Strategic Management - Study Mode
[#101] Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis?
Correct Answer
(C) SWOT's focus on the external environment is too broad and integrative
Explanation
Solution: SWOT's focus on the external environment is too broad and integrative is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis.
[#102] A marketing department that promises delivery quicker than the production department's ability to produce is an example of a lack of understanding of the
Correct Answer
(D) interrelationships among functional areas and firm strategies
Explanation
Solution: A marketing department that promises delivery quicker than the production department's ability to produce is an example of a lack of understanding of the interrelationships among functional areas and firm strategies. The Marketing Department is the key to good marketing and sales. It promotes and establishes a business in its niche, based on the products or services the business is offering. It identifies the areas in which the product fits and where the business should focus its marketing strategy and, therefore, spend its budget for the maximum coverage and results.
[#103] Which of the following lists is comprised of support activities:
Correct Answer
(A) human resource management, information systems, procurement, and firm infrastructure
Explanation
Solution: Human resource management, information systems, procurement, and firm infrastructure comprises of support activities.
[#104] Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except:
Correct Answer
(B) marketing expertise increasing a firm's revenues and enabling it to enter new markets
Explanation
Solution: Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except marketing expertise increasing a firm's revenues and enabling it to enter new markets. Firm infrastructure refers to an organization's structure and its management, planning, accounting, finance and quality-control mechanisms.
[#105] The competencies or skills that a firm employs to transform inputs into outputs are:
Correct Answer
(C) organizational capabilities
Explanation
Solution: The competencies or skills that a firm employs to transform inputs into outputs are organizational capabilities. An organizational capability is a company's ability to manage resources, such as employees, effectively to gain an advantage over competitors. The company's organizational capabilities must focus on the business's ability to meet customer demand.