Ask a New Question
Menu

Strategic Management: Home Take Exam

General Instructions:
Answers from two or more individual MUST NOT are the same hence do their own work.
Date of submission: Must Be Submit On 6/12/2025
All students should submit the Home Take Exam exactly on the deadline (within 6 hours) or Before 12:00 LT; it’s mandatory!
Choose the best answer from the following alternatives and give your own justifications with short, clear and precise way.

XYZ clothing company is a manufacturer of a wide range of clothing fashion. Fashion is operating in a market with high growth and is a market leader. By the next year it is predicted to have 21% of the market share in growing market. Fashion should be classified as which of the following according BCG matrix.

Dog
Star
Cash cow
Question mark

Which one of the following statements is correct about contingency strategy?
One with no specific objectives that is fully flexible, using opportunism to seize the main chance at the right moment.
One with a formal approach to adaptive strategy creation, so that in unsettled environment objectives and strategies can be adjusted.
One that has a clear mission and directional objectives but that also recognizes the need for flexibility.
One with clear objectives leading to a clear strategy.

Which strategy is implemented after the failure of turnaround strategy?

Growth strategy
Expansion strategy
Divestment strategy
Diversification strategy

It is frequently considered as entrepreneurial strategy where firm develops and introduce new products and markets or penetrate markets to build share is;

Stability Strategy
Expansion Strategy
Retrenchment Strategy
Combination Strategy

Which one of the following statements is an example of competing on quick response?
A firm offers more reliable products than its competitors.
A firm’s products are introduced into the market faster than its competitors’.
A firm produces its product with less raw material waste than its competitors.
A firm’s research and development department generates many ideas for new products.
Of the following statements, which one refers to switching costs?
Cost of changing the firm’s strategic group
One-time costs suppliers incur when selling to a different customer
One-time costs customers incur when buying from a different supplier
Cost to a producer to exchange equipment in a facility when new technologies emerge
Selling all of a company’s assets in parts of their tangible value is called:

Divestiture
Liquidation
Unrelated integration
Concentric diversification

According to Porter, what is usually the most powerful of the five competitive forces?
Rivalry among existing firms
Potential entry of new competitor
Bargaining power of buyers and suppliers
Potential development of substitute products

It is defined as cooperation between two or more organizations with a common objective, shared control, and contributions (in terms of resources, skills, and capabilities) by the partners for mutual benefits.

Merger
Acquisitions
Joint venture
Strategic alliance

Which one of the following statements is correct about offensive strategy?
For small companies that consider offensive attacks in the market.
For those companies that search for new inventory opportunities to create competitive advantage.
For the market leader who should attack the competitor by introducing new products that make existing ones obsolete.
For those companies who are strong in the market but not leaders and might capture a market share from the leader.
When an organization takes up the same type of products at the same level of production or marketing process, so the organization to follow what strategy?

Acquisition
Strategic alliance
Vertical integration
Horizontal integration

According to the five factors model, an attractive industry would have all of the following characteristics except one;
Suppliers with low bargaining power
A moderate degree of rivalry among competitors
Few good products substitute
Low barriers to entry
Particular business unit operates in a low-growth, mature market, in which it has a large market share. What term is used in the BCG matrix for this business?

Cash cow
Star
Harvest/divest
None of the above

The vision statement answers which question?

What is our business?
How can we improve ourselves?
What do we want to become?
Who are our stakeholders?

In Michael Porter’s generic strategy _____________ emphasizes on producing standardized products at a very low per unit-cost for consumers who are price sensitive.

Cost benefit
Cheap leadership
Cost leadership
Inferior product leadership

Which of the following factors does not increase the bargaining power of a supplier?

Substitutability
High switching costs
Concentration of suppliers
None of the above

Strategy evaluation is more difficult today due to the following trends except one;
A dramatic increase in the environment’s complexity.
The increasing difficulty of predicting the future with accuracy.
The increasing number of variables in the environment.
Firms have unlimited resources.
Strategy formulation includes all of the following activities except one;

Establishing company mission
Establishing long-term objectives
Analyzing alternative strategies
Measuring organizational performance

