Question

31.

a.

Concrete tactics that will reduce risk for a business are considered a key component of:

		A mission statement
		Positioning
		Strategic planning
		Environmental scanning

b.

If a company’s goal is to increase its percentage of industry-wide sales, it will employ which type of strategy?

		Merger and acquisition
		Market share growth
		Competitive
		Sales growth

c.

During the planning process, a specialty store states: “The company will establish itself as the leader in customer service online.” This is an example of putting forth:

		A goal
		An objective
		A vision
		A strategy

d.

Identifying the strengths and weaknesses of a company by evaluating its business practices internally and externally is called:

		Formulating a strategic plan
		Conducting a situation analysis
		Writing a vision statement
		Defining a differential advantage

e.

Which of the following represents a strength for a firm’s profit and growth?

		High cost structure
		Arrival of new technologies
		High employee turn-over
		High product turn-over

Answer 1

31.

a.

A mission statement is a statement in short which says about the existence of organization, its overall goal, what product or service is provided, the primary customers/market and its differentiation from its competitors.

Positioning means expressing how given product, service or brand fulfills a particular need of the consumer in a way in which its competitors don't.

Environmental scanning means gathering information in order to monitor the internal and external environment of the organization.

Strategic planning is a process of creating tactics which help the organization to achieve the goals of its vision. In a manner it helps reduce risks of a business.

Thus, the answer is Strategic planning.

b.

Merger and acquisitions are used to create a higher shareholder value.

Competitive strategies are used to gain advantage over competitors.

Sales growth strategies are used to increases sales with the customers.

But, Market growth strategies are used to create higher market share. A market share is the percentage of an industry, or total sales of a particular company over a specific period of time.

Thus the answer is Market Share growth.

c.

A Goal describes the destination.

An Objective is the measure needed to progress towards the destination.

A Vision is a statement which declaration of the organization's objectives, but the path is unknown.

A Strategy is step-by-step process to achieve company's goals.

Thus the answer is Vision. Because the statement does not specify any path, moreover it is not short-term plan. The statement does not specify any limit.

d.

Formulating a strategic plan means to choose the most appropriate action in order to realize the goals of organization.

Writing a vision statement includes the imagination or desire to reach a specific destination.

Differential advantage are the set of unique feature of the company which differentiates it from the competitors.

Conducting a situation analysis includes analyzing the strengths and weaknesses by evaluating the internal and external environment.

Thus the answer is Conducting a situation analysis.

e.

Cost structure only indicates the structure of costs in a company.

Arrival of new technologies does not directly indicate firm's profit and growth.

High employee turnover is not good for a company.

High product turnover means the company is purchasing and selling more at a faster rate, which indicates higher profit.

Thus, the answer is High Product turnover.