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Q3. What should be the key Traits of a CEO? What are the forces that design the Strategic Management
Systems?
It is said that no two persons are alike this is also true with regards to their
personality and how they run their corporations/organizations. However below
are some of the traits a CEO should possess to effectively run his/her
organization.
4. Emphasizes ethics
7. Reassigns or Terminates
8. Rewards loyalty
Organizations -- based on their size are either gearing towards formality and
more details which speaks for large organizations while for small companies,
they tend towards less details and are not too formal.
Management styles -- how the top management conducts its business and style
of doing its business affects the design towards strategic management. Policy
making is part of the management style that most large and small scale
organizations use in part of designing their strategic management system.
Complexity of Environment -- is the organization in a stable environment? Are
there any competitions to the company's success? Is there a market for the type
of service offered? some of these questions shape how systems are develop for
the organization as strategy will be determined by the answers of the said
questions.
Capital intensive
Labor intensive
Manufacturing Process
Technology
Q 4 Discuss the various grand strategies at the Corporate Level i.e. Stability,
Growth and Retrenchment.
The various Grand Strategies are : these are master or lon-term plans.
1. Stability Strategy
2. Growth Strategy
3. Retrenchment Strategy
4. Combination Strategy
1. Stability Strategy: When a firm attempts to maintain its status-quo with its
existing level of efforts and is satisfied with incremental growth. It will try to
focus on existing business and try to gain competitive advantage by investing in
research and development continue to focus on the return on its investment.
1.Horizontal Growth - Firm make look for new customers or pursue a new
product
- Cost reductions
- liquidation of business
Case study
Q1
1.Strength
Diversification
Innovative
Strong mission and vision
2. Weaknesses
Rural markets not very aware of such brands as they go with trusted ones
Lack of customer trust due to chinese company and after sales service
3. Opportunities
4. Threats
Many top higher priced brands are also entering the same segment with
different pricing and product offerings
1 Which approach to the study of leadership emphasizes the role of situational factors and
how these moderate the relationship between leader traits or leadership behaviors and
leadership effectiveness?B Contingency approach
2 Porter has designed a framework to help understand why certain countries achieve global
competitive advantage in certain industries. It also helps internationalizing firms to make
location decisions. The framework is called: B Porter's Five Forces
3 It is generally agreed that the role of strategy is to: D Achieve competitive
advantage
4 Kay (1993) sees the strategy of an organization as matching internal capabilities with: A ts
external relationships
5 An organization's external environment consists of the general or macro environment
and: B The competitive environment
6 The term 'corporate strategy' concerns strategy and strategic decisions D At all levels
in an organization.
7 A key characteristic of strategic decisions is: D They are likely to be concerned
with, or affect, the long-term direction of an organization
8 It is possible to identify different levels of strategy in an organization, these are: D
Corporate; strategic business unit; operational.
9 An organisation's mission can be defined as: A The overriding purpose in line
with the values or expectations of stakeholders.
10 Strategic choices require an understanding of: D The underlying bases for
future strategy at business unit and corporate levels; the options for
developing strategy in terms of directions and methods of development.
11 In Porter's Five Forces, the 'threat of new entrants' relates to: D Barriers to entry
12 Brandenburg and Nalebuff added a sixth force to Porter's Five Forces. It is known as: B
Complementors
13 Barriers to entry into an industry are likely to be high if: D Requirement for
economies of scale is high
14 Buyer power is high if: C Differentiation is low
15 Competitive rivalry will be high if: A There are a few strong players in the
industry
16 A strategic group can be defined as: D A group of firms in an industry
following the same or a similar strategy
17 The key activities in the strategic management process are: D Analysis,
formulation, implementation
18 Strategy analysis is also referred to as: C Situation analysis
19 Strategy formulation takes place at two levels. These are: D Corporate and business
20 The Policies of an organization derive from its: C ObjectiveS
21 The statement of an organization's aspirations can be found in the organization's: D
Vision
22 A substitute product or service is: D An alternative way of meeting the same
need
23 Cross-functional teams are: D A small group of people from different
departments who are mutually accountable to a common set of
performance goals
24 The business unit strategy has three major components: D mission, business unit
goals, and competencies
25 Disney is in the business of: D Creating entertainment, fun and fantasy.
26 A useful framework used to assess a company's investments/divisions is called: D
business portfolio analysis
27 Cash cows are SBU's that typically generate: D large amounts of cash
28 Business unit competencies should be distinctive enough to provide D competitive
advantage
29 TQM is a strategy that is designed to change the quality of a product to satisfy customer
needs by using the concept of D benchmarking
30 Firms may view growth opportunities in these terms: D Current and new markets,
and current and new products
31 The strategic marketing process is how an organization allocates its marketing mix
resources to reach its: A target markets
32 An effective short-hand summary of the situation analysis is a: A SWOT analysis
33 In the strategic marketing process, once you get results you go into the: A control
phase
34 Ansoff had four market-product strategies to expand sales. They included market
penetration, (2) product development, (3) market development and:
A diversification
35 Aggregating prospective buyers into groups is called: A market segmentation
36 One key to effective implementation is setting: D goals
37 When actual performance results are better than what the plan called for, managers
should: A Find creative ways to exploit the situation.
38 Value for shareholders of a firm is measured by: A stock performance and
profitability
39 The _____ for PepsiCo is "We believe our commercial success depends upon offering
quality and value to our consumers and customers; providing products that are safe,
wholesome, economically efficient and environmentally sound; and providing a fair return
to our investors while adhering to the highest standards of quality." A mission
40 A firm can acknowledge the critical importance of its _____, by having explicit goals that
state its intention to improve work conditions by adding more lighting and providing the
workers with more and better safety equipment. A employee welfare