Assignment:
1. One of the statements concerning the 5-forces affecting Industry Competition is incorrect: Southern California had a long recession in the early 90s because aerospace companies were dependent on a
- single customer or buyer-the U.S. Defense Department.
- Stars and Question Marks require considerable funding to make them into Cash Cows.
- Oil prices often tend to go up because of the strong bargaining power of OPEC supplier nations.
- Threat of new entrants is connected with barriers to entry.
- The numerous automobile companies competing in the U.S. can be said to have an oligopoly type of rivalry.
2. One of the following statements concerning Porter's Competitive Strategies is incorrect:
- Bloomingdale Stores can be said to adopt a differentiation strategy.
- Costco Stores can be said to adopt a cost leadership strategy.
- Southwest Airlines can be said to adopt a cost leadership strategy because of its aggressive pricing.
- The number of ways companies differentiate their products can be said to be endless.
- When starting up a restaurant in a Hispanic neighborhood serving only Hispanic food, the company is adopting a focus strategy. Therefore, it is not possible for the company to also apply simultaneously the differentiation strategy.
3. One of the statements about Porter's Competitive Strategies is incorrect:
- With a cost leadership strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls.
- Differentiation normally applies to companies that offer less distinctive and innovative products whereas cost leadership applies to companies that offer more non-standard products.
- With focus strategy, the organization concentrates on a specific regional market or buyer group d
- The differentiation strategy involves an attempt to distinguish the firm's products or services from others in I industry.
- Cost leadership normally uses highly efficient procurement and distribution systems.
4. The ______ is the basis for the strategic level of goals and plans which in turn shapes the _______ and ______ level.
- goal, mission, tactical
- mission, tactical,operational
- operational goal, mission and tactical
- objective, operational, mission
- tactical plan, operational, mission
5. A corporate-level strategy is concerned with the question
- where do we market our products?
- how do we compete?
- how do we support our chosen strategy?
- what businesses are we in currently?
- should we promote from within?
6. Which of the following lists the strategic management process in proper order?
- Formulate strategy; Evaluate strategy;
- Perform SWOT analysis; Define new mission/goals; Execute strategy: Control strategy Perform SWOT analysis; Evaluate current mission goals; Formulate strategy; Execute strategy; Define new mission/goals
- Evaluate current mission/goals; Define new mission/goals; Formulate strategy; Execute strategy; Performa SWOT analysis
- Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy
- Define mission goals: Execute strategy; Formulate strategy; Evaluate new mission goals; Perform SWOT analysis