To Be Used and Handed Back to the Organizer
2005
AUTOMATED GROUP LEARNING
(AGL)
NO. 100 - BUSINESS STRATEGY - 1999
GUIDE
To be used and handed back to the Organizer
Copyright:
AVM/RGAB 2005
No copies of without written permission.
QUIZ
Choose if possible the "most correct" answer and mark the answer sheet a, b, c, d with an "X". PLEASE DO NOT MARK THE QUIZ.
Unit 1
1.In developing corporate strategy, a view leads to a "vision" of:
a.what the future will be
b.profitable markets
c.management's real objectives
d.positioning for the future
2.The beliefs, feelings, knowledge and impressions that the MARKET has accumulated about the company, is due to:
a.positioning
b.strategic planning
c.marketing focus
d.luck
3.Overall cost leadership, differentiation, focus, defensive. are all part of:
a.vision
b.product/market strategy
c.positioning
d.competitive strategy
4.STRATEGIES that concentrate on: existing markets, new market development, new product development, innovation based on existing resources, buying direct competitors, joint ventures, vertical integration, buying synergistic businesses, are ALL:
a.product/market strategies
b.competitive strategies
c.corporate missions
d.visions of nobility
5.In practice, corporate stakeholders are mainly:
a.shareholders
b.all of these and more parties
c.banks
d.workers and management
6.The VMPA concept stands for:
a.vision, mission, people, action
b.view, mission, propositioning, action
c.vision, mission, positioning, action
d.vision, mission positioning, alternatives
7.The corporate strategy TOOL for: what the future holds; what are the anticipated regulatory, competitive, economic and geo-political environments in which the company must compete, is called a:
a.study
b.mission
c.research
d.view
8.Questions such as: Where are we going to? What may stop us?
Are we any good anyway? How to choose a strategy? How to implement the strategy to ensure success? are essentially ... questions.
a.marketing
b.strategic
c.philosophical
d.traffic
9.In 1994, top management must begin to consider the critical five year issues, because:
a.Technology alone no longer satisfies the customers; it is merely the entrance ticket to the game.
b.Every competitor has a different level of technology, and yet must distinguish itself.
c.Every customer's needs must be identified to ensure a quantity in product/service/design which gets to the every possible market as fast as possible.
d.Product life cycles are longer.
10.A strategic VISION has all of these steps EXCEPT:
a.controlling employee success
b.empowering subordinates with authority
c.credibility and responsibility
d.creating meaning through technology
11.Flexible companies do NOT need:
a.Very strong skills in environmental scanning.
b.Quick reaction to signals of change
c.Ability to grasp new opportunities
d.Strong strategic management that separates the "thinkers" from the "doers"
12.Effective VISIONS must NOT be:
a.simple, clear and yet make sense in the marketplace
b.preached once for all
c.stable, but constantly challenged
d.the result of a long process of reshaping and clarification
13.A "noble purpose" VISION does NOT appeal to people's desire to be:
a.aristocratic
b.useful
c.proud of what they do
d.excellent
14.VISIONS give effective leadership a shared sense of direction provided the vision does all of the following, EXCEPT:
a.has a noble purpose
b.ensures a sense of urgency to act differently
c.draws clear boundaries to change things
d.not involve everybody in the company.
15.Only when we ask "what business are we in?" can we figure out
a.All of these
b.The competitors we must confront
c.The resources we need to master in order to ensure excellence
d.The customer "wants" we could serve
cadab cdbaa dbada
Unit 2
16.Identifying competitive ARENAS and sources of competitive ADVANTAGE, leads to development of corporate:
a.health
b.mission
c.positioning
d.vision
17.POSITIONING enables development of:
a.vision
b.mission
c.competitive strategy
d.emotional satisfaction
18.A statement of: what role will achieve vision, what needs does it wish to satisfy, in what markets, with what products/services, against which competitors, and how to measure its success, is a corporate:
a.vision statement
b.mission statement
c.product/market strategy
d.competitive strategy
19.Which of the following is NOT part of competitive strategy?
a.achieving sustainable competitive advantage.
b.overall cost leadership.
