1) A business model describes how a company is going to make money.
2) The first step in the strategic management process is analyzing the external environment.
3) Evaluating an organization's intangible assets is part of conducting an internal analysis in the strategic management process.
4) Activities that an organization does well or resources that it has available are called capabilities.
5) When conducting a SWOT analysis, threats are activities the organization doesn't do well or resources it needs but doesn't possess.
6) Exceptional or unique organizational resources are known as core capabilities.
7) A SWOT analysis includes an analysis of an organization's environmental opportunities and threats.
8) The final step in the strategic management process is implementing the objectives.
9) Corporate strategies determine what business a company is in or wants to be in, and what it wants to do with those businesses.
10) Diversification is an example of a corporate retrenchment strategy.
11) If Burger King were to buy out Mom and Pop's Burgers, Burger King would be growing by vertical integration.
12) A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.
13) A stability strategy is an organizational strategy in which an organization maintains the status quo.
14) A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.
15) A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.
16) The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which ones drain organizational resources.
17) Stars, one of the four business groups in the BCG matrix, are characterized by low growth and low market share.
18) Within an organization, the