Principles of Management C483 - Quiz Questions and Correct Verified Answe
What are the six components in the strategic management process? - (ANSWER)The strategic
management process has six major components:
1. Establishment of mission, vision, and goals.
2. Analysis of external opportunities and threats.
3. Analysis of internal strengths and weaknesses.
4. SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulation.
5. Strategy implementation.
6. Strategic control.
Explain the term mission. - (ANSWER)An organization's basic purpose and scope of operations. A clear
and concise expression of the basic purpose of the organization.
Strategic vision - (ANSWER)The long-term direction and strategic intent of a company. It provides a
perspective on where the organization is headed and what it can become.
Stakeholders - (ANSWER)Groups and individuals who affect and are affected by the achievement of the
organization's mission, goals, and strategies.
Resources - (ANSWER)Inputs to a system that can enhance performance.
Benchmarking - (ANSWER)The process of assessing how well one company's basic functions and skills
compare with those of another company or set of companies.
SWOT Analysis - (ANSWER)A comparison of strengths, weaknesses, opportunities, and threats that helps
executives formulate strategy.
Corporate strategy - (ANSWER)The set of businesses, markets, or industries in which the organization
competes and the distribution of resources among those businesses.
, Principles of Management C483 - Quiz Questions and Correct Verified Answe
Concentration strategy - (ANSWER)Focuses on a single business competing in a single industry.
Vertical intergration - (ANSWER)The acquisition or development of new businesses that produce parts
or components of the organization's product. Involves expanding the domain of the organization into
supply channels or to distributors.
Concentric diversification - (ANSWER)A strategy used to add new businesses that produce related
products or are involved in related markets and activities. Involves moving into new businesses that are
related to the company's original core business.
Conglomerate diversification - (ANSWER)A strategy used to add new businesses that produce unrelated
products or are involved in unrelated markets and activities. A corporate strategy that involves
expansion into unrelated businesses.
Business Strategy - (ANSWER)The major actions by which an organization builds and strengthens its
competitive position in the marketplace. The major actions by which a business competes in a particular
industry or market.
Functional strategy - (ANSWER)Strategies implemented by each functional area of the organization to
support the organization's business strategy.
Strategy Implementation Steps - (ANSWER)Step 1: Define strategic tasks. Articulate in simple language
what a particular business must do to create or sustain a competitive advantage. Define strategic tasks
to help employees understand how they contribute to the organization, including redefining
relationships among the parts of the organization.
Step 2: Assess organization capabilities. Evaluate the organization's ability to implement the strategic
tasks. A task force typically interviews employees and managers to identify specific issues that help or
hinder effective implementation. Then the results are summarized for top management. In the course of
your career, you will likely be asked to participate in a task force.
Step 3: Develop an implementation agenda. Management decides how it will change its own activities
and procedures; how critical inter-dependencies will be managed; what skills and individuals are needed
What are the six components in the strategic management process? - (ANSWER)The strategic
management process has six major components:
1. Establishment of mission, vision, and goals.
2. Analysis of external opportunities and threats.
3. Analysis of internal strengths and weaknesses.
4. SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulation.
5. Strategy implementation.
6. Strategic control.
Explain the term mission. - (ANSWER)An organization's basic purpose and scope of operations. A clear
and concise expression of the basic purpose of the organization.
Strategic vision - (ANSWER)The long-term direction and strategic intent of a company. It provides a
perspective on where the organization is headed and what it can become.
Stakeholders - (ANSWER)Groups and individuals who affect and are affected by the achievement of the
organization's mission, goals, and strategies.
Resources - (ANSWER)Inputs to a system that can enhance performance.
Benchmarking - (ANSWER)The process of assessing how well one company's basic functions and skills
compare with those of another company or set of companies.
SWOT Analysis - (ANSWER)A comparison of strengths, weaknesses, opportunities, and threats that helps
executives formulate strategy.
Corporate strategy - (ANSWER)The set of businesses, markets, or industries in which the organization
competes and the distribution of resources among those businesses.
, Principles of Management C483 - Quiz Questions and Correct Verified Answe
Concentration strategy - (ANSWER)Focuses on a single business competing in a single industry.
Vertical intergration - (ANSWER)The acquisition or development of new businesses that produce parts
or components of the organization's product. Involves expanding the domain of the organization into
supply channels or to distributors.
Concentric diversification - (ANSWER)A strategy used to add new businesses that produce related
products or are involved in related markets and activities. Involves moving into new businesses that are
related to the company's original core business.
Conglomerate diversification - (ANSWER)A strategy used to add new businesses that produce unrelated
products or are involved in unrelated markets and activities. A corporate strategy that involves
expansion into unrelated businesses.
Business Strategy - (ANSWER)The major actions by which an organization builds and strengthens its
competitive position in the marketplace. The major actions by which a business competes in a particular
industry or market.
Functional strategy - (ANSWER)Strategies implemented by each functional area of the organization to
support the organization's business strategy.
Strategy Implementation Steps - (ANSWER)Step 1: Define strategic tasks. Articulate in simple language
what a particular business must do to create or sustain a competitive advantage. Define strategic tasks
to help employees understand how they contribute to the organization, including redefining
relationships among the parts of the organization.
Step 2: Assess organization capabilities. Evaluate the organization's ability to implement the strategic
tasks. A task force typically interviews employees and managers to identify specific issues that help or
hinder effective implementation. Then the results are summarized for top management. In the course of
your career, you will likely be asked to participate in a task force.
Step 3: Develop an implementation agenda. Management decides how it will change its own activities
and procedures; how critical inter-dependencies will be managed; what skills and individuals are needed
