive competency is a core competency done better than competitors. Corporate culture is a collection of beliefs. corporate incremental process ANSWER: B . and values learned and keep by a corporation’s members from one generation of employees to another. VRIO Framework is used for defining Distinctive Competencies. corporate planning progress d. corporate planning process e. T 10. Sales and time are directly proportional in a product life cycle. Corporate culture reduces to the instability of the organization social system.t 18. F 12. Corporate culture conveys a sense of identity for employers. F 20. F 13. F 7. Capital budgeting is the Analysis and ranking of investments in total assets based on a hurdle rate. Core competency is the integration/coordination of capabilities. Financial leverage is the ratio of total debt to current assets. T 19. F 8. Typical Value Chain for a Manufactured Product includes 6 stages. a. Market Position & Combination is one of the marketing issues. Support activitiesinclude marketing and sales. Competency is something that the company does well.

decline d. none of the above c. supermarket b. none of the above c. Which of the following is not classified as a stage of the product life cycle? a. adoslecence e. none of the above c. Strategic human resource management issues would include all of the following except a. human diversity e. none of the above C human resources management ANSWER: C 3. quality of work life ANSWER: A . outbound logistics e. competitive product ANSWER: D 4. none of the above c. competitive turbulence b. the right end of the growth stage is called a. intranet e. inbound logistics d. growth ANSWER: B 5. In corporation’s value chain. union relativity d. internet ANSWER: A 6. In a product life cycle.marketing and sales b. extranet d. maturity b. increasing use of teams b. manufacturing firm’s primary activities would include all of the following except a. competitive growth d. The information network within an organization that is available to key suppliers and customers is called a.competitive maturity e.2.

time model d. place e. none of the above c. triples ANSWER: B 9. declines b. fast-cycle resources ANSWER: B 8. product b. price d. doubles e. promotion ANSWER: E . none of the above c. none of the above c customer solutions model ANSWER: E 10. advertising model e. decreases d. In experience curve. Which of the following is not classified as a type of a business model? a.switchboard model b. none of the above c. which is not a level of resource sustainability? a. abnormal-cycle resources e.7. the production cost is declining by 20 – 30 % every time production __________? a. Which is not a marketing mix variable? a. standard-cycle resources b. slow-cycle resources d. In continuum of sustainability.

One of the growth strategies in which a firm internally makes 100% of its key supplies and completely controls its distributors is called _________.Strategy Formulation: Corporate Strategy IDENTIFICATION 1. There are two most popular portfolio techniques. (GROWTH STRATEGIES) . It includes nine cells based on long-term industry attractiveness and business strength competitive position. A growth strategy in which resources are moved to more developing product lines in one industry. (ACQUISITION) 19. (GE BUSINESS SCREEN) 4. (MULTIPOINT COMPETITION) 6. (FULL INTEGRATION) 16. (PAUSE/PROCEED WITH CAUTION STRATEGY) 13. (VERTICAL INTEGRATION) 8. (MARKET SHARE) 3. (PRODUCTION SHARING) 17. (TURNAROUND STRATEGY) 12. (PORTFOLIO ANALYSIS) 14. It is the process of combining the higher labor skills and technology available in developed countries with the lower-cost labor available in developing countries. (JOINT VENTURE) 9. (CONCENTRIC (RELATED) DIVERSIFICATION) 11. Under the BCG Growth-Share Matrix. It is a growth strategy which may be appropriate when a firm has a strong competitive positon but the industry attractiveness is low. It focuses on the core competencies of the corporation and the value created by the relation between the parent and its business. A competition in which firms are competing with each other not only in one business units. (EXPORTING) 10. (BCG GROWTH-SHARE MATRIX) 2. A stability strategy in which a company has an opportunity to rest before continuing a growth or retrenchment strategy. It is a transaction involving two or more corporations in which stock is exchanged but only one corporation survives. but also in a number of business units. It is the purchase of a company that is completely absorbed as an operating subsidiary or division of the acquiring corporation. It can be achieved by taking over a function previously provided by a supplier or by a distributor. it is the only one aspect of overall competitive position. It is shipping goods produced in the company’s home country to other countries for marketing. An analysis by which the top management views its product lines and business units as a series of investments from which it expects a profitable return. It could be an association of between a company and a firm in the host country or a government agency in that country. (CONCENTRATION) 15. (CORPORATE PARENTING) 5. It is the degree by which a firm operates vertically in multiple locations on an industry’s value chain from extracting raw materials to manufacturing to retailing. (MERGER) 18. (VERTICAL GROWTH) 7. These strategies expand the company’s activities. one is GE Business Screen and other one is ___________. It emphasizes the improvement of operational efficiency and is probably most appropriate when a corporation’s problems are pervasive but not yet critical.

