Description

Chapter: 4 -Problem: 1 >> Why is environmental uncertainty an important concept in strategic management?
Answer Preview: A key part of strategic management, environmental anal…

, Chapter: 3 -Problem: 2 >> Using Carroll’s list of four responsibilities, should a company be concerned about discretionary responsibilities? Why or why not?
Answer Preview: Except for a few die-hard followers of Milton Friedmans philosophy, few people would agree that a bu…

, Chapter: 12 -Problem: 1 >> Why bother with shareholder value or a stakeholder scorecard? Isn’t it simpler to evaluate a corporation and its SBUs just by using standard measures such as ROI or earnings per share?
Answer Preview: The answer to the second question is a simple yes. The standard measures, such as sales, profits, earnings per share, return on investment, and so on, …

, Chapter: 3 -Problem: 1 >> How has moral relativism led to criminal activities by some employees in companies?
Answer Preview: Moral relativism suggests that morality is relative to some …

, Chapter: 4 -Problem: 2 >> What can a corporation do to ensure that information about strategic environmental factors gets the attention of strategy makers?
Answer Preview: This is a very real problem in most large corporations given the usual obstacles to good communicati…

, Chapter: 3 -Problem: 2 >> How does a company ensure that its code of ethics is integrated into the daily decision-making process of the company and is not just a symbolic trophy or plaque hanging on the wall?
Answer Preview: When management of a company wants to improve the e…

, Chapter: 5 -Problem: 1 >> How does the resource-based view of the firm provide a superior means of evaluating a company’s competitive advantage?
Answer Preview: A resource-based approach to organizational analysis hig…

, Chapter: 8 -Problem: 2 >> How are corporate scenarios used in the development of an effective strategy?
Answer Preview: Corporate scenarios are pro forma balance sheets and income statement…

, Chapter: 7 -Problem: 3 >> What is the value of portfolio analysis? Its dangers?
Answer Preview: Portfolio analysis is a popular approach to aid the integration and …

, Chapter: 5 -Problem: 1 >> What kind of internal factors help managers determine whether a firm should emphasize the production and sales of a large number of low-priced products or a small number of high-priced products?
Answer Preview: The number of factors that can be discussed in answering this question is enormous. A few of the mos…

, Chapter: 1 -Problem: 3 >> Why has strategic management become so important in business?
Answer Preview: Research indicates that organizations that engage in strategic managem…

, Chapter: 7 -Problem: 2 >> Must a corporation have a common thread running through its many activities in order to be successful? Why or why not?
Answer Preview: The concept of a corporate mission implies that throughout a corporations many activities, there should be a common thread or unifying theme, and that …

, Chapter: 12 -Problem: 2 >> Is benchmarking just another fad or is it really useful for all firms? Why?
Answer Preview: Benchmarking involves learning how other successful companies do something and imitating or perhaps …

, Chapter: 7 -Problem: 1 >> List the means available to a company for horizontal growth and explain why a company might pursue one over another.
Answer Preview: A firm can achieve horizontal growth by expanding its operations into other geographic loca…

, Chapter: 6 -Problem: 2 >> Explain how our understanding of the three generic strategic approaches available to companies can be used to direct the efforts of all employees at those companies.
Answer Preview: The three generic strategies include cost leadership, differentiati…

, Chapter: 10 -Problem: 1 >> Does structure follow strategy or does strategy follow structure? Why?
Answer Preview: Although Chandler and others have made convincing arguments that a change in strategy tends to be fo…

, Chapter: 13 -Problem: 1 >> What ratios would you use to begin your analysis of a case?
Answer Preview: In order to analyze a case, we must e…

, Chapter: 4 -Problem: 5 >> Is Pepsi Cola a substitute for Coca Cola?
Answer Preview: This is a good question to check how well students understand the basic concepts of industry analysi…

, Chapter: 7 -Problem: 2 >> Evaluate the types of retrenchment strategies that might be used by companies in stagnant industries.
Answer Preview: Retrenchment refers to reducing the companys level of activities. A turnaround …

, Chapter: 12 -Problem: 2 >> What are the best methods for evaluating the performance of the top management team?
Answer Preview: Through its strategy, audit, and compensation committees, a …

, Chapter: 6 -Problem: 1 >> How can a company overcome the limitations of being in a fragmented industry?
Answer Preview: As pointed out in the text, a fragmented industry is an industry with many small- and medium-sized c…

, Chapter: 8 -Problem: 1 >> How can an operations strategy be used to understand and exploit a particular product offering?
Answer Preview: The operations strategy determines how and where a product or servi…

, Chapter: 2 -Problem: 2 >> Is there a conflict between agency theory and the concept of organizational stakeholders?
Answer Preview: Agency theory is concerned with problems that occur in relationships between principals (owners) and …

, Chapter: 11 -Problem: 2 >> What are the unique impacts on a company that must employ staff in international settings?
Answer Preview: Implementing a strategy of international expansion takes a great deal of planning …

, Chapter: 6 -Problem: 5 >> How can a company achieve a sustainable competitive advantage when its industry becomes hypercompetitive?
Answer Preview: According to DAveni, companies in a hypercompetitive industry learn to quickly imi…

