Question 1

Which of these is the process of identifying and selecting an organization\'s objectives and deciding how the organization will achieve those objectives?  A) Mission formulation  B) Planning  C) Value chain analysis  D) Strategy development

Accepted Answer

B

Question 2

________ is the set of planned actions taken by managers to help a company meet its objectives.  A) Mission formulation  B) Planning  C) Value chain analysis  D) Strategy

Accepted Answer

D

Question 3

The strategy formulation process involves both ________.  A) planning and strategy  B) strategy and structure  C) planning and marketing  D) strategy and production

Accepted Answer

A

Question 4

Which of these refers to a written statement of why a company exists and what it plans to accomplish?  A) Strategy statement  B) Mission statement  C) Value chain statement  D) Core competency statement

Accepted Answer

B

Question 5

All parties affected by a company\'s activities are called ________.  A) stakeholders  B) suppliers  C) stockholders  D) employees

Accepted Answer

A

Question 6

A company\'s stakeholders include all of the following EXCEPT ________.  A) suppliers  B) employees  C) consumers  D) competitors

Accepted Answer

D

Question 7

Which of these is the first stage of the strategy formulation process?  A) Formulate strategies  B) Implement strategies  C) Identify company mission and goals  D) Identify core competency and value creating activities

Accepted Answer

C

Question 8

During the second stage of the strategy formulation process, a company does all of the following EXCEPT analyze ________.  A) the firm\'s primary activities  B) competitors\' unique abilities  C) national and international business environments  D) the firm\'s support activities

Accepted Answer

B

Question 9

All of the following are part of stage three of the strategy formulation process EXCEPT ________.  A) selecting multinational or global strategy  B) formulating departmental-level strategy  C) analyzing business-level environment  D) formulating corporate-level strategy

Accepted Answer

C

Question 10

The objective to mass-produce a zero-pollution emissions automobile by 2020 would most likely belong to a(n) ________.  A) individual business unit  B) individual department  C) regional headquarters  D) global headquarters

Accepted Answer

A

Question 11

To be the largest global company in each industry in which we compete is an example of an objective at the ________.  A) individual department level  B) business-unit level  C) consumer level  D) corporate level

Accepted Answer

D

Question 12

At which level in a company do objectives usually become more precise and almost always contain numerical targets of performance?  A) Individual department level  B) Business-unit level  C) Consumer level  D) Corporate level

Accepted Answer

A

Question 13

Which of these is a special company ability that competitors find extremely difficult to equal?  A) Value chain  B) Core competency  C) Growth strategy  D) Location economics

Accepted Answer

B

Question 14

An architect\'s ability to design an office building in the Victorian style is an example of a(n) ________.  A) core competency  B) skill  C) ability  D) capability

Accepted Answer

B

Question 15

Which of these divides a company\'s activities into primary and support activities central to creating customer value?  A) Mission statement analysis  B) Location analysis  C) Multinational analysis  D) Value chain analysis

Accepted Answer

D

Question 16

Which of these is a primary activity in a company\'s value chain?  A) Infrastructure  B) Marketing and sales  C) Procurement  D) Human resource management

Accepted Answer

B

Question 17

Inbound and outbound logistics are considered ________.  A) capabilities  B) primary activities  C) support activities  D) core competencies

Accepted Answer

B

Question 18

Human resource management is an example of a ________.  A) capability  B) primary activity  C) support activity  D) core competency

Accepted Answer

C

Question 19

Which of these is NOT a support activity in a company\'s value chain?  A) Infrastructure  B) Marketing and sales  C) Procurement  D) Human resource management

Accepted Answer

B

Question 20

All of these are primary activities in a firm\'s value chain EXCEPT ________.  A) operations  B) inbound and outbound logistics  C) customer service  D) human resource management

Accepted Answer

D

Question 21

Which of these is a support activity in a firm\'s value chain?  A) Operations  B) Inbound and outbound logistics  C) Customer service  D) Human resource management

Accepted Answer

D

Question 22

A strategy of adapting products and their marketing strategies in each national market to suit local preferences is called a ________.  A) multinational strategy  B) stability strategy  C) global strategy  D) retrenchment strategy

Accepted Answer

A

Question 23

Companies often establish largely independent, self-contained units in each national market under which of these strategies?  A) Retrenchment  B) Global  C) Multinational  D) Stability

Accepted Answer

C

Question 24

Which of these strategies are appropriate for companies in industries where buyer preferences do not converge across national borders?  A) Retrenchment  B) Global  C) Multinational  D) Stability