The use of highs and lows to form four categories in Boston Matrix is too complex and requires additional factors other than market share and growth rate in portraying corporation’s portfolio of investment. Bankruptcy means the firm is giving up the management. (TRUE) 5. (FALSE. (TRUE) 15. (TRUE) 13. (FALSE. (PARENTING STRATEGY) 21. (FALSE. Corporate strategy has five (5) key issues. (FALSE) . It is the choice of direction for a firm as a whole and the management of its business or product portfolio. Portfolio analysis suggests the use of standard strategies that can miss opportunities or be impractical. The industries or markets in which the firm competes through its products and business units pertains to directional strategy. One of the limitations of portfolio analysis is that it is difficult to define product/market segments. In the Boston Matrix the link between the market share and profitability is questionable. (DIRECTIONAL STRATEGY) 22. Acquisition is a way of partnering with another company already operating in a particular area. hence the firm is totally terminated. – (FALSE) 16. One of the shortcomings of GE Business Screen is that it effectively depicts the positions of new products. Examining each business unit in terms of areas in which performance can be improved is the first step in developing a corporate parenting strategy. (FALSE) 12. (FALSE) 4. (FALSE) 6. stability or retrenchment. (TRUE) 11. Portfolio analysis stimulates the use of externally oriented data to supplement management’s judgement. The firm has overall orientation toward growth. (FALSE) 9. This strategy indicates that management coordinates activities and transfers resources. (CORPORATE STRATEGY) TRUE/FALSE 1. (FALSE. Portfolio analysis) 17. (FALSE) 2. Retrenchment strategies make no change to the company's current activities. (FALSE) 3. Conglomerate (Unrelated) Diversification) 14. Diversification strategies involve moving resources to product lines in the same industries. A strategy in which a company diversifies into an industry unrelated to its current one is called concentric diversification. (TRUE) 10. The graphic depiction of portfolio analysis creates advantage but it does not facilitate communication. different) 8. Acquiring) 7. The value-laden terms such as cash cow and dog can lead to self-fulfilling prophecies is one of the shortcomings or limitations of portfolio analysis. The nine-cell GE Business Screen is an improvement over the BCG Growth-Share Matrix. (FALSE) 18. 20. Stability strategies reduce the company's level.