, Chapter: 6 -Problem: 1 >> How does a hypercompetitive environment change the strategic approach for a company?
Answer Preview: Hypercompetitive environments require companies to continue improving their competit…

, Chapter: 9 -Problem: 5 >> How does the issue of Transfer Pricing impact the results of an MNC?
Answer Preview: A study of 79 MNCs revealed that international transfe…

, Chapter: 1 -Problem: 1 >> How do the three elements of globalization, innovation, and sustainability impact your understanding of strategy?
Answer Preview: Globalization is the integrated internationalization of markets …

, Chapter: 2 -Problem: 6 >> What would the impact be if the CEO was also the Board Chair?
Answer Preview: Members of a board of directors who are outsiders tend to be more objective …

, Chapter: 4 -Problem: 4 >> How would you determine the level of competitive intensity in an industry?
Answer Preview: By this time, students should be able to list the five forces presented by Michael Porter plus the sixth force (other stakeholders) proposed by Ed Freeman. They are briefly: Threat of new entrants Riv…

, Chapter: 12 -Problem: 3 >> Why are goal displacement and short-run orientation likely side effects of the monitoring of performance? What can a corporation do to avoid them?
Answer Preview: Goal displacement and short-run orientation are likely side effects of evaluation and control becaus…

, Chapter: 12 -Problem: 1 >> Explain why ROI might not be the best measure of firm performance?
Answer Preview: The most commonly used measure of corporate perf…

, Chapter: 11 -Problem: 5 >> How can MBO help improve the implementation of strategy?
Answer Preview: MBO is a powerful implementation technique because it is a system tha…

, Chapter: 11 -Problem: 1 >> How might manager–strategy fit be accomplished short of firing current managers?
Answer Preview: If the current manager of an SBU is capable, but does not appear to have the skills …

, Chapter: 5 -Problem: 2 >> Why should information systems be included in the analysis of a corporation’s strengths and weaknesses?
Answer Preview: Although not always considered a major part of the traditional, functionally organized business corp…

, Chapter: 8 -Problem: 1 >> What are the pros and cons of technological leader versus technological follower as a functional strategy?
Answer Preview: The technological leader strategy is a functional strategy necessary for a company …

, Chapter: 4 -Problem: 1 >> How does STEEP analysis aid in the development of the strategy of a company?
Answer Preview: STEEP analysis is designed to monitor trends in the societ…

, Chapter: 10 -Problem: 2 >> What issues would you consider to be the most important for a company that is considering the use of a functional structure?
Answer Preview: One of the most important issues when utilizing a functional …

, Chapter: 12 -Problem: 6 >> What issues affect your faith in a transfer price as a substitute for a market price in measuring a profit center’s performance?
Answer Preview: The use of a transfer price allows a corporation to convert a cost or expense center into a profit …

, Chapter: 4 -Problem: 2 >> The effects of climate change on companies can be grouped into six categories of risk. Use any two of these to explain the impact upon the resort hotel industry.
Answer Preview: The six types of risk are regulatory risk, supply chain risk, p…

, Chapter: 9 -Problem: 2 >> What are the advantages of using a Strategic alliance when operating in a new country?
Answer Preview: Strategic alliances, such as joint ventures and lice…

, Chapter: 11 -Problem: 2 >> Does culture follow strategy or does strategy follow culture? Why?
Answer Preview: The regarding the relationship between structure and strategy. The answer is much the same. To the e…

, Chapter: 1 -Problem: 8 >> What are the potential employment opportunities available to graduates with a solid understanding of strategy design and implementation?
Answer Preview: Graduates with a solid understanding of strategy design and implementati…

, Chapter: 11 -Problem: 1 >> What are the critical issues that a company must consider when trying to match its staffing to its strategy?
Answer Preview: Strategy is implemented effectively when staffing is rea…

, Chapter: 1 -Problem: 2 >> Organizational strategy can be divided roughly into two categories: a) formulation and b) implementation. Although there is legitimate crossover between the two, how would you characterize the issues involved in each effort?
Answer Preview: There are four basic phases of strategic management. Phase 1 is …

, Chapter: 8 -Problem: 3 >> Should functional strategies be categorized under strategy formulation or under strategy implementation?
Answer Preview: At the top management level of a corporation, both divisional (business-level…

, Chapter: 11 -Problem: 3 >> Compare and contrast action planning with management by objectives.
Answer Preview: An action plan states what actions are going to be taken, by whom, during what time frame, and with …

, Chapter: 1 -Problem: 1 >> Describe the triple bottom line.
Answer Preview: The term used to describe a business sustainability is the triple bot…

, Chapter: 9 -Problem: 1 >> What are the nine means by which a company can enter a new international market?
Answer Preview: A corporation can select from several strategic options regarding the most appropria…

, Chapter: 3 -Problem: 1 >> How appropriate is the theory of laissez-faire in today’s world?
Answer Preview: As indicated in the chapter, Milton Friedman contends that it is very appropriate. The quote from hi…

Additional Information

12 Reviews for Strategic Management And Business Policy Globalization Innovation And Sustainability Textbook Questions And Answers