Which of the following statements is true?
Business policy is for small companies and strategy is for big companies.
Policy is a subset of strategy.
Policy is made by corporate managers and strategy is made by business level managers.
Policy talks about what do, and strategy talks about how to do.
After graduating you are appointed as a strategic manager by ABC ltd Company. Being a strategic manager what should be your tasks to perform?
To increase the production.
Discovering a new product method.
Determining what businesses it should be in.
Defining the mission and goals of the organization.
Allocating resources among the different businesses.
Select the correct answer from the options given below.
iv, v and I
v, iii and iv
iii and iv
ii, iii, v and iv
Answer the following questions (21-25) based on the given information:
A company, "Green Tech Solutions," formulates an innovative strategy to expand into renewable energy markets. It develops a detailed plan with clear objectives, market research, and feasibility analysis. However, during the implementation phase, employees resist the changes, and resource allocation is delayed, leading to underwhelming results.
What factor hindered the implementation of the strategy at "Green Tech Solutions"?
Employee resistance to change and delayed resource allocation
Lack of a clear mission statement
Poor initial market research
Overly broad strategic objectives
Does successful strategy formulation guarantee successful implementation in this case?
Yes, as long as the strategy is detailed
No, implementation success depends on overcoming organizational challenges
Yes, because formulation and implementation are identical
No, but only due to external factors
What should "Green Tech Solutions" focus on to improve strategy implementation?
Completely revising the formulated strategy
Avoiding further employee engagement
Focusing solely on external market changes
Strengthening communication, resource allocation, and change management
What role does resource allocation play in strategy implementation?
It aligns necessary resources with strategic priorities for smooth execution
It ensures the organization avoids employee involvement
It is irrelevant to the success of implementation
It focuses exclusively on financial resources
How can resistance to change be addressed during implementation?
By ignoring employee concerns and pushing the strategy forward
By reducing leadership involvement in the implementation
By fostering open communication, training,& involving employees in the process
By focusing solely on external stakeholders
Answer the following questions (26-30) based on the given information:
A company, "Tech-Innovators," establishes clear annual objectives for its strategy implementation, such as achieving a 20% increase in market share and launching three new products. Despite these objectives, the organization struggles to achieve its goals due to poor resource allocation and resistance from employees.
What issue primarily hindered "Tech Innovators" in achieving its goals?
Lack of clear annual objectives
A lack of market opportunities
Overreliance on innovative strategies
Poor resource allocation & resistance from employees
Do clear annual objectives alone guarantee successful strategy implementation?
Yes, as long as the objectives are realistic.
No, clear objectives are irrelevant to strategy implementation.
Yes, clear objectives ensure success for strategy implementation.
No, implementation success depends on effective resource management and overcoming challenges.
How can "Tech Innovators" improve its strategy implementation process?
Strengthen communication, resource allocation, & change management practices
Reduce employee involvement in strategic decisions
Avoid setting annual objectives in the future
Focus exclusively on external competitors
Which of the following best describes the role of annual objectives in strategy implementation?
They focus solely on financial outcomes.
They ensure the strategy will succeed without further action.
They eliminate the need for monitoring and control mechanisms.
They are a foundation that provides direction but require complementary execution efforts.
How can resistance to change among employees be addressed to enhance implementation success?
Ignore resistance and enforce the strategy strictly.
Reduce communication about the strategy to avoid conflict.
Involve employees in the strategy process & provide adequate training.
Delegate all implementation tasks to external and internal consultants.

1 answer

Answers with Justifications

1. XYZ clothing company BCG Matrix Classification:
Answer: Star
Justification: With a market share of 21% in a high-growth market, the XYZ clothing company is classified as a "Star" in the BCG matrix because it has a strong market position in an expanding industry.

2. Statement about Contingency Strategy:
Answer: One with a formal approach to adaptive strategy creation, so that in unsettled environment objectives and strategies can be adjusted.
Justification: This definition reflects the need for flexibility while still maintaining some level of structured approach to adapt in changing environments.

3. Strategy after Turnaround Failure:
Answer: Divestment strategy
Justification: If a turnaround strategy fails, firms often choose divestment to cut losses and exit underperforming segments.

4. Entrepreneurial Strategy Definition:
Answer: Expansion Strategy
Justification: The expansion strategy emphasizes growth and the introduction of new products or market penetration, fitting the entrepreneurial approach.

5. Competing on Quick Response:
Answer: A firm’s products are introduced into the market faster than its competitors’.
Justification: Quick response in a competitive context refers to the speed of product introduction which provides a competitive edge.

6. Definition of Switching Costs:
Answer: One-time costs customers incur when buying from a different supplier
Justification: Switching costs relate specifically to the costs incurred by customers when changing suppliers, affecting customer retention.

