Scenario –

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:

a. strategic intervention

b. SWOT analysis

c. value analysis

d. tactical implementation

e. 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

c .multiple core competencies

d. growth in the hospital industry

e. all of these

3. Refer to the scenario above. The business-level strategy used by the office equipment division would be called:

a. cost leadership

b. differentiation

c. focus

d. portfolio

e. core competence

4. Refer to the scenario above. The business-level strategy used by the personal products division would be called:

a. cost leadership

b. differentiation

c. focus

d. core competence

e. portfolio


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 supervisor