c.product/market strategy
d.segmentation
20.Consumer analysis involves all of the following EXCEPT:
a.segmentation
b.customer motivation
c.unmet customer needs
d.advertising effectiveness
21.Dividing a market up on the basis of similar characteristics so that investment can be made where it will be most effective in establishing a competitive advantage, is:
a.positioning
b.segmentation
c.competitive strategy
d.corporate mission
22.A profound understanding of customers needs, usually comes from:
a.market analysis
b.market segmentation
c.divorce
d.marketing mix
23.Visions that awake extraordinary performance have three things in common:
a.profitability, urgency, ethics
b.noble purpose, urgency, clear boundaries.
c.noble purpose, environmental concern, urgency
d.some female intuition
24.A SWOT analysis stands for:
a.strengths, weaknesses, opportunities, threats
b.sex, weaknesses, objectives, dangers
c.strengths, weaknesses, objectives, destiny
d.sources, weaknesses, objectives, dangers
25.To understand competitor strategy. strengths and weaknesses, do all the following, EXCEPT:
a.Identify opportunities and threats that require response.
b.identify strategic questions that need to be monitored over time.
c.Forecast accurately the key competitor reactions
d.Gain inside information on competitor future strategies.
26.Competitive ADVANTAGE that is SUSTAINABLE does NOT depend upon:
a.The way we compete - product strategy, positioning, pricing and manufacturing.
b.Who we compete against - selection of competitors
c.Where we compete - selection of markets that value the strategy
d.Mainly price competition
27."The CORPORATE MISSION satisfies a customer need by supplying a mix of goods and services, in an industry with known competitors". This statement is:
a.True
b.Usually not true
c.Theoretical
d.Only applicable to developed countries
28.REPUTATION includes are all of the following, EXCEPT:
a.quality of management, products and services
b.innovativeness
c.short term investment value
d.ability to attract and develop the right people
29.SUSTAINABLE COMPETITIVE ADVANTAGE, depends upon all of the following, EXCEPT:
a.mainly the price basis of competition
b.the way we compete - strategy for products, positioning, pricing and manufacturing.
c.where we compete - selection of markets that value the strategy
d.who we compete against - selection of competitors
30.Corporate OBJECTIVES may vary but usually include:
a.cultural values
b.ethical values
c.environmental concern
d.profitability, growth and market share (survival)
bcbbd babad dacad
Unit 3
31.A COMPETITIVE STRATEGY involving: special product lines that target a special market segment or limited specific geographical area. etc is known as strategic:
a.positioning
b.focus
c.competitiveness
d.planning
32.A COMPETITIVE STRATEGY involving: experience curve payoffs, nofrills products, product special design, rawmaterial sourcing, lowcost distribution, lowering labor costs, government subsidies, location changes, production innovations, buying competitors, automation, reducing overheads etc. is usually:
a.profitable
b.unprofitable
c.a low cost strategic thrust
d.racist
33.The most critical part of COMPETITIVE ANALYSIS is usually:
a.vision
b.mission
c.competitive arena selection
d.positioning
34.The PRODUCT LIFE CYCLE has all of the following phases, EXCEPT:
a.introduction
b.strategic renewal
c.saturation and decline
d.growth and maturity
35.SEGMENTATION is necessary in each of these cases, EXCEPT:
a.groups of customers are looking for different things in a product or service
b.there are sufficient numbers of these customers
c.these customers cannot be identified or reached
d.the customer group is likely to be profitable
36.SEGMENTATION in industrial markets includes all of the following, EXCEPT:
a.dividing the market by geography, size, industry, application etc.
b.allowing a company to exploit its resources better by selecting compatible customers.
c.allowing more sharply focused strategies.
d.developing customer loyalty against many firms offerings that are geared to that market.
37.SEGMENTATION in consumer markets, includes all of the following, EXCEPT:
a.something else
b.demographic - Age, sex, family size, family life cycle, income, occupation, education, religion, nationality
c.psychographic - Social class, personality, interests, attitudes, values, lifestyles, opinions, orientations
d.geographic - Region, country, city, area
38.With unprecedented global competition, COMPETITIVE ADVANTAGE must:
a.focus mainly on new customers
b.be worked on all the time
c.avoid opportunities from gaps between buyer expectations and supplier performance
d.identify markets segments where the competitors are best able to create superior value.
