Reference no: EM133007022

True or False:

1. Resources And Competencies Review: This method consists of an inventory of the various strategy-relevant resources possessed by the organization and the competencies that are manifested through them. It tells the organization what means are available to it for carrying out any strategies that it might have in mind.
2. The "value chain analysis" is used to examine the organization's financial resources.
3. The bargaining power of buyers or customers may be able to force the organization to sell at lower prices, or demand higher quality, additional product features, or better service. They may also play industry competitors off against each other.
4. Without a strategic direction, the organization is likely to wander aimlessly through its competitive market place, waste resources and time, and perform at lower levels.
5. Top management has the ultimate responsibility for making sure that strategic direction. The fewer the people within the organization who are involved into the process (particularly not those who will have to implement the chosen strategies) the better for the organization.
6. As companies grow, revenues from individual product or service lines may become so substantial that it makes sense to begin treating these service lines as something like an independent freestanding business called "strategic business units" (SBUs). Even though they are legally part of the parent corporation (or the parent has a controlling ownership interest if they are legally independent), corporate management may grant these service lines considerable budgetary and decision making autonomy.
7. The collection of SBUs owned or controlled by a corporation is referred to as its "portfolio".
8. The relatedness among SBUs in a portfolio can be based on similarities regarding products, services, processes, systems, markets, culture, technologies, skills, reputation, and brand image, among other factors. The more such similarities that can be identified, the greater the degree of relatedness. Related diversification generally works better than unrelated diversification for these reasons
9. "Retrenchment strategy may include strategies such as: filing for bankruptcy and reorganization, divesting pieces of the corporate portfolio, or seeling the entire organizaion.
10. Strategy at the level of the individual SBUs is concerned with developing resources and competencies, competing in product and service markets, confronting competitors in those markets, creating and sustaining a competitive advantage, and responding to other changes in the external environment.