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Scenario – is a
large, diversified distributing company. The company is organized into three
divisions: personal products, diagnostic equipment, and office equipment. The
personal products division consists primarily of toiletry products for the
individual consumer. The products include shampoos, conditioners, bath soaps,
and mouthwash. All of the products are sold under store brand labels;
typically, the company signs an agreement with a discount store, and the
products are sold under the store’s label. Sales of this division (and in the
industry) have been relatively stable for the past ten years, and the division
enjoys a dominant market share. Due to increased efficiencies in manufacturing
and distribution, profits from the division have risen.

The diagnostic
equipment division specializes in developing and marketing medical equipment,
specifically equipment used in blood analysis. National sales for medical
diagnostic equipment have been growing over 20 percent per year for the last
five years. However, sales for this division are stagnant and there has been
some discussion among senior management about divesting this division.

The office equipment
division manufactures a high quality line of office furniture. The products are
distributed through better office equipment stores and interior design firms.
Sales in this division have more than doubled over the past five years.

1. Refer to the scenario above. To assess the
internal and external environmental forces that need to be addressed so the
company can remain profitable, needs to conduct a:
strategic intervention
c. value
tactical implementation
business correlation study

2. Refer to the scenario above. Threats to the
diagnostic equipment division’s problems may lie in:
a. new
entrants into the field
b. the
development of nanotechnology
.multiple core competencies
d. growth
in the hospital industry
e. all of

3. Refer to the scenario above. The
business-level strategy used by the office equipment division would be called:
a. cost
c. focus
e. core

4. Refer to the scenario above. The
business-level strategy used by the personal products division would be called:
a. cost leadership
c. focus
d. core


1. A(n) ____________________ is a desired future
state that the organization attempts to realize.

2. A(n) ____________________ is a blueprint for
goal achievement and specifies the necessary resource allocations, schedules,
tasks, and other actions.

3. The act of determining the organization’s
goals and the means for achieving them is referred to as ____________________.

4. ____________________ and plans are the
responsibilities of middle managers.

5. Operational plans that focus on specific
tasks and processes that help to meet tactical and strategic goals are
developed by ____________________ managers and supervisors.

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