39.POSITIONING is ALL EXCEPT:
a.a strategic issue the first element of any marketing strategy aimed at a target market.
b.a poor guide to the development and execution of the total marketing strategy
c.based upon a "vision" of what the company wants to be and how it wants to be perceived by its stake holders
d.a statement about how the company/brand WANTS to be "seen" on the market place
40.POSITIONING is all of the following EXCEPT:
a.what is in the minds of customers
b.the net result of the interaction of all the experiences, beliefs, feelings, knowledge and impressions that the market has accumulated about that company.
c."owned" by the company in the market place
d.based on purely objective criteria
41.Your POSITION in the minds of your customers is NOT strong if they:
a.Understand what makes your product or service special
b.Feel strongly about your brand that but will not defend it at a higher price when it comes under attack
c.Value your brand so much that they are willing to pay more for whatever makes it special
d.Understand your product or service well enough to describe it clearly
42.COMPETITIVE STRATEGY achieves a SUSTAINABLE COMPETITIVE ADVANTAGE in its chosen product markets, with a variety of strategic thrusts, including:
a.focus
b.all of these
c.product differentiation
d.overall cost leadership
43.FOCUS in competitive strategy, relates to all of the following except:
a.cost leadership and/or differentiation of products/services in a broad market.
b.target to a special market segment
c.limit to a specific geographical area
d.special product line
44.The product life cycle has five phases: introduction, growth, maturity, saturation and decline. Which phase has these characteristics:
MarketBuyers decreased or static market share, profitability down, competition discounts, more advertising, introduction substitutes
a.introduction
b.saturation
c.decline
d.disaster
45.PRODUCT DIFFERENTIATION goes with:
acomplexity
b.services
c.positioning and segmentation
d.price
bccbc dabbd bbabc
Unit 4
46.STRATEGIC CONCENTRATION on existing markets, new market development, new product development, innovation based on existing resources, buying direct competitors, joint ventures, vertical integration, buying synergistic businesses etc. are all part of:
a.competitive strategy
b.corporate mission
c.positioning
d.product/market strategy
47.PRODUCT/MARKET STRATEGY with concentration on current business with single market/technology activity, usually results in:
a.moderate risk; slow growth; narrow range of investment options; normal profit.
b.low risk; slow growth; high profit.
c.low risk; slow growth; low profit.
d.high risk for R&D and pre-marketing cost; very high initial profits; difficult to achieve long-term success.
48.Product/market strategy to buy competitors in the same stage of the production/marketing chain, eliminate competitors, get higher market share, improve economics of scale, is an example of product/market strategy for:
a.conglomerate diversification
b.vertical integration
c.horizontal integration
d.immoral purposes
49.Buying suppliers or customers, with increased dependability of supply and production volumes; financial risk from restriction to one industry, is an example of product/market strategy for:
a.horizontal integration
b.vertical integration
c.concentric diversification
d.retrenchment turn around
50.Buying companies with similar products/markets or different product/markets, in order to achieve some other form of SYNERGY and competitive advantage, which provides new technology, markets, products and resources; high, growth profitability and risk, is an example of product/market strategy for:
a.horizontal integration
b.concentric diversification
c.vertical integration
d.retrenchment turn around.
51.Concentrated effort in a crisis period of company decline (evidenced by cash shortage), to gain time and retain and strengthen basic market competencies, with top management changes; cost reduction; asset reduction; product/market synergies less significant that immediate survival of the organization,is an example of product/market strategy for:
a.horizontal integration
b.vertical integration
c.retrenchment turn around
d.concentric diversification
52.Strategic marketing has all of these interacting components, EXCEPT:
a.corporate mission
b.product/market strategy
c.marketing mix - PPPP
d.competitive strategy.
53.Overall cost leadership may arise from:
a.All of the these
b.Product special design
c.Rawmaterial sourcing
d.Lower costs than rivals
54.COMMUNALITY in operations for: distribution, image and market impact, sales and advertising effort, plant usage, R&D effort, operating costs, raw material purchasing, up stream purchasing, is an example of a competitive strategic thrust that is:
a.competitive scope
b.overall cost leadership
c.synergistic
d.seductive
55.STRATEGIC SUPPLY SYSTEMS that secure access to raw materials, get priority for production equipment, dominate supply logistics. is an example of a competitive strategic thrust that is:
a.synergistic
b.overall cost leadership
c.competitive scope
d.pre-emptive
56.To compete with products/services in markets, use all of the following, EXCEPT:
a.Concentrating on existing markets/products
b.Innovation based on existing resources
c.Buying indirect competitors
d.New market/product development
57.To achieve MARKET DEVELOPMENT by selling present products in new markets, the usual options include all, EXCEPT:
a.New product development for present markets.