Accepted Answer

C

Question 25

A strategy that establishes research and development (R&D), production, and marketing at the subsidiary level is called a ________ strategy.  A) retrenchment  B) global  C) multinational  D) stability

Accepted Answer

C

Question 26

The main drawback of a multinational strategy is that it does not allow a company to ________.  A) exploit scale economies in product development and marketing  B) closely monitor buyer preferences in each local market  C) modify its products except for the most superficial features  D) respond quickly and effectively to emerging buyer preferences

Accepted Answer

A

Question 27

In an industry where price competitiveness is a key success factor, a firm should NOT use a ________ strategy.  A) retrenchment  B) global  C) multinational  D) stability

Accepted Answer

C

Question 28

Offering the same products using the same marketing strategy in all national markets is referred to as a ________ strategy.  A) global  B) multinational  C) retrenchment  D) multidomestic

Accepted Answer

A

Question 29

Companies producing entire inventories of products or components in one or very few optimal locations are likely following a ________ strategy.  A) retrenchment  B) global  C) multidomestic  D) multinational

Accepted Answer

B

Question 30

Companies performing product R&D in one or very few locations are likely following a ________ strategy.  A) retrenchment  B) global  C) multidomestic  D) multinational

Accepted Answer

B

Question 31

Companies designing promotional campaigns and advertising strategies at headquarters are likely following a ________ strategy.  A) retrenchment  B) global  C) multinational  D) multidomestic

Accepted Answer

B

Question 32

Global products are most common in industries where there is ________.  A) little buyer convergence  B) low pressure to contain costs  C) significant price competition  D) high pressure for localization

Accepted Answer

C

Question 33

A ________ strategy can create cost savings due to product and marketing standardization.  A) retrenchment  B) multidomestic  C) multinational  D) global

Accepted Answer

D

Question 34

A ________ strategy can cause a company to overlook important differences in buyer preferences from one market to another.  A) global  B) retrenchment  C) multidomestic  D) multinational

Accepted Answer

A

Question 35

The main benefit of a global strategy is that it allows a company to ________.  A) closely monitor buyer preferences in each local market  B) save costs due to product and marketing standardization  C) avoid either growth or retrenchment  D) respond effectively to emerging buyer preferences

Accepted Answer

B

Question 36

Companies involved in more than one line of business must first formulate a ________.  A) business-level strategy  B) department-level strategy  C) corporate-level strategy  D) global-level strategy

Accepted Answer

C

Question 37

All of these are key approaches to corporate-level strategy EXCEPT ________.  A) differentiation  B) growth  C) stability  D) retrenchment

Accepted Answer

A

Question 38

A growth strategy is designed to ________.  A) guard against change  B) reduce the scale or scope of a corporation\'s operations  C) increase the scale or scope of a corporation\'s operations  D) mix growth, retrenchment, and stability strategies

Accepted Answer

C

Question 39

Yardsticks most commonly used to measure growth include all of the following EXCEPT ________.  A) geographic coverage  B) number of business units  C) market share  D) average age of facilities

Accepted Answer

D

Question 40

Which of these strategies is designed to increase the scale or scope of a corporation\'s operations?  A) Differentiation  B) Growth  C) Stability  D) Retrenchment

Accepted Answer

B

Question 41

Organic growth refers to corporate strategy relying on ________.  A) mergers and acquisitions  B) joint venture growth  C) internally generated growth  D) strategic alliance growth

Accepted Answer

C

Question 42

Methods of growth include all of the following EXCEPT ________.  A) acquisitions  B) joint ventures  C) strategic alliances  D) inorganic growth

Accepted Answer

D

Question 43

A strategy designed to reduce the scale or scope of a corporation\'s business is called a ________ strategy.  A) growth  B) differentiation  C) retrenchment  D) stability

Accepted Answer

C

Question 44

A retrenchment strategy is designed to ________.  A) guard against change  B) reduce the scale or scope of a corporation\'s operations  C) increase the scale or scope of a corporation\'s operations  D) mix growth, retrenchment, and stability strategies

Accepted Answer

B

Question 45

A company that is closing factories with unused capacity and laying off workers is likely following a ________ strategy.  A) growth  B) retrenchment  C) stability  D) combination

Accepted Answer

B

Question 46

A company that is reducing the scope of its activities by selling unprofitable business units or those no longer directly related to its overall aims is likely following a ________ strategy.  A) growth  B) retrenchment  C) stability  D) combination

Accepted Answer

B

Question 47

Which of these strategies is designed to guard against change?  A) Stability  B) Growth  C) Retrenchment  D) Differentiation

