COB 487 TEST 1 REVIEW QUESTIONS
Define Industry - Answer -group of producers of close substitutes
Define Strategic Planning - Answer -attempt to systematically examine the internal
abilities of an organization and its external environment.
Define SWOT - Answer -Strengths, Weaknesses, Opportunities & Threats
Regarding strategic planning, what does the question, "what do you want to
accomplish?" relate to? - Answer -missions & goals
Regarding strategic planning, what does the question, "what's going on?" relate to? -
Answer -external analysis
Regarding strategic planning, what does the question, "what do you have?" relate to? -
Answer -internal analysis
Regarding strategic planning, what does the question, "what are you going to do?"
relate to? - Answer -the plan; business level strategies
Missions and goals have to be what? - Answer -specific and measurable
External Analysis relates to what part of SWOT? - Answer -OT (Opportunities &
Threats)
External analysis relates to what model? - Answer -I/O (Industry Organization) Model
Internal analysis relates to what part of SWOT? - Answer -SW (Strengths &
Weaknesses)
Internal analysis relates to what model? - Answer -Resource Based Model
What does the acronym VRIO stand for? - Answer -Valuable, Rare, Inimitable, &
Organized
What can be considered a resource/capability for a firm? - Answer -Almost anything!
What are the three types of business level strategies (BLS)? - Answer -low cost
differentiation
focus
__________ decision making is viewed as the preferred way to distinguish between
alternatives? Why does it not always work? - Answer -Rational; People are NOT
rational
, What causes people to not be rational? - Answer -1. Prior Hypothesis
2. Escalation of Commitment
3. Analogy (simple past parallels used to make sense of complex problems)
4. Representativeness (Stereotyping)
5. Illusion of Control
List the layers to organizations - Answer -- Functional Strategy
- Business Level Strategy
- Corporate Strategy
- Global Strategy
define functional strategy - Answer -actions of a single aspect of a firm (e.g. marketing
campaign or production schedule)
define business level strategy - Answer -actions of a firm in a single industry
define corporate strategy - Answer -the scope of a firm, what industries and markets
should it be in involved in.
what are two types of corporate strategies, define them. - Answer -- Diversification:
what % of sales comes from what industry?
- Vertical Integration: does the firm own some of its customers or suppliers?
define global strategy - Answer -the ideas and plans for operations in foreign markets
what are the two methods of decision making? - Answer -1. Devil's Advocate
2. Didactic Process
define didactic process - Answer -assigning two teams to a problem, their results may
be the same but their process' are different and can expose aspects otherwise
unnoticed.
what is the pro and con of having diverse groups? - Answer -Pro: better decisions arise
than from homogeneous groups
Con: takes longer to arrive at decisions
Laws are __________________ - Answer -Societies rules
what are the fundamental rules of morality? - Answer -1. promise keeping
2. non-malevolence
3. mutual aid
4. respect for persons
5. respect for property
Define Industry - Answer -group of producers of close substitutes
Define Strategic Planning - Answer -attempt to systematically examine the internal
abilities of an organization and its external environment.
Define SWOT - Answer -Strengths, Weaknesses, Opportunities & Threats
Regarding strategic planning, what does the question, "what do you want to
accomplish?" relate to? - Answer -missions & goals
Regarding strategic planning, what does the question, "what's going on?" relate to? -
Answer -external analysis
Regarding strategic planning, what does the question, "what do you have?" relate to? -
Answer -internal analysis
Regarding strategic planning, what does the question, "what are you going to do?"
relate to? - Answer -the plan; business level strategies
Missions and goals have to be what? - Answer -specific and measurable
External Analysis relates to what part of SWOT? - Answer -OT (Opportunities &
Threats)
External analysis relates to what model? - Answer -I/O (Industry Organization) Model
Internal analysis relates to what part of SWOT? - Answer -SW (Strengths &
Weaknesses)
Internal analysis relates to what model? - Answer -Resource Based Model
What does the acronym VRIO stand for? - Answer -Valuable, Rare, Inimitable, &
Organized
What can be considered a resource/capability for a firm? - Answer -Almost anything!
What are the three types of business level strategies (BLS)? - Answer -low cost
differentiation
focus
__________ decision making is viewed as the preferred way to distinguish between
alternatives? Why does it not always work? - Answer -Rational; People are NOT
rational
, What causes people to not be rational? - Answer -1. Prior Hypothesis
2. Escalation of Commitment
3. Analogy (simple past parallels used to make sense of complex problems)
4. Representativeness (Stereotyping)
5. Illusion of Control
List the layers to organizations - Answer -- Functional Strategy
- Business Level Strategy
- Corporate Strategy
- Global Strategy
define functional strategy - Answer -actions of a single aspect of a firm (e.g. marketing
campaign or production schedule)
define business level strategy - Answer -actions of a firm in a single industry
define corporate strategy - Answer -the scope of a firm, what industries and markets
should it be in involved in.
what are two types of corporate strategies, define them. - Answer -- Diversification:
what % of sales comes from what industry?
- Vertical Integration: does the firm own some of its customers or suppliers?
define global strategy - Answer -the ideas and plans for operations in foreign markets
what are the two methods of decision making? - Answer -1. Devil's Advocate
2. Didactic Process
define didactic process - Answer -assigning two teams to a problem, their results may
be the same but their process' are different and can expose aspects otherwise
unnoticed.
what is the pro and con of having diverse groups? - Answer -Pro: better decisions arise
than from homogeneous groups
Con: takes longer to arrive at decisions
Laws are __________________ - Answer -Societies rules
what are the fundamental rules of morality? - Answer -1. promise keeping
2. non-malevolence
3. mutual aid
4. respect for persons
5. respect for property