It is one of Porter’s Five Forces Model. FALSE WITH 5. TRUE 8. suppliers' power. FALSE – GEOGRAPHIC MARKET 9. Preferences of niche market may change to match those of broad market. This is what the organization does to get the resources it needs to operate. These demographic market characteristics are often based on market size.EXPENSIVE 6. Accounting. FALSE ATTRACTIVE 7. storing. Cost leaders are able to absorb greater price increases before it must raise price to customers. reduce ineffective communication and cut supplier costs. FALSE . INBOUND LOGISTICS 2. Differentiated products less price elastic. population density. Data integration can be time consuming and cheap if it is not planned carefully and if the proper experts and equipment are not used. This includes finding vendors and negotiating best prices. region. and the functions that allow it to maintain daily operations. INFRASTRUCTURE MULTIPLE CHOICE 6. CUSTOMER 5. Effective differentiators can remain profitable even when the five forces appear attractive. INTEGRATION STRATEGY 3. legal management are example of this. These are all the processes related to receiving. TRUE 10. A cost leadership strategy may help to remain profitable even without rivalry. FALSE - COMPETITORS 3. Used to cross-train management and employees. relative to consumers and to the five forces of competition. Your supplier relationships are a key factor in creating value here. Customers are the foundation or essence of an organization's business-level strategies. TRUE 4. . TRUE 2. PROCUREMENT OR PURCHASING 4. FALSE DATA INTEGRATION IDENTIFICATION 1.TRUE OR FALSE 1. Cost leadership organization used this strategy to compete with broad market with price. and buyers' power. new entrants. Vertical integration occurs when companies bring in new systems to replace the old ones or when companies merge and must integrate their computer networks. substitute products. Business-Level Strategy incorporated set of obligations that firm uses to gain a competitive advantage. –These are a company's support systems. Business-Level Strategy has a huge interest regarding the company’s function in an industry. and distributing inputs internally.

VERTICAL INTEGRATION B. A. creating high switching costs through differentiation and uniqueness. The company has control over quality and costs at the most important segments of its product manufacturing and distribution model. ENTRANTS E. Maximizing human capital contributions A. LESS BREAKDOWNS E. LOWERING BUYER’S CHOICE B. PERSONNEL INTEGRATIO . Creating barriers by perceptions of uniqueness and reputation. SUSTAINABILITY D. RAISING BUYER’S PERFORMANCE C. A. VERTICAL INTEGRATION B. PERSONNEL INTEGRATION 10. SUSTAINABILITY D. This helps departments work together and increases efficiency. DIAGONAL INTEGRATION D. CUSTOMERS C. HORIZINTAL INTEGRATION C. IMPLICATION 9. RAISING BUYER’S PERFORMANCE C. SUPPLIERS D. SUBSTITUTE 7. A. Integrating employees means cross-training employees to do each other’s’ job. A. DATA INTEGRATION E. LESS BREAKDOWNS E. HORIZINTAL INTEGRATION C. IMPLICATION 8. DIAGONAL INTEGRATION D. LOWERING BUYER’S CHOICE B. RIVALRY B. DATA INTEGRATION E.

. BRIEFLY EXPLAIN. AND BRIEFLY EXPLAIN. ESSAY 1-5 DRAW THE VALUE CHAIN WITH LABBELS. (THREE SENTENCES. (THREE SENTENCES) 6-10 DRAW THE COMPARING SCOPE OF BUSINESS LEVEL STRATEGY AND SOURCES OF ADVANTAGE.

ENUMERATION 1-2 TWO KINDS OF VERTICAL INTEGRATION ANSWERS:   FORWARD INTEGRATION   BACKWARD INTEGRATION  3-5 WHAT ARE THE DIFFERENT BUSINESS LEVEL STRATEGIES ANSWERS:   COST LEADERSHIP    DIFFERENTIATION    FOCUSED COST LEADERSHIP    FOCUSED DIFFERENTIATION   INTEGRATED  6-8 PRIMARY ACTIVITIES IN VALUE CHAIN   INBOUND LOGISTICS    OPERATIONS    OUTBOUND LOGISTICS    MARKETING AND SALES   SERVICES  9-10 SUPPORTING ACTIVITIES IN VALUE CHAIN   PROCUREMENT    TECHNOLOGY DEVELOPMENT    HUMAN RESOURCE MANAGEMENT   FIRM INFRASTRYCTURE  .