Accepted Answer

A

Question 48

Companies that see the business environment as posing neither profitable opportunities nor threats will likely follow a ________ strategy.  A) growth  B) retrenchment  C) stability  D) combination

Accepted Answer

C

Question 49

Which strategy works best with mass-marketed products aimed at price-sensitive buyers?  A) Differentiation  B) Stability  C) Low-cost leadership  D) Retrenchment

Accepted Answer

C

Question 50

A strategy in which a company exploits economies of scale to have the lowest cost structure of any competitor in its industry is called ________.  A) differentiation  B) stability  C) low-cost leadership  D) retrenchment

Accepted Answer

C

Question 51

Which of these strategies is one in which a company designs its products to be perceived by buyers as unique throughout its industry?  A) Differentiation  B) Stability  C) Low-cost leadership  D) Retrenchment

Accepted Answer

A

Question 52

Companies that follow a ________ strategy can charge a higher price and enjoy greater customer loyalty than the low-cost leader.  A) differentiation  B) stability  C) low-cost leadership  D) retrenchment

Accepted Answer

A

Question 53

Which of the following is NOT a way that products can be differentiated?  A) Quality  B) Design  C) Accounting methods  D) Brand image

Accepted Answer

C

Question 54

Which of the following is NOT a characteristic upon which products are typically differentiated?  A) Brand image  B) Product design  C) Quality reputation  D) Low cost

Accepted Answer

D

Question 55

The way in which a company divides its activities among separate units and coordinates activities among those units is referred to as ________.  A) process planning  B) organizational structure  C) capacity planning  D) mission and objectives

Accepted Answer

B

Question 56

An organizational structure that organizes a company\'s entire global operations into countries or geographic regions is referred to as a(n) ________ structure.  A) international area  B) international division  C) global matrix  D) global product

Accepted Answer

A

Question 57

An organizational structure that splits the chain of command between product and area divisions is referred to as a(n) ________ structure.  A) international area  B) international division  C) global matrix  D) global product

Accepted Answer

C

Question 58

A team in which employees from a single department take on responsibilities of their former supervisors is called a ________ team.  A) cross-functional  B) self-managed  C) global  D) domineering

Accepted Answer

B

Question 59

A team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems is referred to as a ________ team.  A) culture  B) cross-functional  C) global  D) self-managed

Accepted Answer

C

Question 60

Scenario: Beanstalk International  Beanstalk International is rapidly growing. The company wants to follow a strategy of adapting its products and marketing in each national market to suit local preferences. Beanstalk is intent on creating value for its customers.    Beanstalk managers should conduct which of the following to identify company activities that create value for its customers?  A) Mission statement analysis  B) Competitive analysis  C) Value chain analysis  D) Process and capacity planning

Accepted Answer

C

Question 61

Scenario: Beanstalk International  Beanstalk International is rapidly growing. The company wants to follow a strategy of adapting its products and marketing in each national market to suit local preferences. Beanstalk is intent on creating value for its customers.    Which of the following would be considered a primary activity in creating value for customers, as opposed to a support activity?  A) Firm infrastructure  B) Procurement  C) Human resource management  D) Logistics

Accepted Answer

D

Question 62

Scenario: Beanstalk International  Beanstalk International is rapidly growing. The company wants to follow a strategy of adapting its products and marketing in each national market to suit local preferences. Beanstalk is intent on creating value for its customers.    Which of these would be considered a support activity in creating value for Beanstalk\'s customers, as opposed to a primary activity?  A) Production  B) Marketing and sales  C) Customer service  D) Technology development

Accepted Answer

D

Question 63

Scenario: Beanstalk International  Beanstalk International is rapidly growing. The company wants to follow a strategy of adapting its products and marketing in each national market to suit local preferences. Beanstalk is intent on creating value for its customers.    The strategy that Beanstalk would most likely want to follow is called a ________ strategy.  A) multinational  B) retrenchment  C) global  D) stability

Accepted Answer

A

Question 64

Scenario: Beanstalk International  Beanstalk International is rapidly growing. The company wants to follow a strategy of adapting its products and marketing in each national market to suit local preferences. Beanstalk is intent on creating value for its customers.      Beanstalk managers know that the drawback of such an adaptive strategy is that ________.  A) it does not allow companies to exploit scale economies in product development, manufacturing, and marketing  B) it can cause a company to overlook important differences in buyer preferences from one market to another  C) it is applicable to industries in which price-competitiveness is a key success factor  D) it does not allow a company to modify its products except for the most superficial features

Accepted Answer

A

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