b.Attract other market segments, by developing new appealing product versions, and using other distribution channels and promoting though other media.
c.Open additional geographical markets, by regional, national and international expansion.
d.Massive advertising campaigns for the new markets
58.STRATEGIC Implementation is all of the following, EXCEPT:
a.A highly social activity, since we have to work though people.
b.A highly emotional activity
c.Changing people's behavior and value systems.
d.A strictly objective professional work
59.Common causes for STRATEGIC IMPLEMENTATION PROBLEMS are all of the following, EXCEPT:
a.Training and instructions for lower management levels not adequate.
b.Major unforseen problems arose
c.Coordination of implementation not efficient enough
d.Took shorter time than anticipated
60.Product/market strategies from JOINT VENTURES usually result in:
a.low risk; slow growth; normal profit.
b.high risk for R&D and pre-marketing cost; very high initial profits; difficult to achieve long-term success.
c.taking a chance or going under
d.moderate risk; faster growth, improved profit.
dbcbb cdacd caddb
QUIZ ANSWER SHEET
1C26D51C
2A27A 52C
3D28C53A
4A29A54C
5B30D55D
6C31B56C
7D32C57A
8B33C58D
9A34B59D
10A35C60D
11D36D
12B37A
13A38B
14D39D
15A40D
16B41B
17C42B
18B43A
19C44B
20D45C
21B46D
22A47A
23B48C
24A49B
25D50B
Note:
... one of these answers may be wrong ...
... you can decide which one it is ...
... but only if you can convince your whole SG ...
GUIDE TO THE CASES
UNIT I
ASSIGNMENT 6.0 LECTURE - CIBA-GEIGY A1
6.1STORY OF THE CASE
a.CG is a large, highly centralized, global corporation presenting an interesting example of one company's innovative approach to making internal services, formerly highly controlled and bureaucratized, more market oriented.
b.Internal services were taken out of the highly controlled and bureaucratized system, and put into four categories: "still highly centralized, totally decentralized, partly independent, totally independent".
c.At one extreme, such services as Finance & Control, Legal, and R&D remained centrally organized, either because of their strategic importance to the company or simply because it made little economic sense for them to operate freely in an open market.
d.The only unit empowered to become fully independent was Communication Services, which acquired the name Allcomm. This unit was allowed to compete both for CG and third party business, and to generate its own profits. Most importantly, the company was now free to pick and choose its customers, and use market prices to charge for its services.
e.The object? Twofold: use Allcomm as a role model, and turn an overhead into a profit generating unit.
f.The 150 employees at Allcomm, who had been used to dealing almost exclusively with their captivemarket colleagues at CibaGeigy, now had to change their thinking and behavior.
g.Jurg Chresta, the newlyappointed CEO, was to manage this internal change process. He also had to make some major decisions concerning which clients to select, as well as the extent and nature of Allcomm's relationship with CibaGeigy.
g.The challenge in the case is to develop a new strategy for Allcomm using the VPMA concept.
6.2WHY DID CG TOP MANAGEMENT WANT TO CHANGE?
a.CG's top management saw that the only way to make the company more efficient and competitive under increasingly tight global market conditions was to change its structure radically.
b.The objective was to engender a competitive, marketdriven atmosphere throughout the company.
6.3WHAT WAS THE TRADITIONAL CG APPROACH TO MANAGING SERVICES?
a.Prior to the reorganization, the Central Functions dictated and performed many of the internal service activities.
b.The operating divisions and regions had no choice: when it came to these 11 services, they were obliged to take whatever services and people the Central Functions sent to them. As some employees commented in retrospect, the system resembled that of a centralized economy in many ways: the service provider dictated to the user which services had to be purchased, the number and the price. The barrage of paper and form filling which existed between the providers and users created service vacuums which stymied ideas and creativity, and lowered morale.
c.The direct expenses of the services which the Central Functions provided, as well as a percentage of the overhead, were allocated to the divisions regardless of whether or not a service had been requested or used. Moreover, divisions and business units could not control costs since they did not know where the costs were coming from, nor did they know the value of the services they were receiving.
d.The essence of the structure was on control and on covering the costs which were incurred. Sometimes, these costs were allocated regardless of whether the services had been requested or used.