The Internet is being increasingly used both to find new sources of supply and to keep inventories replenished. Using a market development strategy. A product strategy deals with pricing. Line extension is the introduction of additional items in the same category under the same brand name. the common practice of accepting the lowest bid often compromises quality. selling. A firm’s manufacturing strategy is often affected by a business’ life cycle. Functional strategies may need to vary from region to region. FALSE 5. FALSE 9. TRUE 10. FALSE 2. FALSE 8. Skim pricing is more likely than penetration pricing to raise a unit’s operating profit in the long term. TRUE 14. The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing. TRUE 7. TRUE . FALSE 6. The key to continuous improvement is the acknowledgment that workers’ attitude and behavior can help managers solve production problems and contribute to tightening variances and reducing errors. a company can develop new products for existing markets or develop new products for new markets. each with its own functional strategy. FALSE 12. The product becomes standardized into a commodity over time in conjunction with increasing demand. TRUE 3. FUNCTIONAL STRATEGY TRUE OR FALSE 1. A financial strategy examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action. Each business unit has its own set of departments. The orientation of a functional strategy is dictated by its parent business unit’s management. TRUE 4. Fortunately. FALSE 13. TRUE 11. and distributing a product.

___________ is a plan to bring stakeholders into agreement with a corporation’s actions. Strategic choice is the evaluation of alternative strategies and selection of the _______. Two suppliers are the sole suppliers of two different parts. Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment. The key to outsourcing is to purchase from outside only those activities that are not key to the company's distinctive competencies. TRUE FILL IN THE BLANKS 1. Policies 2. According to ________. pays for its own acquisition. Risk is composed not only of the probability that the strategy will be effective. real-options approach . best alternative. it pays to have a broad range of options open. pitfalls 3. but they are also backup suppliers for each other’s parts in multiple sourcing. Political strategy 6. TRUE 20. FALSE 17. but also of the amount of assets the corporation must allocate to that strategy and the length of time the assets will be unavailable for other uses. 4. Follow the leader 5. in effect. ____________ is a strategy that ignores the possibility that the leader may be wrong. FALSE 18. TRUE 16. the acquired company. Devil’s Advocate is an individual or a group assigned to identify _____ and problems with a proposed alternative strategy in a formal presentation. Arms race 7. 15. In a leveraged buy-out. _____________ is a strategy that enters a battle for market share may reduce profitability. when the future is highly uncertain. The follow-the-moon management philosophy allows project team members living in one country to pass their work to team members in another country in which the work day is just beginning. TRUE 19. ________ define the broad guidelines for implementation.

Mutual Exclusivity 12. 360 Degree Appraisal System 10. Pressures from corporate culture 18. Management’s attitude toward risk 16. Overlooking the hidden costs of outsourcing 7. Outsourcing activities that should not be outsourced 2. Pressures from stakeholders 17. _________ is the outsourcing of an activity or a function to a wholly owned company or an independent provider in another country. Offshoring 9. continuous improvement ENUMERATION Major outsourcing errors that should be avoided: 1. Selecting the wrong vendor 3. Internal Consistency Subjective Factors Affecting Decisions 15. Losing control over the outsourced activity 6. 8. the strategist must: 8. Completeness 14. Writing a poor contract 4. Failing to plan an exit strategy In determining functional strategy. Success 13. Identify the company’s or business unit’s core competencies 9. Manage the competencies in such a way that best preserves the competitive advantage they create Evaluation of strategic alternatives 11. Ensure that the competencies are continually being strengthened 10. Needs and desires of key managers . __________ is a system in which employees will get feedback from all the people they work with. Kaizen is the practice of_______. Overlooking personnel issues 5.