7. Selling Assets in Parts:
Answer: Liquidation
Justification: Liquidation involves selling off all or parts of a company’s assets usually in a piecemeal fashion, often in financial distress scenarios.

8. Most Powerful Competitive Force (Porter):
Answer: Rivalry among existing firms
Justification: According to Porter, rivalry is often the most influential force as it directly affects the competition and market dynamics.

9. Definition of Cooperation Between Organizations:
Answer: Joint venture
Justification: A joint venture involves two or more organizations collaborating towards a common objective while sharing control and resources.

10. Offensive Strategy Definition:
Answer: For the market leader who should attack the competitor by introducing new products that make existing ones obsolete.
Justification: An offensive strategy is aggressive, aimed at gaining market share through innovation and superiority.

11. Same Type of Products at the Same Level Strategy:
Answer: Horizontal integration
Justification: Horizontal integration involves acquiring or merging with other firms at the same level in an industry to consolidate market position.

12. Characteristics of an Attractive Industry:
Answer: Low barriers to entry
Justification: Low barriers to entry typically indicate higher competition, making the industry less attractive.

13. BCG Matrix Term for Large Market Share in Low Growth:
Answer: Cash cow
Justification: A cash cow typically refers to a business unit with a high market share in a mature market, generating significant revenue.

14. Vision Statement Answers Which Question?:
Answer: What do we want to become?
Justification: A vision statement outlines the future aspirations of an organization.

15. Porter’s Cost Leadership:
Answer: Cost leadership
Justification: It emphasizes producing standardized products at the lowest cost to appeal to price-sensitive customers.

16. Factor Not Increasing Supplier Bargaining Power:
Answer: Substitutability
Justification: High substitutability can reduce supplier bargaining power as customers have alternative options.

17. Difficulty in Strategy Evaluation Trends:
Answer: Firms have unlimited resources.
Justification: In reality, resources are typically limited, not unlimited, hence this statement is the exception.

18. Strategy Formulation Activities Except:
Answer: Measuring organizational performance
Justification: Measuring performance is typically part of strategy evaluation, not formulation.

19. True Statement Comparison between Policy and Strategy:
Answer: Policy talks about what to do, and strategy talks about how to do.
Justification: This distinction clarifies that policy sets guidelines and strategy explains the method of achieving goals.

20. Strategic Manager Tasks:
Answer: v, iii and iv
Justification: Determining business involvement, defining mission/goals, and resource allocation are core responsibilities of a strategic manager.

21. Factor Hindering "Green Tech Solutions" Strategy Implementation:
Answer: Employee resistance to change and delayed resource allocation
Justification: Both factors directly impacted the implementation phase leading to underperformance.

22. Successful Strategy Formulation Guarantee Implementation?:
Answer: No, implementation success depends on overcoming organizational challenges.
Justification: Strategy formulation is only part of the process; addressing resistance and management challenges is critical.

23. Focus for "Green Tech Solutions" to Improve Implementation:
Answer: Strengthening communication, resource allocation, and change management
Justification: Effective communication and resource management are vital to overcoming resistance and ensuring smooth implementation.

24. Role of Resource Allocation in Implementation:
Answer: It aligns necessary resources with strategic priorities for smooth execution
Justification: Proper resource allocation is critical to ensure strategies are carried out effectively.

25. Addressing Resistance to Change:
Answer: By fostering open communication, training, & involving employees in the process
Justification: Involving and training employees helps mitigate resistance and promotes buy-in for the change.

26. Primary Issue for "Tech Innovators":
Answer: Poor resource allocation & resistance from employees
Justification: These factors significantly hindered the achievement of their outlined objectives.

27. Do Clear Annual Objectives Guarantee Implementation Success?:
Answer: No, implementation success depends on effective resource management and overcoming challenges.
Justification: Clear objectives need to be supported by effective management and resource allocation.

28. Improve Strategy Implementation Process for "Tech Innovators":
Answer: Strengthen communication, resource allocation, & change management practices
Justification: Focusing on these areas will enable smoother operational execution and goal achievement.

29. Best Description of Annual Objectives Role:
Answer: They are a foundation that provides direction but require complementary execution efforts.
Justification: While important, objectives do not guarantee success without effective implementation strategies.

30. Addressing Employee Resistance for Implementation Success:
Answer: Involve employees in the strategy process & provide adequate training.
Justification: Engaging employees and providing the necessary training fosters acceptance and eases transitions.