Chapter 2: Strategic thinking, environmental analysis, synergy and strategic positioning
Select the choice which best completes the statement, or answers the question, by clicking on the corresponding letter.
Which of the following is not a purpose of strategic thinking?
To realize what needs to change
To establish the agenda for managing strategic change
To clarify future direction
To allocate scarce resources
To manage scarce resources
Which of the following is not an element of strategic thinking?
Judge which strategic changes to make
Realize what needs to change
Understanding current strategic positions
Manage organizational resources and competencies
All of the above are elements of strategic thinking
Which of the following is not a recognized area of opportunity, for developing synergy?
Functional
Processual
Strategic
Managerial
Which of the following is one of the four key elements, which must be adhered to if synergy is to be achieved?
Efficiency
Competitive strategies
Customer satisfaction
Strong values
Effective leadership
What is synergy?
When the organization is providing a product, to the customer, that perfectly suits their requirements
When the parts of an organization are combined and managed, in such a way that the drawbacks exceed those which would result, if the parts were operating separately
When the parts of an organization are combined and managed, in such a way that the benefits exceed those which would result, if the parts were operating separately
When the parts of an organization are combined and managed, in such a way to reduce costs
When costs decrease as the volume of unit production increase
Which of these is not a key stakeholder that an organization must seek to satisfy?
Managers
Shareholders
Employees
Customers
None of the above
When barriers to entry are high, the following is the most likely:
New entrants are likely to be deterred
Monopoly power is at its weakest
Competition will be strong
None of the above
When a firm is considered to have monopoly power, it has a market share of:
10%
20%
25%
50%
Organizations can add value by:
Putting their prices up
By adding positive features, and removing negative features
By reducing their prices, and keeping the same level of service
By making life harder for competitors
None of the above
Scenario planning should:
Not be contemplated in a turbulent environment
Only be considered when a monopoly position is held