and/or training existing employees to learn new skills. The process of replacing a key top manager is called. A type of chief executive officer with a conservative style. PERFORMANCE 12. CAUTIOUS PROFIT PLANNER 6. inventories. Successful analyzer firms tend to be headed by CEOs with backgrounds in the areas of. JOB ROTATION 11. EXECUTIVE SUCCESSION 10. capital expenditures. and experience with controlling budgets. ACCOUNTING/FINANCE. RESEARCH/ENGINEERING AND GENERAL MANAGEMENT 7. ANALYTICAL PORTFOLIO MANAGER 5. A type of chief executive officer who is highly knowledgeable in other industries and can manage diverse product lines would be appropriate for a corporation following a diversification strategy. The end result of activity is known as. DYNAMIC INDUSTRY EXPERT 4. STEERING CONTROLS 13. A SPECIFIC CORPORATE STRATEGY 3. A type of chief executive officer with a great deal of experience in that particular industry would be appropriate for a corporation following a concentration strategy emphasizing vertical or horizontal growth. MARKETING/SALES 9. Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of. and standardization procedures would be appropriate for a corporation following a stability strategy. many corporations move people from one job to another utilizing the technique of. firing of people with inappropriate or substandard skills. Successful defender firms tend to be headed by CEOs with backgrounds in the areas of. AND GENERAL MANAGEMENT 8. Controls that measure variables that influence future p[profitability are called. DAN’S GROUP 1. The hiring of new people with new skills. To ensure employees are gaining the appropriate mix of experience to prepare employees for future responsibilities. a production or engineering background. STEERING CONTROL . The inventory turnover ratio is an example of a(n). Executives with a particular mix of skills and experiences may be classified as an executive type and paired with. STAFFING 2. MANUFACTURING/PRODUCTION.

TRUE 22. The measure which is after-tax operating income minus the total annual cost of capital is called. rules. A dynamic industry expert is someone with an analytical mind who is highly knowledgeable in other industries and can manage diverse product lines. Downsizing refers to the planned elimination of positions or jobs. ENTERPRISE RISK MANAGEMENT 18. TRUE 26. A type of control which specifies what is to be accomplished by focusing on the end result of behaviors through the use of objectives and performance targets or milestones. typically by reducing staff. EVA 20. and/or training existing employees to learn new skills. TRUE 29. Staffing issues can involve hiring new people with new skills. KEY PERFORMANCE MEASURES 21. standard operating procedures. and orders from a superior. TRUE 27. TRUE 23. BEHAVIOR CONTROL 15. Firms in trouble seldom choose outsiders to lead them. Chandler proposed that the most appropriate CEO for a firm remains constant as the company proceeds through its life cycle. These measures are called. SHAREHOLDER VALUE 19. firing people with inappropriate or substandard skills. The ISO 9000 Standards Series is one example of. Executive succession is the process of replacing a key top manager. OUTPUT CONTROL 16. ________ is a corporate-wide. The balanced scorecard approach to evaluation and control assigns to each goal/objective in an area one or more measures that are each essential for achieving a desired strategic option. Analyzers tend to have CEOs with a marketing/sales background. FALSE 25.14. FALSE 28. FALSE 24. The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as. BEHAVIOR CONTROL 17. Research indicates that companies undertaking cost-cutting programs are four times more likely than others to cut costs again. TRUE . integrated process to manage the uncertainties that could negatively or positively influence the achievement of the corporation's objectives. A type of control which specifies how something is to be done through policies. Staffing requirements are likely to follow a change in strategy.

standard operating procedures. One example of a steering control used by retail stores is the inventory turnover ratio. TRUE 37. and the corporation's innovation and improvement activities. Behavior controls specify how something is to be done through policies. TRUE 33. One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs. TRUE 32. FALSE 38. internal processes. ACB is an accounting method for allocating direct and fixed costs to individual products. The revenue center is measured in terms of efficiency. TRUE 40. FALSE 39. Operating cash flow is also known as free cash flow. rules. The balanced scorecard combines financial measures that tell the results of actions already taken with operational measures on customer satisfaction. TRUE 35. managers cannot manipulate the numbers of EVA. TRUE 31. and orders from a superior. FALSE 36. which shows how hard an investment in inventory is working. Unlike ROI.30. Performance is the end result of activity. TRUE 34. ABC accounting allows accountants to charge costs more accurately than the traditional method because it allocates overhead far more precisely. Research indicates that a multinational corporation performs at a higher level when its CEO has international experience. FALSE .